By JORDAN STRICKLER
Kentucky Correspondent FRANKFORT, Ky. — The Kentucky Agricultural Finance Corp. (KAFC) is getting a $5 million boost this year from the Kentucky Agricultural Development Board (KAFB). The KAFC provides below-market financial assistance to individuals and businesses interested in establishing or expanding their ag production or processing operations. The KAFC, a subsidiary of the KAFB, has assets which exceed $75 million, with almost $65 million currently being loaned to operations all over the agricultural spectrum. “I would like to thank the KADB for this much-needed investment in KAFC,” said Warren Beeler, executive director for the Governor’s Office of Agricultural Policy. “KAFC’s participation loan programs mitigate risk for lenders and improve cash flow for applications by offering low interest rates. It is a win-win for tobacco settlement funds.” KAFC loans are spread through four programs, the largest being the Beginning Farmer Program ($36.9 million). Others include Large Animal Veterinary, Agricultural Processing Loan and the Agricultural Infrastructure Loan programs. One organization which has taken advantage of the loans is Kentucky Fresh Harvest LLC, which is building a high-tech greenhouse operation in Lincoln County. The group received a loan of almost $250,000 in August 2016 from the Agricultural Processing Loan Program. “I’m excited; we’ve got a four-bay greenhouse completed and are set to get seeds in the ground at any time,” said Carol Hill, one of the principal investors of Fresh Harvest. “The KAFC loan has helped us with the infrastructure, acquiring land and assisted us in getting employees. “I believe that this will be a really cool deal for this area.” High-tech greenhouses are touted as a better way of production and give the grower the ability to control environmental variables and foster better food safety, with the ability to mitigate risk of contamination and cross-contamination from outside factors. The buildings will have cooling, circulation and ventilation systems to keep produce fresh and keep utility and water costs low, while automation reduces the labor costs and risk of human error in the growing process. The automated systems will also reduce the frequency of damage to produce through the handling and packaging process, which should lead to larger yields than non-automated operations. Fresh Harvest is beginning its endeavor with cherry tomatoes, with the possibility of expanding into peppers if everything goes as planned. Right now, Kentucky Fresh Harvest is one of the only operations of its kind in the United States. KADB loans originated from funds from the 1998 tobacco Master Settlement Agreement. |
