Kentucky boosts farms with $2.7M in loans

Monday, March 11, 2024

The Kentucky Agricultural Finance Corp. (KAFC) distributed $2.7 million in crucial funding to Kentucky farms at their monthly board meeting, aiming to bolster agricultural growth across the state. This investment was distributed through 16 distinct loans, catering to both beginning farmers and established operations with infrastructure needs.

Three farms in Breckinridge, McCracken, and Owen counties received a collective $750,000 through the Agricultural Infrastructure Loan Program (AILP). This program tackles infrastructure challenges by providing financing for permanent farm structures and attached equipment, ultimately aiming to improve the profitability of these operations.

The Kentucky Beginning Farmer Loan Program (BFLP) received the lion's share of the funding, allocating over $1.7 million to beginning farmers in 12 counties. This program serves as a springboard for new agricultural ventures, offering financial assistance for the purchase of livestock, equipment, or agricultural facilities. Additionally, it supports securing working capital, purchasing farm real estate, or investing in partnerships or limited liability companies (LLCs). Loan recipients hailed from Adair, Anderson, Barren, Franklin, Green, Harrison, Madison, Pendleton, Russell, Shelby, Wayne, and Woodford counties.

KAFC's commitment to diversification within the agricultural industry was further highlighted by a $250,000 loan awarded through the Diversification through Entrepreneurship in Agribusiness Program (DEALP) to a farm in Bath County. This program specifically targets agri-entrepreneurs, assisting them with the purchase, establishment, or expansion of businesses that sell agricultural products or services directly to farmers or consumers.

By providing targeted financial support through these various programs, the KAFC meeting aimed to empower both established farms seeking infrastructure improvements and aspiring agricultural entrepreneurs looking to launch or expand their ventures. This comprehensive approach fosters a thriving agricultural landscape across Kentucky.

For more information on the programs offered by the KAFC, contact Bill McCloskey at Kentucky Office of Agricultural Policy at (502) 382-6093 or email kafc@ky.gov.

Photo Credit: kentucky-agricultural-finance-corporation