Families and farms go hand-in-hand. They take a lot of love, a lot of work, and there are no days off. I’m proud to be part of a long line of Arkansas family farmers and it has been one of the toughest and most rewarding experiences in the world.
That’s true for thousands of Arkansans across the state. Agriculture is our largest industry, adding around $16 billion to the state’s economy each year.
To make sure that Arkansas maintains its position as a top agricultural state, I worked with my colleagues to pass the Arkansas Rice Beer Excise Tax Act this year. This new law incentivizes qualified beer and sake to be made with Arkansas rice. Rice is a key ingredient in several of the nation’s most popular beers, and it is a convenient way for companies to make gluten free brews. Eighty percent of the rice made in Arkansas is used for this purpose.
Others have taken note of this approach. Right now, a bill with a similar goal has been introduced at the federal level in Washington. The bipartisan Grown in America Act creates a new incentive for American manufacturers to purchase agriculture commodities from U.S. farmers.
This legislation also has the opportunity to provide a much-needed boost to American growers and manufacturers, including the family farmers right here in Arkansas. As Congress is currently working on changes to tax policy, we hope those changes include policies that encourage American manufacturers to buy ingredients from American farmers.
While our state’s farmers are very good at what they do, it's not an easy job. They must contend with the natural environment and economic challenges, including fluctuating market prices and rising production costs.
This is especially true for a global commodity like rice. While it’s true that our state produces nearly half of all rice in the United States, we also continue to face competition from global imports.
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To keep every dollar in the state for reinvestment into our rice supply chain, only local brewers and wholesalers can qualify for the benefit. The new Arkansas law will incentivize investment, innovation, and growth while promoting long-term viability of the Arkansas rice industry.
However, the benefits extend beyond farmers and manufacturers. This bill also has a key role to play in conservation and outdoor recreation.
Our neighbors in Texas and Louisiana also used to have substantial rice cultivation. Over time, farmers there switched to corn. But when the rice was replaced with corn, the migratory birds that used to call those fields home did not return. If Arkansas lost its migration it would be a disaster for waterfowl hunters and our state’s unique environment.
At a time when people are losing faith in government, these policies can provide a roadmap. Putting America first means creating frameworks like the Arkansas Rice Beer Excise Tax Act -- and the Grown in America Act at the national level -- to support local businesses and industries while strengthening the American supply chain.
I encourage our federal delegation in Congress to support the Grown in America Act to strengthen our domestic supply chains and support American farmers.
Jeffrey Wardlaw is serving his eighth term in the Arkansas House. He represents District 94, which includes parts of Bradley, Drew, and Desha counties in southeast Arkansas.