FOR IMMEDIATE RELEASE

March 6, 2003
Contact: Kara Keeton, Communications Director
Governor’s Office of Agricultural Policy
(502) 564-4627

National Governor’s Association recognizes Kentucky’s Agricultural Development Fund as an innovation in state policy

The Kentucky Agricultural Development Fund is profiled in the recent National Governors Association Center for Best Practices report, "Innovative State Policy Options to Promote Rural Economic Development". This new report has identified three promising strategies-which build on states’ inherent regional strengths-to help governors create dynamic rural economies.

The Agricultural Development Fund is at the heart of reinvigorating the agricultural sector in Kentucky through diversification and value-added agriculture strategies. Kentucky has made a historic effort to diversify away from tobacco production while revitalizing the farm economy by investing 50% of the Master Settlement Agreement into the Agricultural Development Fund. Since the inception of the program in January 2001, the Agricultural Development Board has reviewed over 1600 proposals and approved over 900 proposals committing over $103 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 projects fall in an array of investment areas including development of a value-added processing infrastructure, technical assistance programs, market and feasibility studies, and on-farm financial assistance.

The Fund’s strong emphasis on sound business development and its record low administrative expenses make the program a model for other states to follow.

“What Kentucky is doing is the right focus on re-energizing the entrepreneurial spirit in the tobacco community,” stated Phil Psilos, the NGA Director of Economic and Technology Policy Studies. “I can’t overstate how important this is. This is a national model that combines top-down strategic coordination and bottom-up planning.”

The most innovative programs provide resources for careful planning and market analysis and technical assistance to emerging agricultural entrepreneurs. (NGA Center for Best Practices, February 2003)

“Through investments with the Agricultural Development Fund, we have made notable progress in the past year in reducing dependency on tobacco. Our commitment though must be sustained,” said John-Mark Hack, CEO of the Agricultural Development Fund and Executive Director of the Governor’s Office of Agricultural Policy. “There is still much work to be done to ensure a sustainable rural economy for future generations. We have embarked on a long-term project that demands the continued commitment of future Governors, our General Assembly, and the citizens of the Commonwealth.”

The National Governors Association (NGA) is the collective voice of the nation's governors and one of Washington, D.C.'s, most respected public policy organizations. To download a copy of the Practice issue brief, "Innovative State Policy Options to Promote Rural Economic Development" go to <http://www.nga.org/center/divisions/1,1188,C_ISSUE_BRIEF^D5017,00.html>

For more information on the Agricultural Development Fund and grant opportunities through the fund contact the Governor’s Office of Agricultural Policy at (502) 564-4627.

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