KAFC Awards $4 Million to Support Kentucky Farmers

By Blake Jackson

The Kentucky Agricultural Finance Corporation (KAFC) approved 21 agricultural loans worth more than $4 million during its latest monthly board meeting, supporting a wide range of farming and agribusiness projects across Kentucky.

Through the Agricultural Infrastructure Loan Program (AILP), KAFC approved five loans totaling $1,039,592. The funding will support agricultural operations in Christian, Fulton, Harrison, LaRue, and Todd counties.

The AILP works with commercial lenders to help producers finance capital improvements such as permanent farm structures and equipment designed to improve farm profitability. Eligible applicants may receive up to $250,000, covering no more than half of the total project cost.

KAFC also approved one Agricultural Processing Loan Program (APLP) loan worth $125,000 for a project in Nelson County. The program supports businesses and individuals adding value to Kentucky-grown agricultural products through processing activities.

Funding may be used for equipment purchases, facility construction, renovations, expansions, and permanent working capital.

The largest share of approvals came through the Beginning Farmer Loan Program (BFLP), which awarded 14 loans totaling $2,662,750. Recipients were located in Anderson, Boyle, Breckinridge, Butler, Christian, Estill, Graves, Monroe, Nelson, Todd, and Webster counties.

The BFLP is intended to help farmers with some experience expand or establish farming operations through financing for livestock, equipment, farm real estate, agricultural facilities, and working capital needs.

Additionally, one Horticulture Incentives Loan Program (HILP) loan totaling $250,000 was approved for a producer in Calloway County. The HILP provides financing assistance to horticulture growers to help move crops from production to market.

Farmers interested in KAFC participation loans can contact their local lender or the Kentucky Office of Agricultural Policy for additional details at (502)382-6093 or email kafc@ky.gov.

Photo Credit: kentucky-agricultural-finance-corporation