KAFC Approves $4M in Loans for Kentucky Farm Projects

By Blake Jackson

The Kentucky Agricultural Finance Corporation (KAFC) approved 20 agricultural loans totaling more than $4 million during its monthly board meeting, providing financial support for a wide range of farm and agribusiness projects across the Commonwealth.

Through the Agricultural Infrastructure Loan Program (AILP), KAFC authorized five loans totaling up to $1,193,750. Approved projects are located in Calloway, Christian, Graves, McLean and Union counties.

This program partners with commercial lenders to help producers finance capital improvements, including permanent farm structures and related equipment that enhance operational efficiency and long-term profitability. Eligible applicants may receive financing of up to $250,000, covering no more than 50 percent of total project costs.

The board also approved two loans under the Agricultural Processing Loan Program (APLP), totaling up to $500,000. Recipients in Bell and Calloway counties will use the funding to support value-added processing of Kentucky-grown agricultural commodities.

The APLP assists processors with purchasing equipment, building or expanding facilities, and securing permanent working capital, with financing available for up to half of project expenses.

Support for new producers was addressed through the Beginning Farmer Loan Program (BFLP), which approved 12 loans totaling up to $2,196,837. Loan recipients are located in 12 counties statewide, including Bourbon, Christian, Daviess, Graves, Grayson, Madison, Marion, McLean, Meade, Nelson, Pulaski and Washington.

The program helps farmers with limited experience start, expand or invest in farming operations by financing livestock, equipment, facilities, working capital and farmland purchases.

Additionally, one loan totaling $112,500 was approved through the Diversification through Entrepreneurship in Agribusiness Program (DEALP) for a project in Mercer County. DEALP supports agri-entrepreneurs establishing or growing businesses that provide agricultural products or services.

For more information about KAFC participation loans, producers should contact their local lender or reach out to the Kentucky Office of Agricultural Policy at (502)382-6093 or email kafc@ky.gov.

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