By TIM THORNBERRY
Kentucky Correspondent

MAYS LICK, Ky. — The dairy industry in the northeastern region of Kentucky got a boost with a recent visit from Gov. Ernie Fletcher who brought greetings and nearly $1.4 million to a Mason County farming operation.

The money, representing combined funding from the Kentucky Agricultural Development Fund (KADF) and the Kentucky Agricultural Finance Corp. (KAFC), was presented to Burton Livestock LLC during the Farmer-Banker Field Day on the dairy heifer development farm operated by Harold and Shannon Burton.

The funds will benefit dozens of other area farms as they diversify away from a tobacco economy. As part of Burtons’ Dairy Heifer Replacement Program, Harold Burton purchases calves and raises them to about 22 months of age. He breeds them on his farm before shipping them to 15 large dairies in Ohio and Michigan.
Burton currently raises 6,000 heifers and contracts part of the work to 35 farmers in six counties – Mason, Fleming, Bracken, Rowan, Nicholas and Harrison.

The funding to Burton Livestock included a $967,110 loan from the KAFC and $419,818 from the KADF along with $2,000 from the Mason County Agricultural Development Board and $3,000 from the Fleming County board.

“For much of the history of Kentucky, our farmers have played an important role in the lives of our citizens, through their economic contributions as well as by providing Kentucky-grown commodities,” said Fletcher. “This dairy heifer replacement program is giving farmers a chance to diversify and expand their operations by providing new production opportunities.”

The state’s dairy industry as a whole has experiences a bit of a roller coaster ride over the past several years. A University of Kentucky agriculture outlook for this year paints a mixed picture for this year after a dismal showing in 2006.

According to that report, “Expansion of the U.S. Dairy herd may have ended in the summer of 2006, which would suggest that smaller milk cow numbers are possible for 2007. However, production per cow is likely to offset any reductions in cow numbers. USDA is forecasting a slight increase in milk production for next year. This is not good news given poor prices seen in 2006. However, steady demand coupled with a more favorable outlook for some components should support the milk complex somewhat. 2007 prices are likely to open year below year ago levels, but show more resilience in the spring and summer.”

The report also noted that 2006 prices were down from the previous year while herd numbers continued to decline.
Fifty percent of Master Settlement Funds have gone into the KADF with $244 million being invested into state, regional and local agricultural diversification projects; nearly 3000 such projects since the inception of the program in January 2001.

This farm news was published in the Aug. 1, 2007 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee.