KAFC Approves $5M in Loans to Support Kentucky Agriculture

By Blake Jackson

The Kentucky Agricultural Finance Corporation (KAFC) approved 23 agricultural loans totaling $5,043,076 during its most recent board meeting, supporting a range of farming initiatives across the state.

Agricultural Infrastructure Loan Program (AILP)

Seven loans under the AILP were approved, amounting to a combined total of $1,545,000. Recipients were located in Breckenridge ($45,000), Edmonson ($250,000), Graves County (four loans at $250,000 each), and Marshall County ($250,000).

The AILP assists producers in financing capital improvements related to their farming operations. Qualified projects typically involve permanent farm structures with attached equipment that enhance farm productivity and efficiency. Loans may cover up to 50% of the project cost, with a maximum of $250,000 per recipient.

Agricultural Processing Loan Program (APLP)

One loan of $250,000 was awarded to a recipient in Marion County under the APLP.

This program aims to support individuals and businesses that process Kentucky-grown commodities. Funds can be used for purchasing equipment, constructing new facilities, renovating or expanding existing ones, or securing permanent working capital, up to 50% of total project costs.

Beginning Farmer Loan Program (BFLP)

Fifteen loans were approved under the BFLP, totaling $3,248,076. Recipients were located in Adair, Caldwell, Calloway, Clark, Graves, Grayson, Green, Hopkins, Marshall, Ohio, Rockcastle, and Washington counties.

The BFLP supports aspiring farmers with some experience in developing or expanding their agricultural operations. Eligible uses of funds include purchasing farmland, livestock, equipment, or agricultural facilities, and securing working capital or investment in a farming partnership or LLC.

For further details about KAFC loan programs, interested individuals should contact their local lender or reach out to Bill McCloskey at the Kentucky Office of Agricultural Policy at (502) 382-6093 or via email at kafc@ky.gov.

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