FOR IMMEDIATE RELEASE
December 14, 2001
Office of the Governor
Contact: John Mark Hack (502) 564-4627

The op-ed below is available for publication in your newspaper. If you have any questions, please contact John-Mark Hack. The author is Executive Director/CEO of the Kentucky Agricultural Development Fund. This is a division of the Governor's Office of Agricultural Policy. The funds come from the National Tobacco Growers Settlement Trust, which distributes compensation payments to tobacco growers and provides grants for agricultural development of new farm products.

Investing in Agriculture Success and Thinking Big

By John-Mark Hack

Exciting things are happening in Kentucky agriculture all around the state. Producers and business people are starting and expanding a variety of operations, large and small, and are playing major roles in the Commonwealth's future economy.

These innovations are locally grown efforts, where farmers are making choices that will ensure their communities, counties and regions are places where families can live, work and prosper.

We are facing together the reality that change in agriculture is taking place. Tobacco will yield a smaller portion of income for many families. For some it will cease being a profitable crop at all. There are many reasons for this change. While tobacco will continue to be an important crop, we must look to additional ways of providing for ourselves.

Gov. Patton sees this economic shift as an opportunity to strengthen other agricultural sectors, and to plant seeds for new endeavors. That's why he created the Governor's Office of Agricultural Policy and made it a priority to invest in farming and to provide a structure of support for farmers. This investment is serving as a catalyst for local efforts.

One of the landmarks of change in the tobacco industry occurred in late 1998 when 46 states were awarded billions of dollars in damages from tobacco companies for years of health costs related to smoking. Settlement money was awarded to 46 states over 25 years. Gov. Patton worked to set aside half of Kentucky's share for investment in agriculture through 2002.

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Since its inception this year, the Agriculture Development Board, which oversees distribution of this money, has invested in more than 350 project proposals for over $57 million. The Board reviews proposals monthly and targets the money to projects that have the most potential for impacting local economies. Those projects have included significant funds to improve the livestock industry, expand farmers markets and build resources for agricultural education in schools. It has funded farmers who produce corn, honey, tomatoes, grapes and even shrimp. It has assisted cooperatives and businesses in building storage and processing centers for crops and livestock. And, it has funded business planning and marketing efforts that are crucial for agriculture's profitability.

Our state has been given the resources to make this time of change a positive development. It makes sense, in a state like Kentucky, to invest significantly in agriculture's economic progress. Soon the Kentucky Legislature will begin reviewing the success of these investments and deciding whether to continue to set aside funds for agricultural development after 2002.

During the legal battles over tobacco, Gov. Patton fought for assistance for tobacco farmers expected to suffer income losses because of changes in the tobacco companies' practices. His efforts resulted in a "Phase II" settlement that directed the four largest tobacco companies to pay into a separate fund that would be distributed to tobacco farmers only. In three years, almost $300 million has been paid out and these annual payments will continue through 2010. This money is providing needed income in changing times, and providing resources to plan for the future.

If you are on a complex journey, you need a roadmap; one with details that can take you all the way to your destination. That's why Gov. Patton has spent time and resources on developing Kentucky's Long-Term Comprehensive Plan for Agriculture Development. The planning has been locally driven, literally hammered out county by county. Eleven regional meetings took place, and a two-day gathering of state, national and international experts and state agricultural leaders assessed issues critical to future success.

We've published a draft of the plan encouraging public comment that will continue to refine the information and goals included. Gov. Patton encourages comments - negative or positive - that will add constructively to the plan.

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The plan reviews the history of farming in the state, assesses its current status and strengths, and points to a variety of promising investments into new and existing business ventures that merit support. It recognizes and calls for investment in cooperation among producers to achieve economies of scale, and a sophisticated marketing structure that explores every opportunity for farmers to sell their goods locally, regionally, nationally and even internationally.

A lot is happening in agriculture in Kentucky. Many people in small, rural communities are thinking big and taking risks to build an economy that can provide a high quality of life to future generations. Gov. Patton supports local innovation. We're asking for your continued support, too. Let your legislators know that investment in your local farming community is important to you, and give us your comments on the Long-Term Plan. You'll play a role in a bright future for Kentucky agriculture.

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