AAC-Ag Report 1.21.26

Welcome back, Arizona Aggies, to another edition of Arizona Agriculture Connection. We’ve kicked off January with significant happenings both locally and nationally, ripe for discussion.

Kicking Off the Legislative Session

We recently spent time in Anaheim, California, where farmers took over Disney for the American Farm Bureau Annual Convention. Meanwhile, back in Arizona, the second regular session of Arizona's 57th legislature began on January 12th. With Republicans holding a majority in both the House and Senate, there is an expectation of diverse perspectives on major issues such as taxes, water, and the state budget. Governor Katie Hobbs, entering the final year of her term, emphasizes affordability for all Arizonans. Despite her openness to tax cuts, evidenced by her willingness to sign a tax cuts bill, she promptly vetoed SB 1106 and HB 2153 when they arrived at her desk.

This session has already seen 1,212 bills introduced, with both sides of the aisle focusing on affordability and water solutions for Arizona's future. On opening day, Governor Hobbs delivered her State of the State address, highlighting key areas like public education, water security, and affordability.

Water and Budget Updates

Significant news in water management comes from ADWR Director Tom Buschatzke, who designated the Ranegras Plain Groundwater Basin as Arizona's eighth active management area. Concurrently, Governor Hobbs rolled out the executive budget proposal, earmarking over $17 billion for the fiscal year 2027, a $1 billion increase from fiscal year 2026. Major allocations include $8.4 billion for the Department of Education, $3.1 billion for the Arizona Healthcare Cost Containment System, and $508.3 million for the Department of Child Safety. The agriculture sector also benefited, receiving $495,000 for IT infrastructure development. Stay tuned as we delve deeper into the budget proposal to assess its impact on Arizona agriculture.

Developments in Arizona Agriculture

In other news, Maricopa County Superior Court vacated the Hualapai Valley INA, citing issues with the Arizona Administrative Procedure Act. The ADWR contends the appeal lacked standing and the order was substantiated by evidence.

On an exciting note for agriculture, the Arizona Farm Service Agency's State Committee has undergone appointments by Secretary of Agriculture Brooke Rollins. The committee, chaired by Maricopa County Farm Bureau member Steven Bales Jr., oversees farm programs, resolves program delivery appeals, and maintains vital relations with industry stakeholders. Congratulations to Steven and the rest of the committee members: Dan Bell, Cassie England, Cecil Pratt, and Becki Ross.

National Agriculture News

On the national front, the American Farm Bureau is advocating for Congressional action on economic assistance to stabilize the farm economy. They are urging Congress to swiftly pass legislation offering immediate assistance to field and specialty crop farmers, thereby strengthening domestic demand for U.S. agricultural commodities. You can send your letter to your representatives at the link HERE.

That's a wrap for the first week of Arizona's legislative session updates. We will continue to provide the latest developments. Remember, the Farm Bureau is here to support Arizona’s agriculture community. Stay informed, and until next time, keep looking forward to a progressive agricultural future. Stay tuned for more updates, and remember that the Farm Bureau has a place for you.