Bill > SB315

This bill establishes the Farmer Protection Act in Arkansas, which aims to prevent financial institutions from discriminating against agricultural producers based on environmental, social, and governance (ESG) commitments. The bill defines an agricultural producer as someone engaged in crop growing, animal husbandry, or livestock production, and targets large financial institutions with over $100 billion in assets. The legislation prohibits financial institutions from denying or restricting financial services to farmers based on their greenhouse gas emissions, use of fossil-fuel derived fertilizer, or use of fossil-fuel powered machinery. If a financial institution has made an ESG commitment, there is a presumption of discrimination when denying services to farmers, which the institution can only overcome by proving the decision was based on a purely ordinary business purpose unrelated to environmental or social goals. The bill empowers the Attorney General and the Secretary of the Department of Agriculture to investigate and enforce these protections, with potential civil penalties of up to $10,000 per violation. Additionally, the bill includes a severability clause, ensuring that if any part of the act is found invalid, the rest of the legislation can remain in effect.

Agriculture and Natural Resources

https://arkleg.state.ar.us/Bills/Detail?id=sb315&ddBienniumSession=2025%2F2025R