Governor's Office of Agricultural Policy
Ag Finance Board Announces DEAL for Farmers
FRANKFORT, Ky. (April 23, 2010) -The Kentucky Agricultural Finance Corporation (KAFC), chaired by Agriculture Commissioner Richie Farmer, today announces the availability of a new participation loan program: Diversification through Entrepreneurship in Agribusiness Loans (DEAL).
DEAL will provide low-interest financing to beginning agri-entrepreneurs who are attempting to diversify their farming operations through non-traditional agricultural production or services.
“This program combines features of KAFC’s infrastructure and beginning farmer loan programs to provide a financing option for agri-entrepreneurs,” said Roger Thomas, chief executive officer for KAFC. “This program addresses capital needs of ventures that may not fit in traditional agriculture production programs.”
DEAL will provide up to $100,000, not to exceed 50 percent of the project costs. Eligible applicants must receive the majority of their household income from farming with less than $100,000 annually coming from off-farm sources.
The program may provide financing for equipment purchases, facilities, permanent working capital, real estate, investment into an existing agribusiness or other investments at the discretion of the KAFC board. The program does require the applicant to have a mentor and provide five-year business plan.
For more information on this or other programs offered by the KAFC, contact Bill McCloskey, director of financial services, at (502) 564-4627 or visit the KAFC Webpage at kafc.ky.gov.
Gov. Steve Beshear and the Kentucky Legislature continue their commitment to the agricultural diversification efforts being made across the Commonwealth.
In 2002, the Kentucky Agricultural Development Board, as part of the Long-term Plan for Agricultural Development, recommended that the KAFC originally established in 1984, be restructured to provide capital access for agricultural diversification and infrastructure projects. The Kentucky Agricultural Finance Corporation’s low-interest loan programs are made possible by support from the Kentucky Agricultural Development Fund.