The Kentucky Agricultural Finance Corporation (KAFC) was created by statute in 1984. In 2002, the Kentucky Agricultural Development Board, as part of the Long-term Plan for Agriculture Development, recommended that KAFC be restructured to provide capital access for agricultural diversification and infrastructure projects. In keeping with that priority, KAFC was awarded Agricultural Development Funds in July 2003 to accomplish its mission.
During the 2004 General Session Senate Bill (SB) 146 was approved, moving the administration of KAFC to the Governor’s Office of Agricultural Policy. This legislation also moved the administration of the Linked Deposit Investment Program into the KAFC.