The proposed "Farmer Protection Act" aims to safeguard agricultural producers in Arkansas from discriminatory practices by financial institutions based on their environmental impact. The Act introduces a new subchapter to the Arkansas Code, which outlines the definitions of key terms such as "agriculture producer," "financial institution," and "discriminate in the provision of financial services." It specifically prohibits financial institutions from denying or restricting financial services to agriculture producers based on their greenhouse gas emissions, use of fossil-fuel derived fertilizers, or fossil-fuel powered machinery. If a financial institution has made an environmental, social, and governance (ESG) commitment, there is a rebuttable presumption that any denial of service violates this prohibition.

Enforcement of the Act will be coordinated by the Attorney General and the Secretary of the Department of Agriculture, who will have the authority to investigate violations and impose civil penalties. The Act also includes a severability clause, ensuring that if any provision is found invalid, the remaining provisions will still be enforceable. Overall, the Farmer Protection Act seeks to ensure that farmers in Arkansas can access necessary financial services without being unfairly penalized for their operational choices related to environmental standards.