Governor's Office of Agricultural Policy
Agricultural Grants & Loans Approved
HOPKINSVILLE, Ky. (July 22, 2011) - Today the Kentucky Agricultural Development Board (KADB) and the Kentucky Agricultural Finance Corporation (KAFC) approved a combined total of $4,172,809 in grants and loans, during their monthly business meetings at the James E. Bruce Convention Center.
The KADB, chaired by Governor Steve Beshear, approved $3,728,670 in 24 agricultural diversification projects across the Commonwealth.
State and regional investments included:
$37,500 Biofuel Pellet Mill Study
The Bracken County Agricultural Advancement Council was approved for $17,500 in state and $20,000 in county funds for a feasibility study to determine the viability of constructing and operating a biofuel pellet mill in the Bracken County Industrial Park. County contributions to the project are as follows: Bracken - $15,000; Mason - $2,000; Bath - $1,000; Lewis - $1,000; and Pendleton - $1,000.
County investments approved included:
The County Agricultural Investment Program (CAIP) is designed to provide farmers with incentives to allow them to improve and diversify their current production practices. CAIP covers a wide variety of agricultural enterprises in its 11 investment areas. Fifteen CAIPs were approved by the board totaling $3,392,823 for Allen, Bourbon, Bracken, Grayson, Laurel, Lincoln, Mason, Monroe, Montgomery, Nelson, Pulaski, Scott, Taylor, Todd and Woodford counties.
In addition to these new approvals, an additional $237,000 was approved to supplement existing CAIPs in the following counties: Boone, Bracken, McCracken and Taylor.
The Deceased Farm Animal Disposal Assistance Program serves as a measure to facilitate the coordination of environmentally sound and cost-effective disposal of deceased livestock for Kentucky producers. One County Deceased Farm Animal Disposal Assistance Programs was approved for Henry County totaling $7,500.
The Shared-use Equipment Program is designed to benefit a high number of producers who cannot justify ownership expenses associated with certain equipment by helping them access technology necessary to improve their operations in an economical manner. Three Shared-use Equipment Programs were approved by the board in the amount of $53,847 for Monroe, Nicholas and Pulaski counties.
The KAFC, chaired by Agriculture Commissioner Richie Farmer, today approved $444,139 in agricultural loans for projects in the Commonwealth.
KAFC participates with lenders to provide financing to producers making capital expenditures for agricultural projects through the Agricultural Infrastructure Loan Program. Eligible projects include permanent farm structures with attached equipment that improves the profitability of farming operations. Four Agricultural Infrastructure loans were approved for a total of $204,587 and included recipients from Calloway, Daviess (2) and Monroe counties.
The Beginning Farmer Loan Program is designed to assist individuals with some farming experience who desire to develop, expand or buy into a farming operation. Beginning farmers may qualify for financing to purchase livestock, equipment or agriculture facilities; to secure permanent working capital; and to make a down payment on real estate or invest in a partnership or LLC. Beginning Farmer loans totaled $239,552 and included two recipients from Marion and Webster counties.
Additionally, the KAFC approved changes to the lending guidelines for all KAFC loan programs to provide consistency across the programs. These revisions will help improve understanding of the program requirements by lenders and farmers alike. Revised loan program guidelines will be posted at kafc.ky.gov.
For more information on the programs offered by the KAFC or the guidelines changes, contact Bill McCloskey or Cyndi Hall at (502) 564-4627.
Gov. Steve Beshear and the Kentucky 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.
To date, Kentucky has invested more than $357 million to an array of county, regional and state projects designed to increase net farm income and create sustainable new farm-based business enterprises. These funding approvals, made possible by the Kentucky Agricultural Development Fund, represent just a few of more than 3,837 projects approved, since the inception of the program in January 2001.
The Kentucky Agricultural Finance Corporation (KAFC) provides capital access for agricultural diversification and infrastructure projects. To date, KAFC has approved 367 projects and committed more than $40.6 million.