FRANKFORT, Ky. — The Kentucky Agricultural Finance Company achieved a monetary milestone this spring when it reveryed Greater than $100 million in complete belongings.
The Kentucky Agricultural Finance Company (KAFC) is the lending arm of the Kentucky Agricultural Enchancment Board (KADB). Collectively, beneath the Kentucky Office of Agricultural Coverage, The two work in live performance to distribute funds from the Tobacco Grasp Settlement Settlement. The 1998 agreement, requires tobacco corporations to pay settling states, together with Kentucky, annual installments.
The monetary milestone acquired here after KADB dedicated $5 million to KAFC all by way of its Might 2021 meeting. Since 2003, the KADB has invested $80 million in KAFC for mortgages. The further $20 million in belongings consists of mortgages accredited by KADB After which transferred to KAFC and curiosity funds made on all mortgages Through the yrs.
During a joint public meeting of The two boards in mid-July in Bowling Inexperienced, KADB accredited Greater than $2.3 million in grants for agricultural diversification and rural development tasks throughout the state, wright hereas KAFC accredited Greater than $1.9 million in mortgages. Collectively with the common month-to-month board conferences, the members Of every board started strategic planning for The Prolonged time period.
KAFC addresses the distinctive financing wants of agriculture Inside the Commonwealth. Its mission is to strengthen Kentucky agriculture by offering entry to low-curiosity mortgage packages by way of joint partnerships with native lending institutions. KAFC assists starting farmers, farm households, and agrienterprisees obtaInside The required capital To decide, maintain, or increase their agricultural operations.
KADB administers the Kentucky Agricultural Enchancment Fund (KADF). Its mission is To take a place funds in revolutionary proposals that enhance internet farm income and have an effect on tobacco farmers, tobacco-influenceed communities, and agriculture throughout the state by stimulating markets for Kentucky agricultural merchandise. This consists of new methods So as to add worth to Kentucky agricultural merchandise and exploring new alternatives Which will revenue Kentucky farms now and Finally.
The boards have funded Greater than $800 million in assist of agriculture and rural tasks in mortgages and grants Over the previous 20 yrs. From serving to farmers get started and increase current operations to offering capital for start-up kitchens, farmers markets, and purchases for gear to increase agricultural alternatives throughout the state.
Through The peak of the coronavirus pandemic final yr, agriculture was a key focus as consumers struggled To Search out the meals merchandise they needed on the grocery retailer cabinets. A Sort of merchandise was meat. KADB accredited A mannequin new program, Meat Processing Funding Program (MPIP) To assist Kentucky processors and farmers meet shopper calls for. So far Greater than $6 million has been invested in 30 native processing amenities throughout the commonwealth, this revenueable investment in infrastructure Might have constructive outcomes finaling For many yrs.
The two boards think about future funding ought to Consider investments with An prolonged-time period influence. The joint meeting in July allowed every board to brainstorm ideas and tasks. In The approaching months, the boards will seek public enter from Kentucky agricultural organizations and completely different stakeholders as they plan for The subsequent 20 yrs.
To study extra Regarding the boards and the packages they finance, go to https://www.kyagr.com/agpolicy/.
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