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.
KAFC addresses the unique financing needs of agriculture in the Commonwealth. The mission of the KAFC Board is to strengthen Kentucky agriculture by providing access to low-interest loan programs through joint partnerships with local lending institutions. KAFC assists beginning farmers, farm families, and agribusinesses obtain the necessary capital to establish, maintain or expand their agricultural operation.
During the 2004 General Session Senate Bill (SB) 146 was approved, moving the administration of KAFC to the Governor’s Office of Agricultural Policy, now the Kentucky Office of Agricultural Policy. This legislation also moved the administration of the Linked Deposit Investment Program into the KAFC.