Agriculture, Forestry & Economic Development - House & Senate

Over. You know it. One. No one will get up there one. We can you you bet love to. Not much John how about you. Mr Hellman. What. I tell you what is a good drive home those yards or burned in a. On my. I don't know what your phone is one of the. What are not. I want to get this sign rounded up and down to. It's not far. Bruce what's the. I know there's no state fair this years are going. You still don't have. There are. That's all that it up Benton county. Been. Five star so. Amend you'd like to move I'm just a couple comments right to say everybody here today I hope you have a good way to end and we've got a long agenda so please any questions or comments you have Mike them to the point and the let's get this Vine headed down the chute twister tile up and get amount okay okay thank you all. the next item is to approve the meetings from the may twelfth. Meeting do I hear. A meeting to approve I have a motion and second to approve all in favor say aye. Motion approved. Minutes approved. I brings us to the Adam Davy update regarding the bow meta and Grand Prix water management projects and we have some. people that's going to give testimony on that looks like the listed length three. The. The. Office first okay we'll we'll do this the first time at the time it would show a man Mr loads bright red like. You'll come up. When you're ready identify yourself for the record and you be recognized for your presentation. My name's Edwards wine I'm the executive director the by me to water management project may I remove my mask for the presentation. Is that in order. Thank you. I've been in this job since April of twenty nineteen but since nineteen ninety five a work for the Arkansas solar water conservation commission Arkansas natural resources commission is legal counsel and is the chief of the water resources management division. Between twenty eleven and twenty fifteen I manage the update the Arkansas water plan the water plan compared demand for water supply for water look for gaps between the supply and demand and made recommendations on how to solve those gaps the water plan finds that the worst water problem in Arkansas is the depletion of groundwater from row crop agriculture irrigation eighty percent of all the water used in the state of Arkansas is for row crop irrigation eighty five percent of that comes out of the ground. Every year we lose storage in our Oxfords the alluvial aquifer and the deeper Sparta aquifer. In most the area will discuss today the alluvial aquifer is less than half full of water in some areas such as south of lone oak in Carlisle it's down to about ten percent saturated. As the alluvial aquifer loses capacity people drill passed it into the deeper Sparta aquifer it's a very expensive well to drill it doesn't yield as much water and it also threatens our drinking water in industrial water in east Arkansas because this part is the primary supply for those two uses. But we have plenty of surface water in the state of Arkansas and our big rivers in the Arkansas River in the White River. Going back to the nineteen thirties water planning documents in Arkansas recommended that we put that water to use to supplement groundwater solve our groundwater problem in continue to farm and your gate. Into the indefinite future. Without these two projects the long term agricultural economy for counties is at risk. By me to water management project has been under construction for ten years and we still cannot deliver water. We need your help to move from working on the project to finishing a project. To make it operational and we proposed to do that in phases we have a plan to complete the first phase turn on the pumps and deliver water to ninety thousand plus acres within six or seven years. A large portion of our financing plan to achieve this involves tax credits from the state and we need your help to pass new legislation to help with those tax credits. Our proposed financing plan will deliver water cost to the farmer it is comparable to the cost to obtain groundwater. Our financing plan also guarantees loan repayment which reduces the financial risk to the state of Arkansas. Our plan delivers water. And improve drainage for cost of forty eight dollars for the first thank you for water. We propose an assessment but we will not collect that assessment until the first year that water is delivered. Says some slides to show you to show what we have built so far. This is the inland channel two are pumping plant which is barely visible in that photograph in the background this inlet channel comes in the Arkansas River which is our source of surface water. As you move in word from. The in what channel you get to the pumping plant the Marion berry pump station at Scott this is directly across the river from the Wells fund plant which you can see in the background is that green and white striped that building the state capitals also visible where the arrow points this is very close to central Arkansas in movies that Arkansas River we'll move that were Arkansas River water east. The next slide. Shows the. Reservoir on the downstream side of our pumping plant which is a forty acre pond that will hold water this point from the river then we have three large gates to open and let that water out into the canal system to the east. Attention is advance the slide from here but it's not advanced. Do. We get somebody to help you with that. What we're doing that I'll tell you how much money we spent today and it's a lot of money it's a hundred and sixty eight million dollars on what we have in the ground and the plans to build more out of that hundred and fifteen million dollars of federal money has been put into the project and the non federal share from the state of Arkansas and by me to district has been fifty three million dollars. And we can not company water into we build substantially more infrastructure in the system. Thank you. So there's a regulating reservoir where will pump water hold it and then it goes through the gates that are visible in the upper right down the canal system which moves to the east from this popping plant. We have to cross several roads and highways this is the first bridge that we've constructed over the canal and it is on a now city street colonel Maynard road near Scott we have one highway one sixty one one sixty five four will soon. The building bridges as well. There's can now construction right now from Scott over to an area just south of morals gate and that construction will end next summer. On the southern end of the project in this is forty nine miles as the crow flies from the pumping planet Scott is the radio bumping plant. This plant is on little by media and will return one thousand cubic feet per second of water from the by me to water wildlife management area in other lands on the southern end of the project back to the Arkansas River needs the two pumps inside that pumping station. So my twenty seventeen those pumping plants have been idle for three years and at the rate that core of engineers money was coming into the project the state determined it would take about a hundred years to finish our project so we had to do something we entered into an agreement with the state to reduce the cost of the project and to come up with a viable financing plan to finish it. One of the basis for that Bible financing plan is an assessment so why did we choose to go that route. The state of Arkansas has through general obligation bond program for water and wastewater infrastructure has one hundred million dollars. Left for your geisha projects for both projects. And. That is not enough money for the non federal share for either of the projects and certainly is not enough for both projects. So if there were a new bond issue that had to be referred to the voters we need to give them assurance that we can repay those bonds from what we generate in the district and an assessment is a solid financial basis for that. Without any bond issue we would have to go to private lenders or other public programs to borrow the money. We learn that private lenders will only risk their money if you can secure that with an assessment for if the state guarantees repayment of the loans for. And this is the outcome we don't wanna if the state will regulate groundwater use so that farmers will have to buy the water that is delivered to. There's a new public program passed in twenty eighteen that makes very low interest money available to projects like ours has a billion dollars available in it. But the bar that money we have to have a credit worthy project and we have to have a dedicated source of revenue. If we were to try to secure financing with. Save water sales instead of an assessment we would expect that the state would require us to to have a review by an independent. Private investment firm to decide whether we had the credit enough to borrow this money from the state. So describe our financing plan we heard Garber engineers after we entered that agreement with the state in twenty seventeen to look at our project to estimate the cost to finish it and also look for ways to save money. So that we could turn also turn the pumps on as soon as possible so they broke the project down into five construction phases their own this math the first phase centers on Indian bio the first by that will get to with our canal that show the construction of. That will get water to ninety thousand or more acres of cropland and provide improved drainage all the way down Indian bio Indian bio DH and while the seek about. Under financing plan it will be self sustaining both on debt repayment and operation maintenance. Our financing plan using the numbers that Garber provided. Has to pay for total of a hundred and seventy four million dollars more construction phase one. We believe we can save some money and we've accounted for six million five hundred thousand dollars in. Value engineering in our financing plan we hope we can save more but we have to plan for. The worst case. We anticipate that the corps of engineers will get another seventy one million dollars if they're successful in their requests then when we formulated our financing plan our number was twenty six million dollars from USDA NRCS subsequent to our entry this plan we receive notice that we've gotten approved for twenty eight point one million dollars in our CS money and the requesting over twenty million dollars more so that's good news. So they gave us our remaining principal amount and the interest on that. So that comes down we divided by the number of acres in phase one to forty two dollars an acre. Part of what we're asking you to do or will in the coming session is to provide a tax credit so we can lower the effect of that assessment to around thirty dollars at the most again if we don't save money. So that between the thirty dollars in about eighteen dollars for operation maintenance water would cost the farmer forty eight dollars for the first acre foot. Mister Brandon can answer questions about how we talk to our neighbors about this project that I'll briefly go through that our board and staff visited with people in phase one about this financing plan and the price is tough to swallow at forty two dollars an acre a maximum assessment. But the majority landowners we spoke to especially if they were in areas where they already had severe groundwater depletion or they had flooding problems and training training G. issues they believe this is well worth it and again it's comparable to what it costs them to your gate now from the ground. It's we file the paperwork to raise the cap on the assessment alone County circuit court which created our district. Where water resources. Regional water distribution districts so that act provides that we can change the assessment when needed to build improvements were recruited three landowners to act as a board of adjustment to hear from people within the district who may have concerns with that amount of the assessment. One seven what is approved by the court will set those meetings and have those in lone oak and Jefferson counties. Again the assessment is not plan to be collected until waters delivered and unless waters delivered. And I've included a copy of the court order. Moving us forward and our financing plan in your handout those are all the remarks I thank you. Thank you. If you if you turn your Mike on. Thank you thank you our server we're pleased beer we want to help address any question or issue that you may consider. Our efforts have been. Been ongoing for a number of years but the initial thought was in after the nineteen eighty dropped. There were many people scrambling for water and the very basic process. Basic issue here is the river has the supply war there is a need it's expensive to get it there but we've maintained that we were on. Follow this effort until. As long as we think we can possibly afford. You would pull the Mike a little closer to you there. Thanks thank you. I would be happy to answer any questions it gave a good. Overview. Senator hill you're recognized. Appreciate you German being here today great great program needed showed assist in that line of the US and just get serve a question that had several text coming to me from people watching this up also and so when a when the gentleman we referring some questions from people in the area who don't want their names to be known a sum of becoming directly from the and I'm not afraid to say to come for me or not okay up this first question I have come directly from me it is. Only about two or three part series one is what other options did you all look at. As far as paying the bang this means on the second one is. Did you all right any point. From beginning to now tell people that. There will be charges large of an assessment. What we looking at. What kind of a seven page I'll talk about at the beginning back in nineteen ninety one never this project started well we formed improvement district in the early two thousands. With the authority from the court to assess up to five dollars per acre and I think it may have been a law for the in that neighborhood we started collecting and have use that money for operation. On our district level for the most part. Fast forward to now where the request is. We have looked at. Possibly anything that came bind terms of financing I think with all quickly agree if the state and the federal government would pay for it. How to present no four there's no need with all the real happy on our level. But being realistic. We're here looking at the way to move water to some errors. And it's at a cost. Now. We haven't determined that we're going to charge that we petition the court for the authority to go up to that and why that number it would take that kind of money to cover the cost. For an acre food water. Okay up on that you mention the five dollars originally yes back back the now we're looking at up to forty initial cost of forty two dollars which is called the weighty and just it's going down because that's an opinion as the out that's an opinion but even with the savings that you're looking at here on percent back what is the projected increasing cost per year. Increased and the assessment that now the cost of the project. We think we are two three percent is what I've heard for years we soon ordinary right of inflation. We projected that into. Inflation is projected into this financing plan out to twenty twenty four which is the middle of the construction period for phase one. So we've built inflation into that that one hundred seventy four million dollar figure includes twelve percent contingency for unexpected over runs in costs it also has that inflation rate building and again until the middle of the construction period so we have done everything possible to make sure that we didn't fool ourselves into thinking that we can build this much cheaper than the engineers. Determined when they went back and looked at the cost of the project. We hope to spend less money on it but we have to have a solid plan so that will have the ability to borrow enough money to make it work. Now you mention that during dinner conversation there that the forty two dollars per acre you talk to people in phase one yesterday that done in three or four years. Have you had town hall meetings with phases two three four five. No Sir. eight public meetings in phase phase one. We've been out and visited with many many landowners in small groups of course because we had limitation on how many people we could have in a room with busy with amended number for both before covered have you had any public meetings before that going back years certainly yes Sir yes Sir I like going document and we met. Regularly since nineteen ninety two. And and a very trailer I would offer this opinion is transfer her. It's there we have written records of what we've done we determine the numbers based on. The best information available. I'm I'm I missed the chance a moment ago just a comment we're here to answer your question right there's not any questions they're not on the table you got one ask open we won't we won't. Examination I do right thank you for that and for the record I think your project is a great idea we need to say to offer I don't have a problem with that whatsoever I have a problem with the forty two dollars per acre yes Sir I have a problem with thirty dollars per acre in every person in our district would share your concern. I thank our job is to examine it in to see if it's in any way. At that cost down there on the information that these men of work collecting. That it appears to be the best day a simple thing in this thing and all that it have the detail. In the numbers is based on financing this thing is two point something percent interest there's a possibility with this program it could be. Warner less than one fraction. Which would make a huge difference. In the total cost. That you're doing you're thinking about this and even saving and you mention work interest yes then that takes me to a to a different level the people out there who have had their lan financed. Dave Adam's petty finance for ten years already it's already built into their budgets. You up forty two dollars per acre only on they have it in their budgets are ready for making their payments barely cash flow and to build up. D. for later in life or to live off the rent. What we do with them that you want to the value your property I don't think so. I'm of the opinion to increase the day. Amend the bill is backed up into real sample of some our question real question do we more your gated agriculture in the district or do we want to divert our convert this thing to dry land and if you look at the numbers. And our intention is to state your date. I think the numbers will prove. To be worthwhile will it be a bird you betcha. It will We help. But I think part of a public responsibility is to look into we have the resource we have the need can we afford to get their act maintained I will maintain on behalf of our group we cannot afford to go to trial and error cool. I really think if you take the time to look at the numbers we've done this countless times. Where are the numbers. But I mean is there a budget out here anything for for all the us to show it even cash flow and after the project is done. Yes Sir and that's the basis of our financing plan so we have. The work that Garber did over the past three years two value each of the parts of the project so they looked at costs removing dirt cost of building structure so that was the basis of the cost numbers in Garber's put those in reports then we worked with those numbers for how much it would cost to build. Look at other sources of money like corps of engineers and in our CS then worked with our assessor Aling keen to determine how much the cost would have to be spread out over the district so comes from a variety of sources but it starts with the find the cost that Garber updated. Use in the older court engineers cost the design in the end current cost inflation it said to determine that hundred seventy four million dollar figure okay. Look look in an interview we have several in the in the case. Okay. A couple questions you mention for Karen is I don't know if you to name those four would you name those for for the people is not that familiar with this the issue yes Sir the main county that our project in is in is in is Lonoke county. And then it stays one would move down in the Jefferson County. We have a portion of prairie county until we hit the edge of the White River project we have a little bit of Arkansas county again our project fits against the White River project. Thank you mention the. The the drilling is having to go below the upper level into the lower level. And did you say that that is ten percent saturated is that the term that you use for the. But in the upper all of the alluvial aquifer in places only ten percent I saturated usury is that the the top honor the bottom one top okay. Okay. So the okay. The six thirty eight. Representative Jett to. Thank you Mr chairman honest cost forty dollars per acre and I'm shoot from the hip because I was trying to look it up knocking I can't find it but I think so Longman two heavy souls or I'm sorry sandy to so long souls can run up for four foot occur food on rice is that correct he has an off topic here. Their job I would submit two years no one using four feet at the time separate because of cost new techniques one of the ways we will solve this problem we'll be using less water to produce more crop that technology is here it will expand in my opinion I'm not a scientist. But the. Two three yes your question up to three wood duck. Many people using that are less on. They're rice production row crop corn cotton and soybeans maybe an acre foot. To this most of the most of the soul of not through the Grand Prix is that so long as what that is not an Where you talk with Bert I'm an adult I'm on place awards We have still alarm in the neighborhood would produce a cotton and rice on it that I am the majority the ricin in this part of the world is on clay schools or at least a half percent okay the the people that's going to be inside this program is forty two dollars an acre to assess our art is people have the right to assess not not to assess and an opt out of the program or use one pretty much Fiona acres you pay property taxes on all the acres budget pages forty two dollars as I can work will be based on the assessed value. Some makers are going to receive more benefit than others so for example somebody got the sod farm not only in on the sap that Klay sought form treated farmer something like that not use a lot of water we're going charging forty two dollars makers will. But it up I suspect they use an acre foot but I know that you've got document he doesn't use that much the assessment very likely is got to be there to make this thing work what is a purchase a Walker might be less but you don't you can you argue that's going to be fair to somebody is not going to use a full like a foot of water on and they can just water out of their existing wells you go make make somebody up by forty two dollars US but was back up and talk about that existing will. That existing well is not going to be usable in the foreseeable future W. making this person determine that himself as opposed to you determine that factor for him or her the. I'm sorry I'm may be lost what what will I mean basically that's what you're saying is regardless of what crops to grow I'm assuming on tie this back to FSA numbers so if you have an effect if the same number of for whatever crop you're going to need in the lobby I mean you might be trial and I'm assuming there's gallon crops through there the for Jalen props to there we go still you still talking about access and somebody forty two dollars an acre there's. But there is virtually no dryland or who culture in the area. I would submit to you that you can't afford no one can afford to farm dry land. In Arkansas in my opinion but in this district Mr. Look at the forms that are there now the forms have developed your gradation at a cost for all these years we might ask ourselves so what do you think it cost to produce water out will per acre foot. I might give you a number and I might be writing not be wrong but it's a lot more than what the average guy thanks our wills or more expensive the driller pumps to repair. And we're depleting the source of water. Well I understand that Sir not in justice and just for disclose rhyme farmer and so I I get it not sympathize with the bus was going on and rice farmers will but I I have a hard time getting past the point of making somebody has dryland crops and do not water near gate have to spend forty two dollars on the system I don't think we're talking about signs the did I and cable for somebody if you're gonna that's what I understood you Sir but I went on this but I misspoke. Part of the gain out of this is by. We're not supply a hundred percent of the year Goshen water to their. But if we supply a percent high percentage of it or fifty percent of it then the depletion rate should stabilize middle leaving those whales that remain. In function for an extended period of time. Now. Somewhere I heard again. We have the information that we've collected is rather transparent. It's there we're not trying to and I'm not trying to force anybody anything but I'm trying to help answer the question. Is it in the public's interest to have your greater agriculture in there you versus dry land. I think so I think is in the best interest of this state. If you guys are not interested in helping save that aquifer. We're all in trouble in that arc of that offers the and we are over popping it and have been for fifty years I came back to the farm and almost eight years watered our shop your student. Number forty feet. It stands at eighty today the bottom is one twenty. This is not hard to understand not man I'm not being disrespectful anybody but I'm I'm telling you we we've got a group that have looked this nine cents and the eighties really we started actively by putting some real money to create an organization in pursuing this. With the understanding we need. Not just me personally but the area affected. We your off Michael look at it and say the area is all of east Arkansas. There's exceptions to. But. What will be the effect on the article further say this project gets done. with the article for. Okafor recover. You will look at least stabilize. I should say I should sure that we will recover. I can't answer that other than I'm told that if we ever to play to thing and if for no more normal county structure falls in it's not going to hold the water the capacity the water that it had. Even here is ten percent depleted. I don't think so all the information we provide so do you think there's any effect now that it is corruption yes but not that essentially areas of abandoned trying to pump water out of it. This would be my way of approaching the. Okay. How we we would missed on something here long ago. These man made they were public meetings but we made an effort to deal with people visit with them ask their opinion from the top of the area to the bottom and. My thought when they first started these small group meetings with the compact with not honor it. But the majority a clear majority the people who invested with or interested. And we're talking only about irrigation there's two halves this thing and it's actually the first half. Is the cost of improving the drainage that has to be done before we put in the water. That and that's of value to everyone it has an acre farm where does the the words the town's get their city water. Same place now this for the detox. Okay and if you start looking at resources in the state to industrial and municipal water supplies. I just north so the whole point is that deeper Oxford. There are plenty of Bragg operations. Drilling into it and produce in order at great cost. well today in the alluvial aquifer Michael's twenty five thousand books. One into the sport of my cost eighty two hundred and forty thousand. Okay the seat eighty four Senator hammer. I expect that if you probably. Okay moving. The seat AT the circuit is Mike thank you Mr chairman and also the appreciate your holding this meeting to be honest I was I guess a little I've been in the law that in a lot of conversation about by me but somehow I missed this one actually represent the vast majority the district here that's going to be impacted. I guess what I'm gonna try to get back to the clarification of that Representative Jett was kind of going after to so. The way that I understand it is it's a blanket forty two dollars and acres that Ryder my missing something based on an assessment that I really don't understand the calculation of four it is four year gated acre essentially acres it will be your gated because it's crop land within that phase one area and we have gone to the assessor's records and we're about ninety thousand acres. In phase one that our taxes crop land now what we intend to do is to get our water from those bios for will do the bio clean out for drainage and also to convey the water they will build about twenty five pipelines in phase one and those will reach every farm. In phase one you will get to the edge of the farm if it's above a certain size I think forty acres there may be a sweet spot to hit but even small and moderate size farms we will get water to. And I've talked to one dryland farmer a farmer just a little bit of land and. He wanted us to reassure him that he would get water from this because he's excited because he can go from trying to grow crops of that you're gay Asian to actually having some you're Goshen water but there's no there's no piece of this this based on actual usage the minute is that right is that what I'm understanding them at one point dole conversation used to be that you're going to charge per gallon used or whatever whatever the metric is and we've moved away from that to now we're just saying forty two dollars for any year irrigated land regardless of how much irrigation occurs yes Sir and that is to. To give us the credit to borrow the money to make the project work I understand that I mean that and I guess that's really where my concern would by I mean if you've got a piece of land I mean all all irrigate the land is not the same obviously specially in that area. in any ET and it's also going to take means for some of these farmers to be able to pull the water out and that means it's not going to exist in some places and it's gonna be more cost effective for some folks continued usapa fire because they don't have the you know financial resources to retrofit to use whatever it is we're we're bringing to the forms I would assume. I I I guess I. I just wish we would see some piece of this that had to do with usage as opposed just district forty two dollars an acre regardless of how much water you're actually pull in when we discussed using water contracts is the basis for financing plan with the state the state needed more assurance that we would sell enough water to secure the loans. Right now we have a loan with the state that is not repairable until twenty fifty two. So to continue to finance the project just based on projected sales. We would have to pass the risk to the state of non repayment so the state would have to deferred those loans and to the point when we had sales enough to repay. If we have these farms where someone's perfectly happy to continue to use A well or if they want to remain dry land it cetera then if we don't have an assessment they don't pay into the project at all. So we have to rely on sales of water. If it rains for one year two years three or four year period heavily in your Dacian season our sales will drop. If people just decide not to buy the water for one reason or another or they continue to overdraft the aquifer at the rate they're doing now and don't bar water then we don't have the sales to repay the loans so the purpose the assessment is to take the cost of these improvements which should be drainage and irrigation improvements to the whole area. And spread those over all the land will be benefited. And that way we'll have a secure way to bar this money over a long period of time in the state won't be in a position of having to come in and Linda's operating money or continue to for loans for. They would have to bar this money at such a high rate of interest that the water fees would be double what we're talking about to do we anticipate the farmers folks the the landowners who every I mean and again I'm not I'm still not sure. Who exactly this is going to charge when it is if the in the fees going to fall on dry land folks too so it's not just limited to those that currently showing your gay Asian. At which means hunting land that isn't farms that all that going to be included on the land. Cropland well. Yeah could you mention Hyundai plan was not properly. Not include. Well there's. I should have. Well eight again I mean I think that's where you're going to get pushed back it's not based on usage you gonna have some folks take full advantage some folks are not gonna take vantage some folks that need to and some folks the down and at the end of the day forty top food forty two dollars an acre is is a lot of money with windy you anticipate if you were to to push through with this and everything's granted went when with those assessments begin I'm treatment should not dismissed it they would start the year the waters delivered and we anticipate would take as six or seven years to complete phase one okay all right then and there so the people in the queue I'm I'm a circle back. Thank you senator DISMANG. A Representative Lynch. A yes. And the. Thank you all for being here and I you know I'm a big supporter of this project but I also know that there are some farmers especially young farmers that are leasing land making equipment payments and this forty two dollars could very well put them out of business. Cell we need to look at the impact on the people that are. Affected by this that or not landowner's. But who have to pay rent and about a hundred twenty five dollars an acre. They're buying their equipment so they're making huge with the payments every year if you go in and take the safer thousand acre farm you take forty two thousand dollars out of their budget. They can't be their family you don't buy the renter or the land of the renter. The landowners going past that forty two dollars on to the people that ran it most let me give you something to put in your thinking that a longer Land Rover has near gated ache today in South and along okay I knew that my rant casual for a hundred fifty Bucks an acre if it's dryland it's forty to forty five dollars an acre. The landowners going to decide whether he wants to. Have your Gator results are dry land even if you spend forty Bucks an acre or whatever it turns out to be I'm do the math take that away from hundred fifty nested a better than forty five Hey I understand that what we're talking about to some public good. The right I understand overall that projects OR clout but I also know that there will be a disparity impact on some of the demographics of people who park. And the and they're not gonna be able to afford to stay in business so you know we need to look at that we need to look at the impact of the people there be an SS and that's that's my plea in our respected. I don't. Want anyone forced to do anything. But if we're going to have a your gated agriculture we're going to. Lose it if we do not get alternative sources of reporter. I don't want to yeah and I understand that I told you guys B. exporter the project but the way we're financing this is going to have the US significant impact on some portion of the farming community this was the floor I in the short term would you would the state finance it with no guarantee. I don't know what I would I would be pleased to hear that yeah it's difficult to understand so much hype and. We've hardly left the stone on term we worked on this long period of time this state is to ask us to come up with a revenue source that somewhat guarantee. Tax on land that is an asset. Of. one you're gonna do we want to protect the aquifer is that in the best interest of the state from an economic return. Is the numbers will document that I don't have too much to go in a shorter time somebody's interested. They're for motion that we have we want you to have. We don't have an alternate plan can with I hope there's one out there. Whereas the federal government or the state of Arkansas your reserve saying and puts their name against. Not lawful. I hope you I hope you would explore that and agree to do that. I don't question on nine. The assessment is per cropland and suppose there's nearby the land that. The crop land owner would not be measured by the amount of water usage is that open the door for resellers. And all that I understand the question run that by me again. Since it's not measured for the owner of the crop land then hit waters not being measured and then there's other land that is not crap land but they may have a use for water. With that open the door for a reseller to come in and. Profit off of that. One of the things that we've looked at in the past weeks poured water sales contracts is that someone would have a minimum. Purchase amount per year and that would help you with the weather effects and and just seasonal changes. Then. That person who had entered into a contract with the district would have the option of reselling part of their allotment water to a neighbor who might need more is Mr Brantley mention we're not. Our project is not designed won't have the capacity to supply four feet of water to a piece of property for irrigation during an irrigation season what we do have the designed to do is to supplement current groundwater use to the point where we even it out so that we retain that storage in groundwater so there may be farms that don't use as much water as they thought they might and that way there would be an opportunity to shuffle that around within the district to the benefit of the seller and the buyer that water. Okay thank you the. There there needs to be a separation our our our stop separating. The landowner in the form. The value is against the production of the property the property value long term it only needs of former if it in my opinion if it has water. If you don't have That land or might be spending fifty dollars an acre providing the wills and equipment. To get the I am not that much but forty. Our water are well water is expensive he gets more expensive every year. Understood. A Senator hammer you're recognized thank you Mr I was just curious in all your data that you collected on this were there any projection of savings that a farmer might experience if they had access to the bile meal system as opposed to other methods of putting water on the on the landers or a difference. Is there an alternative to the river water. Yes that is there if if they're going to be made to pay the forty two dollars an acre. And the intent is to increase access to water and what you're proposing is depleted water supply because the way it's being done now is there any savings that would result that would offset that forty two dollars per acre charge because of now having access to the bile meet a proper water source we read I really think so our group this. It does. Have an access to water is the key state. Are you gonna are I'm okay back in the. And if you will take the time to look at it dryland agriculture is not going to provide economic opportunity for this region in the state. It's gonna stay FX state revenues. There is going to be very few dryland farmers you may have a guy that has a crop insurance plan some way to beat the system but is forced producing at a profit. At least the last fifty years that I've experienced it won't work it gets thinner every year. All of Mr sure thank you so are there other systems like this in other states and how does the forty two per acre Cape compare is a comparable to what's being done in other states his name comparable to the one we have in the neighborhood which is well on the fourteen thousand acre your geisha project do is put in place in the year nineteen ninety two okay and used I use water out of this but it. Great deal why is it cheaper because the ninety eight percent of what was paid for. With. Government fund. Ninety up our to about almost a hundred percent is what I'm trying to say. But again you guys pay for we deliver water eighteen dollars an acre you know someone's got by electricity and maintain the thing school call something. But where does the guarantee come board is the credit from the spread it out over the next thirty years or whatever. The last question or comment I'd have elect your your response to it is with regard to the independent farmers that are going to have a little bit more trouble absorbing the cost of this versus the corporations that own large chunks of land not to mention for countries like China and Japan the only large chunks of land that their farming on how is this going to create a disparity between the small independent farmer versus the corporations or the countries that on the property first of all as a what do you think the ownership former ownership or corporate ownership outside of family structure is in Arkansas or special in this district that that I'm an well a I don't know virtually nothing. Okay I might be wrong by two percent that's fine A that's fine I'm just think it to the future that if the small farm grows out of business and I and I get the argument of the water if you don't have water you don't have foreman I understand that part of it just the the lowest cost to get the project done and and who would be positioned to buy up these farmers in the event that they can't afford the forty two eight dollars an acre some of test I'm just try to get my mind around what the potential future is as far as who's going to be position to take advantage of this if it squeezes out the small farmer. Okay thank you senator thank you. Centerville. Thank you Mr chairman I want to back up just a step here in kind to the county to the beginning of it. In just ask some basic questions from all knowledge on this how many board members are there. Grade twelve thanks because we have some absences we've had some people to resign we've had a death there's are we in the process of getting that bored. Back to eighteen. Writing your original number the minute Irvin higher than that when you start talking about trying to fill a board out of a small geographic area get a number of people to do it is a provincial okay and the twelve if I'm not mistaken made up from all five. Possible regions that are on the cover with the S.. We now have your vote on the assessment to go forward and to refile the court case and everything. What was the vote on that. About my my bill of one person eighty three. Eight eight to have their work it'd three vote no or they abstain they've. Thank. I don't look at any other revenues for explaining this knock it like I said I think it's a great idea don't get me wrong I'm not being day if I know it may sound that way but I I'm really not trying to be made on this one but trying to sell this to a broader spectrum let's say to municipalities going through to these areas where you going to hit pine bluff you hit a stud guard you had a lone oak good Keogh something to try to spread this call staff so two the individual there with your treatment budget bit haven't built evidently is a pretty pretty good for a play is there any way to do that we take spread this cost out first go look at the water source they don't want water out of the. Movie lock for their in the sport that infrastructure is in place what they were what will. Should what are the what they should do is make sure that they're protecting the source of water they have there's depletion of the sport to offer as well. That affects the municipalities and the population. Yeah and that's that's what what if we can get more involved in in the us to spread the cost out. F. make a big difference spread across is a fine idea. I don't think that's. A probability in. By one or in Belle Mead NJ what one of the ways is the state has helped us on this project for thirty years and through its general obligation bond program it's land and granted money to the project so the state is already paying money at a general revenues on those bonds so that's the way that the state already is is. Help in finance that so that spreads the cost to the larger public in municipalities if you take the years you mention that drill into this part of for municipal water. You know they borrow that money from the same bond programs and from other programs the stated ministers so if we have a situation where these municipal wells are not productive anymore because we've. We're able to out compete him vastly with irrigation wells. And if those cities and rural water systems lose their source of water in the Sparta then they have to look to surface water source if we were able to deliver them the water from the Arkansas River. They would have to bill treatment plants to bring that water to drinking water standards right now they pull it out of this part of little chlorine in it and send it out in the lines so in a round about way through the work we've done with the state the cities and other beneficiaries of this are already. Having a a big investment in the project and that's another area where the tax credit that fits in our financing plan matters there several thousand acres farmed at Tucker by the prison. That irrigated and those won't be tax because their state owned lands so one of the reasons that we think that a tax credit help spread that cost out is that you're gay Asian at that prison is a state expense so that tax credit can help finance that. So there are ways to spread the cost out that are less direct in water delivery to a municipal water supply are other other user of water. Okay one more. I like it afterwards to to go to a bunch other questions that I have from from individuals in the area I think I've got a great idea great project I think I think those ideas are great I think they're fine I think you're going to put our farmers out of business to and yes this is not my last comment especially the young guys starting up who who are just trying to get everything going hello because you're reading land that gets passed on the cost is passed on to the landowner to the to the goddess raining it if you've got some marginal ground there's a lot of marginal ground in Lonoke county in these others yes some really good ground really Gregory which I figure but there's one miss farmer let the good ground I I know I know people have a lot of the background okay it is going to wait with that land that margin. You know what's happening in that situation not just our form but people are as good in improving land for engine Speaker near my hard time hearing you. As community we've made a genuine effort to improve the marginal land there's not much marginal land except dryland. Where might we as a community have made an effort to get this land words productive. We want to keep it that way I thank you is a state. Elected officials. If you will examine what we're doing what's being done not just ahead or the staff look at the numbers look at what we've got there some public good that will come from this do you think that a guy starting up this minor Quitman is going to accept another forty dollars worth of rent he can't. Who's that birdie you may be transferred and some really strange ways but the land acre the owner is going to have to continue to provide a source of irrigation if he's gonna get top rent. A real. I think you'd be surprised at what what what I might be surprised what you call marginal and what people. We're talking about a very good productive very we've taken some stuff. My dad took away from the frogs and started in some pretty productive land its main Israel skews me but it needs drainage half this cost to the average guy in there in phase one will be for drainage if it when you're doing bad or good. Spend sixty five years. Any improvement going through the state. We need drainage and I was really surprised at the number of people that they interviewed. That was our first come. We were talking about your gauge one that's not tens bill we talk about. Was the drainage cost the drainage component this thing. Is it all almost as important as the for the irrigation water. Also had in hand. Okay okay I can't rent that land to anybody if is not irrigated you're capable and drank. Okay thank you Representative Beck you haven't had a chance yet similar recognize you. Thank you Mr chair and that I think this relates to maybe what Senator hammer was talking about but. In real simple terms are. A foot acre is is a term you guys are using so if I were to be pumping that as existing opted for what would be the cost to do that I understand it's gonna be a little bit different but A bill limit let me finish the question first and then compare that to what this. Water that we're going to get out of the out of out of this your project for and then also the cost of that water if we go deeper down to the deeper aquifer self so did just to try to put those in perspective so. Forced place. In the current system guy using the will popping out of the shall log for might be spending fifty dollars plus an acre to create the system to do that. Not including feel it cost money. Because more of your. Out of it to go into the deeper water. I'm not sure that I'd need to give you a real numbers but I'm of. One thing that kind of pops up to meet in that shallow aquifer when the water would the waters there. You can take a fifty horse motor. Produce a thousand gallons a minute. Your gauge more you go to the deeper one sitting right beside not only does it cost two or three times as may be more than that is constructed you go my goal from eight fifty horse. Our two two hundred and fifty horsepower it happens to use a great deal more fuel. There's nothing cheap about their. Better deal than dryly. So then the last one would be the the farmer would pay out of out of your project would be paying. Well. To be between the assessment and the water charge you would total forty eight dollars and that is if we have at least a twelve dollar tax credit and. If we're able to save any money we can lower that assessment if we do a better job on being tight with construction money if we avoid areas where we have to build a new bridge if we narrowed it down where we can have to do that then we can save money lower that assessment. Mister four question okay quick. Agenda so then. And you said the forty eight dollars and saw my dad my math right here at forty two that is the assessment so you're saying you're delivering this water for six dollars. Eighteen Sir yes Sir and then the sad my math from I think you're ma'am I'll be right to forty two dollar assessment and you have eighteen dollar cost. Does not get it to sixty Bucks it does and that's for the tax credit comes into play yes hoping to get some relief. So the actual figures what the decided could hear you could be sixty are okay. Discussion is that a good number. Thank you Mr chairman Representative Jett. Thank you Mr for your indulgence is this very quickly we stopped all but some say I think you will find as most of general Stanley is sympathetic to what's going on here and and don't seem like we're adversarial at all because we're not understand the situation must my colleagues I think you're probably restaurant situations well what we are having a hard time dealing with grappling with this is forty two dollars says and here's the reason why of a prime example if a farmer comes in and says the you put this blanket assessment across everybody in the estate prevented planning or his crop is Phil say he gets his crop up in the hurricane blows through or whatever now not only see loss of property is also going to spend another forty two dollars assessment assist honest at RES losses crop on is to and I was sure you see when you said on our side of this bill it that's problematic when ark artistic start calling us that they're being levied forty two dollars after that after the Crossman failed but but that's not my question but here's my question break break very quickly walk us through the dot dynamics of logistics of the tax credit and how much it's going to cost state. We currently have a tax credit program that encourages water conservation to get a tax credit if you build a reservoir or tail water recovery system you can get a tax credit if you do other conversion from ground to surface water use and also for land leveling that program varies in the benefit depending whether you're in a declare critical groundwater area our project in White River definitely within the critical groundwater area. What we talk about is if someone. Is subject to the assessment. That the law would be changed so that. They could apply that same tax credit program against their income tax liability to the state of Arkansas. And if it were a refundable tax credit so that that money comes to them regardless of their tax liability that would be the simplest way for the farmer to receive the credit if they don't have tax liability again it's income tax liability that equals the amount of. Eligibility then under current law they're allowed to sell those credits to other people who by that of course there be a discount on that sale through some broker of the credit so we would recommend a refundable credit. And that way. The state because if we use strictly water contracts so that the person who had a failed crop didn't use water that year didn't by our water. We're not able to repay that portion of the loan that year. So that's what the assessment does it gives us a floor so we always make our loan payments. So if we. Can do that. Then we get good credit and the state didn't have to take that risk the state does still put money into the project in the form of those tax credits for the life of of our loan of thirty years. If we were use contracts. Again as is a mentioned earlier. We've been told in the past that contracts would not secure private debt and they wouldn't secure debt from public programs in a way that removed the risk from the state of Arkansas is Mister Brantley mission we've we've turned over every rock and we'd be willing to explore that certainly to avoid having to do an assessment we would ask that somebody like Stephens or cruise or another bond house and and investment firm look at whether those contracts would be sufficient. To secure this kind of debt that we need to enter into to go forward so we would love nothing more than to do this strictly on water contracts. But we don't believe that a lender will give us the time of day just based on projected sales would you care to write something that was emailed to me on the tax credit so that when the Senate the if a named get scored yes Sir absolutely thank you thank you Mr I'm perfect thank you. You're recognized the we'll wrap it up here with this one I think we have one other person the issue is we have a long agenda please keep that in mind. Can you hear me OK yes Sir. In contrast with what you're you know saying here but this particular project. Let me tell you a little bit about what we have in northeast Arkansas especially along the Mississippi River. You have a water table this going down drastically because we have a a tremendous amount of rise and now we have cotton this actually use an irrigation on level last land already. Okay now. The water table in northeast Arkansas I know in Mississippi county Senator David Is went from they're gonna whale sixty seventy foot to two hundred foot and this is costing these guys a lot of money. But at the other end of this thing you got flooding that's occurring. Okay lacking Trumann Marjorie areas like that I have it and they don't have the money there self to actually drain this land and we're going to the corps of engineers try to get this done but. I just wonder how long is conveyed before people lack Tom wimpy with the with the Corporate not core engineers but What's the name that is free. Conservation district right that they're gonna be coming in I believe sooner or later and their goal one hill because ace protector farmers probably want to work on this stuff their sale. They're good they're gonna have to the whole water to where they can actually. Be able to irrigate their lan but is the same time you know you have a situation where you got heavy run off and know where to go. So I just calm county concerned about this because. With the water table is dropping in northeast Arkansas like it is sooner or later or we're not going to have people come in here is basically going to be in in a situation like you sale asking for help with may be built in reservoirs and things like that and where we don't get the money to take care of that. I share your concern. Thank you. Okay. Formative the. Visitation we appreciate your being here in. I think everybody learned a lot about it I know I certainly did and the. Appreciate chill the presenting this to us. And the your use thank you standing there for the invitation the the information Sir witcher. We have one individual that I think has the we have agreed to let speak about this so what we're going to limit this to one person. And the I have a quick could statement from him Mr bill. Beavis Beavis. You're recognized for about three minutes or so thank you. Thank you Mr chairman committee members are I am bill Davis. I'm a former house member. the entire time I was in the house I sat on this committee so I have great respect for what you do. The reason I'm here this morning is my brother and I. On our family farm in over Lonoke county this in the meter gauge best. Our. Favorite farms been our family for some of it over a hundred years all of it at least sixty five. Brother now both in their seventies. We're both retired farmers. And a big portion of our retirement income comes from the rent of far. So. My brother came by to see me a few few weeks ago and he said I've heard a rumor. That the the bow made boards going assess our property to rate for two dollars an acre and taxes on that. It didn't take us long to the mass. For two dollars maker could our rainy income Hey this. So. Which side will sentenced rumor less talk let's see if we get a meeting with a at swine who you just. Was just here so we met with it and it was my roommate was in fact. So after that meeting we knew it was a fact that's what they're going to I start calling my. Of neighbors and close friend sent him so you better call over to well made board and see how this affects you. Yes I called earlier ten people. Everyone of them call the board everyone talked a it. Everyone on call me back and said we are opposed to this analyst this will have a terrible effect on our retirement income. And so I don't know where they're getting their numbers but I know one thing everybody I talked to was opposed to it. So. Are just to give you a couple examples are represent the limits while ago mention. That the this that the cost of this been passed on to the farmers. Yellow walls McCurry or most of you do he served served here in the house. And so when I call loans. He a. He met with a talk to aim in any calling back and you know he said he's a bill he said I'm just like you said I'm dependent on this for my own retirement income he said all one way for us to survive he said we got to pass this on to the farm. He said this expenses god be passed to the farmer so that's exactly what Representative Lynch of St logro. my next door neighbor to the west her husband served on this but I'll be to board. Hey dad she's will. Levin on the of the reading counts. She called me and said if this goes through. She said I want to have money again the nurse about when this is over. So after talking to them. Are your hours to start to get a pretty clear idea of affect is going to have. And. Going back to when I was in the legislature. I am my freshman year our debt to our fifty thousand dollars for this project in general fox. In my second term house on the revenue stabilization committee. I got six hundred thousand dollars. Later on with senator Blanche Lincoln was chairman of the Senate U. S. Senate A committee. I started working with her and her staff to get some big funding to kick this thing off and get role. she gathers her are thirty four million dollars. They don't work for governor baby to get to thirty million dollar match we had to get from the state so we could get to thirty four from famous we got all that done. A I'm telling you this for a reason. I am not opposed this project no one in this room. As work hard for this project and make. My brother. Been on the board was on the board twenty five thirty years. So I was asking him A said. Owners. Did this board get this authority. He said well going back to the beginning he said we we got some federal money to give us carte kicked off and go on. And he said but there's a lot of things you can't spend that federal money for. Is that we made another source of income he says all of us went out. And talk to the landowners and asked them. To allow us to do this. Acid what did you tell me go use that money to fund a project and he said oh no no we assure deal we went after. The mobile we talk to them that this money would not be used to fund this project it would only be used to pay those bills that could be paid with federal funds. circuit judge agreed and allowed him to assess up to like five dollars an acre. Which I think was even less than they have a lot less than that that they needed it all so anyway. Hi thank in my opinion. That what we're doing right now. Is a breach of that trust that trust at those landowners gave this board. I'm going also make a prediction. That when these. Tax bills hit the mailboxes of this land hours. There will be an explosion. That you can hear all the way up here to Capitol. There's there's tons of land owners that don't have any idea what this means or what is the effective school have all but they will when they get that tax bill. Okay that's about all I've got state we are in a hurry if anyone's got a quick question do my farm I'll be glad to try to answer it if not if your food may I get out here. Thank you very much and. The. Quick quick don't track. Mister Davis I get one one quick question for you here okay going back to begin you said you work your brother did how did this board to get so much authority and how did the. Authority get passed on to the circuit judge. Basically for taxation without representation are you know I will their the I'm not a hundred percent sure I know they had to go to the landowners and once the landowners agreed then that that was turned over to the circuit judge and then the circuit judge my the termination of how much they could they could assess. That's all I'm no. And with this process but it was not intended to fund this project. It was never intended to fund this project. I do know that. Thank you okay thank you all for your. Thank you. Flowers Junaid I did have a quick question and maybe someone else can answer it is wondering from what Absent Beavis. Mentioned about the the second sixty four million dollars. The funding that we got federally and then there was uh the governor may be provided the match I'm just wondering what. How was that money spent. so I'm just putting that out so that is amended a different. As we talk about that issue because what I'm hearing is that there were some funds that were provided it sounded like to start this project and that sort of hanging. Out there I'm just curious okay okay thank you. Okay. That brings us to the. Dan hooks David Phil Katie Lynn. Circle. Operate the. With that but Okay you're recognized the state your name for the record and you're recognized. Not there is yet I see the lights on. Dan hoax the board chairman for the White River your geisha of project mean sickle to my left is the past president and vice president David Phalke next to him. Glad to be here this morning ladies and gentleman. There's a couple bios of myself up from Slovak Arkansas I'm a farmer family farm of member resting cooperative pre farmers I mean a pre county farm bureau and conservation district. A bill look a little bit of what we have you're going to have heard already but I'm going to go ahead and go through this This map is the irrigation acres in the United States the blue not or. Gains in irrigation acres the red dots are losses in irrigation for most seven to two thousand and twelve. Are you can seized in Arkansas is task heavily in the blue dots and there are more blue dots today than there are on this map of course. this one in nineteen fifty years from your Carlisle. Back in in the. Well actually is before nineteen fifty I can tell by the hats these guys got on But back in those days when the rice industry was just getting started no water this is an alluvial aquifer on this well they punched a hole in the ground and the water came out all by itself. Of those days are long gone. The up next one shows the depression areas and we're our Grand Prix project overlap spring county in the Arkansas county and parts of Monroe County to the east. Who are we were legally formed water district fifteen former elected board members districts been in operation since nineteen eighty four. We do not have taxing authority and we do not want that authority our goal is to become sustainable by delivering affordable water. Of our district is home to well riceland foods in producers rice mills. Farmer owned cooperative that's where people live to work jobs in the economy of the region and in a good part of this state come from. Crops in the Grand Prix region three hundred thousand acres within the area two hundred fifty thousand those are intensely farmed rice soybeans and corn one hundred percent of those acres or your gated. It's highly productive area provided we have the water right now. We are not sustainable without surface water. The project of acres in the lands three hundred of thousand acres as I said two hundred thousand you're gated crop plants of that ninety thousand acres of rice hundred forty thousand acres soybeans ten thousand acres of corn and ten thousand other. As I mentioned about sustainability today our way of life is not sustainable without water we're water reach. The water is not in the right place at the right time it passes down the river in our case the White River and goes to the Gulf of Mexico so we're asking for your support to help develop just in discreet tribute this water. We started construction in two thousand with on farm work. Building reservoirs and recovery systems on the individual farms are partners then and today include corps of engineers and our CS the Arkansas department of agriculture and RC commission we get great help from the Arkansas game and fish in the heritage commission and the governor's office is amended a good to us. Some of the construction that is completed and where we are today. Two million dollars and a hundred percent complete is the inlet channel. All I was assuming you guys were on the same page as I am lance there is This picture little deceiving you see the pump station and in the center the picture the inlet channel drops off to the lower right hand corner comes from the river channel to the pump station that channel of course is complete. Station. Fifty five million dollars is ninety five percent completed. some final touch up with the pump installation and and we've got a substation power station that is lacking in the chorus in the process of completing that. The pipes from the pump station that goes across the prairie to the regulating reserve all. Is a hundred percent complete cost of thirty million dollars. This picture doesn't do justice to the size of these pipes I was looking around this room these pipes a ten foot diameter that's the height of a basketball goal and. Maybe the ceiling and your auto okay health is a stand for or not but anyway it's so impressive when you stand in the math is that pipe the put your hand up you're still a long long way from the city to the top of the pipe. The art regulating reservoir is a hundred percent complete I'd say ninety eight percent there's a little bit of of trim work but basically it's complete. Of. That. Takes the water from the pipeline into this reserve for where the turbulence is calm down and then it passes through a gate into the. Canales. I made to the on farm construction we've got to. Three hundred and fifty. Former is the boards that were built with the. Of moneys from the district. Cost year using. State tax credit sand all in all with the investment of sixty million dollars sense of in those were done in in a in two thousand and one in two thousand and two I believe and since then there been several more many many more of using the equipo grams and all that farmer sieve continue to build these recovery systems. Of we need to connect the canals and the regulating reserve for water to the farmers is to be done by the canals you can see little cross section at the bottom of sixty foot bottom with of of the canal. The. Read the boards that the farmers bill are. Basically empty we've had a rainy summer we talked about this on the way here what and FOR. One or two rains in. June this would be a dry year. Of on our farm for the July I sent over the other day was the last rain we had of any consequence until last week so you give us thirty days of continuous irrigation on the rice and soy beans and your water supply goes away real fast. This reservoir on the farm all I had was built by farmers. To in our CS specifications and they are our a smaller version of what the larger regulating reservoir that could that we have. Where we are now brings us to to all. Our phase one segment one from the regulating reservoir that's that's built the gate structure is completed. We need to take we need to bring can L. from that reserve or now. To. Start bringing it across the prairie. Of. Our core principle. Is that the water has to be affordable to the farmer you heard that from about me guys and and it is it's the essence of what we're trying to do. If we can't do this in an affordable way and FOR on forcible price we're not going to be successful in two thousand and seventeen. Of. We were asked by the governor and and The NRC staff to take a look in the mirror and see if we could do a better job of. Limiting the cost reducing the cost and and not find a better way to to to construct this there was no federal money to come and FOR send if fall. We understood if of the couple hundred million dollar showed up all of a sudden that the burden on the state to do the matching part was gonna be hard. We your broken down broker construction down into smaller phases and spread out the the construction. Of the parts of it made in the straight tech that on as a new strategy. This is going all the way now to approve a level in our CS is come on board with the with some federal monies that we had not had access to before of course the juniors is making their commitment to finish what they started of the Arkansas department of agriculture core engineers in the governor's office or have a come together and partnered with us to make this happen we're as we're stronger now because of that to look in the mirror is and how what what what what I'll call. So by breaking this down into smaller sections you see We see if we can catch up and. But we don't have that one Okay from from there is a board highway. Seventy is though where we brought down a small segment we've we've done away with the overall look at the whole plan to demonstrate that we can save money and do this. Up we've called it former engineering and FOR in farmer banking we have to look at this is farmers we can't we can't go out and and and. Justify buying a new combine all the time we may have to go look for one it's got a year to viewsonic from somebody else and save a dollar. So what's next The court will complete the pump station. Ten million dollars by twenty twenty two. What if you don't mind members I think if you had founded the defense some information is talking about on the exhibit D. three. It's that there is this when you thank you yeah. I think everybody's got the same packet I'm looking at in that one slide must've been missing. So when on the on the what's next Your question district NRCS we'll finalize. The plans we've corps of engineers has turned over the plans that we had bought and paid for several years ago and which is a talk about the coming together part. Of we get to federal agency sedan with same table agree to do something you guys know how special it probably is of we've got that working forced core is allowed in our CS to use their plans and spend NRCS money. Of the. I had to call of Tony Stevenson are contracting engineer construction engineer asking what the process progress of the NRCS plans were of Arkansas in our CS with the value of this construction. It was out of there purview the Senate to fort worth for the. NRCS office there to to look look over these core plans and see how they fit in our CS they were they were there too long as far as we were concerned we wondered what the outcome was of this morning I find out that of their back in in the state and are making changes to the of recommendations it for works. Offered in those changes were ACT misspelling here and changing out drawing on a couple of pages nothing major and that we will have them by Labor Day. This is to succeed shows we've been real anxious because time is money is is you all know of but today. We're promised to have those plans finalized by Labor Day in this is this is been in print for a long time so it's it's we're still on schedule in other words we want to contract this two miles a canal by October fifteenth we'll finalize the designs for phase two three and four by March first you're gonna contracts to be awarded for the spring of twenty one. We get real anxious to move dirt on this first section which. We'll. Osei maker make or break as it's we're we're going to. We're gonna prove that tell our cost saving. Methods that We're confident are going to work well actually come there to reality. Our primary funding sources of yes the a and R. C. S. peel five sixty six program in our CS is approved twenty eight million dollars in funding force. We look requested another twenty million dollars. Court millionaires of his promise to ten million dollars to finish the pump station which is the power substation. We have approved plans and willing partners local match is required of about thirty percent. What review gazing district will request loans to provide the match farmer pay back is required. We need you to support the Arkansas agriculture department in their efforts to provide those loans. We need your help and guidance. The production productive area in the Grand Prix is a great asset for the state and nation we need to develop or surface water to become sustainable. We have rights to five hundred and forty thousand acre feet of water annually but it needs to be managed. We need you to support us on our more stick to an affordable sustainable water supply. Thank you from from the White River Goshen district and hope I can answer questions that you guys have and. Any body else at the table have anything to say. Okay any A members of any questions. Don't have anybody in the queue. So. I guess the thank you for your presentation and the we appreciate you. Thank you. Next is the who's the secretary vague here. The there is the west ward and Meagan Perkins. When you're ready. State your name for the record please and welcome and the. A you're recognized when you're ready thank you. Thank you Sir west for from the Arkansas department of agriculture and also have making Perkins you're with us as well and I know that we we've been going for a little bit of time on the irrigation projects all I'll just be brief and my remarks but happy to answer any questions anyone may have A did just want to note historically the reservation projects and their administration of courses up to the district center and I think it was rotten appropriate for for them to a provider updates today and I do hope that that provides the members of the of the legislature with with a good background on some of the issues that that they're facing their historically from a state perspective those have been manage from natural resources commission standpoint I we're transformation that there those have come under under to the Arkansas part of our culture so we've been becoming more involved in those over the last years for the transformation process we've been you're keeping the governor inform frequently on on the progress of of where these are and how they're moving forward but easy easy to see an easy to say just off the the past two presentations I just how important both of these are addition projects or the state of Arkansas in particular to attend the agriculture industry in an eastern Arkansas as Mister ed sway mentioned at the beginning with the state water use eighty percent of that is is coming from agricultural purposes so incredibly important to the state the the perspective from a governor as well as myself is that these are incredibly important their priority on for us and so and moving from there hat the governor has asked for for myself as well as making Perkins to play a more active role in just making sure that were addressing these appropriately as you can see there there were these these are small dollars these are big dollars and big impacts critically important of the state of Arkansas there's lots of people involved in them as well and so are our perspective from a state standpoint specially from a part of our culture is to make sure that we're being helpful. that were helping to problem solve that were breaking bringing in all the needed partners whether that's you know the corps of engineers USDA ourselves other state agencies and whoever may need to be involved to bring them together to help a drug help address this issue and and help move the force to completion so moving from there the governor has has a has been really appointed made in Perkins to serve as a project coordinator for these really to help lead that effort and both myself and Megan will be involved on moving both of these projects for Sam. A let made in. Provide some comments. Meghan Perkins from close to you if you would make it Parkins project coordinator at the Arkansas department of agriculture and I ask a lot of what secretary ward said look forward to working with all the partners and you all on these projects so happy to answer any questions that you may have thank you. Mr Speaker to serve some of these other people of the talked about some of the dire circumstances about the aquifer's in our state and the. Of the it occurs to me that the. Well that is serious situation for the future. We do have options in the state. And we're not in a situation like some of the western states are. The where they have almost no options for water out there so. Maybe you want to say something about that maybe the home with. It occurred to me a little while ago yes Sir well I I think that's an excellent point when you look at the look as and particularly row crop agriculture production Arkansas does an incredible job there especially with our rice production largest rice producing state in the country if you look outside of Arkansas especially to California and other western states there there's no doubt that there have been significant water problems and and even your people going out of business people looking for other places to move their operations to if if they can and so looking at your looking at Arkansas from a national perspective not just national but a global perspective Arkansas is your has an incredible ability to step into that gap. If the waters there that's why these are so important. Well the the need for the water the need for for agriculture is not going to go away and the. These issues are going to be with us. Forever. So. Anything else we have the. Senator hammer you're recognized thank you Mr just one quick question have you all done a comparison between the two projects if I'm remembering right we've got look at it right we got two different projects today both deal with water have you all done an analysis of the project's comparing them against each other to see which is the most effective not only in delivery but also cost of going about meeting the challenge. I'm not I'm not aware of a of a side by side comparison I'm a new that there there have been some people that have tried to fit both projects into a same construct and and that's where of there's often disagreement and trying to treat both projects the same you know it is is that something worth further looking at your potentially but I do think I do think it's important for the for the local landowners and FOR these boards where there's by meter grand prairie to to look at their individual circumstances and figure out the best way to move forward and what they're landowners I will except of course that that is a a partnership you're with the several partners that are involved not just the state of Arkansas but also or federal partners as well to make sure that we're moving forward in a way that's agreeable with everybody but to my knowledge there hasn't been a side by side comparison your especially from an economic delivery standpoint on on both projects such as with each other just observation given the magnitude what's being asked of you know the up and coming verses what seems to be a project that's maybe I maybe I missed interpret it but seems to be a little bit head I think that be a good thing to have we're gonna be expected as legislators to make a decision or get involved in a process especially when it comes to the cost of the property owners and I don't know if you want to accept that responsibility but up we should consider it for a independent side by side analysis to just make sure things transparent accountable thank you Mr. Senator hill. Okay this one's for for either one we also me about two or three part question what's the average age for a performance they work so real property. Thing in two thousand twelve is fifty eight and a half at that number as you might suspect is done of the Sixers insignia to see our our examiner or had early sixties would be my okay my guess what with that being said and young farmers who are willing to get started in the farming if I forget the ones who are going to inherit the pharmacy type of people who are willing to get into it which is what we're encouraging in the state of Arkansas to bring that age number down so we can keep the food supply going forward as you mentioned just while ago. What level of financial ability are these young people going to be able to pay. To be able to do this for they can have a tractor more the lean on a tractor thank you have a mortgage on a farm you know what are we going to do so we don't them out of business before they get started. Because banks will not loan them money if you have these assets was out there anyone cash flow no we're all we've all about these water project cash flow in in doing their part yes good Neckar that's great I'm here represent the people of my district or my state of Arkansas what can we do to keep these young people coming in get them involved in Parma because to me it looks like we're almost choking help before they get started in not only the young people Allen also talked to minority farmers who are getting started what we do and to promote the and you know we're put a choke hold on him as well. Can't can keep that in mind look at these projects we can't promote a business before they start. But I get comments mail makes it to the agent what we can do to get the younger farmers going as sit represented Lynch said earlier. I think you're you're absolutely right service specially odds on some broken up agriculture production the their cost of entry the barriers to entry or are pretty hot so beginning farmers is very challenging for someone to just walk in they're not coming from a farming family to walk in and and and and pick up and start an operation it's very challenging and so what I do think that we've got to be mindful of that I know there's been discussion of that today but but it the the challenges certainly very real. You. The seat ninety the Representative love. In nineteen oh yeah okay area thank you you're recognized thank you Mr chair in so where Senate it's been a long time since I served on a committee so I want you the kind of give me a update on all right Sir I've listened to the two presentations what what is a specific ask that network were kind of committing the state to what what what what are we trying to over trying to take out bonds are we trying what what is that specific ask. So I think that's the that is the question so if if you're looking at both of these projects as as both both of both the presentations alluded to there's there's a large dollar amount that's that's regarded to to both of theirs in order to get those to completion and completion has different meanings depending on what how form to completion your so in particular so you take a grand prairie getting getting to order delivery and you're in the near future three phase one A so that's a piece of it so there there's multiple components and and these projects are so big and so expensive what I think both projects have trying to do is to break those down into segments so that each particular piece can be completed as opposed to trying to eat elephant in one bite Sir I thank you the most immediate issue is your again trying to leverage state dollars with federal dollars which is I think is what we're trying to do well I know that's what we're trying to do with with both projects with the recent announcement from USDA NRCS through their PO five sixty six program that was twenty point three million dollars for Grand Prix towards construction twenty two million for by meter for construction is making sure that were the state is able to meet that match so so that we're not losing that those federal dollars that can go towards additional construction and to move towards completion so that's the most immediate peace is finding that statements which we do have through a through those bond obligations but if you look at the overall larger pitcher at some point we've got it we've got to look and say how four wheel disc does does the state bond obligations that bonded toward is that just for enough through construction for both projects and and that's that's where we are now that's that's the piece were we're tackling and trying to figure out how best to move both projects to completion okay so do these bond obligations is this is this week we saw are we take in general revenue taken general revenue to pay for. These bond I'm against so like the highway the the department of transportation is that. Okay. All right so so how do these bond obligations for both of the projects again. Do you have that number. A service the total I would have to double check on what is currently being committed through the natural resources commission but had I believe that as of right now there's hundred seventy million dollars that can be sold as well seventeen million dollars that's already pull backs about a hundred thirty four million total twenty both projects and I I need to double check that number that comes with a cost to my understanding of about fifteen million dollars in general revenue to finance those bonds per year is that what you said a hundred thirty four million be fifteen million four when a thirty or forty year project. I have a wasn't the obligation for for us to so I think I think with by me to as Mr it's when I mention I think that that takes there's to twenty fifty two I think so. So that's where just enter really technical questions that I I don't want to miss speed but out but I'll be happy to get your answers on all those if you lied okay I would like answers to know so thank you yes Sir. Representative flowers. Hello okay. Thank you Mr chair I'm. Trying to process all of this to. And I'm thankful for Representative loves question So far and I've been in and out but have had sidebar conversations. serve heard a lot today about landowner concerns and that landowner's liability. We've heard issues regarding barriers to entry. and what the cost will be to landowners. With these projects and and then of course. the issues around our water supply and the preservation of aquifer's to justify. These projects and. Then I was further kind of confused slash disturbed when I heard from Representative fetuses comments. and I know it becomes a whole nother issue when we start talking about what has been done with. The state and federal funds that we've received in the past to address these issues and I guess just hearing. About the bond obligation and the length of time that we're talking about I'm still struck by. It sounds like an please correct me if I'm wrong. That is a great deal of The success. Of the projects. And the funding. Is gonna rest on the. Come of the backs of the the farmers and the landowners. Paying these fees am I missing something. I think there's there's absolutely or costs associated with it and and to your point and I think that's that's where both projects or are looking hard looking at both of them like how do we best pay for these because the there are that the costs are significant had we brothers costs and how's that cost distributed. Who would make the determination. About what how that happens because it seems like we're given estimates and this is what could happen but if this moves forward what's to say that the cost that farmers might have to bear isn't more than what we're seeing today because we're not making that decision we're making the it sounds like we're. A part of the for and I don't even know what the role of the committee is really. I mean so I'm you know when I hear about what the specific ask is. What really happens today like why are we here listening to this is there some sort of oversight role that we're supposed to play that could start or stop this or you a part of the process is in the executive saying Hey we support this and we're gonna move forward like tell us what that means for yes ma'am and and the and if I didn't answer or present loves question adequately I I do apologize for that I think it yeah I think I'm adding to it with well I I do think I think the the main purpose for today is really just to demonstrate how important these products or for for Arkansas and Arkansas agriculture especially eastern Arkansas over these projects exist how important there can their continuation as well as completion or to the viability of agriculture production and and that part of the state I think you know maybe a more media asset dimension Mago was was the tax credit item for by meet in particular that that the I know that they're going to get some information Representative Jett on I think I think that as far as the committee standpoint I think I think that's probably the the shortest one and your we do have bond authority that exist the question is going to be is that enough for or disinterred need to be additional consideration in the future of of additional bond authority I'm not saying that's what we're here to ask for but just really I think more more than anything is just to say you know the there's a big projects agriculture is our largest industry we want to keep you all informed on it with both both their cation projects want to keep you all informed other important to them the report duster important to the state and it it will take all of us together working together to get these to completion. Just one final okay in I'm gonna ask this question. Still from the perspective of trying to learn and understand how all of this works together now and into the future. I do have to want to point out that and some people know some people don't I've worked this committee staff in my I must have been a little girl because it was in the nineties. But it. At that time Senator Scott and I don't know if anyone in the room remembers this. held a lot of hearings and did a huge and term study and as a matter of fact actor I was one of my committees that I set out. Around the. What are our confers and the depletion and the re charging rate and you know the risk of full depletion and what that would mean for farmers as well as industrial users and I remember that there was a bill. that came forward to Utilize other water resources. Through projects such as these as a pilot for industrial users and it failed by one vote and then I never heard anything about water aquifer's again until today not this is my six year in the legislature. So this is been an on going issue for many many decades and it seems like there's a whole lot of money involved in not addressing the problem here we are again and we're talking about pouring. Hundreds of ballot hundreds of millions of dollars into projects which may need to be done I just I don't know and so with that sort of as. My background. And as secretary for agriculture. Can you tell us whether or not this is something that absolutely. Has to be done and there's no other alternative. That would be my that would be my assessment yes ma'am and and that goes back to the just a high percentage of water use that's that that's a that goes to agricultural production and and I think it was eighty five percent of that is coming from ground water use and we know that the local court aquifer's are declining we knew that at some point there there beyond the point of recharge so it is a it is a a necessary move to switch from ground water to surface water use it for going see if for some people if you live in and these areas not less you're not you're not. Absent of agriculture production of itself you're with if you look in a role Arkansas in the continued viability of role Arkansas if if we don't fix the aquifer problem. We've got bigger issues I will have to deal with their as well. Thank you thank you. We have two more in the queue and we'll get those and the Senator hill and then Senator Pitsch you close the and it's already after twelve so. little close this part of it up this morning and obviously your own for all afternoon thanks so. They were just to heal this question for you I wanna make sure I'm understanding want that one thing correctly. Does water water boards have the authority to petition to the circuit court to do the assessment of the land is that correct that is my understanding yes Sir but I have I have not personally done any additional research on that but that's mine saying that the lottery Senate awful simple to me on on the way I was looking at it look we like the water board had love story that they get circuit judge to sign off on it short sweet simple the assessments done this act that sound about that simple you. I would I would deferred to to the Dacian district board center that question but no I I'm just refer makes purposes I was reading what I read correctly that is correct. Thanks yes Sir get. Thank you Mr chairman. In lieu of never wanting to be before launch I'll be brief and maybe ask the to follow up questions I have what I understand about this is basically you've got two types project I heard forty two dollars an acre being a landowner in other states. That would be disastrous for us and FOR other colleagues understand the need for water but also notice that the White River project is kind of a pay as you go and I think that's correct in my correct that should be real quick I think water sales yes Sir so my question is really in a nutshell what's the per acre foot of water cost were proposing in either one of these two proposals in other words people power then you can get to the part to make sure cry what are we looking at here for a farmer per acre per foot in a cost and how does that rate compared to our neighbors all go and throw that follow up in there too but I think at some level we're talking about all this summer for on this number around refer on that number out the farmers know what they put it in into their product and they know what the yield generate and that's what we need to get to I think is a per acre for the cost of the water and what it's getting ready to change do you have that. I did not I I would assume that both the both the addition project. represent was probably do you have that no there was discussion about some of the about me to cost earlier but personally I don't have that special going to go make center hammer's point of a side by side comparison of what cost first economic delivery I I persons registered chairman I think it's I know it's lunch time so let's break and come back to this but I think that needs to be discussed at length of what we're talking about doing to our constituents the farmers and the per acre cost it needs to be very very clear. Okay. What. I will do one more. All right good information to to help clarify a little bit of this when though they're groundwater law was passed back in the eighties in that written in that law was that the cost of war you cannot force a farmer to buy water at a higher cost then he can pump it out the ground and currently that's about eighteen dollars an acre foot. Okay the we'll break for lunch in the let's say you one fifteen. Do we have any thing it would we don't have anything else in this room. Member. Dalby sure and be back here because we've got a lot of important information go over special this cares. All right grant and then also some doc Campbell issues to be considered. So how much. We're Jr. We'll get started in a minute or two. We'll call it the this meeting back to order and This will bring us to Adam ET. And the secretary ward. And Michael lead Jessica. Cloud. Closer Burkle's. Okay whether getting seated this will be me on the agenda today a discussion of. The cares activate on agriculture. in the request for carers act appropriation. And when you're ready Mr secretary you're recognized. Thank you Sir west for from the Arkansas department of agriculture and I think I'll I'll just give a little bit of background of of our proposal and then of course we've got to just go Michael here to answer questions I'm and I'm happy to try to answer questions as well but but in particular the the cares tech proposals that we have we had early on my coronavirus hit certainly there were significant impacts to to everybody and agriculture was was not exempt from that and so early on in that process started working with Arkansas farm bureau Arkansas cattlemen's another interested stakeholders to to look at submitting a proposal to the Kerrs extern committee that would be a grant to expand processing capability in Arkansas so we that was that was probably end of mid to late may time frame certainly you when the destruction to the processing K. capacity not just in Arkansas but across the country was was certainly you fill in some significant impacts from the crown of ours so we worked with them and got a proposal submitted to to the cares that steering committee and early junior I think it was June eighth that that proposals actually submitted so of course of dealing with coronavirus it took a little bit of time for four there was uh to be considered and looked at and so just recently last week was when the Kerrs extern committee brought that proposal Ford server and and looking at that because I think partly because the proposal was a couple months old they asked that the proposal be considered by the house and Senate and committee before the Kerrs extern committee of voted on on those proposals so we really have from the department of culture standpoint have two proposals that are at the Kerrs extern committee one is for an I. T. reimbursement request which is about two hundred fifteen thousand dollars to greater systems and and. House this is within the department and the second is the five million dollar grant proposal to expand meat processing such as just a brief update on that and so looking at what Arkansas's proposing early on North Dakota had had in a very similar process through their cares ACT process and then just here recently over the last month or so Missouri and Oklahoma or our neighbors in particular have also done very similar programs for grant programs expand their meat processing in their states so basically the nuts and bolts of it what is being done with regard to the meat processing what's. What's been recommended so we would be so I think that's where we were we would appreciate the feedback from from from this committee on on the proposal that we have to move forward but but essentially it and and marrying the the Missouri grant program it would allow these individual processing facilities whether they exist or or or people that have a desire to becoming a new facility to submit a proposal that would be considered by the department of agriculture be reviewed by committee two to include our stakeholders in reviewing those making final final funding decisions but to be used to purchase equipment that's needed purchase and PP top supplies that are needed for for their operations and expand their capabilities and processes tech to increase that processing capability within the state so right now here in Arkansas there other currently three that I know of that are USDA for processing facilities for livestock processors and my understanding is that all three of those are backed up significantly being able to to take and process in the livestock beyond that there's about forty custom exempt facilities in Arkansas and so that's that's just for a quick overview of of the current capacity that that exist within within the state. Dr. Jett Mr secretary good so you here this afternoon hi I'll tell you what I understand I was trying to get a spare butcher myself and you can't get one in there because they're so backed up and I understand a lot of the people with a lot to do that there's a couple questions I have that I feel locked or or permanent a debate address number one this is for the small part I used to call slaughter houses or or whatever custom processors within the start corrected what we're not talking about the poultry plant lot toxins are George's would operate correct. That's correct and and the way the member that Missouri wrote their program was that it was limited to two facilities were two hundred or fewer employees to make sure that it Bennett one looking at these larger facilities and intended for the smaller processing places of Mr chair of a good I've got a few questions out comments of one a I ask your On this what Paul hi I'd like to see more processors out there instead of not a lot to same be able to expand. I do have some concerns number one are is this money just going to be used FOR USDA inspected process is or could any of the individual of processors utilize these phones. So I I think I think that's an excellent question I think that we would love to hear appeals input on that and and how should be approached currently Arkansas does not have a state meat inspection program so that limits the options there Sir your it could be the the proposal could be written work requires recall requires either a current federal USDA it your certificate of inspection or an application for a for a federal certificate of inspection or could be written words equivalent to so that if you in the future your of the Arkansas legislature passes a statement inspection program there's processing facilities are already operating up to that same standard could adopt a state means section program and be able to very quickly move from there so I I think that that's a question that we will love your your input on if if that should be written as a for federal inspected only for for federal or federal equipment inspection only or if there's another process that would be important I do think that it's important to have some sort of inspection component there because that's that's the problem we're trying to fix where producers can take their their life saw to it to a facility to be process and then be able to market or or sell those products and so I think there has to be a tie there somewhere in up. And one thing I've heard from some the processors and stuff that they would favor a state inspection program to where it would be at some for the upcoming session I won't be here but you all listen up of state inspection of funk would be good for Wall these processors to acquire individual farmers could take their. livestock have it process it and then take you to the farmers market and sell it state by state or. Hamburger hamburger however they wanted to sat correct that's right and and I would certainly out would love to hear form your own cattlemen's associations comments on that but we we've got a lot of feedback from that just from the department of agriculture standpoint I I think the youth of the limitation there certainly the law without a state me inspection program they can't York commercialize their product at that has to be from personal use but with the state means by action program at least it's an inter intrastate your by ability for commerce so they're they're still some some of those pieces that have to be answered but state means section program it gives your get up and give the producers in the process of facilities a little more flexibility to be able to market their their their output whether it's a farmer's market or or local restaurant that would be truly beneficial for for them in the industry a couple other quick questions the if I do Mr chair of. The concern I have on this way this is that number one my understanding of the carriage ACT and this money it has to be utilized or spent by December thirty first and to the year untuk two science really hear that kind of go side of. By side. Have the processors out there these individual slaughter houses whether they be US today inspected or not have they had any input on this and do they want this money wait what we can say Hey yours five million dollars but do they need it if they're so busy right now you can't getting fine until a year from now. Would that not be expanding non on their own. I made. You know if business is so good. Can they not afford to expand on their own to the I need this and if they did could they expand in the time frame if they needed more cooler spice you know for storage of their product if they needed to expand their slaughter floor whatever. Is there time to get all that done before we run out of time. I thank you. From my perspective from from a department that would be implementing the grant I think you've you've hit at the heart of the issue my my understanding and and I can't speak it tore totally on this because it's a federal issue but with the current version of the your coronavirus relief proposals that exist on a federal level that they're trying to get states additional flexibility for that funding but at this point that's not that hasn't been done A so I think the timing is certainly an important question there you know if if we if we go through this process gets a gets a favorable recommendation today go through the carriers extern committee this afternoon makes it through a you'll see this week of this Friday we get it announced in the proposed for people start applying maybe we give people thirty days to submit a proposal is thirty days enough time for people to. You really sit and think in your make the correct decisions I think there are some that that they would say yes it is not and some would say I haven't thought about that enough I'm just not gonna be able to put a proposal in but I think the timeliness pieces is a very important question and I I hope that the the federal on the commercial side will be able to get some flexibility there but on the on the other side just the interest and you know what you're what we are hearing of of interest to people that would want to do a program like this but would they be able to do it and enough time I would I would deferred to my colleagues reform during cattlemen's on on your maybe some of the comments that they're in from producers the dont five got saves the when you said some flexibility from the federal and good luck with that. Thank you. Senator hammer. Thank you Mr were here was the of the flesh that you talk about is that they would extend the deadline passed December thirty first free the cares tech my we currently have to be spent in the next year is that what you're talking about. That's correct yes Sir okay and with regards to the ones that would access is just what did you say many go I got distracted adding here answers far as would be the existing three that are in there now with this opened up new opportunities so how we would propose to rob the proposal the grant program proposal is that it would be open for currently USDA inspected facilities your facilities that want to seek a custom you're either custom exempt or you're a federal inspection facility or those near that are just going to start but I think come to that the item there that we want the feedback from is your what what would be that level requirement that we would ask for within the grant would be of your someone that's your has applied for federal application for a US the inspection or work we write the proposal your equipment to a federal inspection program sure and here to be my concern because I've I've called it a kind of caught up to the what grapevine that they're going to you know extend the flexibility of that after thirty first but a we get people's hopes up they're gonna get money and be we don't get the federal permission and then we've got money tied up they can't be used or worse is can be used hastily that's not really going to meet the goals and objectives because the one thing always amazes me is that we put such tight restrictions on the processing plants but will let a lot of the entities process dear which I think is great but some it raises our own cow can't get it done at the same place and to me that's regardless of money that's that's the bigger issue Mr you're going to allow farm bureau in the cattlemen's association of comment on this or. Yeah we can. Thank you. Thank. Or good afternoon chairman Cooper chairman Douglas and members of this committee my name is Michael lady and I am the Arkansas farm bureau beef division chairman as well as areas seven bass president FOR the Arkansas cattlemen's. I truly appreciate the opportunity to speak today in favor of the department of agriculture's cares ACT meat processing grant proposal. My family including my stepfather Dr Robert Clark motherly and I wow four and and our three girls own and operate fine sea ranch located in Faulkner county. We are commercial cow calf operation and emphasize and marketing or beef directly to consumers through the farm to table model which we have done for the past seven years. During Covin nineteen we have experienced an unprecedented increase in demand for beef products in fact given this increase in demand we have had to limit the amount of ground beef or customers can purchase. As many of you know for a brief period of time this spring consumers went to the grocery store and found empty maint counters this was not due to the lack of supply but rather the impact of large meat Packers addressing Covin nineteen by slowly slowing down the line spades and that even temporarily going offline. Even though we have the most reliable food supply chain in the world when a link in the chain goes down consumers experience major uncertainty. For the first time in the modern era consumers went to the store and were unable to find food on the shelves. This figure has accelerated consumer demand for local foods however with only three inspected facilities Arkansas cannot meet this demand. Right now because Arkansas does not have enough inspected packing facilities I am forced to book cattle to be slaughtered or processed through twenty twenty one and twenty twenty two. As a cattle producer this is extremely frustrating because those Cass caps have not even been born how can I plan and manage my risk operating in such a fashion. A state meat inspection program coupled with grant funds that allow processors to upgrade facilities for inspection purposes will safeguard the food supply for our Kansans. This proposal before the committee limits processors eligibility requirements by only awarding funds to those with federal inspection processors should have the option to apply for state inspection. Food security is equally important and vital as education and healthcare Covin nineteen impacted each of the sectors in a major way. The grant proposal before you is completely in line with the purpose of the one point two five billion provided to Arkansas through the cares that to address Covin related shortfalls. The capital investment cost for small facilities to upgrade or very extensive the grant program will in able these processors to upgrade their facilities to comply with inspection requirements while meeting the demand for local protein. This will result in a long term benefit for customers producers and local communities. And to be clear five million of one point two five billion is less than one percent of the total cares ACT dollars. These funds will be used as an investment injecting economic benefits in the local businesses that otherwise would not be able to afford to upgrade their facilities. As we continue to navigate the uncertainty surrounding Covin nineteen protecting our food supply should remain front of mind. Increasing opportunities for local processors and last opportunities to meet the demand for local proc protein will help eliminate some uncertainty surrounding access to food. As an Arkansas cattle producer I strive every day to provide for my family and for Arkansas consumers I am committed to produce the safest most wholesome beef products to help feed Arkansas families I ask that you approve the cares act may processing grant proposal and welcome any group question from this committee thank you. Ms Burke do you have anything you'd like to add. yes Mr on the farm bureau rent yes Sir that just a closer working with Arkansas farm bureau we're also here to express our support for the carrier's ACT meat processing grant I'm. It just just briefly here you know as Mr Lee stated during code nineteen we saw an exponential increase in at locally produced procreating products and the grant proposal before you will continue to recognize the importance of investing in our food supply chain we are grateful for the five million dollar request that secretary ward and his team have have put together hi and. But given the downstream and back to me of her directly from producers and processors who are interested in expanding facilities for inspection purposes and to increase their business profitability we would ask that the amount increase from five million to ten million and yes rolling out this program expeditiously is a top priority and that ten million is still zero point eight percent of the carrier's act funds that were given to Arkansas and additionally speaking and speaking on our state inspection versus federal inspection we would ask that the facilities who wish to be sick state inspected in and to be clear the state inspection is still on the books but those who wish to have a state inspection I procedure in place be eligible for these grant dollars moreover under the current proposal there's a seventy five twenty five cost your provision I mean the producer or excuse me the processor would cover twenty five percent of the project's cost in Arkansas farm bureau recommends that these processors continue to have some skin in the game that we would like to see that and the ninety ten cost share proposal and and the high plains journal article that came out on July twelfth twenty twenty it is estimated that to retrofit an existing plants a facility it would cost them a hundred and fifty dollars port per square foot the new facility would be around four hundred dollars per square foot to a new facility three thousand square foot facility would be around one point two million dollars and to retrofit that same facility would be four hundred fifty thousand and So we ask that these funds be available for new construction in speaking to secretary wards point on getting the dollars rolled out by the end of the year from your we've visited with congressional offices as well as read the treasury guidance and it's our understanding if the funds are distributed to a state agency they can be dean as distribute distributed under the cares acts and so that would allow some of these processors to have the flexibility so the extension by Congress not be provided to access those dollars after January first so in conclusion we are committed to being a partner we have made can be a multiple contact the stakeholders restaurants consumers producers processors other at non profits and we definitely are committed to rolling out a program that benefits Arkansas families so with that I will also take any questions. senator MALOCH. Thank you Mr chairman ms Burke I'm actually addressed a question that I had and and my question was following up on Representative Douglas and senator hammer's is forced expenditure the funds by the end of the year of you know I go back to a few months ago as a banker in the PPP loan program and we were calling this be a and they were total is one thing and we were calling our congressman's office and they were telling us something else you know so. Sector war do you have any any false or can we get clarification if just a transfer from that cares ACT one point two five billion pot over to the department of ag whether that will satisfy the requirement of the expenditure by year end and knowing that that may change but under current with. Does that count as being expended yes Sir and and I think I think that question is certainly worth of of a follow up and and I know that I have been directly involved in some of these but you know but you know Sir Wallace's on the Kerrs extern committee I know that there is been some conversations with senator Walter miss Willis by Senator Preston on on the working with US treasury on some of their is just to make sure that that Adam is correct but The last I've heard is that there there's a request for additional flexibility but I I will I will follow up on that question to to see what the current status of now without any additional flexibility is granted well and and I'm like Senator hammer is well I'd I'd rather I'd for this I'd rather but do it right the then to do it rushed and I can say also. Just personally if I have a cat that all process to I'm in the mid twenty twenty one my grants have show pigs and they always by more than they need they've already got a couple right now that they're ready to to call they know that I will take to the fair there's no way to go with and it's a shame to I mean they would give them to somebody. You know if they could find a place to process them you know but anyway of well I'll look forward to continue the discussion and and I do support state inspection system but again would be the time to do it right if we can thank you. Representative Fortner. Thank you Mr chairman I have a comment and a question if I could. Okay have a. Absent Secretary ward I as others do support a state inspection program hardly it's it's a pastime. And this is only made it even more evident that we need our situation we're in now and then my question is for Mister Lee. A. As someone that is processing now. Could you your your company. A file the paperwork this needs to be filed. In a timely manner. Receive the money. And use it to improve your business in the time frame that you your or question were question you to work in. I thank up. I would I would say yes to that but I think the bigger picture here. For us is. Is. We we have to do something here. In the process we can all agree on that right. Okay but you know the farm to table only started this back seven years ago it was kind of a niche market if you will now it's a market within itself is the best business model out there in my opinion for the calc at producer. If we sit back and do nothing with this. You know these people that are doing the farm table model or is going to be like we got to get out there should know where to go with these animals so yes. I would say yes to that is it going to be difficult yes is this going to fix everything. Probably not but we have to do something or we're gonna lose these producers that are invested in the farm to table program and why not keep the product here in our state input on y'all's plates are Kansans mine and may I add we. Do we need more time yes senator Max Barbara. But. What we get we got to make a move. Thank you follows. Okay. What stopping you right now from expanding your business. As you set right there right now. What's stopping may if we could all sing this pandemic coming. Occur so every bit of my stairs. The bottleneck is a processing plants what's stopping you do you have a processing plant I do not that are not I'm sorry I misunderstood okay I am a local producer that produces by a thirty or forty had a year and could do more but the bottleneck is the processing plant I not have a good relationship with my processing plant. But there's a lot of people out there that cannot get animals in a timely manner I'm sorry I misunderstood your situation I I know what I'm in the same place you are yes I thought you had a facility and work. My bad now shall I wish I wish I could I wish I did but so right to much money okay Senator Wallace you're recognized. Mister chairman I like to make a motion to part time to approve this grant. Okay we have the. We have two more in the key would you hold just for for concerts okay Senator hammer. Thank you Mr chair just help me get my mind around something because on the paperwork from reading that say five percent of the eligible expenses for non capital improvements so that that means in my mind that means they're not going to add anything to their equipment line is that correct. I think the. By my response to that is is as we implemented this program we would revise that language and I think that this this was just reflection of the current US treasury guidance and and late may early June of that I think has has expanded and and Braun a little bit since then so were as we wrote as we write the proposal if it's approved would be almost identical to you Missouri's program and Mister in Oklahoma that if the the other states that are doing this or or including that are kind of taking that language out that we had met and original proposal to give the the process of a series a recipients the flexibility to to do more with that funding as opposed to ma'am pretty limited okay just for the record I'm I'm in favor of help in the situation I got three constituents they're booked out six months and I understand you know the way to the cow goes above that it becomes counter productive I so I get that part of it but I'm just trying to understand how five million dollars if they're not gonna be able to improve or increase their capacity to produce you. House at five million going to be used to where it's going to help make a dent in what is being presented as the problem. Yes Sir my eye and I think that that language is gonna be fix it is often North Dakota was the first one and they had had that language in there and it was pretty limited to you're purchasing of freezer or very limited small scale expansion but since they have nothing to Gunn says has expanded and other states programs and proposals or are much broader language that we would implemented ours as well do you know how much the other states asked out of there governor's an administrative for their grant funds the most the most recent announcement was Oklahoma did ten million and misery to twenty million. Okay and. But I I guess I would just on that cost per square foot this could be a follow up discussion I wonder how much that cost per square foot is driven by regulations that are driving up that cost per square foot versus the common sense practical reality and I go back to what is so well go you can take a deer into a processing plant and get it done which can't take college new which is that it you know get it done and and I think that's one I'd really like for you to look at talk about is what we need to do to drive that those regulations down without compromising quality health to the public to get that cost per square foot now thank you Sir Senator are excuse me I have Arkansas for bureau is absolutely supportive of that eliminating the red tape and the burden that comes with that I'm in that same article that quotes that you know per square foot cost the as me between three hundred to four hundred thousand in new equipment so that's out of you know one point two million dollar price tag for new plants so obviously there's a significant amount of money going towards at other things DO one. Take some of that money into get up get a study feel can't come up with the self to identify what those ignorant regulations are the drive up the cost not the ones that protect public with some of that other stuff and spends money get that together we come back in January thank you. Thank you Mr. Representative read. Thank you Mr chair. Over here just a clarification on the inspection process the the the three facilities here mention that have USDA inspections does the facility have an initial certification and then they get inspected. It's like a license are of some common for the force over the USDA and my my understanding of their program and I. And we have to be careful not to speak about your UST program but minor things that that they get a certificate or a grant of inspection through USDA so there there is a process they have to submit you know their standard operating procedures and and the paperwork that's associated with that in order to get that autumn from USDA we we we do have some of or our folks here that that can aid can answer some more technical questions on that but. That's correct so we had a state program with that be similar their the say one of these forty other facilities what they have an initial certification yes Sir I believe that it's got to be equivalent to a USDA your inspection status but it would be a state inspector that's your committee at just make concerts equivalent to you and and would be due on inspectors as opposed to USDA employee doing is there any kind of inspection now for them. four for the custom exempt that don't have a USDA inspection I think it's very limited to I think a department of health comes out and does kind of their I think they're environmental surveys ever ever so often I'm not sure exactly on their process is but it's a quite a bit different than from from a state me inspection or or USDA a federally inspected facilities process thank you Mr rose. Last question Senator hill then we will go to the back to Senator Wallace well that's not really a question I just want a clarification from Senator Wallace on his motion just while ago. With a seventy five twenty five or nineteen. Okay. Okay I guess you'll notice the there is a letter in your packet from The secretary ward So were Senator Wallace what your What your motion. Hold on just. Malek as a question on procedure. What. I'm just not sure what the other now he may be changing the grant application is force the appropriation that would come before other committees what what is this committee charged with doing of what what authority do we have. At the end that may go back to what is specific motion is. Hello descent. Could. Of work just we just make a possible recommendation unless senator Wallace's got something different than these okay. Being a former recommendation to you want me to read what I have here for this section Senator well okay that's fine. Or he or he can okay I'm good thing I do but the. I will read the what the staff gave me your pertaining to this issue. Possible recommendation to concur with the department of agriculture's request for approval for appropriation to expand funding awarded to the Arkansas cares act total amount that million. Is that what you about today. Okay. Okay. Okay any driver second. Discussion on the motion. Culture. Of I would thank you in there we also need to the there's no clarification on here whether this goes just to the three USDA inspected facilities and FOR other facilities would be eligible for that if not if others aren't eligible we're just giving three facilities the five million dollars and is that going to help other people and you know should we consider in this recommendation to. Of. Look at state inspection what the costs for state inspection of billion of some of these other plants want to apply for the money so I I would do it if state inspection became viral but there there's some questions there I feel locked on What needs to be done just recommendations to the chairs committee to look at. Yes Sir if I can come in just briefly up I think I think my my recommendation to the cares exterminated this afternoon of a federal favorable voter recommendation would be that that that committee reviewed it and that the proposal have the flexibility is consistent with other state cares act funding request but but with the a closure requirement of ninety TN associated with it would would be how I how I would phrase that to the. Cars extended because it does Missouri and Oklahoma do have that other language in there to allow beyond just the USDA inspected facilities. The. Okay the staff has that in addition to that in the. Senator Wallace says the the motion and do you want to amend that to. To. Thank you Michael if you would. Do this the. The this recommendation is to is to approve what. Department of a is is recommending so it sounds to me like and when they make that recommendation it'll be in there rent. Any other comments questions. Okay have a motion and second all in favor say aye. In the post. Motion carried. Thank you Sir and a point of clarification and not just I don't wanna miss this opportunity of but if I'm not allowed to Wallace can thirty something at me so we we had to separate proposals that were being considered by that committees one was the five million dollar meat processing in the second one was to the reimbursement proposal so I just just wanna make sure I wouldn't. Going to go back to the Kerrs extern committee and say that it had been reviewed and approved without making sure I was clear on on both items of that that were submitted from occurs extern committee back to the committee. We were under the impression that we were only under the impression that we were going to do the The one pertaining to. The one that's the governor Walters. Name moment the. What was your motion there rather is Senator Wallace. Would you. Talking about one or both and at the time I was talking about one but I we can revise this hi gale revise my older. Disclosure of a. So. Yes Sir yes. Make a second motion with that other. A Mister I would move that we approve the cares ACT recommendation diversion on the reimbursement for the art to the expense of such to the department of agriculture. I have a motion and second. Any discussion. All in favor say aye. In the post motion carried. Okay. All right. We your down to the the mails. Looks like Mr secretary you're still on this one. Of the discussion of county fair cancellations. Wish ward Patrick fish doctor Randy check. Bears and other things. When you're ready you're recognized that identify yourself for the record please. Thank you Sir west for from the Arkansas department of agriculture and I have your with me Patrick fiscal as the director of the Los on poetry division within the department as well as our our state veterinarian Randy check doctoring to check so we we do have to items here for county fair update and and the particular so modest and Sir what for regarding county fairs that I know that this is additional. Some overview comments on that Patrick speak to the specifics but is certainly one of the things that have been significantly impacted by the corona viruses is county district fairs livestock shows things of things of that nature any any sort of large event venue or gatherings have have been impacted by the crown of ours and Sir as we work through this your one thing that we did early on was establish a working relationship with the department of health and and working through affairs in life section rodeo we quite a bit scenarios and trying to find ways to help them to be able to continue to have those events where they could currently there's a restriction from the part of health under under their directives for large large event venues whether it's indoor outdoor that limits the capacity to a hundred or less but you can go above that with the written plan that's approved by the department of to two thirds capacity us we've been working with the department help department of health on those we've got a form on our website for people to submit proposals and and really try to work through that work with them through those processes to get those events approved a separate issue your separate from the just the ability of these These avenues to have their offense and itself is just the funding that's allocated to affairs so we do have within the department premium funds or is it was a couple lines of funding that exist for fares once construction funding that's approved every other year we did get that approved last year that uses the governor's rainy day funds governor proved that funding last year and the distribution of that that went out last year and early very early this year so that's construction funds to seven seven separate Avenue that we have within the department is premium funds and that's based off previous years law section were bets point numbers that they have so quickly early on we we realize that fares ram to cancel some of their bets and that the distribution of this funds would be a little bit on equitable this year and the following year because some events for having to cancel so we did submit a proposal to the legislature that was approved four to allow the the spending of what would have been that premium finds with some some tight restrictions on it that that force that funding to be used for awards and other top of things associate with showing but we did get that approval to the legislature that allows for that distribution to your county district fairs but the intended recipients without those restrictions to give them a little more flexibility during this year sets six hundred ninety two thousand dollars we starts in those checks out last week and I think the last two checks were supposed to go out today to those recipients. but that's a quick update and of all that Patrick talk about the number of shares that have been canceled member plans that have been submitted to move forward. Thank you Mr secretary of getting those Patrick fist rector left out poultry commission the division of the cover that extremely well of the funds that we originally have other appropriations that we have in our our current real law is extremely restricted two how they can spend their money and to where that money can be spent and how that can be accumulated by the points that he just referred to us so it did kind of handicap the us in regards to fares to have canceled the in our state law there's a requirement that if they do not have a fair that they have to pay that money back to us currently we of twenty fairs that have completely cancel these affairs that will acted not to have it be at all so these twenty fairs we have been put in a situation where they would have to be paying their rent their utilities the number of loans and situations with absolutely no support from us but with that new appropriation that gives them the flexibility to be able to pay that without being tied to a to to premiums of at this point in time the Arkansas department of health has the elected not to have a carnivals just from my impact that it's a little bit harder to maintain a a caramel topping event there are safe ways to have lost documents and that's where we have aimed are plans are are sources of of approvals of fifty three fairs at this at this time uh have elected to go with just the livestock event that would be mostly a junior show a twenty three of these of of additional fares have elected to have pretty much the full blown fair with the exception of a carnival like. For example horticulture home economics. pageants parades that sort of thing but most of them of either gone of either through a online system showing rabbits or chickens and other like the whole culture of just a drop off so we've approved that this one hundred two plans. There are more in the queue to come this is becoming a very extremely busy time of the year so this is one of right now were approving rodeos fairs and equine events such as for example the horse the arts of war station so those of answer coming in hot heavy right now. but I would like to tell you how much we appreciate that appropriations occurs the fires were put in a situation where they had to answer a couple questions I do have a fair and risk our community with coated or do we not have a fair and risk closing the doors for good so that the flexibility with the record the new appropriations has X. has helped them tremendously this year. So with that I'll ask any questions that you might have affairs. Earn. You're recognized. Thank you Mr chairman have been meeting with some of the fair board managers through the last few weeks and bring up to date on some of the things you're having the the fares the one thing you didn't mention I'm not knocked presentation very good presentation fairs make their money through ticket sales and through the gate and when we have online of A solutions we don't sell tickets and so the fares employee of the fair board during of the tremendous financial difficulty right now because of lack of the attendance to the people tend to Fairfield carnivals and in we all understand I'm not complaining that we're not having caramels this this is situation trying to deal with. Basically what they've told us is is if they could get some funding which we can do in the legislative session funny would be available till next to July we could we could do that take that generate a new but but they're they're not will be able to survive that long the electricity is turned off it won't take place it was brought up it costs thirty thousand dollars just to get it turned back on. And so you you're correct it rent is due the water has to be paid water bills that we paid and basically. What affairs need right now is the injection of cash to help pay these light bills the water bills and rent and the the the termination was if they can get about thirty thousand dollars per fair that they thought they could survive the year. The sixty seven fair board in the state it would be two million ten thousand dollars. Of if there's any way that we could arrive at that between now and and the end of the fiscal year that would help tremendously. And it to. And I think this is to assure the survival mode I don't think that's any way for them to thrive but one thing that we fail to realize on the fares because when I go to the fair I go to wash the kids play and have fun but does it bring their livestock and plants and and dresses they've made everything is the education that they receive that's not taught in the classroom. And and we miss out on it so much and and really realized what educational tool that to the for ages and and in my counties one candid and have a fair we share affair with that with three counties in so but for my grandchildren come up and and to be involved in the state for sure will be there we paid our ticket so we we can paid our dues or what we can but for them to see what what they learned and wash them grow is very significant especially in in its its not detectable by people that don't have the animals and the plants in the projects as these children to have and so if there's any way that we can keep the fares bobble we need to try to do that but anyone until last week that that one I told you know that that we we can run this bill and they said we can't last that long so I want to present that to you for G. anyway after that we could. Find the money two to the be able to save the fares for most of them agree that once the fair in their county is gone they don't think it'll come back it's so hard to come back DO is so easy to keep the Golan but shall hard to reestablish so I appreciate all the work you all do not appreciate your time thank you Mr chairman thank you senator. Okay don't have anyone else in the queue this is an item for for discussion there's no. Action is required on this item. And the. All okay there's another part to this right okay. You're recognized thank you Sir the the next item on the same agendas of assiduous the modest and Sir what a let the Patrick and and doctor check both give a recent update this is a recent occurrence here in Arkansas that we want to give you all an update on as well. If the thank you Sir of just a I'll give you I have prepared a statement and I will turn it over to our resident expert statement Merion I just wanted to give you just a little bit of background of the CIS seriousness of the of the matter of this group were still Montessori coming on this this the is a very contagious disease that's finally affecting hoofed animals in particular horses and cattle it is a is not disease. Of people that are in contact with an infected animal or attack or any other objects that has been in contact with the animal also can contract the disease most people do have flu like symptoms so it is a disease that can be transmitted from human to animal of the outbreak occurred usually occurs during warm weather we've had extremely bad year of biting flies so that is part of what we believe is some of the transfer the the the common vector so to speak and the the calls of the the what we believe is the spread however the spread is of the viruses not comply completely or fully understood at this time we do know that animal movement and sex as well as sharing tack and other objects do play a role in this it's essential that we make sure that our veterinarians and our livestock owners. in the in the affected reasons or where that the the VSP is now in Arkansas and we have built as much of a diligent job as we could possibly do and and getting the word out by the contacting our local vets as well as so she Asians the billing the client and in the event that has submitted a a large at vent plan I've been in contact with them and giving those restrictions that currently the outbreak occurred April thirteenth I it was found in a New Mexico other states that have been involved at this point or Arizona Texas Kansas Nebraska Oklahoma Missouri and Texas was confirmed on July twenty seventh what livestock and poultry has done at this point is we've place movements on a restricted movements on seven counties here in Arkansas of Benton county is the ground zero that we have had for purposes or for forms that have been infected and confirmed by in this sale. The other counties have restricted movements what we require that they have a five day a certificate of veterinary inspection and a VS the statement from a veterinarian as well as I move permit before they can leave their facility or their part their premise of those counties include Carol Washington Madison Merion Baxter and Fulton counties. The economic impact of this disease is concerning to us because this particular disease has a very similar appearance and back and and Lesions as foot and mouth disease so it's something that were really watching the at this point it's only affecting horses but once it gets into the cattle. There could potentially be a complete shutdown of all movement until we completely identify and the only way that we can identify the S. B. from of foot and mouth disease is through blood testing and a lab testing so with those present a concern for us at this point. So this point I'll just turn it over to doctor Randy check to give us a little bit of that where we are at this point this force receiving animals from other states and the movement within our state itself. Good afternoon Mr chairman members a committee my name's Randall check I serve Arkansas is a state veterinary. Of the follow up the director Fiske's comments sicker storm tires buyers is a highly infectious. And doesn't cause a great deal of mortality in those animals are particularly affected but the main entrances of USDA better services is that it is mimic it mimics foot MALOCH disease which could have significant impacts for both domestic and international trade. Movement of animals. So what we put in place are similar to what was done last year with the outbreak. The average did not touch Arkansas and twenty nineteen within twenty twenty it has stepped in our state. Currently chances has about fifteen confirm premises and there's various county in that state over home in Missouri both have about nine counties fared so far been county in the state of Arkansas is OR one has confirmed premises and as of this weekend we have to suspect premises to add. In effort to try and restrict the movement of animals and to prevent the spread of that problem beyond the boundaries of Benton county basically you have restricted movement and adjacent counties also so that involves Washington Madison care okay. Due to a positive premise in Ozark county Missouri which is gainful Missouri area but may impose restrictions on both Marion Baxter in Merion and full tax in that area to those requirements are that the animals are removed from that premise and this involves horses only at this point. View examined by an out category to the creative veterinarian X. examine for the freedom from signs of the disease the temperature be taken indicate whether or not there might be a disease incubating and all that attested to on a restricted veterinary inspection before movement and is that within five days of that movement press three because of the incubation period disease respiratory about two in ten days. So with that I'd ask you for any questions on my transfer committee so you mention the the. It can also jump to people. It has a a low tendency to joke because you know as a a problem in humans in that those people who were caring for animals that may be affected actively infected they can vote flu like symptoms. The press which usually headaches maybe a mild respiratory problems bone excess sort of thing okay uncommon but it can occur okay Senator hammer. Mr in any other states as a jump from the horses to the cattle urgent. There and Mister bridges been about three hundred twenty I believe premises affected. Three hundred and six of those I believe war horses only about a dozen or so we're cattle involved. The there's two strains of the virus of Speaker still ties virus one is called in the and in the other one New Jersey in almost all cases so far it's been in the area within the state of Arkansas only the Indiana string is been counted only horses have been affected by the buyers okay and is in Missouri of had cattle effect. Resize wonders just going back to previous conversation we had today about about the processing plants was wondering you know the saying god for bid should escalate what how do you how do you you know it's like a six month processing time from time to book your callous to get him slaughter numb wondering as far as the duration of the tests that they would have to have an what would they need to be educated on so that they could you know not get him tested six months then get up time to take it and it not be good or you have you develop that thought process yet in anticipation not a not a great fashion but I believe that most the restrictions on animal movement both those foster by our rules and regulations and those of USDA aphis with services and was moving directly to slaughter. Would would be exempt from certain restrictions now in the case of a foot map disease they thought that was involved usually that's what they call it stop movement nothing goes anywhere for about seventy two hours that becomes an impingement with that be only a particular point in time not overall okay thank you thank you Mr. Representative was. Thank you Mr chair Dr chair good so you today thanks Sir on this it is there any treatment for once the treatment Ford or or what's the duration of it what what happens. Where the day a firm that your horses or your cattle or something get it and what can we do about Jerry first thing we would occurs pyrex year fever they would then go off the they may feel appear depressed and appearance at that point I'm usually gins or appear somewhere around the oral cavity sometimes on the inside of the years on top of the corner band which is that interface are between here and the hoof part of of cattle horses and other ruminants and then you can also see lesions of under the tailoring the preview show area of male male al's. So the duration of typically six to ten days. During that time they maybe they made go offer you lose quite a bit of a wait and condition. And now those cases where that you have an analyst Jeffrey Vance in age or if there ever chronic disease they may succumbed to the disease because Rafi so their demise is secondary to the actual infection. After that ten days so things or to heal and generally though that recover without. Any further attention other than standard nursing care and a good level nutrition and we will water intake make sure those animals have fairly stress free environments as best as possible but if you can imagine these ulcers generally will cover about half the mouth the bill like you're I have a canker sore over half for math is really a current. So there's actually get pass an initial pain insult generate recovers under that. The thank you Sir. You'd see in about thirty five years down. It has been it has been fun for both giants little bit since it. Okay I don't have anyone else in the queue. So the thing now that brings you to the end of. That segment and the. If it's okay with the see you have you ever. Appointment at three thirty. So of what would like to do with concurrence of the committee without objection is the reverse the next two items. So we could do the discussion of the the camera. And then if necessary we can reschedule of federal hall the thing until later okay. Direction from the committee. Seven nine so of will go to. Number H. on your agenda. Okay recognized when you're ready secretary. Thank you Sir west for from the Arkansas department of agriculture also have here with this Scott Brady who is the director of the plane industry the division as well as the the chairman of the state plant board Mister Terry fuller as here as well. Okay. You have a presentation to to make. Sir I I will very quickly turn this over to to Scott Brady as the director of our plan is street division just die camber continues to be a hot topic for for a lot of people it's of the we frequently get asked a lot of questions on to really just the more intended to give you a quick update on the current status and and answer any questions anyone may have there is some current pending litigation that and I than others been question about the make up of the plant board membership and what that looks like in there is some pending litigation there are regarding the the makeup of the board that will continue I think it's currently it has it is currently being appealed to this to the Supreme Court of Arkansas all Sir that question still remains out there of of what to do with the membership of the board but separate from that is just the the actual docking above itself and and so all that mistress coverage of an update on the number of cases and and the current status of our of our purse to that okay. Thank you miss sector. As of August twelfth we had received four hundred seventy two pesticide related complaints this year of out of that two hundred eleven or less doc Campbell. Comparing that to last year and twenty nineteen we received a total of four hundred sixty two total compliance two hundred ten or alleged act camera and the year prior twenty eighteen we received a total of four hundred and fifty six complaints two hundred of those being alleged that camera. We have worked through forty eight cases this year that we've sent out settlement proposals and those proposals amount to approximately one point five million dollars in penalties that. Penalty proposal rate is at fifty percent of the potential maximum. Of of penalties based on settlement guidelines the board approved we initially all for of fifty percent of the maximum settlement and then we do have the ability to negotiate further depending on circumstances. Was is there any questions of. Go ahead. Michael. Presentation also I do not I was just given some some number of days okay I have a comments and okay makers and we'll go to questions thank you I appreciate the opportunity to be here. I'm Terry fuller a farmer growing corn soybeans cattle have a commercial real estate operation seating chemical business I live in public Grove Arkansas currently represent the Arkansas seed growers association service chairman of the Arkansas state plant board the mission of the Arkansas state plant board is to protect and serve the citizens in the agriculture and business communities by providing information and unbiased enforcement of laws regulations thus ensuring quality products and services. Formed in nineteen seventeen one hundred and three years of service to the people of Arkansas we faithfully carry out that mission for the past seven years the use of da Campbell over the top in corrupts it's been a controversial issue it is so controversial that many farmers backyard gardeners and homeowners are fearful to express their views or submit a complaint according to the national wildlife federation report in this report. Drifting toward that Campbell how deck camber herbicides or harming cultivated and wild landscapes their research found that damage from this highly mobile I'll herbicide does not stop it to field age doc Campbell Sally volatile easily evaporating from plant in Seoul services and can continue to of all the time as four days after application the herbicide construct a long distances before being deposited on the surface of unintended plants causing decline in native plants damaging trees gardens other crops other crops multiple plants the city's Audubon Arkansas along with several national environmental groups are now involved. Arkansas history owned Campbell. Twenty seventeen the Arkansas state plant board by and over the top application during the growing season one thousand three hundred and twenty seven pesticide complaints were filed in twenty seventeen. Twenty eighteen growing season in April fifteenth cut off date was recommended by governor raise the hood since die camera task force on August twenty six two thousand seventeen and it was adopted by the Arkansas state plant board FOR the two thousand eighteen growing season this taskforce also recommended to amend the current law Arkansas code do day sixteen dash to three allowing there to be egregious violation subject to enhance penalties without the need to prove significant off target damage. Twenty nineteen A may twenty fifth cut off date for die camera use was adopted. Twenty twenty the cut off remains may twenty fifth now this gets real interesting. In twenty twenty six states have an over the have a cut off date for over the top crop application. Sixty four percent of the soybeans grown in the United States of America are subject either a cut off date or land grant university recommended restriction. Forty five percent of the soybeans grown in the USA have an absolute cut off date. Arkansas. Is not alone. Senate is represented to the Arkansas state plant board FOR the last seven years on over the top deck camber products since then these cannot be as blood safely on growing crops in Arkansas in summertime conditions. Everyone of the scientist says presented to the state plant board has said that the document task force ask for increase independent university research in twenty seventeen the ninth circuit court ruling in twenty twenty city PA did not do an adequate job assessing the impact house. After adopting the April fifteenth got off in twenty seventeen. Recommended by the doctor and the test force several lawsuits were filed against the Arkansas state plant board many claims all we're dismiss except for to own going suits in front of the Arkansas Supreme Court both suits only remaining point of litigation bean the make up of the Arkansas state plant board on August thirteenth twenty twenty by your filed a motion to consolidate or submit for a decision simultaneously. To date Scott said a million five hundred thousand and settlement agreements have been offered to violators of da Campbell regulations. My sources for today's comments or the docking member task force report. Minutes from the Arkansas state plant board which I have every single copy for the seven years that I've been on the board to be glad to send anybody here and also have several of the Jack in the task force. Reports here if any of you all would like those in its amazing health sciences status change from twenty seventeen to nail the sign said and changed and also I have the national wildlife federation drifting toward the disaster report. Sir any questions you you use the term of a few minutes ago and just for my information the cliff clarify that for me is there a difference between a cut off date in UNEP salute cut off date. It is it just something you that's this that would be my redneck to okay okay all right of that enough it was early in my opinion but what's I classified as a written it. So. This. Thank you. March twenty Michael please. Now can you hear me yes good this thing I've I've lost a fight with this thing a couple times today. Thank you for coming chairman former appreciated we in months and in years past we have considered in we've decided not to look at the zones from south to north. I'm of course from Mississippi county which if it's not ground zero it sure seems like ground zero to me. And when I. See my farmers and and and their split but it seems to me that it leased the eastern half of Mississippi county is where in the south he's particular is what we really need that count a longer and then you get the little area to the west called buffalo online and cricket not so much because or smaller farmers a waiver look and we're thought about looking at those owns or even looking at pockets to where we can authorized limited use of that camera in certain areas. That camera task force that I have right here and be glad for you to take a copy of it home did a outstanding job of addressing. The temperature zones north south zones they the. When the Rockefeller Foundation did a an outstanding job as well as secretary ward put net deal together in the governor of house one of the ones in the beginning what the heck do we need this for but sit here three years later yes we need it the the issues being getting people to read it but also in addition to this book here I am very accessible only way of the if any of you all will send me an email or tex I can send you a link to this report as well in an email and you won't have to handle one that I have to just and I'd be glad to do that. Did that answer your question it did not they are not now yeah hi I I want to have we thought about reconsidering then and I is the answer is the. The board considered to die Tampa task force extensively we had four years of Meetings and hearings before doc Campbell was label for the top application of the crop in the United States four years of hearings from volunteer board constrained to adopt a method that we could roll this out. That it would work in twenty seventeen it was the guidelines that we adopted the buffer zones and things were rolled out we had a thousand three hundred twenty seven complaints in the middle of the summer and stopped it thank it was a twenty eighteen. When we had the. Yeah we sent every quest in here for a Lawdy I'll you send it back to us asking for that specific thing just then director Terry Walker they had a huge presentation at the plant board which as I said while ago I have the minutes of that meeting I'll have to look it up but I'll be glad to send it to you but there is a presentation at that meeting as well as Jason doors where these presentation that is available on Facebook and the whole he had like a forty five minute presentation that address that as well to us As I said well go redneck farmer I'm not the but I do have ACT information access to the information that they presented to us and be glad to get it to you but the task force nor is worthy and director Terry Walker all three resented that information to the members of the state plant board. May I have a follow up. Yes go ahead If not I don't know this answer but it is a growing season of the farmers and south east Arkansas able to plant soybeans earlier than the farmers in northeast Arkansas. Some want to me there's a lot of research going abound about that but if you want to talk about just soy beans. So the beans blue more mature bad day length not back planning date planning date can affect it June twentieth is the longest day of the year as recognize the longest day of the year no that changes because a leap year and some different things but for our discussion here today or for my simple mind June twentieth longest day of the year if you look at the states that have the cut off dates. June twenty at these your predominant date there it said that Minnesota has the most restrictive state cut off date. By the scientist I would just say that Arkansas possibly has a second but the reason our date we are so much further south than that June twentieth date we have a large percentage of the state so it means that have reached the flowering stage by June first and by the way when a soy bean reaches our one when it blooms which ideas said the majority of them were in the state this is strictly my opinion or my part of the scientific data that I've get their bloomin nerd OR one if you got a sword being over six inches tall June first in the state of Arkansas it's got a blue Marie will have soon that's the federal label you have to stop with line herbicide it are one in soy beans forty five days after plan sixty days after planning cotton but the are one limits it so are may twenty fifth is not a whole large Stritch from. The federal label you know it also like to point out the twenty eighteen when the petitioners petition the state plant Ford Ford date may twenty fifth was the date they ask for. Man with granted represent the the question. Okay German you'd say you here to die my question is not about the cut off date I mean would sit through enough these doctor means I'm sick to death of the damn things okay my concern is is the assessment and implementation of some of the penalties for violators now my feeling is the purpose of a penalty or fine is to spying some body a little bit to get him to follow the rules and trying. I've heard some. Assessments or the methodology for assessment the Frank Lloyd it's more like shouldn't somebody. We want to get people to follow the law we don't want to bankrupt them and put them out of business now some of the stuff I've heard and you know we hear all sorts of stuff just listen to Donald Trump you'll hear all sorts of stuff on on the news ever not vote. The concern I have let me just give you an example to somebody's got a five hundred acre failed to go out and they spray it. It's got two or three different parcels and it is far as legal descriptions different sections. And so I there's three different parcel numbers in that one failed I sprayed all the sine die. I've heard I get three penalties so instead of twenty five thousand dollar fine it's seventy five thousand dollars fine. You know in my opinion that's ridiculous that's punitive Backstrom put some by out of business if that be the case I'm just repeating what I have heard. I've I've heard other instances where earned specter time out and looked and saw the documentation but didn't get it and the guy got a penalty for. Not having these documentation we're hearing all sorts of stuff out there that basically just scares a lot of our legislators to death our way being punitive to these people instead of spike and I'm trying to get him to follow the rules what is your methodology own determining these fines are you know you've got a million half dollars worth fines or or million and whatever it was. How do you arrive at what I eat individual find yes I'm concerned about the methodology there. Okay get can hear me all right yes. Of I believe some of the cases you're referring to probably up revolve around a farm with multiple feels or multiple partials and if we weren't able to obtain records or cooperation from the former to determine the application then yes we would consider each field A violation in of itself now if we were able to obtain records or cooperation from farmer that indicated this was all done in one application then that will be consolidated into one application that's why we've roll those out those settlement offers out in the past and we're always open to discussion through the settlement process ET farmer that wants to come in and and can adults what we would call informal hearing with staff A could come in and explain that and discuss that with this and we would certainly consider rolling all them under one violation. As far as the record situation where an inspector did not obtain records and then we charge or or alleged that the the respondent did not provide records I have I am not aware of that happening but if I did become aware of that or if that did happen we would certainly drop that charge. We would not hold them to that some of the cases that we have negotiated so far through the informal process and and and just to be honest we're not getting a lot of offers to discuss these informally because a lot of the farmers are just referring to their lawyers the informal settlement process is conducted between the farmers staff typically without lawyers available it's just an informal is see if we can resolve this most of the ones that we have handled this year so far they're rolling out of there and about the three thousand dollar range. And that does have to be presented out to the committee and up to the board. And you shall keep all records of those discussions and negotiations. There's no. Recorded record of and it is not allowed to be used be on that informal discussions say we can't reach an agreement and then it evolved to hearing we don't use anything that was discussed in that informal discussion and a hearing what we do is if we reach an agreement in an informal hearing them we re. Right for lack of a better word a new settlement offer back out to the farmer Senate back to the farmer and it gives them some time to think about it and if I still agree they'll sign it and send it back and then it goes into the process of committee review and board approval okay so the final say on this is the final rule one is the state plant board itself to our board in every case yes Sir John thank you. Do you have something you will lead to the yes I like that just a second if you would indulge me there Representative Douglas and Senator Cooper. Of. This way I understand the process in a thank of got it sort of right if you provide. We've only find one individual. Four twenty nineteen application it using the egregious violation there's only been one farmer it's actually get at a find all the others or settlement agreements that have been offered to the individual that he can settle for that or he has an option he can come for an informal hearing there's no recorder there's no attorneys that then that user can be used further no plant board members are there nobody like me is there is only staff the farmer whoever he brings within the other option he has is to come to for a formal hearing when he comes for formal hearing all eighteen of his or there are many shows up we have a court reporter provided by the attorney general's office we have an attorney to present our case and they have attorney to present their case or not our case the state's case but we've only had not everything that so far this million five or settlement agreements they're not fines but a I would like to add that the if the department of finance shows up at my business today and asked audit my records and I tell them. I sent my reporting in and I paid my sales tax there it is you're not getting any more records I suspect I'm not gonna get off with that. If if I could I'd sure like to know which one you all to call to let me let me get off with that At the same thing with the U. us stop if you don't give the guy you driver's license then you prove insurance you're not gonna get off with that you go out to provide some records in the the farming industry which I am a part of. Is gonna have to provide some records and step up to the public we're it charged with protecting the public in part of protecting the public is asking for the application records and most of our lot of these records are required by federal law. Is well federal law trumps the state law in most of this is a lot of this is federal rather than just state so again I had to provide records or. House bill the final there may be some of the other guys it may not but I can promise you to fuller's going raises hand and we're we going to ask for a pretty have fun. Did that answer your question yeah just one quick follow up if I might so of this whole process is on been wanted great just violation is that what sign and it was a that's a great just violations twenty five thousand dollar penalty one farmer that's been assessed an egregious violation he had more than one violation against is entity and I remember researchers me right it was like a hundred and five thousand and he did not provide is record so he got some fines for not provide not be it not cooperate in his will but there's only been one farmer not one egregious violation but one farmer that was fine so for now we have a meeting the first to September I think is the third. I don't know if we'll have some settlement agreements ready for the in or not we have a committee meeting the end of this next week or the end of this week ill go through the pesticide committee they don't come to the full board and if some of them have agreed to the settlement agreements they'll be voted on is September but there's only one farmer that's actually been fined but he did get more than one. Agree just violation okay thank you. Center. Thank you Mr chair there's a difference between fine and settlement agreement is that correct. How much have you all find relates die campus sense and I remember this going through rules in the big long battle back then how much have you all find people Senshi had the authority to fund for use of the camera you know right off. You yes Sir we are we have one case Mister four spoke of this made its way through the board finalized and the civil penalty has been issued and it was four one hundred and four thousand it was four Missouri farmer that failed to respond to any of our settlement offers or any notices and fail to come for the hearing of the one point five million I spoke of those are all settlement proposals basically we have sent a letter to the respondent of proposing this is our initial offer in it is that fifty percent of the maximum and we advise them that they have the option to contact us for the informal hearing discussion we just mentioned or they can come for a more formal hearing before the board so this one point five million it's it's still in motion we have. Of the document I'm looking at that I prepared last week shows too but I think we have a couple more since then where we have conducted informal hearings and we have reached settlement agreements with the farmers of the two I'm looking AT one started it twenty at twelve twenty five and it we settled it three thousand one hundred twenty five the other one we settled three thousand one hundred twenty five that'll still have to go for the past subcommittee once we have that meeting scheduled this Friday will present to the committee and if the committee agrees with our settlement they will recommend that to the full board wants me September the second. Art but but as far as process you actually will go out and find somebody but then you settle for whatever you work out based on the process is in place for them to come in and argue their case is that right well it's kind of if I'm understanding you correctly it's kind of opposite of that we don't find anybody until it's been through the whole process and comes out the other end with the board anything that staffed anything we do it at the staff level is we investigate the case we put together the evidence if we feel like our evidence supports a violation then we will send out a settlement proposal based on guidance from the board and if we can settle out come to an agreement with the former A will bring that to the board for review and approval if we cannot then we you schedule a formal hearing where the respondent comes before the board and more of a formal hearing setting and just educate me are your determinations. Able to be used in civil litigation between the farmers as far as being used to determine liability I'm I would not want to comment on that Sir. I will probably more ask are attorney in the back is nodding his head yes. Okay A just be curious how many times it went to. Comparison of the number of people that you find and settled verses the number of wins for upon the victim in this case I wonder what what percentage rate is for them being successful once they go to court using the information that you guys have compiled yes Sir I have no data okay alright maybe somebody get that for me maybe attorney or something thank you Mr. Centerville. This service for. In today's world Mr full you kind of learn to observe things going on around you because we never know what's happening or what's going on. You've got more information of their then hit the OJ Simpson trial what would already have with you over there. The the most important things I've got here's what I've already said the document task force report and the. Drifting four disaster from the national wildlife federation. I also have an extensive packet of request that I sent to the in asking for information to prepare for the for this meeting of. Long with a the well here we go. Pretty good policy stuff in the reason I ask for this the. I knew what is to be about my opinion I wanted to be about a fact of publish fact. That's been cited in the documents one of the with a ask about to question about to die camera fines and we only answered about the egregious bands and I'd like to back up on that just a minute while ago we've had several fines for die camera miss you sense the over the top application of da Campbell started. Those all fell under the thousand dollar maximum penalty until senator hill or Representative Hillman said bill to raise the fine to twenty five thousand and then we fixed it where we didn't have to see significant off target damage the task force rip recommended in twenty seventeen. Published information on that says delta form press article last August I got to article in A be glad to send it to you. Forty to eighty dollars an acre difference. The farming in Arkansas a man by the law. Which I said well it goes the federal label in the state law compared to just spray and doc Campbell when you want to. Two thousand acre farmer forty Bucks an acre eighty thousand dollars what I need to buy my fun. Already paid for by the by the law. It's no different than a trucker hall in down the road all in a hundred thousand pound payload instead of fifty. Did that answer your question Mr you'll. Come on all of the the that's the document task force. Representative Jett. Thank you Mr chairman hello Terry. Scott how you has done I think with that be just I can be issued on was a Sunday but got a couple questions first also say something real quick when the when the names of the farmers come on the newspaper several months ago you guys is not to yourselves any favors by putting the names and the fines that there was in covering upon them in the newspaper up some is guys I was told that let's first team saw of it and and so just one thought out there but I guess I guess my questions are how many these companies penalties have been brought up by now anonymous I'm I guess I'm assuming like out of on site or somebody can call you guys up you can send somebody out somebody's farm is is that possible. Yes Sir Mr jet skis me. Yes when we do receive a for lack of a better word a tip of an evidence or a request to go investigate we do conduct those investigations yes how many how many do you know off topic here just just Bob partly hi this is actually a last year we had twelve call lands from all and assume you're asking about the old on Saudi last year we had twelve this year we've had seventy four how many that were accurate to the you found something all the feels. I don't have that data with me from from this year of the seventy four were still processing that most of that is contingent on sampling and lab results we've got a bit of a backup in our lab so we haven't really process what we have process that we sampled from Audubon this year it looks like about half and half for showing positive for doc Campbell and negative for docking so fifty percent of the claims been been levied against farmers are you say or just invalid claims I wouldn't want to say that I'm just saying that's that's what we're seeing so far. Okay so that's that's taken up quite a bit of manpower just go out and this guy right yes. And as for two to address the article in the paper amend that that material was FO I had we had provided it wasn't something that came from the department it was it was FOR by the newspaper and by law we have to provide when I ask you to lunch for teachers first close you're not at a private conversation but I want my colleagues to hear that as well so let it be out there on the forty eight cases and score fireman further again those names in the paper that was the latest. Violations that we've offered settlement proposals to none of those have been settled yet. Yeah one on one of the farmers that was mentioned in there was a stage one of mine and you know by the conversation that the this leads me to my next question the Senate your vested in everyday ask for documentation we have the documentation and so nice face in the findings what go through the process of of the informal hearing all that how many cases have you found out in the field for your investigators have messed up in in did not ask for documentation and come back and in is there any cases that you can actually put your finger on to were your investigators rockers have made a mistake during this process I don't have any numbers for you but they are human and there have been mistakes made there have been times where they for whatever reason didn't gather enough evidence or gather as much evidence as I should have yes last from appreciate your honesty in in the you guys are very hard job investigators have a very hard job. Excuse me have a very hard job as well so I appreciate your honesty on that so how many of these forty eight cases how many cases do you know on the one point five any of those guys have gone through the informal process yet to to to push back on this yes we have like I said we have. Two and I think we have. One or two more that we have met with and so we actually have one scheduled for tomorrow. and then we have a few that are reading represented by attorneys and settlement discussion is ongoing between their attorney and our legal so those potentially could settle without having to go to hearings as well how long do you think I'll on I'll just you have crystal balls got I get it but how long do you think this is this process going play out for this planning season. The tech to clear this to clear all these cases we these these cases that I'm talking to you all about today or twenty eighteen twenty nine cases we haven't even started processing and working through the twenties yet we've got a couple twenty that we're working on now but I expect the twenty twenty cases settlement proposals for them will be coming out that'll be several months from now thank you Mr chairman just in light of this is no reflection this guy out of state plant board but I like to make a motion to property time the state plant board keeps coming in front of us to keep a surprised the through the process and how these cases work out in the service any concerns or anything that we might address on the backside so the proper time as chairman I will be making a motion. Okay. Senator Wallace. So do we have data the shows is the percentage of let's say we've had a hundred cases are hundred Fines or settlements this year do we have a percentage of how much occurred in each county. I do I do have some data and the breakdown of by inspector in bycounty I don't have that right in front of me the I would like to see by percentage by county it is safe you get ten gallons of if one county get twenty percent one got five percent I like to see what those numbers are going. Thank you Mr chairman. Representative Bragg. Mr over here to your far right of of the forty or so cases where you you are cases where you either had fines or settlements were these cases where the farmer applied within the time frame and within all the label guidelines and still had drift and was accountable for that or was there something that you noticed in the records that indicated something improperly done. The vast majority of these would be used after cut off and failure to maintain records okay so if they're using it after cut off a they've documented that. No okay not in most cases you just know you through investigation that that's occurred evidence support that it was the bill was treated yes okay thank you. As well as. Senator Caldwell thank you Mr chair represent records from a follow up on it last year I went Phillips county on behalf of Mister fuller one is the customer down there that waited until the day after the cut off date of may twenty fifth before he ever planted beings and he had that camera group damage three different times after that I've got a photograph nerve thing else of it so there are lot of people that hear elite illegally using the product so it's not unusual we've actually had one person in my neck of the woods it to in all probability applied with an airplane which is totally against the label use at all so just to follow up on it thank you Mr. don't have anybody else in the queue. Question Mister chairman. Hold on the second. The. Use. The Representative. Representative Jett we we have a couple more people that wants to come to the table do you want to hold your motion delay after the interview on like that now. Okay I'd be to okay. Okay like to I'd like to follow up on Senator call wells come in a depreciating for come in last year I didn't call anybody to come this year but I do have photographs. Of a customer mind. Friend that I grew up with from the time we were small children. A plan is sixteen hundred acres of endless soy beans this year as a thousand acres in one block. So mile basically in the center that block. To a neighbor. You cannot tell the difference in the center. From the age and I have photographs. Can be glad to give you a drop rock links of picture of those pictures anybody that would would like a copy of those of I can email you a link and you can click on it and you can see the pictures. You can argue is hard to see the real damage without be in there but you can see the. You can see it. Okay thank you. Go ahead with yes Sir and and I'll be brief I just wanted to make a couple comments before we left the table in particular regarding the comment by Representative Jett about getting frequent updates we we do have a just one just a point of clarification we do we do provide a monthly that came a case status update that we that we have been submitting to a LC I just don't think that that's been coming to read committee to that's probably and oversight on our part that we can we can make sure that you are at least doing this monthly that came back case status update that has a lot of information and we can add to or change change that information to to address your concerns your Senator Wallace and others have made about what areas and different things were that were there is penalties are coming from but did want to make that point we can certainly share that information and I do want to also Rick echo the point about the four year the freedom of information act requirements I agree that puts it puts everybody puts puts us puts the farmers to produce reports a lot of people in a very tough spot when some some items it release before and names are so she to do those things before they're ready to go out and FOR so there was just a a product of of the freedom of information act request process so that may be an item. Not make recommendations for maybe an item worth consideration during the next legislative session okay thank you. Alright thank you for the testimony in the information that you brought to this today and the. Once again I think we found it very informative and the. So you're dismissed. Thank you. And that brings us to number four under age Charles Williams and Perry Galloway. If you when you're. Red. Identify yourself for the record please and you're recognized. Thank you Mr chairman members my name is Charles Williams a form with my family and Crittenden county I just or to Merion I'm speaking today concerning the Arkansas standpoint state plant board from the perspective and experiences of an Arkansas former. At the outset let me say have a good deal of respect for secretary ward and director brain what they do we're about to share is not intended to be a criticism for reflection on them I think they've done admirably with what they've been given neither is it intended to be a personal commentary on individual members of plant board. Like to think the vast majority of them are decent well intentioned people. I thank you all probably aware at least on some level of the drama surrounding the board these past several years. It would be tempting but all too easy to say that a single issue is at the heart of all the drama and ended indigestion. I'd like to suggest however that this is actually the test that has laid reality bear. These past several years of thrown into sharp relief the lack of judge judgment that characterizes the plant board and the standing absence of wisdom and prudence from their councils. I don't intend to get us bogged down in the personalities are all the details of what's transpired. What I hope to convey is that the plant board model is practiced in Arkansas is broken. No other state has a plant board that promulgates rules and regulations on agriculture the way we do here in Arkansas. And our unique way of doing things should be viewed as an oddity an anomaly rather than as a feather in the cap. It's an out wire produce dag regulatory policy. With regard to the plant board first framework consisted of sixteen voting members the majority of which are pointed directly and absolutely by private industry organizations some of which are incidentally antiquated relevant and almost nonexistent. With no review oversight by the elected representatives of Arkansas citizens. Not merely recommendations are nominations they're not appointed or approved by the governor. The legislature has no influence over the appointment of plant board members and their not therefore accountable to the electric. This is problematic. In a a bandaid fix can pretty easily be applied but again the plant board model is now our approach. And a quick fix is not necessarily the right remedy. Second I'd like to point out that plant board has these past several years but Arkansas farmers did just distinct disadvantage relative to their peers in neighboring states by limiting Arkansas farmers ability to effectively use extend technology. Arkansas has the most restrictive rules and regulations of any state in the country with regard to extend technology every surrounding state has permitted the use this technology with very little variation on the full federal label. If the plant were were guided by principles of wisdom it would have been more circumspect corresponding within taking note of how the surrounding states were handling this issue. No amount of special pleading could deem Arkansas agriculture so different from agriculture in the surrounding states the more restrictive regulations are needed. Third. On information and belief board chairman Terry fuller has demonstrated a pattern of behavior consistent with undue influence on plant board process. It appears he is gonna be on the course and scope of his official duties. I'm willing to give several examples but the most disturbing is the role Mr force personally taken in policing pesticide use. Fourth the plant board is shown once again that it has a special knack for doing the wrong thing and its assessment of agree agree just fines. As you know the plant board was in recent years given discretion to assess fines between two thousand and twenty five thousand dollars for gregis pet pesticide violations. As I understand it the intent was for the plant board evaluate each case determine the severity and assess a fine accordingly. It seems they've opted for the new rather than the nice and everything in between. Already there propose more than three million dollars in fines and I don't believe at their down processing two thousand nineteen complaints. And several instances they're stacked fines assessing inordinate fines as large as a hundred seventy five thousand dollars in other instances they have assess fines and equitably same alleged offense under similar circumstances may arbitrarily garner greater or lesser fines. The plant board or showing a lack of judgment and equity and assessing excessive an arbitrary fines. These are mere symptoms of a broken system I respectfully ask that the legislature consider how these regulatory decisions are made in every other state. I'm afraid we're walking on our hands with this plant board while every other state walks on its feet thank you. Thank you. Mister Bill. Thank you Mr chair of I didn't realize I was coming day to talk about the camera but I'm certainly well versed in it and uh will address to we'll address so that issue out after I read my prepared statement so. I'm here to get away six generation form from Woodruff county in present of farm borders. The year was nineteen seventy in the date was April twenty fourth the United States adjusted third war on Germany two weeks prior and will become known as well where one. The Arkansas state plant board had his first meeting and on the reservoirs my great grandfather. John DU pre Eldridge con farm for Gregory their mission statement in nineteen seventeen which administer programs. Designed to curb insect and disease in crops in addition to registering a pure use and licensing pest control operators. Today's Arkansas state plant board preservation members sixteen with voting privileges seven are appointed by the governor nine by private industry including the aerial applicators horticulture the green industry Arkansas C. growers Arkansas see dealers. Arkansas pest management or the exterminators are so the manufactures far free association crops are protection association. Metes por teacher obsolete antiquated and out of touch with the Arkansas agriculture the boards making rules in effect thousand of Arkansas farmers raising billions of dollars worth commodities and yet some don't know the difference between the web will be an apostle Paul. Personal genders come before on bass decision for Arkansas's farmers buys propers private industries making the rules in portion rules and living penalty. On this current structure the Arkansas state plant board is acting as judge jury and executioner. As I'm sure many of your where. The constitutionality the make of this rule making bodies before the Arkansas Supreme Court. Regardless of the outcome does it make fundamental sense for an agency with this composition to exist. Several past and present Arkansas state plant board members as sacrifice Arkansas foreman for their own personal interest. is actually holding the board seats. Arkansas green industry. Who are they. Where are they what they do. They do have a website and a mission statement but are they qualified to make decisions relating to Arkansas's rice cotton and soybean production. The appointee to the failed da cama task force Dinning show up and is yet to establish whether he even actually existed. Arkansas horticultural society excuse me of trouble that word. The address is listed as the only you of a campus the you of ARE has to nonvoting seats on the board. Research shows in nineteen ninety eight DO declining membership and financial difficulties are Arkansas horticultural society merger the Oklahoma or commercial group. Further state to the Arkansas state horticulture society still maintained its identity but it's activities mental. Should they really be allowed a seat on Arkansas sample state plant board. And make decisions regarding Arkansas AG. And finally the group the Mr full represents Arkansas so your search engine they don't have a website they don't have a Facebook page or anything online but a few pictures from their hundred year anniversary. Based on that picture taken from the back of the room appears approximate twelve people attended and several you of A employees. Over ninety five percent of the C. grown in Arkansas is handled by the seed companies obsolete is an understatement. These are just examples the broke of a broken system. I personally tenet almost all Arkansas state plan remains of the last four years appalling appalling isn't strong enough language to describe what I witnessed. What on bass board member would make a motion get a quick second. And will limit discussion vote against his own motion. I don't know that's. legal I don't know how that works I never heard of that never crossing the line same for member. Personal turning up stages weight hajj. The attorney and buys all board and public meeting to alter only defeat a motion on the floor. And finally in Arkansas farm files a petition for room petition for rule making. A board member mealy makes motion to deny and reason obviously attorney prepared statement is this a type a governing agency Arkansas farmers need. The Arkansas state plan will be the death Arkansas farm. No other state in unit has anything similar to Arkansas state plant board. Why is that it doesn't work. It may work in nineteen seventeen but that was a hundred three years ago. So that's less my prepared statement I would like to address the some of the earlier comments about. Mister fuller. if that's okay Mr chairman with thank you. So he referred to the ninth circuit's decision coming out of California. That same court landlord band which is the insecticide which EPA still allows to this day. Same court declared up profits Satan talcum powder carcinogenic so I don't know if I need to sending us by that most liberal court land that's why they always go there. And I was going through my notes seventy four of two seven case of trying to buy the Audubon society I mean get real they he made his way through would of county a few weeks ago and numbers friends call me and they're in this and they had had a gallon or now Sadak came in their in their tanks and their whole career. And the Audubon society's turning and FOR doc Campbell. The document task force we keep hearing about that I was originally a member the Arkansas to ask for a document task force but I was. Kicked off because I had the. We've spoken in favor the product for but I did go million government personally asked me to go to attend the meeting. Mister four one there but I was. Then they never address address the temperature and didn't touch on zones in the state. But for a very short period of time. And actually they never reach their intended consensus because five o'clock hidden somewhere to go to meetings so they change change your vote from no to yes Sir yes and when they got just to little over fifty percent which. Was not there were an intended consensus but it was a majority so that's why they went with this. The decisions I did So the thirteen hundred sixty complaints in two thousand seventeen or two thousand yeah I believe seventeen only fit less than fifteen percent provided to be approved to be doc Campbell and less than one percent involved the label products. So no that's no think it's a this gets gets lost in the mix. So. When they're setting the penalties at the plant board meetings. So several times they do come out at less than the maximum. But Mr for. More often than not makes a motion to raise to the maximum absent I witnessed it. Been there done that. And I got a I got my name in the paper Mr Jett. All this been several months ago. And the day after I got the paper I got in the mail so that would be and Want me to sign a consent agreement for twenty five thousand dollar fine for recordkeeping violation in two thousand nineteen. I won't get into that right now but there was no reduce fine offer to me it was it was definitely the Max twenty five thousand one offense. And you all S. Sir will ask about cases that have gone from the plant board. Someone asked about in civil court. They lost. With with the lawyer representing them they lost the. I guess only for formal cases this been heard. on the informal cases I have no idea. So anyway I thought I think there's a sump confusion coming. Out of the plant board. And what they're telling you all persons what's actually happening thank you I'll take any questions. Senator Wallace. Thank you Mr chairman. We should both your comments on the board I I'm gonna question we'll come back to I'm still hung up on growing seasons the. Been long time house on our family farm I'm in the army so I'm not super smart on this a more. Season south Arkansas versus north Arkansas is there a difference. Would you would you elaborate in one or both I'll be glad to take it up. Yes I got friends all over the state and. Typically two to three worry that I'm in central Arkansas they plan at least two possibly three weeks before I do or I'm able to plant. There was a presentation at the plant board meeting. That said there was no difference in temperature between south Arkansas north Arkansas. And and they made their point but within two three weeks after that the the state so it means specialist I he was not at the meeting said well there are planned in south Arkansas because of warmer down there we have another couple weeks for than planned north Arkansas so I don't know where they gather information. For their presentation but obviously is in here or. The. Intended to be. Construed as. Confusing. Thank you. I don't have anybody else in the queue. So were. Thank you all for your comments in your testimony okay. And that brings us back to Representative Jett for your motion. You're recognized. Thank you Mr chairman of college still in light of this getting a good feeling on this I think a probably common uprooted of us to assess as the secretary and the. Mister Mister Scott ray the director state plant board to come back and of thirty forty five sometime in September just give us an update on whether at on on these cases and how these cases are progressing in I mean I know I'm get lit up back home on phone calls on this thing on people's the. Honor finds inner cases ins some cases people get sprayed in state plant board is not investigating some cases was it was getting too much so long story short my motion is that we ask the sector reconnoiter and the plant board director to come back and from this committee at a later date the upon the choosing of the chairman to go over the case is that the or they are. Okay. Get the. And the I have a second. Any discussion on the motion. Seeing none all in favor say aye. The post motion carried. So it will be to between the. The. The chairs in the Secretary to the work at that time for that report to is it your intent okay thank you. Senator hammer. Sure I'm not members committee but of interest in a lot of these things are on the Jen today so I appreciate the lead to to ask questions if the chair would entertain provided there's no legal conflict in my request. Could we maybe included in what we're gonna look at next time around what committees can look at next time just a comparison against the fine should have gone to the fines had been assessed and the settlements but also look into those who have gone into civil action and see what the comparison is between the outcome on the civil side between the individuals that are involved in litigation verses what the plant board of ruled and determined just to see the correlation between the two not realize if you might have check out the legality of that but if it's permissible I'd like to think we can room that the staff and the. And work that out informally I think that included in the report thank you. Okay alright. Okay the. Secretaries bill so we had an agreement to put the feral hog issue at the next meeting. Well that over two million so weak at the present that. And the. We have a exhibit one to review a report of. The bill pass. Arkansas institutional fund annual report for the year twenty nineteen. Anybody have any comments or questions concerning this report. I have a motion to review. Second. I have a second. Any comments. Discussion seeing none all in favor say aye The post. Motion carried. Review. Thank you. Any other business Senate could members have. Seeing none. So that will conclude the meeting for today and thank you all for coming thank you for your participation. And we're adjourned.