Senate committee adopts two departmental reports and hears concerns about dairy prices, declining dairies and litigation

The Senate Agriculture, Forestry & Economic Development committee voted to adopt reports from the Arkansas Department of Agriculture and the Arkansas Department of Health and spent the bulk of its discussion on milk‑industry issues, including sharply falling numbers of Class A dairies in Arkansas and ongoing litigation over a 2021 pricing rule.

Wes Warr of the Arkansas Department of Agriculture introduced the department's four‑page report, filed under Act 1076 of the 2021 session, and highlighted regulatory items affecting the state's livestock and poultry industry. Warr told the committee the department had flagged an item (rule #8 on page 3 of the report) as needing clarification in statutory language and had already raised the matter with Governor Hutchinson and the governor‑elect.

"We get a weekly and a monthly report on that," Warr said of price monitoring, and described a long‑term decline in Arkansas dairies: "We're less than 30 Class A dairies left in the state, when you used to have over a thousand." Warr said the legislature tried to address producer compensation in 2021 through a law and a subsequent rule intended to require dairy producers receive class‑1 prices; he said that rule was "contentious" and has been challenged in court. Because the matter is in litigation, Warr said the department could not comment further on that aspect.

Matt Gilmore of the Department of Health told lawmakers the department did not seek to repeal two rules at this time: regulations for frozen desserts and the Grade A milk and milk products rules. "I think the rules we have in place are appropriate," Gilmore said. He added that pricing questions fall outside the Department of Health's authority and referred legislators to the Department of Agriculture.

Representative Fortner asked how a fair price for dairymen is established and how often prices are reviewed. Gilmore said price‑setting is not handled by the Department of Health; Warr later told the committee price measures are monitored frequently via weekly and monthly reports.

The committee moved and voted to adopt both departmental reports during the session. The chair closed the meeting by noting the legislature's heavy schedule and that substantive work will resume in January.

Votes at a glance: The committee voted to adopt the Arkansas Department of Agriculture report (motion to adopt, seconded; committee voice vote: aye) and later voted to adopt the Arkansas Department of Health report filed Aug. 30, 2022 (motion to adopt, seconded; committee voice vote: aye).