Governor's Office of Agricultural Policy
County Cost-share Programs Change

FRANKFORT, Ky. (March 23, 2009) -The Kentucky Agricultural Development Board (KADB), chaired by Gov. Steve Beshear, approved the County Agricultural Investment Program, during their monthly board meeting on Friday, March in Frankfort, Ky.

The County Agriculture Investment Program (C.A.I.P.) is designed to provide farmers with incentives to allow them to improve and diversify their current production practices.  C.A.I.P. combines what were previously known as County Model Cost-share Programs into one, where each model program becomes an investment area.

“As agriculture continues to change and evolve, we must make adjustments, which are consistent with our mission of diversification and increasing net farm income,” stated Roger Thomas, CEO for the KADB.  “This was the right time for the Board to make these adjustments to keep these incentive programs a healthy and viable option for Kentucky’s farm families.”

Combining all eligible investment areas into one program will allow for a greater variety of offerings and broader access to all producers in the county.  This in turn provides additional decision-making opportunities for producers in their farm operations.

Because all investment areas will be included in one program, only one entity will be awarded funds to provide this program to producers in the county.  That one entity may utilize the expertise of other organizations to perform certain administrative functions (e.g. spot checks).  However, the entity awarded funding remains responsible for all contractual obligations.  This change, along with a 12-month term for all investment areas, will provide better uniformity and continuity, which will enhance accountability.

Through this program, a producer may apply for up to $7,500 per year.  Producers may apply for multiple investment areas, but may not exceed $7,500 in 2009.  However, County Agricultural Development Councils may elect to reduce the maximum incentive level to impact more producers.

Another feature of this program is the establishment of a universal application and scoring system, which will ensure equity among producers across all investment areas.  The following investment areas will be available through C.A.I.P.: agricultural diversification, cattle genetics improvement, cattle handling, commercial poultry/dairy/swine, farm livestock fencing, forage improvment & utilization, goat & sheep diversification, farm structure & commodity handling, on-farm energy efficiency & production, on-farm water enhancement, technology.

For a complete listing of changes to individual investment areas, as well as changes to standard program guidelines, contact your Area Project Analyst at (502) 564-4627 or by e-mailing govkyagpolicy@ky.gov.  Guidelines and applications for this program will be posted on-line no later than April 1, 2009 at agpolicy.ky.gov.

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Gov. Steve Beshear and the General Assembly continue to make great strides toward lessening Kentucky’s dependence on tobacco production while revitalizing the farm economy by investing 50 percent of Kentucky's Master Settlement Agreement into the Kentucky Agricultural Development Fund.