Arkansas farmers and ranchers who receive federal disaster and relief aid through the U.S. Department of Agriculture will get an exemption from state taxes on these payments.

Gov. Sarah Huckabee Sanders signed into law Act 696 of 2025, under which USDA payments to farmers and ranchers under the American Relief Act of 2025 will be exempt from Arkansas state income tax.

"There is no denying that Arkansas' agricultural producers are enduring one of the most difficult seasons in modern memory," Sanders said in a news release. "Not only do these exemptions provide immediate relief to our hardworking farmers and ranchers, but they also help bolster Arkansas' number one industry."

Both Emergency Commodity Assistance Program and Emergency Livestock Relief Program payments will qualify for state

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