Governor's Office of Agricultural Policy
Policy Changes to Kentucky Agricultural Finance Corporation Programs
The Governor’s Office of Agricultural Policy is announcing changes to two programs administered by the Kentucky Agricultural Finance Corporation (KAFC). On February 1, 2008 the KAFC Board met and approved policy updates to the Agricultural Infrastructure Loan Program and the Beginning Farmer Loan Program. These changes will expand the current programs by reaching more potential applicants.
The Kentucky Agricultural Finance Corporation made the following policy updates:
Agricultural Infrastructure Loan Program
- The maximum KAFC participation has been increased from $100,000 to $250,000 or 50% of total project costs.
Beginning Farmer Loan Program
- A borrower’s outstanding balance limit has been raised from $100,000 to no more than $250,000.
- The maximum term has been increased to 15 years, but may be less than 15 for certain loans where applicable.
The Kentucky Agricultural Finance Corporation was created in statue in 1984. In 2002, the Kentucky Agricultural Development Board, as part of the Long-term Plan for Agricultural Development, recommended that KAFC be restructured to provide capital access for agricultural diversification and infrastructure projects. KAFC was moved to the Governor’s Office of Agricultural Policy from the Kentucky Department of Agriculture in 2004. To date, KAFC has approved more than 188 projects and committed over $20 million.
For a more information on the Kentucky Agricultural Finance Corporation Programs contact Bill McCloskey, Director of Financial Services, at (502) 564-4627 or visit the KAFC webpage at http://kafc.ky.gov/.