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 establishes a new subchapter in the Arkansas Code, outlining that financial institutions cannot deny or restrict financial services to agriculture producers based on their greenhouse gas emissions, use of fossil-fuel derived fertilizers, or reliance on fossil-fuel powered machinery. It also creates a rebuttable presumption that any denial of service linked to an environmental, social, and governance (ESG) commitment by a financial institution constitutes discrimination unless the institution can provide clear evidence that the denial was based solely on ordinary business purposes.

Additionally, the Act empowers the Attorney General and the Secretary of the Department of Agriculture to enforce these provisions, allowing for investigations and the imposition of civil penalties for violations. The legislation emphasizes the importance of financial support for farmers, highlighting that restrictions on financing or resources could jeopardize their operations and lead to increased food prices for consumers. A severability clause is included to ensure that if any part of the Act is deemed invalid, the remaining provisions will still be enforceable.