FRANKFORT, Ky. (Sept. 11, 2020)—The Kentucky Agricultural Finance Corp. (KAFC) today approved $892,000 in five agricultural loans for projects in the commonwealth at its board meeting.
“During the COVID-19 crisis, our agriculture industry has remained resilient,” said Gov. Andy Beshear. “The loans approved by the KAFC today will continue to support our beginning farmers, agri-entrepreneurs and agri-businesses.”
Beginning Farmer Loan Program (BFLP)
Three Beginning Farmer loans totaled $607,000 for recipients in Clinton ($250,000) and McLean, 2 ($178,500/$178,500) counties. BFLP is designed to assist individuals with some farming experience who desire to develop, expand or buy into a farming operation. Beginning farmers may qualify for financing to purchase livestock, equipment or agriculture facilities; to secure permanent working capital; for the purchase of farm real estate; or to invest in a partnership or LLC.
Agricultural Processing Loan Program (APLP)
One Agricultural Processing loan totaled $200,000 for recipients in Fulton County. APLP is designed to provide loan opportunities to companies and individuals in Kentucky interested in adding value to Kentucky-grown agricultural commodities through further processing. Agricultural processors may qualify for financing for acquisition of equipment, construction of new facilities, renovation/expansion of existing facilities and permanent working capital up to 50% of the project cost.
Diversification through Entrepreneurship in Agribusiness Loan Program (DEAL)
One Diversification through Entrepreneurship in Agribusiness loan was approved for $85,000 for a recipient in Barren County. The DEAL loan program was designed to assist individuals who are attempting to diversify their farming operations through non-traditional agricultural production or services. Beginning agri-entrepreneurs may qualify for financing (up to $100,000) for equipment purchases, facilities, permanent working capital, real estate, investment into an existing agribusiness or other investments at the discretion of the KAFC board.