GROWING KENTUCKY AGRICULTURE

& INVESTING IN ITS FUTURE

Stewardship in Agriculture

Governor’s Conference on Energy

& the EnvironmentOct. 7, 2014

Who are we?

• Est. 1998

• Provide a direct link between the Governor and agriculture

• Support the Kentucky Agricultural Development Board (KADB), Kentucky Agricultural Finance Corporation (KAFC)

• Advisor to the Governor on agricultural issues

• Work with Kentucky’s agriculture industry on state and national policy development

GOVERNOR’S OFFICE OF AGRICULTURAL POLICY

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KENTUCKY AGRICULTURAL DEVELOPMENT FUND

$420,000,000Invested in state, regional and county

projects across the Commonwealth

Totaling more than

More than 4,800 projects

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KADF OPPORTUNITIES

County Agricultural Investment Program (CAIP)

On-Farm Energy Incentives

KADF project grants, loans

Kentucky Agricultural Finance Corporation low-interest loans

To view 6 minute GOAP video – visit: http://youtu.be/FUc2VDYjlZk

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County Agricultural Investment Program (CAIP)1. Agricultural Diversification

2. Large Animal

3. Small Animal

4. Farm Infrastructure

5. Fencing & On-Farm Water

6. Forage & Grain Improvement

7. On-farm Energy

8. Poultry & Other Fowl

9. Technology & Leadership Development

10. Value-Added & Marketing

KADF INVESTMENT PROGRAMS

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THE ENERGY PROGRAM

2014 On-Farm Energy Efficiency & Investment Program

Purpose: to provide incentives for Kentucky farm families to increase energy efficiency

Funding: 50% reimbursement, up to $10,000actual cost of qualified items

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ITS IMPACT

Approvals to Date

Total Project Costs: $32,034,067Total Investment: $ 4,737,777Annual Energy Savings: $ 3,536,962

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ITS IMPACT

PoultryHeaters, insulation, attic inlets, tunnel doors

Helping Farm FamiliesMaking it more cost effective to stay on the farm

Alex BuckMonroe Co.Investment: Insulation and ventilationTotal Project Cost: $43,000Annual savings: $3,272

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ITS IMPACT

GrainGrain dryer upgrades

Sustaining the Next GenerationMaking it more cost effective to stay on the farm

Brandon GlennDaviess Co.Investment: grain drying facilityTotal Project Cost: $82,831Annual savings: $4,762

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ITS IMPACT

Energizing Kentucky AgricultureMaking it more cost effective to stay on the farm

Henkle’s Herbs & HeirloomsMark and Velvet Henkle, Jessamine Co.Investment: biomass burner for 30’ x 96’ greenhouseTotal Project Cost: $23,000Annual energy savings: $4,433

Renewable EnergyWood

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Auditors, grant writers, commodity organizations, RECC, TVA and many more

OUR PARTNERS

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KADF Projects

Kentucky ProudMore than $13 million invested

KADF INVESTMENT PROGRAMS

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Beef CattleNearly $60 million state and county invested

Kentucky Wine/ Grape IndustryMore than $2.4 million invested in state & local projects

KADF Projects

Commonwealth Agri-Energy

KADF INVESTMENT PROGRAMS

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Kentucky Center for Agriculture & Rural DevelopmentMore than $2.6 million for technical assistance, since 2001

Poultry House Evaluation Project$338,818 to evaluate energy use of poultry houses

CAPITAL ACCESS

Invested across the Commonwealth

FOR MORE THAN

$69 million

550 Loans Approved

Kentucky Agricultural Finance CorporationInvesting in the future of Kentucky agriculture

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KAFC PROGRAMSAgricultural Infrastructure Loan Program (AILP)Building the future of Kentucky agriculture Funds committed: $22,205,023

Loans approved: 343

Jerry O’Bryan (Daviess Co.)$100,000Investment: grain storage facilityFarm Credit Mid-America, Owensboro

Square P Dairy (Logan Co.)$100,000Investment: milking parlor expansion; pack barn constructionFirst Southern National Bank, Russellville

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KAFC PROGRAMSAgricultural Infrastructure Loan Program

Roundstone Native Seed (Hart Co.)$67,700Investment: seed operation expansionKentucky Banking Centers, Munfordville

Brad Stephen (Daviess Co.)$110,000 KAFC / $10,000 Energy grantInvestment: grain complex improvements, storage, dryer upgradeIndependence Bank, Owensboro

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KAFC PROGRAMSAgricultural Processing Loan Program

“It’s Gooo-d!”

Funds committed: $17,455,227Loans approved: 15

F.B. Purnell Sausage (Shelby Co.)$1.5 million participation on $5 million projectInvestment: additional refrigeration and meat processing equipment

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KAFC PROGRAMS

Owensboro Grain (Daviess Co.)$6.5 million participation on $31 million projectInvestment: construct bio-diesel production facility and glycerin refinery

Kenny’s Cheese (Barren Co.)$150,000Investment: cheese facility constructionFarm Credit Mid-America, Glasgow

Agricultural Processing Loan Program

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THE PROGRAMSFunds committed: $24,429,554Loans approved: 177

Beginning Farmer Loan ProgramHelping beginning farmers achieve their dreams

John McLean (Taylor Co.)$250,000 KAFC / $10,000 Energy grantInvestment: Anaerobic digesterUnited Citizens Bank of Southern Ky., Campbellsville

Caleb Ragland (LaRue Co.)$250,000Investment: 1,600 farrow to wean facilityLincoln National Bank, Hodgenville

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KAFC LENDING PARTNERS

THE FUTURE • KADF / KAFC programs ensure the

sustainability of Kentucky farmers and their families

• We provide current farmers financial opportunities to maintain and grow their current family farming operations

• We also help the future generation of farmers establish and develop their own farming operation

Emerson King (3) – Muhlenberg Co.

Lucas (6), Elly (4) & Mac (2) Courtney – Shelby Co.

404 Ann StreetFrankfort, KY

40601(502) 564-4627agpolicy.ky.gov

govkyapolicy@ky.gov

Roger Thomas

Executive Director