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2009 Annual Report Kentucky Agricultural Development Fund Kentucky Agricultural Finance Corporation Annual Report Fiscal Year 2009 i ii iii Table of Contents Letter from the Governor .......................................................................................... ii Table of Contents ........................................................................................................ iii Administration .............................................................................................................. 1 About the Programs .................................................................................................... 3 Marketing & Market Development ......................................................................... 6 Capital Access .............................................................................................................. 10 Environmental Stewardship ................................................................................... 14 Research & Development ........................................................................................ 16 Farm Family Education & Computer Literacy ................................................... 18 Local Leadership ......................................................................................................... 20 Production Agriculture ............................................................................................. 22 Appendices A: Financial Statements ................................................................................... I B: Linked Deposit Activity Report .............................................................. III C: FY 2009 Investments by County ........................................................... V D: Guiding Principles for Board Investment ........................................... X iv v vi Administration KADB as of June 30, 2009 he Kentucky Agricultural Development Board and the Steven L. Beshear, Governor Kentucky Agricultural Finance Corporation are adminis- Commonwealth of Kentucky T tered by the Governor’s Office of Agricultural Policy, Richie Farmer, Commissioner which is led by Executive Director Roger Thomas. Thomas was Department of Agriculture appointed by Gov. Steve Beshear in 2008 after serving three years as (Mac Stone, designee) executive director of the Kentucky Dairy Development Council and eight years in the Kentucky General Assembly as State Representa- Larry Hayes, Secretary Economic Development tive for the 21st District. Thomas and staff are responsible for the (Don Goodin, designee) daily operations related to these two boards and any of the Gover- nor’s agricultural initiatives. Dr. M. Scott Smith, Dean UK Cooperative Extension The Governor’s Office of Agricultural Policy (GOAP) was estab- lished in 1998 to provide a direct link between the Governor of the Dr. Mary Evans Sias, President Commonwealth and one of Kentucky’s most important industries, Kentucky State University (Dr. Kimberly Holmes, designee) agriculture. It provides administrative staff to several boards and represents Kentucky’s interest as national policy is developed. Sam Moore Kentucky Farm Bureau Kentucky Agricultural Development Board The Kentucky Agricultural Development Board (KADB) is chaired Sam Lawson by Governor Steve Beshear and consists of five statutory members Ky. Chamber of Commerce or their designees and 11 appointed members. Statutory members Vickie Yates Brown include the Governor, Commissioner of Agriculture, Economic Development Cabinet Secretary, head of the University of Ken- Karen Curtis tucky Cooperative Extension Service and the president of Kentucky Rodney Dick State University. Pat Henderson Appointed members are geographically distributed throughout the Commonwealth and are subject to confirmation by both bodies of Wayne Hunt the General Assembly. Seven of the appointments represent active Jim Mahan farmers of which at least four are from substantially tobacco- impacted counties and two have experience in agricultural diversifi- Wayne Mattingly cation; the remaining four appointments represent the Kentucky Troy Rankin Farm Bureau, the Kentucky Chamber of Commerce, an attorney with farm experience and an agricultural lender. Jim Sidebottom 1 KAFC as of June 30, 2009 Richie Farmer, Commissioner Department of Agriculture (Bruce Harper, designee) Jonathan Miller, Secretary Finance and Administration (Tom Midkiff, designee) George Begley Kenny Burdine Bob Gaslin KADB , KAFC board members recommit their service during a ceremonial swearing in. Wayne Hunt Kentucky Agricultural Finance Corporation Larry Jaggers The Kentucky Agricultural Finance Corporation (KAFC) is chaired by Doug Lawson Commissioner of Agriculture Richie Farmer and consists of one addi- Frank Penn tional statutory member and 10 members appointed by the Governor. Of the 10 private members appointed by the Governor, two may be Peggy Peterson officers from a commercial lending institution, one may be an officer Bob Proffitt from a farm credit association, one may be an agricultural economist, one shall be a tobacco farmer, one shall be a cash grain farmer, one shall be a livestock farmer, one shall be a dairy farmer, one shall be a horticultural farmer, and one shall be from the equine industry. Other Boards In addition to the KADB and the KAFC, GOAP provides staff to the Kentucky Agriculture Resource Development Authority (KARDA), the Executive Task Force for Biofuels & Biomass Development and the Alltech FEI World Equestrian Games agriculture initiatives. Note: The KADB is regulated by KRS 248.701 to 248.727 and 10 KAR 2:020; the KAFC is regulated by KRS 41.606, KRS 247.940 to 247.978, 202 KAR 9:010, 202 KAR 9:020. 2 About the Programs Diversifying Kentucky Agriculture Applications for any of the three county cost-share incentive programs1 available follow the same proc- stablished in 2000, the Kentucky Agricul- ess, except only the original and one copy are re- tural Development Board (KADB) is quired to be submitted. The KADB has given staff E charged by statute with administering the the authority to pre-approve these applications with- Kentucky Agricultural Development Fund. out the KADB reviewing each request, as long as it fits within the established guidelines for that pro- As its mission, the board will invest these funds in gram. A list of program requests meeting the state innovative proposals that increase net farm income guidelines is presented for final approval by the and effect tobacco farmers, tobacco-impacted com- board at each meeting. munities and agriculture across the state by stimulat- ing markets for Kentucky agricultural products, Project applications for state Agricultural Develop- finding new ways to add value to Kentucky agricul- ment Funds are processed in a similar fashion as tural products, and exploring new opportunities for county fund applications, but do not require county Kentucky farms. approval, unless county funds are requested by the applicant. Grant Applications The KADB meets the third Friday of each month to Staff assigned to the county where the project appli- review and approve grant requests. Beginning cation originated will review the proposal, request March 2009, the KADB instituted a meeting sched- any additional information as necessary from the ule whereby project requests are discussed in one applicant and present the staff’s recommendation to month and eligible for action in the next. This the KADB. The KADB meets monthly to review change was instituted to allow for board discussion applications and take action on requests. of projects. If questions are raised by the board, Priorities then staff will receive direct guidance to obtain any additional information from the applicant before the Kentucky’s historic investment in agricultural diver- project is acted upon. sification created an unprecedented opportunity for Kentucky farmers to access funds to diversify their Project applications for County Agricultural Devel- operations and expand farm-based enterprises. opment Funds are submitted to the local County Agricultural Development Council(s). The county To provide guidance for this investment, Kentucky council assigns a priority to applications based on the agriculture provided input for the development of county’s Comprehensive Plan for Agriculture and Cultivating Rural Prosperity: Kentucky’s Long-term the availability of county funds. All applications and Plan for Agricultural Development. This long-term their respective priorities are forwarded to the plan was the culmination of a two-day summit, 14 KADB for a final funding decision. 1 County Agricultural Investment Program, Shared-use Equipment Program, Pilot Farm Management Program 3 Staff as of June 30, 2009 regional forums, and six feedback forums that resulted in a guide for Roger Thomas Executive Director the funding and policy direction of the board. Angela Blank Cultivating Rural Prosperity is the blueprint for Kentuckians in ad- Director of Public Affairs dressing issues associated with agricultural growth and diversification Jennifer Daniels in the Commonwealth. The six priorities identified in the plan are Compliance Specialist marketing and market development, access to capital, environmental Diane Fleming stewardship, farm family education & computer literacy, local lead- General Counsel ership, and research and development. Sandra Gardner Director of Communications Cyndi Hall Distribution of Tobacco Settlement Funds Financial Records Specialist, KAFC Debbie Hollis The following pie chart shows
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