At the Agricultural Development Board meeting on Friday, March 18, the Board voted to give Purchase Area Aquaculture Cooperative (PAAC) access to the $240,000 certificate of deposit (CD), which was held by the Board as security for PAAC’s operating line of credit.
In March 2004, the Agricultural Development Fund approved a proposal by PAAC securing a revolving line of credit for PAAC at a local bank in Hickman County. A $240,000 CD was purchased by the Agricultural Development Board and made available to the bank as collateral for a revolving operating line of credit.
The Board voted to assist PAAC in its endeavor to restructure by releasing the $240,000 CD held for the Purchase Area Aquaculture Cooperative (PAAC). This action will enable PAAC to use the funds to pay off the operating line of credit and thus increase the financial stability of PAAC. As the current balance on the line of credit is less than the amount of the CD, PAAC will apply the remaining funds to the operation of the facility.
The Kentucky Legislature continues to make great strides towards lessening Kentucky’s dependence on tobacco production while revitalizing the farm economy by investing 50% of Kentucky's Master Settlement Agreement into the Kentucky Agricultural Development Fund. Since the inception of the program in January 2001, the Agricultural Development Board has approved over 1950 proposals committing over $171 million to an array of county, regional, and state projects designed to increase net farm income and create sustainable new farm-based business enterprises.
To learn more about cost-share grant and loan programs available though the Agricultural Development Fund, contact the Governor’s Office of Agricultural Policy at (502) 564-4627.