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Agriculture

SB499

Regarding Rice Promotion; To Amend The Assessments On Rice; And To Declare An Emergency.

Introduced

Last Action (March 28, 2023): Sine Die adjournment

Sponsors

AI-Generated Summary

Senate Bill 499 amends Arkansas state law regarding the assessments imposed on rice production. It increases the rice assessment rate from 1.35 cents per bushel to 2 cents per bushel, applicable to both buyers and producers. The bill clarifies how these funds are allocated, specifically earmarking buyer-paid assessments for market development, promotion, and administration, and producer-paid assessments for research, extension, and administration. It also grants the governing board authority to use up to 20 percent of the total assessment proceeds for activities like rice education, policy development, and food safety. Finally, the bill includes an emergency clause to make the changes effective on August 1, 2023, to align with the rice marketing year.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries are the Arkansas rice industry as a whole, including industry organizations, research institutions, and promotional boards that receive the funding generated by the assessments. Rice farmers and buyers also benefit indirectly through enhanced market development, industry promotion, and scientific research aimed at improving yields and operational efficiencies.

Who Might Suffer?

Rice producers and buyers in Arkansas are negatively impacted by the bill, as they will bear the financial burden of the increased assessment rate. Specifically, producers must pay a higher rate per bushel sold, which may decrease their profit margins, and buyers are required to pay an increased rate at the first point of sale.

Read Full Bill on arkleg.state.ar.us