Governor's Office of Agricultural Policy
Agricultural Grants & Loans Approved

OWENSBORO, Ky. (June 15, 2012) – Today the Kentucky Agricultural Development Board (KADB) and the Kentucky Agricultural Finance Corporation (KAFC) approved a combined total of $4,773,221 in grants and loans, during their monthly business meetings at The Springs Conference Centre.

The KADB, chaired by Governor Steve Beshear, approved $4,351,821 in 32 agricultural diversification projects across the Commonwealth.

State and regional investments included:

$37,500 Farm Market with Commercial Kitchen
Triple J Farm was approved for $18,750 in Scott County funds and $18,750 in state funds as a 1% loan for improvements to an on-farm retail market, including a commercial kitchen to create value-added products and provide an additional market for other farmers’ produce.

$17,500 Multi-County Large Animal Composting
W. Brent Woodrum was approved for $17,500 in multi-county funds to purchase equipment and materials for a multi-county fallen animal composting service site in Casey County.  County contributions include the following: Casey - $10,000; Marion - $2,500; and Russell - $5,000.

$7,419  Specialized Fencing Implement
The Pulaski County Conservation District was approved for $7,419 in Pulaski County funds to purchase a trailer-mounted, self-contained post driver for use by producers in the area.

$250,000 Value-Added Processing and Distribution
Grasshopper Distribution LLC was approved for a $200,000 loan in state funds, as well as up to $50,000 in state funds as a grant to be matched with county funds.  These funds will be used to establish a value-added processing facility and for building improvements to meet growing consumer and institutional demand in the Louisville area for locally-grown produce.

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.  Sixteen CAIPs were approved by the board totaling $2,858,428 for Casey, Clark, Daviess, Edmonson, Garrard, Grant, Graves, Grayson, Hancock, Hardin, Jackson, Marion, McCracken, Mercer, Nicholas and Wayne counties.

In addition to these new approvals, an additional $1,103,500 was approved to supplement existing CAIPs in the following counties:  Bracken, Clay, Harrison, Hart, Owen, Owsley, Taylor and Washington.

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 Program was approved for Mercer 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 $69,974 for Daviess, Grant and Russell counties.

The KAFC, chaired by Agriculture Commissioner James R. Comer, today approved $421,500 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.  Three Agricultural Infrastructure loans were approved for a total of $311,500 and included recipients from Ballard, Bourbon and Ohio 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; for the purchase farm real estate; or to invest in a partnership or LLC.  One Beginning Farmer loan totaled $110,000 for a recipient from Boyle County.

For more information on the loan opportunities available through the, contact Bill McCloskey (billb.mccloskey@ky.gov) or Cyndi Hall (cyndil.hall@ky.gov) at 502-564-4627.

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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 nearly $375 million in 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 the more than 4,000 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 398 projects and committed more than $47 million.  KAFC is supported in part by the Kentucky Agricultural Development Fund.