Study: Investments in KY Ag Development Fund projects double farm income

LEXINGTON, Ky. (WTVQ) – Researchers from the University of Kentucky College of Agriculture estimate that Kentucky Agricultural Development Fund investments from 2007 through 2014 average $2.03 in farm income for every dollar invested in KADF projects.

The study, commissioned in November 2014, set out to evaluate the effectiveness of the Kentucky Agricultural Development Board’s investments in agriculture, agribusiness, leadership development, county agricultural investment programs and Kentucky Agricultural Finance Corporation loan programs.

According to the study, the Kentucky Agricultural Development Board invested $198 million in programs and projects from 2007 through 2014, including $42 million in state and county projects, an investment that has resulted in an estimated $86 million in additional farm income.

Additional highlights of the study include:

  • 33,958 farmers were estimated to have been affected by KADF projects, of which approximately 17,617 were estimated to be current or former tobacco growers.
  • For every dollar the Kentucky Agricultural Development Fund invested, return on investment was highest for marketing and promotion ($3.07), followed by livestock ($2.81) and horticulture ($1.20).
  • County Agricultural Investment Programs, designed to increase net-farm income, add value to products and diversify operations, accounted for an investment of more than $100 million with over 61,000 participants.
  • The Kentucky Agricultural Finance Corporation’s Beginning Farmer Loan program was found to be highly regarded. It was a critical component to accessing financing for recipients purchasing land to develop, expand or buy into a farm enterprise. The finance corporation completed 198 loans between January 2007 and June 2015.

The executive summary of the study is available on the Governor’s Office of Agricultural Policy’s website, http://agpolicy.ky.gov. The complete study will be available in mid-December.

Categories: News, State News

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