Arizona Agriculture at a Crossroads
Author
Published
11/11/2024
Stefanie Smallhouse completes her 7th year as the elected President of the Arizona Farm Bureau Federation this month. She and husband, Andrew Smallhouse, own and operate a sixth-generation farm and ranch along the Lower San Pedro River in southeast Arizona. The ranch was established in 1884 and raises English cross cattle. The farm is used mainly to grow forage crops for their own cattle and in 2013 they added a saguaro cactus nursery operation to wholesale cactus to retail nurseries and others around the state.
With Stefanie’s education and background, she worked professionally as a wildlife biologist and resource consultant very early on in her career, and then later in executive administrative positions for the Arizona Association of Conservation Districts State Association, and the Arizona Water Protection Fund for the State of Arizona Dept. of Water Resources.
Stefanie is a member of many industry organizations, committees and boards, including an advisory board/council member for the Natural Resource Users Law and Policy Center at the University of Arizona, AgWest Farm Credit, U.S. Senators Kelly and Sinema, U.S. Congressman Ciscomani and a CARET delegate for the University of Arizona.
In her role as Arizona Farm Bureau President, she also served on the Executive Committee for the American Farm Bureau Federation, representing the Western Region of Farm Bureaus, and sat on the Board of Directors for Farm Bureau Financial Services Companies and American Ag Insurance Company.
During the November Annual Meeting in Tucson President Smallhouse steps down as Arizona Farm Bureau’s top volunteer leader and pivots to family and the Smallhouse farm and ranch businesses. Words cannot express the gratitude and appreciation we all feel for her dedicated, determined and thoughtful leadership that has led Arizona’s agriculture industry through some tough but also accomplished times in her nearly decade at the helm of Arizona’s largest agricultural volunteer organization. Moments shared with accomplished leaders are meant to be savored; one wants to continue chatting about what matters even as the conversation ends. One more captured conversation; we hang on to each word. This moment is this conversation.
Arizona Agriculture: On Arizona water, where are we? And where should we be?
Smallhouse: When you consider that our productivity is the highest it’s ever been, using the least number of resources that we ever have, the agriculture industry is not sitting on its hands. Our conservation record far outpaces many other uses in the state. Unfortunately, for the most part, the drought has been unrelenting, which means that some very difficult decisions will have to be made in certain areas of the state that are more impacted by the decades-long decrease in precipitation. Specific basins in the state are seeing a steady decline in groundwater levels, while at the same time we are just not getting the runoff that we need into the Colorado River Watershed to maintain system operations. Compounding these environmental challenges is the uncertainty surrounding Arizona’s water adjudication process, the ongoing restrictions because of Indian water settlements, and decreased water availability due to competing demands which impact system management. Arizona agriculture is definitely at a crossroads, and depending on which of these challenges you face, the next two to ten years will likely define our future for quite some time.
It is very possible that we will see the next generation of groundwater management make it to the Governor’s desk next year. Arizona Farm Bureau has been working on these concepts for the last several years through our policy development process and convening specific working groups and committees to identify our greatest priorities. There was an immense amount of groundwork laid out in the last legislative session.
Even though this past year’s groundwater discussions were quite turbulent, and we were unsuccessful in getting SB1221 (Basin Management Areas) across the finish line in the final hours of the legislative session, we did make a lot of progress in creating an environment for agriculture to have a meaningful seat at the table. We were also able to convey our message of how agriculture has been more efficient with our water use than ever in our history, emphasize the importance of local engagement in our rural communities, as well as introduce some new concepts for groundwater management. It will be very important as we move into the next year, that we stay the course and not lose ground on what we were able to accomplish. Negotiations are a give-and-take process, and farmers have given about all there is to give and still see a future for themselves in these critical areas.
We have also been very involved in advocating for our members using Colorado River water. Although the Drought Contingency Plan resulted in several farmers in central Arizona losing a significant amount of water, we were able to mitigate some of those losses through various funding mechanisms that offset the costs for alternative infrastructure investments. We are now focused on the Post 2026 Colorado River Operations planning process with our involvement on the Arizona Reconsultation Committee. It is imperative that existing rights be respected and that we keep our eye on any new and “creative” attempts at bypassing those rights.
Arizona Agriculture: And still on water, what are the next moves all stakeholders must make?
Smallhouse: Although Mother Nature controls the supply side of the curve, the demand side will largely be determined by the election. However that turns out, will determine the dynamics of many of these water conversations. The same principles remain important regardless, and those are: transparency, flexibility, local engagement, and a focus on those areas most in need. We also need to remember that just as everyone has an interest in water management, everyone has a role and responsibility to play in its conservation. Agriculture should not be the only stakeholder bearing the burden of the drought. While we as an industry cannot become complacent in these conversations, we also cannot be pugnacious. There are serious issues to confront, and our members are asking that we find solutions.
Arizona Agriculture: Going forward, knowing that water and labor will remain top priorities, what do you see Arizona agriculture needing to give more priority to as it relates to moving the ball forward?
Smallhouse: I think that water will continue to be front and center. Without water, there is no need for labor. Water is also more of a local issue, whether that be regionally as with the Colorado River, or in state as with groundwater. For better or worse, policy tends to move faster locally. Our workforce challenges lie squarely at the feet of the federal government whether that be affordability, accessibility, or regulatory. Nationally we lost 140,000 farms in the last 5 years. Arizona was one of the highest-ranked states for farm loss across the country. This has much to do with the fact that it is so difficult to find affordable help on farms and ranches if you can find it at all. Unfortunately, there are just not enough workhorses in Congress right now to get the job done. The border needs to be secure before any further negotiations can take place regarding ag labor. Most of the agricultural workforce will need to come from foreign countries for quite some time into the future, if not permanently.
Arizona Agriculture: Earlier in the year, I asked you the “futuristic” question about Arizona agriculture. Can I ask you to expand on this point in this conversation?
Smallhouse: Arizona’s climate provides such an important growing region for the U.S. that I believe farms and ranches will always persist in this state. I do think they will look different in the future than what we see today. As in the past, we will adapt to our physical and economic operating environments. I think a certain set of smaller farms will persist if they focus on very special niche markets, and medium-sized farms will have to expand. It’s just really hard to make it in the middle. The cost of doing business, whether that be with inputs, labor, technology, or regulatory compliance, just continues to rise.
The reason Paul Harvey’s 1978 broadcast commentary about farmers resonates so well is because it’s timeless in the way he so eloquently captured the essence of our lives. There is something in each of us, that just will not give up. God made us that way. As individuals, we will continue to confront the problems of each day, as an organization we will continue to confront the difficulties of our industry. To have staying power you must accept that challenge is inherent and perennial and know that you will make it through. So, it really doesn’t matter what farms and ranches will look like or how they will operate – what matters is that the people who stick with it, were made for it. They will find a way to meet any challenge head-on - and that will never change.
Arizona Agriculture: As you step away from your leadership role at the state level, what are your reflections of the last 7 years as Arizona Farm Bureau’s President?
Smallhouse: It has been such a privilege to serve in this position and I don’t say that lightly. Rather than focus on specifics, I’ll just touch on a couple of general philosophies that have served me well over the last 7 years.
Opportunities are everywhere. On so many occasions I have stopped and taken mental note of the members that I am representing and what might be at stake for them in a moment of advocacy. I’ve tried to treat every meeting, collaboration, presentation, or conversation as the most important opportunity. There is never a meeting that is unimportant and never a conversation that is a waste of time. Cynicism is sort of like a warm blanket in politics. You can wrap yourself up in it and separate yourself from the outcome of any situation. I have done my best to never fall into that trap.
Without some level of trust, nothing of consequence can ever get done. Ronald Reagan was wise to bring the Russian saying, “trust, but verify” into the American vernacular. You must have enough trust in people, the process and systems that you are willing to engage with all of them, but always do the hard work of knowing all the answers to your questions before you ask them.
Arizona Agriculture: We’ve talked about this a lot, but what makes the Farm Bureau’s policy development process so successful beyond the obvious?
Smallhouse: Rob Asghar hones in on a concept in one of his books that most everyone can be categorized in one of two ways. Either you operate as a compass or more like radar. Those who are more inclined to radar have more empathy and instinct when it comes to reading the values and priorities of others. That empathy can be distracting and create lost time in reaching a goal, but it allows others to come along with you in your pursuit. Those who are more like a compass are more focused and better at staying the course on a single path forward. This is a more efficient way of reaching one’s goals, but you might lose folks along the way who feel you are not connecting with them. The best leaders are those who can tap into both the compass and the radar. I believe that Farm Bureau is a leader in agricultural advocacy because our policy development works like radar in its deliberative process, but once that policy is set, we function more like the compass as we all move in the same direction towards one goal. When we take the time to get the policy position just right, and then all move together – that is a powerful force that is respected and effective.
Arizona Agriculture: Where are we breaking down as an industry in not moving the ball forward more effectively?
Smallhouse: Ok – the tough love question. First, we must step out of our comfort zone. I know ranchers who would rather go head-on with a rattlesnake, than toe-to-toe with a reporter or a lawmaker. Whether it be testifying in a legislative hearing, writing an op-ed, or facing down a bunch of fourth graders with tough questions – there are too few of us in this industry stepping up in this way. Nothing is more powerful than a farmer or rancher sharing their story, but we still have too many folks who are assuming someone else will do it. We have amazing people working diligently to advocate for our industry – but there is volunteer fatigue out there. Advocating is sort of like a marathon relay, where if you want to win in the long run, you must have a steady stream of strong runners.
Secondly, we cannot advocate in the 21st century based on what life was like in the 20th century. Many of the challenges we face today are based largely on the fact that we were not looking far enough ahead. This means engaging with folks that we may not align with on every issue but can certainly collaborate with on very specific efforts. We must hold our elected officials to a higher standard and expect them to lead in the direction of solving problems and not just opine about them.
And lastly, as an industry, we must stick together! We are all trying to solve the same problems, and if we splinter away to carve out little wins here and there, we ultimately lose overall.
Arizona Agriculture: What’s been your most treasured experience about leading the Arizona Farm Bureau?
Smallhouse: Wow, that is a really tough question. I have had countless memorable experiences, many of which were absolutely amazing and at least a few that I would rather forget, but probably won’t. I have been blessed to visit farms and ranches all over Arizona and the country. I have been seated with some of the greatest champions of our industry - as well as some of our biggest critics, attended the signing of the USMCA trade agreement on the Whitehouse lawn, and been on the phone with a U.S. President. Leading the Centennial for Arizona Farm Bureau was very special to me, as well as testifying before Congress on issues of great importance to our members. One of my favorite duties as Farm Bureau President is chairing our delegate session every year and listening to all the members make their case for or against a particular position.
But if something is truly treasured, then it will be missed. What I will miss the most is the daily interactions I have with amazing people. My memory is filled with so many stories from our members across the state and I will have a lasting connection to them regardless of whether our paths cross again. My peers from other states, who share similar experiences to my own and have advised me or sharpened my skills along the way, will always be treasured. The people who work for the Farm Bureau are second to none and there is so much to learn from these professionals. Just by being involved in this organization, you are surrounded by the opportunity to learn from others and make lifelong connections. So, it’s the people that are the treasure in the Farm Bureau experience.
Arizona Agriculture: What would you like to say to our farm and ranch members as you hand the gavel to the next president.
Smallhouse: Don’t take your foot off the gas and remember to tell the Farm Bureau story!
Editor's Note: This article originally appeared in the November/December issue of Arizona Agriculture.