Growing Kentucky Agriculture & Investing in Its Future

1. Growing Kentucky Agriculture& Investing in Its Future Stewardship in Agriculture Governor’s Conference on Energy & the Environment Oct. 7, 2014

2. Governor’s office of Agricultural Policy Who are we? • Est. 1998 • Provide a direct link between the Governor and agriculture • Support the Kentucky Agricultural Development Board (KADB), Kentucky Agricultural Finance Corporation (KAFC) • Advisor to the Governor on agricultural issues • Work with Kentucky’s agriculture industry on state and national policy development

3. Kentucky Agricultural Development Fund More than 4,800 projects Totaling more than $420,000,000 Invested in state, regional and county projects across the Commonwealth

4. KADF Opportunities • County Agricultural Investment Program (CAIP) • On-Farm Energy Incentives • KADF project grants, loans • Kentucky Agricultural Finance Corporation low-interest loans To view 6 minute GOAP video – visit: http://youtu.be/FUc2VDYjlZk

5. KADF Investment Programs County Agricultural Investment Program (CAIP) Agricultural Diversification Large Animal Small Animal Farm Infrastructure Fencing & On-Farm Water Forage & Grain Improvement On-farm Energy Poultry & Other Fowl Technology & Leadership Development Value-Added & Marketing

6. The Energy Program 2014 On-Farm Energy Efficiency & Investment Program Purpose: to provide incentives for Kentucky farm families to increase energy efficiency Funding: 50% reimbursement, up to $10,000actual cost of qualified items

7. Its Impact Approvals to Date Total Project Costs: $32,034,067 Total Investment: $ 4,737,777 Annual Energy Savings: $ 3,536,962

8. Its Impact Poultry Heaters, insulation, attic inlets, tunnel doors Alex Buck Monroe Co. Investment: Insulation and ventilation Total Project Cost: $43,000 Annual savings: $3,272 Helping Farm Families Making it more cost effective to stay on the farm

9. Its Impact Brandon Glenn Daviess Co. Investment: grain drying facility Total Project Cost: $82,831 Annual savings: $4,762 Grain Grain dryer upgrades Sustaining the Next Generation Making it more cost effective to stay on the farm

10. Its Impact Renewable Energy Wood Henkle’s Herbs & Heirlooms Mark and Velvet Henkle, Jessamine Co. Investment: biomass burner for 30’ x 96’ greenhouse Total Project Cost: $23,000 Annual energy savings: $4,433 Energizing Kentucky Agriculture Making it more cost effective to stay on the farm

11. Our Partners Auditors, grant writers, commodity organizations, RECC, TVA and many more

12. KADF Investment Programs KADF Projects Beef Cattle Nearly $60 million state and county invested Kentucky Wine/ Grape Industry More than $2.4 million invested in state & local projects Kentucky ProudMore than $13 million invested

13. KADF Investment Programs KADF Projects Poultry House Evaluation Project $338,818 to evaluate energy use of poultry houses Kentucky Center for Agriculture & Rural DevelopmentMore than $2.6 million for technical assistance, since 2001 Commonwealth Agri-Energy

14. Capital Access Kentucky Agricultural Finance Corporation Investing in the future of Kentucky agriculture 550 LoansApproved FOR MORE THAN $69 million Invested across the Commonwealth

15. KAFC Programs Agricultural Infrastructure Loan Program (AILP) Building the future of Kentucky agriculture Funds committed:$22,205,023 Loans approved:343 Jerry O’Bryan (Daviess Co.) $100,000 Investment: grain storage facility Farm Credit Mid-America, Owensboro Square P Dairy (Logan Co.) $100,000 Investment: milking parlor expansion; pack barn construction First Southern National Bank, Russellville

16. KAFC Programs Agricultural Infrastructure Loan Program Brad Stephen (Daviess Co.) $110,000 KAFC / $10,000 Energy grant Investment: grain complex improvements, storage, dryer upgrade Independence Bank, Owensboro Roundstone Native Seed (Hart Co.) $67,700 Investment: seed operation expansion Kentucky Banking Centers, Munfordville

17. KAFC Programs Agricultural Processing Loan Program Funds committed:$17,455,227 Loans approved:15 “It’s Gooo-d!” F.B. Purnell Sausage (Shelby Co.) $1.5 million participation on $5 million project Investment: additional refrigeration and meat processing equipment

18. KAFC Programs Agricultural Processing Loan Program Owensboro Grain (Daviess Co.) $6.5 million participation on $31 million project Investment: construct bio-diesel production facility and glycerin refinery Kenny’s Cheese (Barren Co.) $150,000 Investment: cheese facility construction Farm Credit Mid-America, Glasgow

19. The Programs Funds committed:$24,429,554 Loans approved:177 Beginning Farmer Loan Program Helping beginning farmers achieve their dreams John McLean (Taylor Co.) $250,000 KAFC / $10,000 Energy grant Investment: Anaerobic digester United Citizens Bank of Southern Ky., Campbellsville Caleb Ragland (LaRue Co.) $250,000 Investment: 1,600 farrow to wean facility Lincoln National Bank, Hodgenville

20. KAFC Lending Partners

21. The Future • KADF / KAFC programs ensure the sustainability of Kentucky farmers and their families • We provide current farmers financial opportunities to maintain and grow their current family farming operations • We also help the future generation of farmers establish and develop their own farming operation Emerson King (3) – Muhlenberg Co. Lucas (6), Elly (4) & Mac (2) Courtney – Shelby Co.

22. Roger ThomasExecutive Director 404 Ann StreetFrankfort, KY 40601(502) 564-4627agpolicy.ky.govgovkyapolicy@ky.gov