Phase II money and your diversification project

Your Phase II payment provides you an opportunity to leverage funds from other sources to diversify your farm operation away from tobacco dependance. Thus, you have a potential to double the value of your payment. Your Phase II payment can act as matching funds in a variety of programs already established in many counties.

If you are interested in expanding and improving an existing enterprise or are interested in trying something new, then there are several model programs you may wish to tap into:

Agricultural Diversification

Assistance available for the following enterprises: commercial vegetable and herb production, commercial fruit and sweet sorghum production, production of commercial ornamental horticultural products, greenhouse construction or conversion for horticultural enterprises, small animal production (bees, rabbits, pastured poultry, sheep), commercial aquaculture production, commercial silvaculture production, equine production, direct-to-consumer livestock production, and dairy production.
 

Cattle Genetics Improvement

Provides cost-share assistance with approved bull purchase or artificial insemination for genetic improvement of Kentucky's cattle herds.
 

Cattle Handling Facilities

Assistance available for the following investments: handling facilities and equipment for beef cattle, secure lot or pen for mature beef bulls, pens for weaning calves, handling facilities and equipment for dairy cattle, and shared use equipment for cattle handling facilities.
 

Forage Improvement & Utilization

Assistance available for the following investments: selected seed/lime/fertilizer costs, filter fabric pads for heavy use areas, fence for rotational grazing systems, tanks and pipes for on-farm water distribution systems, and shared use pasture and forage equipment.

 

Goat Diversification

Assistance available in the areas of on farm handling equipment installation and genetic improvement, establishment and expansion of the goat flock.
 

Hay, Straw & Commodity Storage

Assistance available for employing best practices related to hay, straw & commodity storage and utilization, thus improving feed and straw quality.
 

Livestock Fencing Improvement

Assistance available for for improved pasture quantity, quality and efficient use for livestock producers.
 

On-farm Water Enhancement

Provides farmers the opportunity to adopt a proactive and systematic approach to expand existing water supplies or to develop alternative water resources.
 

To see if your county is participating in any of the above model programs, please visit the Counties with Model Programs page.

As another way to maximize Phase II payments, producers groups can pool their Phase II payments toward projects with regional or statewide potential impact.