Arkansas agriculture leaders are raising red flags over what they call a growing emergency for the state's farm economy. In a packed legislative hearing Tuesday in Stuttgart, experts warned that as many as one in three Arkansas farms could shut down after the 2025 season without immediate federal relief.

"It's that dire," said Kirk Vansandt, chief agriculture lending officer at Farmers and Merchants Bank. "If something is not done quickly and substantially, decisions will be made that can't be undone."

Vansandt joined other ag stakeholders before the Arkansas House Agriculture, Forestry and Natural Resources Subcommittee, stressing that skyrocketing production costs, weak export markets, and delayed aid payments have created a financial chokehold on family farms. Despite federal programs tied to the One Big, Beautiful Bill Act, funding isn't scheduled to reach producers until late 2026-far too late, many said, to prevent irreversible damage.

"We need a bridge from now until fall of '26," Vansandt told lawmakers. Without it, 25% to 40% of farms may exit the industry in the coming year. Arkansas has already exceeded its 2024 Chapter 12 farm bankruptcy filings, and many more are expected in the months ahead.

The potential fallout extends beyond fields and barns. Speakers warned that farm closures would also devastate the small rural towns that depend on agriculture-from equipment dealers and seed suppliers to local banks and schools.

Rep. Stephen Meeks (R-Greenbrier) voiced concern about the state budget's ability to respond. "For every dollar we give to help farmers, that's a dollar taken from another struggling Arkansas family," he said. Suggestions included tax relief on fuel, equipment parts, and maintenance, as well as expedited disbursement of federal support.

"Taxes on parts and maintenance - that kills us," said Ross Wood, retail operations manager for Stratton Seed.

Multiple speakers emphasized they're not looking for permanent subsidies, but without emergency support, profitability is impossible under current market conditions. "Subsidies are the only thing that can make up the difference right now," Vansandt stated.

The hearing took an emotional turn when farmer Sydney Robinett described the psychological toll of the downturn. "It gets in bed with you," he said. "The bad dreams are going out of business. The bad dreams are the uncertainty."

Subcommittee co-chair Rep. DeAnn Vaught (R-Horatio), a farmer herself, echoed the urgency. "By November, we'll have farms that have already made the decision to shut down. And they'll never come back."

With national farm policy under scrutiny ahead of the next farm bill debate, Arkansas producers are making their message clear: without fast, meaningful aid, the state's rural economy could lose a generation of producers-and the communities built around them.