Arkansas is one of the two states without a Department of Agriculture. A move by some commodity groups to establish a Department resulted in the creation in 1985 of an independent Agriculture Division within the Arkansas Development Finance Authority (ADFA). The Agriculture Division of ADFA often acts in concert with the Arkansas Industrial Development Commission (AIDC) which has primary responsibility in the state to recruit and retain industry and also administers CDBG's. AIDC can provide operating capital, which ADFA cannot. ADFA also works closely with the Arkansas Capital Corporation, which is a state linked-deposit program that helps fund value-added projects.

ADFA has legislative authority to issue tax free bonds which are paid off with the proceeds off loans made to farmers and companies developing value-added enterprises. ADFA works with prospective businesses to develop bankable value-added projects. ADFA then sells tax-free bonds, give the bonds to the bank and the money to the new business.

Typical loans have funded a catfish feed mill, an encased dairy silage business and a firm which pelletizes chicken litter for golf course fertilizer.

The Agriculture Division also administers a $1 million revolving loan fund for cooperatives including table grape and vegetable grower cooperatives.

A Beginning Farmer program is also administered by the Division, again with loans from tax-exempt bonds, to assist farmers in becoming farm owners.