Arkansas agriculture leaders warned Tuesday that family farmers are facing a crisis that could force tens of thousands out of business without swift federal or state assistance.
“If something is not done very quickly and substantially, I’m afraid people are going to go ahead and make decisions that they can’t change back,” Kirk Vansandt, chief agriculture lending officer for Farmers and Merchants Bank, told the House Agriculture, Forestry and Natural Resources subcommittee.
Farmers in Arkansas are grappling with soaring production costs and stagnant demand for commodity crops. Vansandt said 25% to 40% of producers could leave the industry this season if aid does not arrive. Arkansas led Southern states in Chapter 12 farm bankruptcies in 2024, and filings for 2025 have already surpassed last year’s totals.
A provision of the One Big, Beautiful Bill Act passed earlier this year provides some relief, but payments are not expected until fall 2026 – too late, agriculture leaders said, to prevent widespread closures.
Ross Wood, retail operations manager for Stratton Seed, said help with taxes on capital expenditures or fuel could provide critical relief. “Taxes on parts and maintenance – that kills us,” he said.
Farmers also described the emotional toll of the downturn. Sydney Robinett told the panel, “It gets in bed with you. Sometimes it’s better to be awake than it is to sleep at night The bad dreams are going out of business.”
Subcommittee Co-Chair Rep. DeAnn Vaught, R-Horatio, who also farms, said she was heartbroken over the struggles facing producers. “By November, we will have farms that have already made the decision to shut down, and they will never be able to go back into production again,” she said.
For the original reporting from Arkansas Advocate, click here.
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