Agriculture, Forestry & Economic Development - Senate

Senate bill five sixty six. Mr asked to have my financial physical fiscal impact on okay we'll pass over that. It's. Your passion about. Richard Walsh who back of. Could I slide down in the you in the list also yes Sir absolutely. Representative Paul. In fact the. Please. Secretary ward you come the table please. We're looking house bill sixteen thirty six. Thank you Mr. Well I know that we have a huge feral hog problem in the state of Arkansas and they've been working on this legislation for right at two years this task force has trying to figure out how to best manage the hogs that we problem that we have so and with that I'll let secretary ward explain the rest of if you don't mind Sir this. You would introduce yourself record you're recognized. Yes Sir west for from the Arkansas department of agriculture do appreciate a representative vote Senator Hammer for for running this piece of legislation that it has been a work of for already cation task force over the last two years since last session that task force is made up of a a lot of partner organizations to state government entities as well as agricultural organizations and others throughout the state that or working to address the feral hog problem this legislation sensually move those efforts forward helps to reduce barriers that the that been recognized by the task force to help with the reputation for auction cross the state it as each of you know we continue to see for all problems really that it affected all thirty five all seventy five counties in Arkansas on this this helps move that in the right direction. Really probably want one of the main points of this is that it allows livestock and poultry commission to administer a penalty when someone has has violated a feral hog rule as opposed to just allowing it to go through criminal prosecution just because it is a more efficient and timely process to work through administrative process and and tearing the penalties collected through the minister process would be used to further for Aug revocation efforts across state. Any other questions Senator Beckham. Thank you Page four line twenty. Twenty twenty one does it says with permission of the. Stomata for all may be released in the wild only if only with the permission of the owner or Li C. of the property I I have a little problem with that the a lease holders allowed to give permission to. Release the hall is there is there any particular reason why we can't take that out. So that yes Sir so that's and it's so that should read I think we met on its own give that impression but it should be in conjunction with that with a. So it was so late in the. The issue is the least see has the authority to. The staff was feral hogs on the problem of another person's property that's an issue with it. Yes Sir and that's where I think that if you're read about self it looks that way but in conjunction with a it has to be a part of a an authorized planned to do Sir but but that plan requires if it's going to be on property has have information to process. The. Just to clarify my issue is that the. Lease see of the private property is the authorized party not the owner of the property. Okay so I I Suzanne with the Department authorization of that but if if you're leasing property for me and I don't know sure for all of my property you should not have the authority to give the Department the cables releases also solution without having. Is there is there a which shall be open to an amendment to. Take that out and just leave the authorization with the owner. Yes Sir. Anyone else need to come from. I do not have. I think we're fine Sir fine yes Sir okay okay. Sure that we get answers your senate. Five. I'd like to hear say yes I think our passing the hat check the for the record would you speak to apply thank you I'm so sorry yes I welcomed their guests yes Sir I'll amended apple it down amend that out okay because this is my biggest concern about this is we don't for a host of the owner or land we lease it out for deer of clubs so that's my biggest concern because center we can I can amend that Alka you pull it down bring back another day yes we can can I bring it back next week to address okay we'll leave it on the agenda are there any other questions about the bill before I pull it down any other questions from anyone. Okay okay thank you sorry thank you very much. What you ready your way. Mr Weatherly I'm sorry you wait to the last part of the Committee or to another day another day so okay we'll pass over that I'm not from. Shares of the. Gary Stubblefield district six. You're recognized Mr chairman if I could bring up of about three people yes Sir that if it's okay with committee bring them up. Mr Mike Fisher. Simon. Yeah I would please on your chair get to where you could have a Mike in front of you and sometimes going to be my corona we love feedback or other bikes won't turn on so when you speak please turn in your through speaking of pleasure Michael. If you would please turn your microphone in introduce yourself for the record. Cassi Davis. Mike Fisher. Records of which time you might don't know. Hello it is a name is Frederick Simon I'm from a dairy farmer from a fall or county and also like to mention I am the currently the chairman of the Arkansas milk stabilization board. First up to you're recognized presenter bill. Thank. Thank you thank you Mr chairman. Both do you know most of you know me for eleven years I spent forty seven years in the dairy business so I do know a little bit about this area. And have a little bit of expertise Senate I want to. I'm gonna give you some back up just a little bit of overview of the background of what's happened since the since we started in the dairy business back in the nineteen fifties when that will close to its over twenty five hundred there is a state of Arkansas in fact that three counties in my district had over three three hundred dairies in those counties alone Franklin Logan and Johnson. And now we have thirty we have thirty days left in the state of Arkansas. Back in the mid back in the early to mid eighties. There was a a rush from California because of EPA regulations in water these large make editors to move to a lot of moved to New Mexico a lot of moved to West Texas and located there while they were there they built huge power plants I know none of you understand the pricing most you don't understand the pricing former for meal but power plants who also produce better that is called class for me up that's the cheapest price you can get free milk class one is is a fluid milk that's what goes into bottles when you going to grocery store in plastic jugs that's the highest price for milk. Arkansas and when those days came in those big huge mega Division located in and West Texas and most in the Texas panhandle and lot of men around the Roswell area they shipped mailed to those power plants those better plants in the law that surplus they took it to the southeast region which Arkansas is a part of the southeast region. And the way the federal orders are set up a lot of that was never supposed to happen but anyway diluted uprise and since since that period of time I've steadily watch the decline of dairies in this not only in Arkansas but in the southeast region except for possibly Florida. But. Arkansas is what what we call it milk deficit state in other words we do not produce enough milk in this state for the citizens of the State of Arkansas in fact we we produce a fraction of the milk the people even drink let alone any other products made from milk so when you when you are milk deficit state. You should be paid the class one price because all that milk should be going to bottles and that's what this but that's basically what this bill is about so I'm gonna let. Mr chairman if it's okay I'll let whichever one was to testify first. K.. Good morning thank you all for the opportunity to come here today and speak with you about something as important as my livelihood. My name is Kathy Davis my husband Scott myself and our daughters lily and Ella have a dairy farm in Northwest Arkansas sky is that their generation on our farm where we've lived for eighteen years and I'm pretty sure that his blood runs black and white there's nothing else you can fathom doing nothing else that would make us happy to do I'd like to their of the technical things first the pay price of our milk is set by the federal milk marketing order seven this price set by the government is paid to a dairy co op when processing plant buys food not for consumption so class on prices twenty dollars a hundredweight that's what the co op is paid by the processing plant. The cop is in turn paying its farmers up to six dollars a hundredweight last in class one price this injustice can cost a ninety County area to seventy thousand dollars a year house bill seventeen twenty nine would require the coops to pay their farmers their fair value set by the government for their product. The does the disconnect between the cop and the farmers has been apparent beyond pay price discrepancies for example my husband was once told by employee of our co op if three thousand dollars out of one of our checks would make or break our form we should consider doing something else house bill seventeen twenty nine won't fix everything but will work towards ensuring survival of Arkansas fluid milk and the farmers who produce it. When this bill moves into law it will not fall in the consumer in any capacity this bill does not raise a consumer tax request a price increase or have government intervention on pay price this bill as the Arkansas legislature to ensure its dairy farmers are paid the preset price of our milk for asking are co ops to pay in full what the government says our milk is worth. We face challenges informing that few others realize the Arkansas's main income drivers agriculture dairy farmers are an extreme minority the staggering decrease from over a thousand dairies in nineteen ninety to two hundred and seven and five and twenty twenty one boasts around thirty of us. The most recent decline is due to a low prices and I believe she by the biggest cop in the state Arkansas is about deficit state thirty five thirty to thirty five small farms couldn't possibly supply and if not for three million people we're proud of our contribution and would like to continue to help provide not for your families but we're facing a wall we can't begin to bring down on our own so much compare story to David and Goliath but to me it's more of a Jericho wall talked about Joshua by buying out every market owning parts of Arkansas processing facilities and dictating an arbitrary pay press to farmers how well it's been built to protect the largest coop they succeeded in big been being called farmer owned but became large enough to get a piece of every tier of the market process. We've been quietly marching around the wall and Joshua waiting for the time we can blow horns and shall we've been diligent and faithful to our calling today though as our time for noise we come before you in hopes that you can see the insulation that keeps the cops were minutes farmer farmers in the cold it's in Arkansas's best interest to be self sufficient and independent I believe that in times of uncertainty as we've seen so much of in the last year Arkansas can and should do its best to be self sufficient. If we allow the few dairy farmers we have left to disappear there will be a gap in our ability to be self sufficient I truly believe that without this bill you will see a rapid decline and an inevitable extension of Arkansas produce milk. The last two years most of us have been below poverty level well putting in sixteen hour days seven days a week the money that's kept by the co op is the difference in my ability to create on farm jobs stimulate the economy take care of my family and enjoy the limited free time that we have I won't receive a stipend check for being here today I responsibility to my family and farm as well as the state of Arkansas to be here my family's legacy and future lays in the yeas and nays of your votes they're asking for favors or special treatment we're asking for fair market value for our product and to be told that were valued as small in numbers as we maybe this isn't just a job or something we quit and move on from. It's what we believe in it's what makes our families who we are if we cease to exist it isn't just a farmers are affected it's our neighbors and communities and the whole state is changed. The opposition that has been brought forward about this bill in the past has been. As is built on a law that shelters their bottom line at the expense of producers any farmer that opposes this bill is likely receiving income due to other appointments and responsibilities made available to them my only interest in being here today is to ask you to take a walk around the wall with me let it tumble and reveal the value we place on Arkansas dairy farmers. Added another just quick story about our relationship with our co op we had a meeting awhile back a few years ago or the CFO was telling us how well their co op was doing. They had money that they needed to invest and so they invested in a property and spent two million dollars on this property that they knew was not something that they would necessarily need but not meeting meeting many of us. Shed tears one of the couples who shed tears held on for another year and then they had to give up their farm. They couldn't hire the help they needed or take care their house as well as they deserved well the coat was spending two million for write offs we were qualifying for snap benefits free and reduced lunches working day not to hold things together while we watched our friends lose their farm. This bill would just ensure that we receive fair market price for food not fully funded by the co op. That receives a prize from processors. Well as real and ugly and it's what we'll put dairy farmers Arkansas dairy farmers out of business you have the ability to blow a hole in a monopoly without affecting consumer price you have the ability to say the Arkansas area production is important to our state you can say forms and keep our state consuming Arkansas produce milk please consider a small minority when you think about house bill seventeen twenty nine and vote yes to in the injustice. Thank you. Mr chairman members of the US Senate ag committee here in my name is Frederick Simon and I am a berry farmer from Faulkner County I am only one of two dairy farms remaining in that county and again I am one of only roughly the thirty something berries remaining in the state of Arkansas. I find it to be I'm actually I'm home here today first of all to say that a little will to testify in support of this house bill seventeen twenty nine for the of receiving the payment of the class one mill press This milk privacy is is not a tax on the people of the State of Arkansas is not any form of an assessment it's not to be you know misleading or misconstrued it or try to manipulate the the people of the state this is money that is actually calculated through the federal processing formula and is paid by the milk plants for fluid milk all we're asking for is that it passes from the plants through the coop. Back to the farm at the full market value is strictly passed through moneys. It really disturbs me when I think about my operation for instance. Milk could be shipped from my four. As far as a concierge go Mississippi which is five hours from here one way. Versus going to little rock to the highland plant which is located thirty five miles from my farm. It in a given one month's time it could result as much as a ten thousand dollar increase in my paycheck for milk going out of state. that significant I don't want any any dairy farm in the state of Arkansas okay that is a significant significant amount of pure profit. and what's worse is that is the thing that the the state of Arkansas. Has a processing capabilities of up handling is much as fifty tanker loads of milk in a day's time. Between Little Rock is for roughly as much as twenty five Fayetteville Fort Smith can do about half that much each group which would result in the fifty loads of milk the bid to be processed and for only two percent of all of our needs to be produced in the state of Arkansas. Arkansas farmers in the rest of it have to be imported into the state from other sources. And the Arkansas farmers not to receive the full price for the milk produced in their home state and yet looking for other avenues to market it out of state I just don't feel like that is a good business practice of for myself or for the people in the state of Arkansas. So with the that being said I would of. Certainly like to ask that you support this house bill seventeen twenty nine and considered good vote in favor of it in supporting the Arkansas dairy farmers and if this does happen to pass the legislation here within the state. I really do feel like that we're gonna be set a precedence for other states across the country and can have a major influence in the way that milk is marketed for all other states and try to keep milk more on a local basis and having to transported from coast to coast thank you anyone have quicker Center Beckham. The The dairy processing plant here in Little Rock who who owns the plant. To my knowledge performs the one because this goes on but performs well correct correct. Was there such a discrepancy in the pricing is up because the FAA. has market pricing seven Arkansas or how's that. He says ten thousand dollars more. And because the esco. Correct then in a month or would work the time frame was. One other Senator pricing discrepancy. Two to my knowledge it will have to be the fact that the large the corporate and conglomerate of dairy farmers of America persons Lonestar milk producers for instance it would be the way in which they handle the money coming from the plants in passing back to producers meeting fees of marketing. Are you are you paid by dairy farmers of America no Sir I am actually a member of Lone Star milk producers. My milk does go to Kosciusko Mississippi. So prairie farms is not owned by dairy farmers of America is praying paying different pricing. It's a joint venture between prairie farm Senator farm market okay. That's understood. You know the question. Which version like make your presentation. Well all I've got to say is by the. The federal order system as we started in nineteen thirty six and has been amended several times due to the fluctuations of were mailed expiration or. The end process. But the and they've gone through ever angle in the world to discover the prize for class one two three and four male. And I am I'm not complaining about that they've done a good job of it the problem that we have is cooperatives are exempt from paying what the federal milk marketing order system says the value is there example of that an independent producer independent Hammer he has to pay the minimum. But the co ops are exempt from. And therefore must rely on this house bill seventeen twenty nine is so important to the determine that it gives them protection of what they'll receive for their milk it's just a fair market value it's all in the world and a master's because nobody any money. That's all I got. Any questions for Mister Fisher. Welcome. How many of Alex are there in the State of Arkansas I would soon just processing plants trees plants things like that I'm eligible for milk and Arkansas. Also how many what now. How many places can you take a look sorry three thirty they're all DFA on yes no they're not on but they have a their own by a high or prairie farms but what if a fair enough the control the supply of milk that goes into it yes. If you wanna. Senator Sturch. Thank mastermind question maybe for Senator Stubblefield or whoever wants to answer I'm the first one is say I'm just ignorant about the process so when you are mentioning the co op is that a state wide coop is in a federal court as far as the co op when you were talking about the meeting and everything with the two million dollar land deal and everything else you know thanks and I'm just a man of the process far as how big is this call up who is at a voting call up as far as farmers have a vote or something like. I'll be glad to answer that we're we're referring to dairy farmers of America they are the largest milk cooperative in the United States and possibly worldwide I will say that they have approximately thirteen thousand members in. Distributor handle milk in every single state in the United States and boasts nearly all other plants that they put milk in not just Arkansas but every state is in some type of a joint venture when they have a certain amount of percentage of ownership but with that ownership in most cases they do require that they full supply that plant with their members milk. So is the co op then member run or is it more of a for profit entity or no Sir it is number run they do have a board of directors that is set up membership. Theoretically does vote staff this is when miss Cassie was talking about that land in a kind of concern me that you all really didn't have a voice and you know whether they should buy that lander could buy that land and it just seemed like they were ignoring if you're voting member why they were ignoring as far as a member of the coop I guess would be where I'm going with that. L.. They do have have the voting members however were not very low able to be represented as far as our numbers you know when you're looking Arkansas and thirty dairies they don't you know they're not they're not so much asking us I guess that's the biggest deal is we're just sort of let down the code of all of it you know and it just was striking to me that they would. Think it was a good idea to tell us how well the coop was doing by telling that story when we're all struggling. But let me just add on to that Sturch it was the it was a small dairyman that bill to co ops without the small dairy farmers there would never been a coop and and with issues manufacturing plants like I mention that will build out in New Mexico. the big coops got so big they made sure that the manufacturer manufacturing plants ran in the black then you know how they did that by keeping the input cost low and guess who wishes to bottom into the input the small dairyman they no longer have the best interest of the small determined at heart the very people that put them in the place they are are going to be the very instruments to take out small dairy and that's what's happened in the last thirty years. They've lost a self centered the best interest of the small dairy farmers not only in Arkansas but all across the nation. it and essentially it's it's very similar to the PBM situation we deal with senator call well couple years ago you've got a middle man in here who does not have the best interests of that person buying the drugs that are they have the best or even the pharmacy the small pharmacy they're looking out for their own best interest this is the exact same thing is happening in the Derry but and has been happening for years and it's time for to stop because nobody stopped it because nobody will stop there though there's been no political will there's no nobody wants to take a moment in yet what we're struggling and I don't know none of you have ever milk cows I did it for forty seven years got up at three thirty in the morning. Center back but he may recommend hand. No. It is a it is a tough job it's a very tough labor intensive job you're not going to find young people to do today we lose these families we've got form and now there will be no mortars in Arkansas it will be a giant conglomerate running the dairy industry in this country and it's getting that now it's coming to that now but Arkansas like. Mr Simon said we're in a unique position here to set a precedent for the rest of the country and these other AG's it look on and say Hey if this is the state of Arkansas can take care of its dairy farmers we need to take care of ours to let's jump in here and do something about this Unfair pricing and this is all about for privacy so it's really it's really very simple so. Thank you more. Thank you Mr I think I know the answer to this but I would just like to hear any or all of you all say this will this affect the prices that consumers pay at all. No this is just gonna ask DFA or the other cops to give what they've been paid for money. Anyone else any other questions. Central no motion properly Chesterfield U. like. I'm sorry distributed you'll have a question okay after. Would you like to close your bill let me make one statement before you do that talk about PBMs which is a pharmacy benefit manager of the the those PVM companies of through the last thirty years have have grown from start up companies to the largest companies in our state. and and they're they're really large and and and little state of Arkansas wrote a bill that said you have to use for your business practice would always scream court justice Ginsburg did that and the and so she would their vote but we won that a vote eight to nothing so you're right you may be on to something on this and and with the fair practice fair business practice in market need to be observed in it though I want to state it hopefully that's what you're trying to do I'll let you close for your bill I'm sorry James Sturch has questions I just wanted to see if Senator Stubblefield as closing remarks can answer this question for me a man who spent forty seven years and dairy eleven years in the legislature and just turned seventy years old has that were. Total horses Baltz. You know Senator Sturch I'm new at some point that that was going to come into this conversation the horse no let me let me tell you just a brief story. Of course I started working when I was eight year old male before I went to school milk when I got home from school I mean I have no choice in on and one once I got the University of Arkansas I had not planned to go back to do this but you know the lord had different plans but anyway back in two thousand and I also served on the milk stabilization board under governor Huckabee not served on the board of directors of a MPI for several years but back in two thousand seven or eight I remember going it was on December thirty first I went to the mailbox in our milk we were getting nineteen to twenty dollars per hundred weight of bill when I went to the mailbox are mail could drop to nine dollars a hundredweight that year we lost over a hundred thousand dollars going to a Milborne. In the coals in the Hague. And all the other things and I'm sure sense suppose Senator sample could relate to this. Well I lost a hundred thousand dollars and they were sending their board members to Super Bowl games. These call ups were in all other. That's what we are that's what we are and we have a chance six is. So I would appreciate a good vote. Sure sample. I have a motion offense motion to pass and second all in favor say aye All opposed congratulations thank you no no result you will get your member. Okay. Picture would you want to come back soon patient but is question. Thank you thank you for let me do it today Sir. We're running out of time so I'm trying to decide if your path. These rules. Thanks for the member and. We're running them I have a do pass motion on manager second there's a second all in favor say aye all part. All I'm sorry. Yeah no no. There yeah I thought they were out of the. I wish. Okay it to the lease or lease the okay our now that I listen family has motion second all in favor say aye aye All opposed graduation meant you're welcome present your bill your clothes for fabric yeah so that this is the amendment that's all I ask for just a few minutes ago I got him to go ahead and send it over because I know we're running out of time to get things done so I'm just trying to push it on three and I would appreciate a good vote. Motion do pass as amended as amended second all in favor say aye aye All opposed congratulations thank you Sir okay. Somebody here for on the sixteen fifty eight. You want your own health. Centerville that came in. You know this this got put on a just about fifteen minutes late would like to hear that without objection is there any objection hearing this. No objection FOR deal you're recognized. Thank you Sir Ricky Hill Senate district twenty nine. This is a cleanup bill from the department of agriculture I'm on call Secretary ward up there's one part of a let him kind of explain it better than what I'm going to. This is a. This the cleanup bill basically removes in eliminates the Little Italy little letter utilization committee the wetlands technical advisory committee and the fire ant Advisory Board those boards and commissions have not met since twenty fifteen to eliminates those it is going to a correction for the read regular compact commission I will let Secretary ward go to that a mistake has made during last session secretary work would introduce a for the. The record and you're recognized yes Sir west for from the Arkansas department of agriculture appreciate Senator hills help on this regarding the the Red River compact commission itself under the transformation efficiencies Act of two thousand nineteen when that brought natural resources and and those entities under the Department was was literally just a typo in that act where it said Red River compact commission so Red River commission so that the compact itself is a is a federal entity there's a of a federally appointed administrator over the compact and the Red River commission a separate from that but it's Red River commission and Red River compact commissioner to separate pain Senate it had the wrong one in the legislation. Members anyone have a question. I forgot to ask left bill to anyone here to speak for against the bill. We I mean we had signed up to on the. One of the bill but to no financial anything. No questions from committee chair do you like close we will oppose the bill. The move do pass is our second second all in favor say aye opposed no congratulations. Sure what we're going to another day. We're going to know the answer okay hopefully next this Tuesday