Governor's Office of Agricultural Policy
Farmer Incentives to Go Green

FRANKFORT, Ky. (March 23, 2009) -The Kentucky Agricultural Development Board (KADB), chaired by Gov. Steve Beshear, approved the On-farm Energy Efficiency & Production investment area, during their monthly board meeting on Friday, March 20 in Frankfort, Ky.

The On-farm Energy Efficiency & Production investment area is designed to provide farmers with a tool to help increase energy efficiency in their current production practices, while ultimately increasing net farm income through cost savings.  This will be one of the eligible investment areas in the KADB’s new County Agricultural Investment Program (C.A.I.P.), which is made possible through county Agricultural Development Funds.

“Over the last several years, energy, reducing usage, and developing alternative sources have become critical issues for Kentucky agriculture,” stated Roger Thomas, CEO for the KADB.  “The on-farm energy investment area will provide Kentucky’s farmers with the opportunity to make changes to their operations that will improve their profit and reduce agriculture’s impact on energy consumption.”

This investment area includes five categories of eligible items.  The first is for upgrades for certain existing operations.  Items in this category include conversion to energy efficient grain dryers, NEMA labeled premium efficiency motors, conversion from sprinkler to drip irrigation, and energy-free or low energy waterers, as well as other items.

The second category includes items for energy efficient building components, such as Energy Star lighting, insulation, and EPA approved biomass heaters.  The third relates to professional fees (e.g. energy audit/assessment) and training (e.g. farm energy efficiency workshops).  The final two categories relate to production of biomass crops for energy production and the utilization of renewable fuel sources, including animal waste and biomass, for on-farm energy needs.

For the guidelines and list of eligible items for the On-farm Energy Efficiency & Production investment area, contact your Area Project Analyst at (502) 564-4627 or by e-mailing govkyagpolicy@ky.gov.  These guidelines will be posted 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.