Kentucky Agriculture Supported by $3.7M in KAFC Loans

By Blake Jackson

The Kentucky Agricultural Finance Corp. (KAFC) approved 18 agricultural loans totaling $3,713,010.50 during its monthly board meeting, supporting a wide range of farm and agribusiness projects across the Commonwealth.

Through the Agricultural Infrastructure Loan Program (AILP), KAFC approved two loans totaling up to $500,000 for projects in Fulton County ($250,000) and Union County ($250,000).

The AILP partners with commercial lenders to help producers finance permanent farm structures and attached equipment that improve operational efficiency and profitability. Eligible applicants may receive up to $250,000, not exceeding 50 percent of the total project cost.

The largest share of funding was awarded through the Beginning Farmer Loan Program (BFLP), with 12 loans approved totaling up to $2,438,010.50. Loan recipients are located in Barren, Breckinridge, Caldwell, Harrison, Hopkins, LaRue, McLean, Meade, Mercer, Todd, and Warren counties.

The BFLP supports individuals with some farming experience who are looking to start, expand, or buy into an operation. Funds may be used for livestock, equipment, farm facilities, real estate purchases, working capital, or investments in partnerships or limited liability companies.

One loan totaling $250,000 was approved in Metcalfe County through the Diversification through Entrepreneurship in Agribusiness Loan Program (DEALP). This program helps agri-entrepreneurs establish, expand, or acquire businesses that market agricultural products or provide services to farmers and consumers.

KAFC also approved two Horticulture Incentives Loan Program (HILP) loans totaling up to $275,000 for producers in Laurel County ($250,000) and Meade County ($25,000). HILP funding supports working capital needs for horticulture producers moving crops from harvest to market.

Additionally, one Large/Food Animal Veterinary Loan Program (LFAVLP) loan of $250,000 was approved for a recipient in Boyle County, supporting veterinary practices that serve Kentucky’s large and food animal producers.

For more information on KAFC participation loans, producers are encouraged to contact their lender or the Kentucky Office of Agricultural Policy at (502)382-6093 or kafc@ky.gov.

Photo Credit: kentucky-agricultural-finance-corporation