May 17, 2002
Contact: John-Mark Hack, Governor’s Office of Agricultural Policy (502) 564-4627

$2,779,924 Invested in Kentucky Agricultural Diversification

The Kentucky Agricultural Development Board, chaired by Governor Paul Patton, Friday approved $2,779,924 in agricultural diversification projects across the Commonwealth. The board was established to oversee the Agricultural Development Fund that was created by the 2000 General Assembly using half of Kentucky’s tobacco settlement revenues.

In its meeting, the board approved 43 total projects.

State level programs that received board approval included:

$708,750 State funds for Community Ventures Corporation

to work in a collaborative micro-lending project with Buffalo Trace Area Development District, Purchase Area Development District, Kentucky Highlands Investment Corporation, and the U.S. Small Business Administration. The project will leverage funds from SBA to deliver specialized business planning and technical assistance, as well as loans ranging from $500 to $35,000, for farmers in their service areas affected by the loss of tobacco income.
 

$255,000 State funds for ApoImmune

to research the potential for producing cancer fighting therapeutic proteins in tobacco
 

$54,385 State, Bourbon County, and Jessamine County funds for The Kentucky Wool Society

to purchase carding, picking, and cleaning equipment for wool, as well as a classroom and retail store for the demonstration and sale of wool products
 

County level programs that received board approval included:

$2,000 Wayne County - Wayne County Pork Producers

will support efforts to promote the role of agriculture in the community, connecting consumers to the farm, and creating a networking system for farm families through educational meetings and workshops
 

$13,434 Hopkins County - The Hopkins County Conservation District

will administer agricultural and conservation educational programs to students in Hopkins County
 

$9,300 Muhlenberg County - Bremen Elementary School

will establish a mentoring program utilizing high school students as teachers at the greenhouse/outdoor classroom
 

$4,250 Spencer County - The Spencer County Conservation District

will purchase a fertilizer/lime spreader
 

$6,425 Washington County - The Washington County Conservation District

will purchase a shared-use tree planter and warm-season grass drill to enhance timber production and improve the forage base
 

$2,000 Calloway County - The Calloway County Conservation District

in cooperation with the Young Farmers Association, Kentucky Farm Bureau, Calloway County Cooperative Extension Service, and the Purchase Area Health Education Coordinator will host two safety days
 

$2,245 Mercer County - The Mercer County Conservation District

will purchase a tree planter
 

Also funded were county cost-share programs, developed to address the identified need for funds in specified areas. The cattle handling and cattle genetics programs allow for assistance to purchase equipment and animals to improve the health and profitability of cattle. The forage program improves pastures to allow for improved grazing by animals, reducing producer costs for feed, and improving feed quality. The goat diversification program works to assist producers to venture into this relatively new area of agriculture in Kentucky. The diversification program is designed to assist in the transition into ten new areas of agriculture including dairy, aquaculture, and grapes. And the fallen animal program works to address the problem of dead animal disposal around Kentucky.

65% of the Fund is set aside for regional and statewide agricultural projects, while 35% is earmarked for individual counties on the basis of their tobacco dependence. The board had previously voted to utilize state monies to establish the Kentucky Center for Agricultural Development and Entrepreneurship and to use the proceeds of a $25 million Rural Development Bond Fund for farmland protection programs across the state. In January, over $37 million was distributed directly to tobacco quota owners and growers to supplement the cash payments they receive from a separate Tobacco Settlement Trust Fund. The Natural Resources and Environmental Protection Cabinet’s Division of Conservation received $18 million to provide direct cost-share assistance to agricultural producers seeking to come into compliance with state water quality laws.

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