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7/29/2019 KAC Strategic Plan 2013 18 Final
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W E
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2013 to 2018 Strategic Plan 1
I believein the Future of
Agriculture witha faith born not
of words but
of deeds. from the FFA Creed
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2 Connecting: Strategies to Better Kentuckys Agricultural Economy and Rural Communities
Letter rom the Chairman
Over the years I have had the good ortune to wear many proessional hats through my work in education, government, non-
prot organizations, the ministry, and business. But at my roots, I am a armer and I remain a armer, even as the proessiono arming has undergone enormous changes over the years that I have lived and worked in agriculture. I care deeply about
arming and the culture o arming that continues to thrive in our very unique state.
Production agriculture, as we know and practice it in Kentucky but also across the nation and the globe has changed
in terms o markets that traditionally were protable and open to everyone such as tobacco, dairying, bee cattle and equine.
On the other hand, new opportunities have opened in recent years with commodities such as small grains, poultry and aqua-
culture or with selling locally-grown ruits and vegetables at the Farmers Markets blossoming across the state that were not
seen as relevant or nancially viable to most armers a ew years back. I am told that exporting large-mouth bass ngerlings
to Canada now is even a protable market or some! Kentucky agriculture has certainly diversied with many other products
as well.
Technology, too, has transormed and continues to transorm agriculture. GPS-driven tractors and computer-directed seed-
sowing are now accepted practices. Even now sophisticated technologies are here including satellite data that tells us about
water conditions, soil chemistry, and seed productivity or specic sites. Farmers have become technologists, but they also
are business persons, trying to maintain viable and nancially successul enterprises on land that their athers, perhaps their
grandathers or even great-grandathers, had armed.
And armers above all understand and value the land upon which they arm. We as armers are st ill the best stewards
and conservationists o our arm.
Now we welcome in our midst a new generation o armers; some young, who aspire to assume the careers o their parents
and to continue operating a amily business and some are retired rom other occupations, trying their hand at a new
occupation. Some are people in the middle who have lived in rural communities or whose parents armed, but who until
recently had not seen arming as a practical, viable career and lie-style choice. We welcome them all and celebrate the emerg-
ing opportunities that are beore us and them.
For this new generation o armers, we the established olks must dedicate ourselves and prepare to pass a baton. Strategic
planning academic as it may sound is a tool that we use to take stock o where we are and through which we plant a
fag towards the uture direction in which we see a prosperous and productive uture.
The eorts o the Kentucky Ag Council Task Force on the Future o Agriculture have been dedicated to this task or the past
12 months. I salute the Task Force and commend to you all to take to heart the spir it and content o this document.
Sincerely,
Dan Flanagan
2012 KAC Chairman
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2013 to 2018 Strategic Plan 3
Priority Policy Actions to AdvanceKentucky Agriculture (Top 5 List)
Restore the historical level o revenue to the Kentucky Agricultural Development
Fund that will permit it to continue support or diversication o Kentucky arm
production and strengthen the economic vitality o rural communities.
Fully und and implement initiatives underway to upgrade the diagnostic acilities
at the Murray State Breathitt Veterinary Center, including ull construction unding
in the Commonwealths 2014 Budget.
Improve the competitiveness o Kentucky agriculture with other states and help to
increase net arm income through innovative legislation and tax law modications
and also create a regulatory environment that allows agricultural producers and
businesses to make long-term operational decisions and investments in land, labor
and equipment.
Continue to provide strong unding support or the Department o Agricultures
Kentucky Proud program; also increase state unding through KDA or agriculture-
ocused companion marketing eorts at regional, national and international events.
Adequately und the States Agricultural Experiment Stations and University Farms
to cover the costs o deerred maintenance on acilities and provide adequate unds
or new programs.
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4 Connecting: Strategies to Better Kentuckys Agricultural Economy and Rural Communities
Inspirations and Aspirations
Agriculture is our wisest pursuit, because it will in the end
contribute most to real wealth, good morals and happiness.
Letter rom Thomas Jeerson |to George Washington, 1787
I had rather be on my arm than be emperor o the world.
George Washington
The frst armer was the frst man. All historic nobil-
ity rests on the possession and use o land.
Ralph Waldo Emerson
Farming looks mighty easy when your plow is a pen-
cil and youre a thousand miles rom the cornfeld.
Dwight D. Eisenhower
Good armers, who take seriously their duties as stewards o
Creation and o their lands inheritors, contribute to the welare
o society in more ways than society usually acknowledges, or
even knows. These armers produce valuable goods, o course;
but they also conserve soil, they conserve water, they conserve
wildlie, they conserve open space, they conserve scenery.
Wendell Berry
Eating is an agricultural act.
Wendell Berry
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2013 to 2018 Strategic Plan 5
Contents
Letter rom the Chairman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Priority Policy Actions to Advance Kentucky Agriculture (Top 5 List) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Inspirations and Aspirations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Preace: Overview o Kentuckys Agricultural Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Perspectives on Farming in the Post-Tobacco Settlement Era:
The Importance o the Kentucky Agricultural Development Fund to Kentuckys Progress. . . . . . . . . . . . . . . . . . . . . . . . 8
Section One: Core Strategies and Recommended Actions to Drive Kentucky Agricultural Progress . . . . . . . . . . . . . . . . 11
Next Generation Farming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
New Market Identication & Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Regional Agricultural and Rural Community Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Consumer Outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Policy-Maker Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Section Two: Conclusions and Next Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
The Planning Process at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Task Force Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
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6 Connecting: Strategies to Better Kentuckys Agricultural Economy and Rural Communities
Preace: Overview oKentuckys Agricultural Economy
By Dr. Will Snell, Ag Economist, University o Kentucky
Kentucky agriculture has experienced
its share o extreme challenges over the
past decade. Major weather events such
as severe droughts, untimely reezes,
and record high temperatures, limited
labor supplies at relatively high costs,
heightened regulatory concerns, cuts
in arm programs, severe national and
global economic downturns / nancial
crises, along with slumping markets or
two o the states signature enterprises
tobacco and horses have all con-
ronted Kentucky agriculture during the
early period o the 21st century.
On top o all this was the 2004
tobacco buyout, which resulted in the
Commonwealth experiencing arguably
the most dramatic structural change
in its agricultural economy compared
to any other U.S. state. Despite all
these challenging events, Kentucky
agriculture as a whole has not only
survived but also has prospered over
this period, much dierent than the
outcome or other parts o the economy.
Investments, market opportunities,
and planning have set the stage or
Kentucky agriculture to be in a posi-
tion to take advantage o anticipated
growing demand conditions in the
coming years.
Background
Kentucky agriculture averaged $3.4 bil-
lion o sales during the 1990s. Despite
the loss o over one billion dollars o
annual sales rom tobacco and horses,
Kentucky arm cash receipts grew
steadily over the past decade and estab-
lished a record high o nearly $5 bil lion
in 2011. The boost in cash receipts,
coupled with ongoing tobacco buyout
payments enabled net arm income to
exceed $1.5 billion in 2011, 20% above
the previous ve year average.
Strong export markets in response to
avorable exchange rates, tight world
supplies, and increasing incomes in
developing nations, along with invest-
ments by the Kentucky Agricultural
Development Fund, a change in the
nations energy policy promoting
renewable uels, and the growing
demand or poultry, local oods, wines/
distilled spirits and agri-tourism have
all contributed to the growth and much
greater diversity in the Kentucky agri-
cultural economy.
Kentucky agriculture was poised
to grow again in 2012 until Mother
Nature disrupted these positive trends.
However, relatively strong catt le
prices, rebounding tobacco and equine
markets, crop insurance proceeds,and growth in local produce sales will
cushion the blow or many Kentucky
armers in 2012 to help partially
oset ext remely low crop yields, and
depressed dairy markets.
What opportunities
do the uture hold?
Despite current global economic chal-
lenges, the uture shows much promise
or Kentucky agricultural products in
the international arena. Rebounding
global economies, population/income
gains, implementation o regional
trade agreements, combined with
our commodity mix o grains and
livestock to meet the changing global
consumer desiring more protein in their
diets, should allow or opportunities
or growth in Kentucky agricultural
exports (both commodities and value-
added) in the coming years, even with
intense competition rom our global
competitors. Locally, look or increased
sales o Kentucky ruits, vegetables,
meats and other products to a changing
consumer base who is demanding more
locally produced items generating
strong returns to recent investments
in marketing inrastructure and
promotion.
Regionally, Kentucky possesses
transportation cost advantages in
delivering agricultural and ood
products to a large portion o the U.S.
population. And our climate certainly
bodes well relative to the water
challenges in the west. Kentuckys
abundant natural resources will enablethe Commonwealths orestry/wood
product industries to benet rom a
rebounding global economy. Plus, our
changing liestyles will provide ample
opportunities or expanded agri-tour-
ism activities or an urban population
base seeking entertainment, ood, and
beverages in rural areas.
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2013 to 2018 Strategic Plan 7
Consequently, despite growth in other
non-agricultural parts o our states
economy, a broadly dened agricultural
industry will likely continue to account
or more than 10 percent o jobs and
economic activity or Kentucky in the
years ahead. The question becomes
whether these emerging opportunities
can generate increased sales, and more
importantly, higher net arm income in
the oreseeable uture?
What will be our
greatest challenges?Kentucky agriculture has been or-
tunate to have access to 50% o the
Master Tobacco Sett lement unds over
the past decade to invest in diversiying
and expanding Kentuckys agricultural
economy. However the uture o these
unds remains uncertain given political
(i.e., state budget) and economic (i.e.,
declining cigarette sales) issues.
A more immediate and direct concernwill be lling the void o tobacco buy-
out payments ending in 2014 and likely
cuts in other government payments
(e.g. direct payments), collectively
accounting or around 20 percent o
our net arm income in recent years.
Consequently, Kentucky agriculture,
like U.S. agriculture will probably have
to depend more on the marketplace to
replace these lost dollars. Economic and
political challenges to our tobacco and
equine industries remain a legitimate
concern.
Geographically, arm leaders need to
continue to evaluate economic oppor-
tunities in eastern Kentucky whose
economies have not benetted rom the
overall expansion o Kentucky agricul-
ture in recent years. Labor availability,
costs, and regulations remain a serious
threat to labor intensive industries such
as tobacco, vegetables, equine and
dairy. Plus the uture direction o our
nations energy policy as it relates to
both grain and cellulosic ethanol could
create both concerns and opportunities
or Kentucky agriculture and our rural
economies.
Additional changes in environmental
regulations, animal welare standards,
land use policies, and ood saety
requirements may impact uture
production costs, but could createopportunities or those who can adopt
in a protable manner to meet the
demands o a discriminating consumer
and a more active and engaged society
over ood production.
On the supply side, consistency, avail-
ability, and uniormity o supply are
critical to meet the needs o major ood
manuacturers, both here and abroad.
In addition, a better-coordinated state-
wide export marketing program may be
needed to maximize our growth poten-
tial in the international marketplace.
An aging arm population raises issues
o creating incentives and educational
programs or young and beginning
armers to possess skills necessary to
take advantage o both traditional as
well as emerging markets. Educating
a growing non-arm sector, including
policymakers o the vital economic and
social/cultural role that agricultural
plays in our beloved rural communities
will become increasingly important.
Finally, adding more o-arm jobs
with decent wages/benets, improv-
ing educational levels, accessible/aordable health care, enhancing
entrepreneurship, and overall leader-
ship will be critical or the uture or
the Commonwealths arm amilies and
rural communities.
Top KentuckyCommoditiesby Dollar Value (2011)
Poultry $ 952,882,000
Horses $ 800,000,000
Corn $ 786,292,000
Cat tle & Calves $ 629,000,000
Soybeans $ 601,212,000
Tobacco $ 325,236,000
Dairy Products $ 232,200,000
Wheat $ 199,216,000
Hay $ 135,694,000
Hogs $ 118,977,000
SID
EBAR
S I D E B A R
Kentucky AgriculturalCouncils 2011 Bio-energy Symposium
The Kentucky Department
or Energy Development and
Independence advanced Kentuckys
bio-energy development by spon-soring the Kentucky Agricultural
Councils Bio-energy Symposium in
November 2011. The event ocused
on supply and demand risk mitiga-
tion o biomass eed stocks. Various
rms addressed their procurement
challenges, while potential produc-
ers learned about the developing
economic opportuni-ties or energy
crops. More than 185 stakehold-
ers attended the symposium and
each was provided a copy o the
Kentucky Division o Forestrys
newly released Recommendations
or the Harvesting o Woody
Biomass. The Symposium pre-
sentations are available on line
at: http://energy.ky.gov/biouels/
Pages/BioenergySymposium.aspx
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8 Connecting: Strategies to Better Kentuckys Agricultural Economy and Rural Communities
Perspectives on Farming in thePost-Tobacco Settlement Era: TheImportance o the Kentucky AgriculturalDevelopment Fund to Kentuckys Progress
Kentucky Agriculture still one o the
largest sectors o the states economy
in terms o nancial scale and employ-
ment continues to redene its uture
opportunities. It has embraced those
opportunities head-on through the
highly innovative public policies and a
sustained program o strategic invest-
ments made possible by the Kentucky
Agricultural Development Fund.
This updated Strategic Plan refects a
recommitment to visions and policies
that resulted in establishment o the
KADF. The Task Force urges Kentucky
leaders to stay the course o promot-
ing positive change in the states agri-
cultural landscape through the invest-
ments made possible by the KADF.
For Kentucky armers and agricultural
leaders, the word change is synony-
mous with the word tobacco. Once
the states number one cash crop and
the oundation or a highly regulated
industry, tobacco has lost its historical
position as the economic engine or
Kentucky agriculture. Kentuckys next
generation armers live in a world that
was reshaped by the Master Sett lement
Agreement and by the ederal Tobacco
Buyout legislation. (See sidebars.)
Kentucky always has maintained a
diverse agricultural economy more
so than many states due to our
varied geography and distinct regional
assets. This has allowed the states
gross agricultural receipts to rebound
rom the drop in tobacco sales, or
instance, through the strength o its
equine industry, the rapid expansion o
poultry production and its leadership
in bee cattle production east o the
Mississippi river.
However, the opportunity or individual
armers to rapidly shit to new orms
o cultivation or l ivestock production,
or to develop new markets to replace
the economic mainstay that tobacco
ormerly represented, are not equally
distributed across the state. A majority
o Kentucky arms, or example, are
small in size compared with national
averages, and located on terrain that
does not easily lend itsel to large-scale
crop production.
Thereore, while some portions o the
State have more quickly adapted and
made a transition to new, economically
viable crops and livestock production, a
majority o the States counties have lost
net ground in their economic base rom
agriculture. This burden has allen
disproportionately on the eastern part
o the state, and represents a serious
economic and economic development
challenge or rural communities,
Counties, and or State government.
The issue or Kentucky armers is
not just purely one o an intent and
willingness to diversiy their products,
but equally one o their ability to makethe needed transit ion unaided at
a time o especially dicult market
conditions in terms o rising uel,
labor, ertilizer, and equipment costs,
and in the ace o ever-more stringent
environmental, consumer and other
regulations.
The ability to move quickly and to
make investments in new equipment,
new technologies, new arming
practices, and new approaches to value-
added ood processing and marketing
approaches requires an entrepreneurial
spirit as well as nancial resources
that is new to many established,
traditional armers and arm amilies. It
also requires signicant investments in
education and training, and improved
delivery and coordination o technical
services, beyond the levels that have
been available to the armers and rural
youth in the past.
It is because o the unique nature o the
transition that agriculture in Kentucky
is seeking to achieve, that exceptional
ocus was placed by the Task Force on
the level o unding available to sustain
the Kentucky Agricultural Development
Fund and the programs and initiatives
the KADF makes possible. Indeed,
the KADF is the bedrock as well as
the catalyst or change and innova-
tion above and beyond the resources
that State government traditionally
has allocated to support agriculture
and economic development in rural
communities.
Thereore, the Task Force has rea-
rmed its strategic intent or the State
to:assume its historic obligation
to use General Fund dollars to
support basic agriculture and
rural development programs,
recognizing that Kentucky
Agricultural Development Fund
(KADF) dollars were intended
or strategic investments in new
and expanding agricultural
initiatives.
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2013 to 2018 Strategic Plan 9
Specic recommended actions that sup-
port and implement this overarching
intent are spelled out in the ollowing
pages o this strategic plan. A clear
aspect o this intent is that KADF dol-
lars should be used or projects that
directly benet agricultural producers
or the purpose o improving net arm
income.
Background on the Master
Settlement Agreement and
Kentucky House Bill 611
(Creation o the Kentucky
Agricultural Development Fund)
The historic legislation establishing the
Kentucky Agricultural Development
Fund (KADF), and its related policy-
making and administrative structures,
represents not only the largest commit-
ment to agricultural diversication ever
undertaken in the Commonwealth, but
also in the nation.
HB 611 was a visionary act o legisla-
tion and public policy, created in the
wake o the 1998 Master Settlement
Agreement between participating
tobacco manuacturers and the 46
settling states. It anticipated the
eventual resolution o the national
policy debate on tobacco, even though
the nal outcome was not assured atthe time. Through HB 611 Kentuckys
agricultural leaders, legislators, and
state government ocials united to lay
a oundation or the Commonwealth to
transition rom being an agricultural
economy dependent on tobacco produc-
tion, to an agricultural economy that
thrives on diversity.
Initially, Kentucky established a
Tobacco Sett lement Agreement Fund
into which unds received rom the
Master Settlement Agreement were
deposited. In turn, the State determined
that 50% o the Tobacco Settlement
Agreement Fund would be set aside or
a Rural Development Fund, also known
as the Agricultural Development
Fund or ADF.
National Tobacco Buyout Legislation
Work on a tobacco buyout began in 1997 during the unsuccessul attempt by
Congress to enact a legislative health cost recovery measure against the big
tobacco companies. The next eort to tie a buyout to the state Attorneys
General suit against tobacco companies also was unsuccessul. In June
2004, the U.S. House o Representatives passed corporate tax legislation (H.R.
4520) that included $9.6 billion in compensation to quota owners and growers,
and provided or an end to the ederal tobacco program. In July the U.S. Senate
passed its version o the corporate tax legislation, which also ended the current
tobacco program and included $11 billion in compensation. It also included
legislation that would allow FDA to regulate tobacco products.
The two versions o the corporate tax legislation then went to a joint House
and Senate conerence committee, which successully resolved the dierences
and released a report or H.R. 4520 that contained a tobacco buyout. The con-
erence report or H.R. 4520 passed the House on October 7 and the Senate on
October 11; the President signed the bill into law on October 22.
The buyout is unded or $10.1 billion. Funding o $9.6 billion is to be
paid to growers and quota holders over 10 years. The remaining $500 million
is or use in disposition o stocks held by the grower associations and the
Commodity Credit Corporation. Cigarette manuacturers and importers und
the buyout based on their share o the U.S. cigarette market. Since the 2004
crop year, there has been no ederal program regulating tobacco production.
However, the bill did not contain provisions or FDA regulation o cigarettes
sought by consumer and health groups.
Together, the Master Settlement Agreement and the Tobacco Buyout legisla-
tion represent closure on tobacco production as it historically operated. O
course, while individual Kentucky armers no longer are guaranteed a tobacco
allotment or price support or tobacco, production o tobacco continues to
thrive in the State as a market-driven industry rather than as a regulated com-
modity. The Master Settlement Agreement unding has provided signicant
resources or State policy-makers to address the dramatic shit in tobaccogrowing patterns across the state, while the Buyout legislation has provided
resources directly to armers, who no longer grow tobacco under protected
status.
S I D E B A R
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10 Connecting: Strategies to Better Kentuckys Agricultural Economy and Rural Communities
On April 26, 2000, the Kentucky
Agricultural Development Board(KADB) was established to administer
the ADF. The Board thus oversees
the distribution o that portion o the
monies rom the Master Settlement
Agreement that are dedicated to the
purpose o diversiying Kentuckys
agricultural economy. ADF investments
are split between an al location or
county-level projects (35%), and proj-
ects throughout the state (65%). One
hundred and eighteen o Kentuckys 120
counties receive a port ion o the 35%
county allocation. The specic unding
level o a county is dependent upon its
relative tobacco-production dependency
to other counties in the state.
The Boards members include:
Governor, Chairman Commissioner o the Kentucky
Department o Agriculture, Vice
Chairman
Secretary o the Cabinet or
Economic Development
Director o the Cooperative
Extension Service, (Dean o the
University o Kentucky College o
Agriculture)
President o Kentucky State
University
Eleven (11) members appointed
by the Governor serving staggered
our-year terms. Appointments are
subject to conrmation by the House
o Representatives and Senate.
The sta o the Governors Oce
o Agricultural Policy (GOAP) is
responsible or supporting the activities
o the Board and the ADF, including
all accounting, nancial and grant
transactions, research, and policy
recommendations.
Working through some 118 County
Councils established by the HB 611legislation, the Kentucky Agricultural
Development Board created a ormal
investment strategy called Cultivating
Rural Prosperity: Kentuckys Long-term
Plan or Agricultural Development. This
plan resulted rom over 15 sectional
meetings held across the state, in which
hundreds o armers and representa-
tives rom agricultural-related organiza-
tions and businesses participated.
Regional meetings were ollowed by
hearings conducted in Frankort, at
which diverse groups testied, includ-
ing groups outside o agriculture, such
as environmentalists. The Long-term
Plan is available on the website o the
Governors Oce o Agricultural Policy
at www.agpolicy.ky.gov and continues
to provide guidance to the activit ies o
the Oce and the KADB.
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2013 to 2018 Strategic Plan 11
Section One: Core Strategies andRecommended Actions to DriveKentucky Agricultural Progress
Introduction
The thrust o this plan is directed
toward two overarching goals: increas-
ing the net income o arm households
across the Commonwealth in the post-
Tobacco Settlement and post-Tobacco
Buyout era; and strengthening the
quality o lie in rural communities.
The Task Force views these two goals
as inextricably intertwined.
The plan seeks to create conditions that
will make arming attractive to the
next generation o armers a major
theme o input obtained at seven Public
Forums held across the state. Next
generation armers can be ound on,
and are embracing both smaller and
larger-scale arms operations and
nearly all arms in Kentucky remain
amily enterprises. Increasing net
on-arm income and allowing estab-
lished as well as rst time armers to
prosper will ensure sustainability or
land and or the resources on which
Kentucky armers depend. It provides
the essential incentive or young
armers to remain in agriculture, or to
seek careers in ag-related businesses
throughout rural Kentucky.
Implicit in this plan is the need to
continue and indeed to strengthen eorts by armers and by the organi-
zations that support Kentucky agricul-
ture, to diversiy the arm economy.
To accomplish this involves promoting
additional livestock production and a
broader array o crop arming that may
include horticulture, orestry and biou-
els, in addition to traditional ruits, veg-
etables and grains. It also must promote
other non-traditional orms o arming
such as aquaculture and development
o agri-tourism opportunities that
now are being developed in many parts
o the state.
Diversication o the arm economy
and strategies to increase arm
household incomes also must pro-
mote new technologies and arming
practices. Value-added techniques
or cultivation, ood processing and
marketing can help armers capture
a higher share o the consumer dol-
lar, and provide a higher return on
the armers investment o time and
money. Agribusinesses also are vitally
important to the economies o the rural
communities; they are a key source o
employment or individuals coming
rom the regions that they serve.
Finally, this plan makes clear that
education at all levels, including
continuing education or existing
armers must receive signicant
additional attention rom policy makersand administrators alike. Innovation,
and greater ocus and coordination o
services, are as important as investing
new nancial resources to the success
and eectiveness o the initiatives
recommended by the Task Force.
The Task Force recommendations are
grouped into seven topic areas:
Next Generation Farming
New Market Identication
and Development
Regional Agricultural &
Rural Community Development
Agricultural Education
Consumer Education & Outreach
Government Policies, Initiatives
and Programs
Policy-maker Education & Outreach
In ocusing on these topics, the Task
Force remained true to its overarching
vision to establish a consensus agenda
that will address ways to increase arm
amily incomes and strengthen rural
communities. This strategy does not
prescribe specic diversication strate-
gies or oer detailed actions or narrow
segments o agriculture and arming.
Rather it strives to recommend actions
to improve the welare o agriculture as
a whole. Kentuckys armers and agri-
cultural industry leaders are unied in
their commitment to improving ALL o
Kentucky agriculture.
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12 Connecting: Strategies to Better Kentuckys Agricultural Economy and Rural Communities
Next Generation Farming
There have beenpolicy goals by previous
Administrations and
Congresses to increase the
number o police ofcers
and the number o teach-
ers. Why not set a goal
in the arm bill to add at
least 100,000 new armers
in the next ew years?
Tom Vilsack,
U.S. Secretary o Agriculture
Issues & Strategy Statement
The Task Force recognized early in
the planning process that new aces
were at the table and in the room.
Established olks, a generation o
leaders who had worked on previous
agricultural strategic plans, saw this as
a sign o the vitality o Kentucky agri-
culture, and an opportunity to shape
the ocus o this plan.
Throughout the public orums across
the state, the question came up time
and again: Next Generation Farmers
Who are they? Where are they coming
rom?
For some, it may be a liestyle rather
than a purely economic choice. The
Task Force heard, Its what they
want to do. Young people want to
do something they love. But there is
growing recognition that arming is
attracting other groups such as retirees,
or part-timer armers. And added to
this there are opportunities to promote
agricultural career options in urban
areas as well as rural ones. A needwas identied to catalogue the diverse
career options that exist in agricul-
ture, beyond the production side.
Next generation arming includes
related agribusinesses, or example.
Farming is an unusual business
or a new entrant to get into, at a
minimum because o its signicant
capital requirements. Yet a arming
career needs to be seen as one that
can be protable and economically
viable no matter what its scale.
For people considering a arming
career whether they are the children
o armers who grew up on arms, or
people new to the proession the
key ingredients o the arming start-up
process need to be understood. As one
veteran armer and agricultural leader
noted, when armers make decisions
based on emotion, they are not always
good business decisions.
Estate planning or arm amilies in
transition presents a unique challenge
relative to other types o amily busi-
ness succession planning. Because land
ownership is involved with a dened
place and history, amily and emotional
issues requently come to the ore. And
as an owner-operated enterprise, some
armers may never really retire in the
classic sense. The timetable or transi-
tion thus becomes uncertain and hardto plan or. Some commodity groups
have active programs or their member-
ships to help address these needs, but
there appears to be no centralized local
network o resources ocused on this
need.
The Task Force recognizes a need or
mechanisms to connect retiring armers
with new armers (regardless o their
age and backgrounds) and to acilitate
transer not only o land but theexperiential knowledge o the nancial,
technical or marketing aspects o the
arming proession. While models or
inormation exchange, mentoring or
other orms o training exist, this is
an area needing additional research
and thoughtul consideration, to
determine the gaps and needs specic
to Kentucky.
GOAL
Make arming attractive and
accessible to the Next Generation
o both ull-time and part-time
aspirants, including those rom
diverse, non-traditional groups
including retirees, women,
minorities and urban dwellers.
Specifc actions
Encourage and acilitate intergen-
erational transer o land through
tax reorm measures and incentives
to retiring armers who sell land
to new armers, as well as or new
armers entering the business; seek
a balanced approach that benets
both sides. Design incentives that
encourage students in college
agricultural programs to return rom
college to enter arming.
Establish an inventory o career
opportunities in all aspects o
agriculture. Make this inormation
accessible to young persons andother prospective audiences that
might consider agricultural careers.
Ensure that market demand or
specic career tracks has been
validated.
Promote mentoring o new armers
via existing Agricultural commodity
groups, programs such as those at
Kentucky State University, or those
at other educational institution
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2013 to 2018 Strategic Plan 13
Draw on all communications tools
and orums, including both socialmedia and ace-to-ace support.
Develop new tools to promote
arm transition and that support
new armers entering the industry.
Establish a clearinghouse mecha-
nism to promote matchmaking
between retiring and new armers,
perhaps utilizing the nationally rec-
ognized land-link model program
developed by the Center or Rural
Aairs that had been adopted in
numerous states. Involve CPAs and
other proessional advisors who may
help acilitate matchmaking.
Build on existing programs such
as those oered by the Community
Farm Alliance, Kentucky Farm
Bureau, the Kentucky Community
& Technical College Systems Adult
Education Program and the states
universities that support and assist
young armers who have chosen
the proession. Ensure that new
armers know about, and participate
in, existing technical and nancial
assistance programs such as those
available through the USDA Farm
Service Agency, the Cooperative
Extension Service, Farm Bureau, the
banking community and various
commodity organizations.
Support the local grass roots eorts
o conservation districts by provid-
ing training and inormation to
District Sta. Encourage local Soiland Water Conservation Districts
to continue their long standing
partnership eort at the local level
by ocusing on the service needed
in their communities and by build-
ing sta capacity. The Natural
Resources Conservation Service
(NRCS) delivers conservation
through the local districts.
Partner with and support Kentucky
Conservation Delivery Streamlining Initiative CDSI
NRCS has initiated CDSI in order to implement a more eective, ecient and
sustainable business model or delivery o conservation assistance across the
nation.
Benefts to the Nations Farmers, Ranchers and Taxpayers
Improving how NRCS serves our customers will benet our land and producers
by:
Reducing the average number o trips clients will have to make to an NRCS
eld oce
On-line scheduling with Conservation Proessionals
Increased use o electronic signatures and email
Technical & Financial Assistance Inormation easily available on-line
Instant messaging and audio-video telecommunications
Increased use o Social media (Twitter, Facebook, etc)
Enabling NRCS and clients to nalize conservation planning and decision
making while in the eld
Use o Customer Desktop sotware (cloud-based conservation planning
sotware)
Use o Client Gateway (24/7 customer access to records)
Increased use o Smart-Phone & mobile device technology
On-Demand how-to videos, Conservation Apps
Increased use o LiDAR (Light Detection & Ranging) and other remote sens-
ing tools
Accelerating the timeline between applying or a program and having a
signed contract
Accelerating the time between applying a practice and receiving payment
or that practice
Oering clients 24/7/365 service or many tasks
Through reduced document handling, reduced decision and approval times,
improved access to best available inormation and technology, and stang
strategies that are aligned with streamlined process, internal and external
customers will benet rom a business model that enables eld techni-
cal sta to spend as much as 75% o their time in the eld with clients,
compared to the 20-40% now oten reported. For everyone, CDSI will result
in science-based conservation that is applied in the most ecient way to
improve our nations air, soil, water, wildlie, and energy use.
Five CDSI Initiative Areas
Formally dene, streamline, and integrate conservation assistance pro-cesses across Agency business lines.
Deploy inormation technology that more eciently and eectively supports
conservation assistance
To provide planners & technical stas with science, data, and tools which
are ocused to support conservation planning and application
Provide programs through alternate stang & delivery approaches designed
around more ecient, client-ocused business processes
Implement new processes or interacting with clients that are natural
resource ocused, enhance service, and increase eciency
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14 Connecting: Strategies to Better Kentuckys Agricultural Economy and Rural Communities
Conservation Groups that have goals
to increase land conservation und-ing or working armland. Successul
armland conservation programs
make armland more aordable or
young armers and thereore reduce
the large capital investment barrier
to arming.
Publicize success stories o
agricultural entrepreneurs who
started rom scratch and did it
on their own, so that prospective
young armers and new entrants to
the industry can learn rom these
examples. Coordinate these eorts
with educational programs in High
Schools.
GOAL
Enhance new armer educational
programming, building on
programs operated by all
agricultural organizations and
universities.
Specifc actions
Focus recruitment o new armers to
existing Ag Leadership programs
Increase awareness o the UK
Cooperative Extension Services
Kentucky Farm START program,
and provide sucient unding
to support its reach to more
participants.
Build on and expand KSUs new
degree program in agriculture that is
experiencing a signicant diversityo students in terms o age as well
as other demographics and career
interests.
Promote voluntary conservation
using USDA conservation pro-
grams via Farm Bill conservation
programs.
Promote soil health strategies that
encompass a conservation system
approach to long-term agricultural
& environmental sustainability.
(Promoting healthy soil will result in
healthy crops, healthy ood, healthy
economic returns, etc.)
Expand and diversiy programs or
new armers to learn the business
(e.g. apprenticeships with experi-
enced armers), to help them learn
the management skills needed or
success
Increase opportunities or bi-lingual
and cultural awareness education
o new armers so as to increasetheir competitiveness in a changing
marketplace
GOAL
Enhance risk management and
fnancing options in order to
reduce barriers to entry or new
Kentucky armers, as well as to
improve the fnancial viability o
existing arms.
Specifc actions
KAC and its member organizations
should be pro-active in educating
state and ederal policy-makers on
the need or airness, and or equal
access by all Kentucky Farmers to
crop insurance. Additional com-
modities not currently covered (e.g.
livestock, ruits and vegetables, et
al.) need some orm o risk manage-
ment insurance.
Provide educational materials / pro-essional development programs or
lenders on agricultural trends and
practices so that they become more
knowledgeable about agricultural
lending. This can be done in coordi-
nation with universities and others
who do lender training.
Provide tax incentives or armers
who sell land to new producers.
Kentucky Conservation PartnershipsField Ofce o the Future
The Field Oce o the Future ocuses on the overarching concept that
every county, Soil and Water Conservation District, and land user o the
Commonwealth seeking voluntary conservation technical assistance will
receive that assistance. Our goal is to provide the highest quality product and
service possible. The key is increased education o our clients: our servicesstart on the arm or land unit, not at the oce. Customers are encouraged to
make appointments so that we can gather necessary inormation to start the
resource inventory and analysis, and be prepared to provide the most eect ive
and ecient service.
The areas o ocus are:
Stang and makeup o the eld oce, including Farm Bill Implementation
Teams working in Kentucky
Oce locations (tele-work, alternative work sites, hoteling}
Technology (CDSI, computing, LIDAR}
The role o the Partnership (ederal, state, local}
Succession Plan; dening a uture path that will be fexible based on
unding and stang
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New MarketIdentifcation & Development
As a young armer, you
have to think about it as
a business, not just as a
hobby or reewheeling it.
Rusty Rumley,
National Agricultural Law Center,
remarks to Kentucky Agricultural
Councils 2012 Ag Summit
Issues & Strategy Statement
The Task Force saw clearly rom the
beginning o the planning process the
key role that new market identication
and development would play in the
strategy, as a companion emphasis to
the ocus on Next Generation Farming.
The appreciation extended not only
to new crops and markets but also to
value-added opportunit ies or ood
processing.
The Task Force viewed the opportuni-
ties in terms o the ollowing segments:
New crops / commodities or arm-
ers to produce
New markets (buyers) or Kentucky
output (local, regional, national or
international)
New market segmentation, dieren-
tiation (e.g. value-added production)
Kentuckys highly diverse geography
and topography divide it into a number
o distinct regions, and these dier-
ences are keyed also to a wide range o
identied opportunities, including the
ollowing:
Bio-mass, bio-energy crops & bio-based products
Wood products
(ranging rom bio-mass to urniture)
Equine
Goats & Sheep
Specialty dairy (including sheep,
goats, cheese processing)
Cattle nishing, processing
Aquaculture
Honey & Sorghum
Organics
Vegetables
Peppers (Banana, hot peppers)
Mushrooms
Fruit crops
Grapes (and wine)
Kentucky-branded Products
Paw-paws
Country ham
Bourbon
Agri-tourism
Specialty / niche products (e.g.
Chia)
Food banks
Farmers trying to develop or tap new
markets ace challenges o scale, criti-
cal mass, logistics, regulatory issues
all the pieces have to be there or theseeorts to succeed or else the identied
market opportunity doesnt go any-
where. In the words o one part icipant
in the Public Forums: Its not as easy
as you think. New markets, e.g. or
vegetables, can get fooded this
poses a challenge or new producers.
And regulations can pose barriers or
public and non-prot institutions seek-
ing to buy direct ly rom producers.
The emphasis on promoting buy
local and Farmers Markets is a good
strategy or producers who are not
yet ready to market on a larger-scale
regional, national, or international
basis. Kentucky arms are more diversi-
ed than people realize. Although
not as diversied as in the past (e.g.
1950s or 60s), most Kentucky armers
are involved with several products
and do not rely on pure mono-culture:
typically livestock raising is combined
with cultivation o multiple crops. The
business model depends on cash fow
rom one product, helping pay costs
to start another on seasonal rotations.
Thereore, there is openness to innova-
Support or Agricultural Entrepreneurship KCARD
The Kentucky Center or Agriculture and Rural Development (KCARD) is a
501 (c)-3 non-prot organization established to acil itate agricultural and rural
business development in Kentucky. KCARD is supported through grants romthe USDA Rural Cooperative Development Grant program and the Kentucky
Agricultural Development Fund. KCARD provides hands-on technical assistance
to new and existing agriculture and rural businesses and by providing relevant
educational opportunities addressing agribusiness challenges and issues.
The organization acil itates new economic opportunities or Kentuckys
agricultural and rural businesses through business development and assistance
with the expansion and stabilization o existing rural businesses. Available
resources are limited and sta are not able to meet the demand o businesses
seeking assistance.
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16 Connecting: Strategies to Better Kentuckys Agricultural Economy and Rural Communities
tion and a need by many armers to
identiy specialty items that ll a niche
within their calendar and promote
maximum utilization o all their land
and equipment resources.
Access to technical assistance and
market inormation or producers was
identied as a signicant barrier to
entry or many armers who are seek-
ing to diversiy rom their reliance on
traditional livestock and crops. Lots o
inormation and educational resources
exist among various existing organiza-
tions but accessing it poses challenges
or individual producers. Task Force
members asked how can we embrace
technology to push more inormation
out about these opportunities? Existing
services themselves are good, butcapacity issues constrain the level o
service that can be provided, and pro-
ducers still have challenges knowing
where to turn or inormation.
GOAL
Increase on-arm incomes and
strengthen economic vitality o
rural areas through continuous
identifcation and development o
new market opportunities.
Specifc actions
Encourage and support research
and development into new market
opportunities that oster expanded
production and increased sales
though:
Specic markets & products
Value Chains
International exports
Domestic sales to buyers outside
o Kentucky
Increase sales o Kentucky
products to Kentucky buyers,
Consumers / Institutions
Best management and marketing
practices
Provide / disseminate inormationon existing research about new
market production and marketing
opportunities, and about existing
available resources to assist produc-
ers, by establishing a clearinghouse
mechanism that is easy to use and
accessible to all Kentucky armers
and agribusinesses.
Build and expand on the model
programs and services oered by
KCARD and other groups, to estab-
lish an Ag Partnership Business
Network that can:
Increase producers knowledge
o diversication opportunities
through classes, networking,
technical assistance, etc.
Improve understanding by
producers o wholesale & retailbuyers expectations
Provide market-ready training
through programs, such as those
at the Kentucky Farm Bureau.
Increase opportunities or
producers and agribusinesses to
develop business skills
Provide technical assistance
to producers about regulatory
Technical Assistance or Value-added Processing: The FoodSystems Innovation Center at the University o Kentucky
The Food Systems Innovation Center (FSIC) was established with a grant rom
the Kentucky Ag Development Fund in 2009 at the University o Kentucky
College o Agriculture, to assist producers and businesses by providing techni-
cal services to develop value-added products. FSIC serves Kentuckys armer
entrepreneurs and ood manuacturers grow their operational capabilities andaddress their product development, marketing, quality assurance and training
needs.
To date FSIC has served over 400 clients, carrying out over 2,000 analytical
procedures. Critical services include: process review, shel lie testing, nutri-
tional labeling, market research activities, easibility assessments and ocus
groups.
FSICs strategic plan includes providing technical support or startup busi-
nesses that can grow to require larger scale manuacturing capabilities that
deliver higher returns on investments through agricultural crop utilization and
job creation. To deliver on this eort FSIC needs sustained investments to net-
work existing acilities through strategic capacity building, cost share opportu-
nities or high potential businesses, expand access to training and provide start
up support to expand business diversication and entrepreneurship.
Opportunities or IndustrialHemp May PromoteContinued Diversifcation
The Kentucky Department o
Agriculture, led by Commissioner
James Comer, is supportive o the
eort to legalize industrial hemp inKentucky, which would create new
opportunities or armers and jobs
or Kentuckians. I there is a change
in ederal law, Kentucky could be
positioned to take advantage o this
development.
Benefts to Farmers
Kentucky could capture a sig-
nicant share o the industrial
hemp industry.
Hemp meets the needs o
Kentuckys horse industry by
providing aordable animal
bedding.
Kentuckys long growing sea-
sons and appropriate soils make
industrial hemp protable.
I Kentucky becomes the rst
state to legalize industrial
hemp, it will have a long-term
advantage over other states in
establishing the industrial hemp
industry.
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2013 to 2018 Strategic Plan 17
inormation, in order to reduce
the nancial and time cost barri-
ers to entering new markets.
Provide education about collab-
orative models or marketing and
distribution.
Continue and expand support or
diversication through value-addedproduction.
Support continued development
o existing programs such as the
University o Kentuckys Food
Systems Innovation Center, and
establish new regional inra-
structure and capacity to support
value-added production through-
out the state e.g. processing
acilities and/or commercial
kitchens on a regional or mobile
basis that ll gaps in current
service delivery capabilities.
Promote new international trade
opportunities or Kentucky products
or:
All commodities and product
areas
All value-added items
Strengthen and support agricultural
Research and Development assets
throughout the state as the platorm
or developing new agricultural
opportunities and value-added
products, as well as more productive
and protable arming.
Promote and coordinate invest-
ments in agricultural research at
the Commonwealths universities
that lead to the development
o advanced agricultural tech-
nologies and processes with the
potential to benet Kentucky
producers.
Establish partnerships with theStates various public and private
economic development entit ies
to promote commercialization o
agriculture-based technologies
discovered at Kentucky universi-
ties, to tap their signicant
market potential and economic
Return on Investment.
Work with the USDA Agricultural
Research Service within the state
to expand the range o research
activities being undertaken and
to capitalize on this ederal asset.
Identiy and promote access to
regional and national venture
capital and investment capital
that is specialized in commercial-
izing agricultural research and
development.
Engage Kentuckys private
sector agricultural companies
and establish partnerships with
national agricultural companies
to strengthen Kentuckys prole
as a location or agricultural
research, including eld research.
Accessing New Markets ExportOpportunities or Kentucky
Kentucky agriculture is very dependent on international markets and this
importance is growing. Historically, Kentucky has ranked in the middle o all
U.S. states in terms o export sales. But under a new USDA methodology or
measuring export value, Kentucky is the th most trade-dependent state in the
United States. According to the revised methodology, Kentucky exported nearly$2 billion o agricultural commodities and related products in 2010, represent-
ing 45% o total Ag cash receipts and approximately 10% o total Kentucky
exports.
Historically, horses and tobacco have been Kentuckys top two Ag exporting
enterprises. But strong export demand or bee, poultry, pork, and grains have
contributed to the higher prices and overall protability o these commodities
in recent years and the overall growth in the Kentucky agricultural economy.
Kentucky agricultural exports ollow U.S. agricultural export trends that
achieved a record export value or 2011 o nearly $140 billion.
With 95% o the worlds population and over 75% o the worlds purchasing
power residing outside o the United States, the issue becomes whether Kentucky
be in a position to take advantage o these increasing global opportunities.
Translating Agricultural Research into NewBusiness Opportunities: Ag Innovation Showcaseat the Danorth Plant Science Center
The 4th annual Showcase drew Ag innovators rom 11 countries to St. Louis
and took place against the backdrop o serious concerns threatening agricul-
ture. The event acilitates dialog and deal-fow between Ag industry leaders,
emerging innovators and investors in ag-bio, renewable energy, sustainable
materials, ood production, animal health and arming technologies.
Widespread drought, population explosion, ood scarcity and exotic variants
o pests, among others, were topics o discussion and consideration. Attendees
learned about new approaches to precision agriculture, and technologies to
help increase yields, to create disease-resistant crops, to lay new oundations
or research in nutrition and to identiy new plants and utilize existing ones
as promising sources o bio-uels. A major theme was the rise o inormation
technology in agriculture and allied elds, and the considerable advances in
monitoring arms to precisely regulate inputs, to manage herds, to identiy and
control disease and to deal with the reams o data which, in turn, contribute to
greater and aster analysis and decisions.
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18 Connecting: Strategies to Better Kentuckys Agricultural Economy and Rural Communities
Regional Agricultural andRural Community Development
Every arm is unique
there are no cookie-
cutter arms in Kentucky
that I know o.
Mary Courtney, Courtney Farms,
speaking to KACs 2012 Ag Summit
Issues & Strategy Statement
Five years ago the Task Force on the
Future o Agriculture and the Kentucky
Agricultural Development Fund started
down this road toward a regional
approach to agricultural and rural com-
munity development. In the intervening
period, we have had some successes butthe Task Force determined that these
issues and their related opportunities
deserve renewed emphasis.
Because o Kentuckys unique geog-
raphy and topography, innovative
agricultural development projects
aimed at diversiying agricultural pro-
duction and creating new opportunities
or value-added agriculture need to
go beyond county borders to achieve
critical mass and economic viability. I
such projects are not done on a regional
basis, their chances or success are
extremely l imited. However, given
Kentuckys 120 counties and our history
and culture o local rivalries, we must
work to change attitudes in support oregional strategies.
Value-added agribusiness is an impor-
tant economic engine in rural commu-
nities that should be supported. Some
are growing and helping their local
economies. However, whereas much o
this plan ocuses on local and oppor-
tunities or smaller scale aspects o
agriculture (e.g. armers markets), ood
processors already in the state need
signicant levels o inputs that must
come rom a wider geography.
It is imperative that leadership within
every region o Kentucky assess its
resources and identiy ways to urther
engage the agricultural community in
creating investment, employment, and
prosperity or their communities. Our
states woodlands, orages, crops, and
even idled acres make every region
o the state a candidate or greater
involvement in the production o bio-
energy. When our land base is coupled
with our transportation and energy
inrastructure, dynamic academic and
research community, productive arm-
ers, strategic geographic location, and
other assets, our state can emerge as
a national leader in renewable energy
production.
Pressures rom urban development on
agricultural land is a signicant prob-lem or the States agricultural colleges
and their respective Ag research arms.
All o these operations could use addi-
tional acreage but that would require
them to relocate urther rom their
main campuses, which is a challenge
or aculty and students. Ag School
arms are good neighbors and set an
example o how arms and housing can
co-exist.
Agricultural Experiment Stations Serve Kentucky Regions
University research arms have played a critical role in agricultural research
and development or generations. Each o the states regional universities that
have an agricultural ocus own and maintain these arms as a key asset, and a
meeting ground between the activities o aculty, students, and their communi-
ties at large.
As a land-grant university, the University o Kentucky has been contributing
to agricultural productivity or over 140 years. Modern agricultural research
also involves new discoveries in diverse subjects that include gene science,
ood saety, and rural communities. In addition to its main campus act ivities,
U o K serves several regions o the state through key aci lities and operations,
including:
The Robinson Center or Appalachian Resource Sustainability unctions as
the center or agricultural and orestry activities in eastern KY. It includes
the nearly 15,000-acre Robinson Forest and the Wood Utilization Center. The Princeton Research and Education Center is the center or agricultural
activities in western Kentucky, including research, diagnostic testing ser-
vices, and educational programming.
Additional research acilit ies are located in central Kentucky: The 1500 acre
Little Research Center in Woodord County is currently the home to bee,
swine, and sheep research. Coldstream Farm houses dairy and poultry
research units. The Equine Research Campus is located at Maine Chance
Farm. Additional research activities are conducted at Spindletop Farm and
Eden Shale Farm.
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During the past two years, the
Kentucky Agricultural DevelopmentBoard (KADB), sta o the Governors
Oce o Agricultural Policy (GOAP)
and many others in agriculture
responded to Governor Beshears
challenge to take a resh look at the
Kentucky Agricultural Development
Fund (KADF) or opportunities that will
lead to greater protability or our arm-
ers. The Governor urged agricultural
leaders to identiy opportunities that
create or expand markets or armers;
to build on core assets o the various
geographical regions o the state; and to
oster agricultural entrepreneurship and
agribusiness development.
Through a series o regional KADF
Forums, the board and sta solicited
input rom stakeholders in nding
ways to address the challenge. Further,
the KADB reviewed Kentuckys
under-utilized assets, opportunities or
county and regional collaboration, and
existing successul ventures. This work
ultimately led to setting ve priorities
to guide programs and unding or 2012
as ollows:
1) capital access or economic
development;
2) promotion o the KADF and
agriculture;
3) value-added processing;
4) livestock marketing;
5) on-arm investments.
In the year since establishing these
priorities, investments have been tar-
geted at these priorities areas. However,
the impact o the projects unded will
not be determined or some time. The
KADF will continue to assess its prior-
ity areas while maintaining a ocus on
the guiding principles or investment
and eedback rom stakeholders.
The Task Force and KAC have
monitored these eorts by the KADF to
promote a regional approach to develop-
ment, and continue to strongly support
goals that address this end.
GOAL
Encourage region-specifc
agricultural development projects
and initiatives through unding
rom the Agricultural Development
Board.
Specifc actions
County Agricultural Development
Councils will, in consultation withother regional entities (Extension
Districts, Area Development
Districts, Economic Development
Councils, Innovation and
Commercialization Centers etc.)
consider and develop projects or
initiatives or potential unding
through the Kentucky Agricultural
Development Fund (KADF).
The KADF will strengthen and
ormalize its eorts to encourage
County Councils to pool resources in
unding regional projects (process-
ing acilities, multi county veteri-
nary services, regional stockyards
and others).
GOAL
Promote agriculturally related
Community & Regional-based
planning & development; assist
rural communities in addressing
challenges and opportunities
associated with expansion o
urban and suburban localities intorural areas.
Specifc action
Urge Kentucky policy makers to con-
sider utilizing tax credits as a means
o promoting armland preservation,
in order to address the loss o pro-
ductive land available or Kentucky
armers due to various orms o
West Kentucky Ag Bioworks initiative
The West Kentucky AgBioWorks Initiative was ormed at Murray State
Universitys Regional Business Innovation Center. The program is a joint
venture by West Kentucky Center or Emerging Technology, MSUs Regional
Business Innovation Center, the MSU Hutson School o Agriculture, College
o Science Engineering and Technology, College o Business, the Regional
Stewardship and Outreach Oce and Memphis AgBioWorks Foundation andBioDimensions, Inc.
The initiative is designed to implement the results o a ve-state, 98-county
study conducted by the Battelle Technology Partnership Practice and led by
the Memphis Bioworks Foundation. The study surveyed entities in western
Kentucky and concluded that there is signicant opportunity and need to
develop biomass businesses, ensure that armers and oresters have prot-
able opportunities and commercialize alternative sources o energy such as
oilseeds, sugar crops, and other biomass crops as well as trees.
West Kentucky AgBioWorks ocuses on positioning western Kentucky as a
leader in the uture bio-economy where the basic building blocks or industry
and the raw materials or energy derived rom renewable crop and eedstock
assets will create new jobs and help to improve the quality o lie in the region.
The bio-economy is an emerging global sector that involves using renewable
agricultural and orestry materials to replace petroleum in the development o
bio-based products, while increasing the availability o healthy-local ood. The
new industry is considered one o the astest growing economic sectors in the
world and is projected to be a $125 billion global market.
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20 Connecting: Strategies to Better Kentuckys Agricultural Economy and Rural Communities
development (including residential,
industrial, recreational land use,as well as Federal programs which
may remove up to 25% o open
cropland).
GOAL
Adequately und the States Agricultural
Experiment Stations and University
Farms to cover the costs o deerred
maintenance on acilities and provide
adequate unds or new programs.
Specifc action
Support and enhance the role o all
university Research Farms in each
region o the state, building on the
opportunity they present as catalysts
and hubs or regional strategies;
assist them in addressing nancial,
land use and other challenges they
ace in their respective regions.
GOAL
Engage the Kentucky Economic
Development Cabinet as a ull
partner in planning or and
promoting agriculturally-related
economic and community
development activities in rural
areas o the Commonwealth.
Specifc actions
Initiate a dialogue with the
Kentucky Economic Development
Cabinet to discuss agricultural
business trends and entrepreneur-
ship issues, and identiy and share
ideas regarding opportunities or
economic development in rural
areas within the current structure o
agriculture.
In addition to job creation, encour-
age the Economic Development
Cabinet to consider revenue creation
as a criterion or providing economic
incentives to producers and proces-
sors o agricultural products.
Community and Economic Development
Support or Rural Communities
The Community and Economic Development Init iative o Kentucky (CEDIK)
was ormed in 2010 by the University o Kentucky College o Agriculture. It
is a consolidation and strengthening o the ormer UK Cooperative Extension
Community and Economic Development program. As such, it helps Kentuckys
communities take on their most serious needs.
The initiative seeks to empower individuals by engaging community members,
incorporating the interests and cultures o the community in the development
process and enhancing the leadership capabilities o community members,
leaders and groups. CEDIK oers technical assistance in terms o aci litation,
leadership development, data analysis, entrepreneurship training, strategic
planning, evaluation methods and programs and expertise to help strengthen
your community.
Oten the door to a community is through its county Cooperative Extension
oce. Members o the initiative work with county extension agents in am-
ily and consumer sciences, 4-H youth development, agriculture and natural
resources and ne arts, in addition to elected ocials, non-prot organiza-
tions, and community groups, to integrate community and economic develop-
ment into their programs.
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2013 to 2018 Strategic Plan 21
Education
We see ourselves, frst andoremost, as agricultural
ambassadors Our
branding as Kentucky
Proud makes us who we
are. We have so much
support rom our com-
munity that it is crazy to
see how ar weve come.
Carl Chaney, Chaneys Dairy Farm
Issues & Strategy Statement
Youth Education
As Kentuckys public schools strive to
prepare the next generation o students
or work and to become ully inormed
and participating citizens in an ever
more complex society, the issue o
education about agriculture as well
as education in agriculture deserves
a resh look by the states educational
policymakers and agricultural leaders.
The Task Force believes that Kentucky
must provide all students in primary
and secondary school systems with the
opportunity to:
learn where the ood they eat comes
rom; actively engage in learning about
agriculture and natural resources;
be presented educationally-based
acts about controversial agricul-
tural issues; and
appreciate the important role that
agriculture plays in our economy
and our society.
It also is vitally important to the uture
o Kentucky agriculture that our youth
be exposed to the expanding number odiverse career opportunities available
within the agricultural industry.
The need to start Ag Education and
Ag Literacy early at elementary
and middle schools cannot be
overemphasized. Enrichment programs
delivered by outside organizations can
and do provide hands-on experiences
with agriculture, like visiting working
arms and growing gardens. There is
evident need or expanding the reach
o Ag Literacy education at the middle
school level versus providing just
career inormation.
The opportunity exists to reach young
people with inormation about arming
that can lead to an appreciation o
potential careers not only in arming
but also in a wide range o Ag careers
o the arm. However, more can be
done in cataloguing and validating
demand or the wide range o career
track opportunities that exist.
Several examples o successul
agricultural education programs exist
currently in our K-12 school systems,
including secondary Agricultural
Educational / FFA programs, the
Kentucky Department o Agricultures
and Kentucky Farm Bureaus Ag in
the Classroom programs, and 4-H.
However, Agricultural Education pro-grams are not available in every school
system. The metropolitan areas o
Louisville, and Covington, along with
several mountain counties and most
independent school districts have little
to no access to Agricultural Education.
In addition, ormal Agricultural
Education programs are noticeably
absent in most middle schools,
although a variety o commodity
groups provide resources or agricul-tural education outside the classroom
ater hours, on weekends and in the
summer.
A variety o misconceptions persist
about the content o agricultural
programs, the academic skills o
agricultural students, and career
opportunities within agriculture. As
uture generations become even urther
removed rom their connections with
arming, the challenge o maintaining
and expanding Agricultural Education
programs or our youth will continue
to escalate amidst tightening budgets,
unless action is taken immediately to
address this issue.
For these reasons, the Task Force
strongly believes that Agricultural
Education should be viewed as vitally
important to the ultimate goal o
providing every child in the Kentucky
school system with an enhanced
exposure to the role o agriculture in
our society, and to its increasing career
opportunities. To that end, the ocus
o the 2009 Senate Bill 1 has led to a
new accountability system through its
initiative, Unbridled Learning: College
and Career Readiness or All.
Issues & Strategy Statement
Adult and Continuing EducationAccess to inormation and the advance-
ments in technology are impacting
agriculture at unbelievable rates. While
producers are inundated with unprec-
edented amounts o data and sophis-
tication, understanding the relevance
and the credibility o these resources
is becoming increasingly challenging.
Agriculture is becoming more complex
and competitive on a daily basis.
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22 Connecting: Strategies to Better Kentuckys Agricultural Economy and Rural Communities
While these statements are true or
all armers, they resonate all the more
loudly or beginning armers, a key
ocus o this strategic plan.
The uture success o Kentucky agricul-
ture thereore depends both on increas-
ing the number o graduates rompost-secondary institutions in a diverse
set o agricultural-related elds, and on
expanding access to continuing educa-
tion opportunities or armers and other
agricultural proessionals. Education
proessionals at all levels o the delivery
system must evaluate the most ecient
and eective methods to help Kentucky
armers retain and improve their
competiveness in an increasingly global
marketplace.
While Kentucky armers currently are
beneting rom enhanced markets
or many traditional products, the
agricultural sector is being increasingly
challenged by global competition;
the decline o government support
programs; issues o labor availability
and cost; the rising cost o energy
and inputs such as eed and ertilizer;
tighter regulation (environmental, ani-
mal care, biosaety); as well as by the
demands o ever more discriminating
buyers and consumers.
To meet these and other challenges,
Kentucky armers must constantly
reeducate and inorm themselves. For
example, they must learn to position
themselves to take advantage o emerg-
ing opportunities such as grain-based
uels, cellulosic ethanol, crop-produced
pharmaceuticals and biochemicals,ag-related tourism and recreation, and
organic and other value-added ood
products. In the post-Tobacco Buyout
era, the process o diversication is
only begun, not completed. Not only
must armers evolve their crops and pro-
duction methods: to be successul, they
must also become more entrepreneurial
in their approach, adopting modern
business practices and new technologies.
Consequently, the role o educational
and research organizations in providing
access to inormation about improved
production, marketing and quality-
enhancing practices and technologies
is increasingly important. Farmers also
need timely and convenient access
to inormation about government
programs that improve net arm income
or traditional enterprises, as well as to
government sources o technical exper-
tise and education on emerging market
opportunities. Producers must learn
how to embrace the best opportunities
available through advanced research
and development taking place in our
higher educational establishments as
well as industry, while also being sensi-
tive to an international market ocused
on sustainability.
The Task Force recognizes that estab-lishing new and more eective Ag
educational programs will require addi-
tional resources not only nancial,
but also highly committed volunteer
leadership.
GOAL
Promote, advocate or, and expand
the number o schools oering
Agricultural Education programs
by linking the contribution
o Agricultural Education to
Unbridled Learning College &
Career Readiness For All, Kentuckys
new accountability model.
Specifc actions
Start new Ag Ed programs in com-
munities without them
Enhance existing Ag Ed acilities to
improve educational outcomes
Magnet / Academy models (urban
/ rural)
Update / upgrade the Ag Ed cur-
riculum, including by incorporating
and expanding the use o technology
(distance learning; sel-educational
modules)
Provide tuition support to encour-
age proessional development or
teachers through the CASE program
(Curriculum or Agricultural Science
Education)
Encourage Ag Ed teachers to tie
their educational content to the corecompetency content.
Work with outside groups to supple-
ment educational opportunities and
address the gap between Middle and
High School educational programs.
GOAL
Promote education in agriculture
across all age and generational
groups, including youth-oriented
Locust Trace A Magnet High School Program
Locust Trace AgriScience Farm is the newest career and technical high school
in Lexington, Kentucky with energy and environment being key actors in the
acility design and agriculture being the educational ocus. It eatures spacious
classrooms with adjoining labs, 6.5 acres or gardening, a state-o-the-art
greenhouse with an aquaculture area or raising native sh, a soaring audito-
rium with a garage door or bringing in livestock and machinery, an expansive
equine barn and arena and an on-site veterinary clinic.Students study in one o ve programs: Intro to Agriculture, Environmental
and Wildlie Science, Agriculture Power Mechanics, Equine and Vet Science,
and Small and Large Animal Science. The school is designed to be net-zero in
energy through the use o photovoltaic solar panels and net-zero in waste dis-
posal through the utilization o constructed wetlands. Rainwater is collected
rom the classroom building and the equine barn/arena to be utilized or crop
irrigation and livestock watering. An on-site well has been accessed to back up
the rainwater collection system in case o a drought. Sustainable agriculture is
a ocus in all programs.
SID
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2013 to 2018 Strategic Plan 23
agricultural education and
eorts to increase participation
o non-arm amilies.
Specifc actions
Convene a summit o all organiza-
tions involved in the delivery o
Agricultural Education programsand services in order to centralize
inormation about existing programs
and capabilities, and to identiy
potential gaps in service delivery
and areas o need.
Develop a Clearinghouse Model
(Year 1) or coordinating the
delivery o educational programs
and services among all commodity
groups and agricultural agencies,
including:
Youth activit ies
4H, FFA, Ag in the Classroom,
school and community
gardens, programs operated
by Kentucky Farm Bureau
Young Producers Council,
Cattlemens Association,
Dairy organizations, Kentucky
Department o Ag outreach
programs, et al.
Secondary Level Ag Education
4H, FFA, IFAL Classroom
Instruction, Supervised Ag
Experience Programs
Post-secondary Ag Programs
Certicate programs, advanced
degrees, KCTCS
Adult / community education
KCTCS,