Kentucky Approves $2.9M in Loans to Support Farmers

By Blake Jackson

The Kentucky Agricultural Finance Corporation (KAFC) approved 16 agricultural loans totaling $2,977,295.25 during its latest monthly board meeting, supporting a range of farming and agribusiness projects across the Commonwealth of Kentucky. The funding is designed to help producers strengthen their operations, expand facilities, and encourage new farmers and agribusiness entrepreneurs.

Through the Agricultural Infrastructure Loan Program (AILP), four loans totaling up to $712,000 were authorized. Recipients are located in Caldwell, Grayson, McLean, and Shelby counties. This program partners with private lenders to help farmers finance long-term capital investments such as permanent farm buildings and equipment that improve the efficiency and profitability of agricultural operations. Eligible producers may qualify for loans of up to $250,000, covering as much as half of a project’s total cost.

The Beginning Farmer Loan Program (BFLP) accounted for the largest share of approvals, with 10 loans totaling $1,765,295.25. Farmers in Anderson, Caldwell, Hardin, Harrison, Laurel, Metcalfe, Monroe, Rockcastle, and Wayne counties will benefit from the program.

BFLP is intended to support individuals with some farming experience who want to start, expand, or buy into a farm operation. Financing may be used for purchasing livestock, equipment, farm facilities, working capital, farmland, or investments in partnerships and limited liability companies.

KAFC also approved a $250,000 loan through the Diversification through Entrepreneurship in Agribusiness Loan Program (DEALP) for a project in Estill County. The initiative helps agribusiness entrepreneurs start or expand businesses that provide agricultural goods or services to farmers or consumers.

In addition, a $250,000 loan was approved under the Large/Food Animal Veterinary Loan Program (LFAVLP) for a recipient in Rockcastle County. This program supports veterinarians licensed in Kentucky who plan to establish, expand, or equip practices that serve large animal producers, including cattle, goats, sheep, swine, and other food animals.

Farmers interested in KAFC participation loans can 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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