Call to Order and Roll Call
The 2nd meeting of the Tobacco Settlement Agreement Fund Oversight Committee was held on Tuesday, February 2, 2016, upon adjournment of both Chambers in Room 129 of the Capitol Annex. Senator C.B. Embry Jr., Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator C.B. Embry Jr., Co-Chair; Representative Wilson Stone, Co-Chair; Senators Carroll Gibson, Paul Hornback, Dennis Parrett, Robin Webb, Whitney Westerfield; Representatives Mike Denham, Tom McKee, Terry Mills, Jonathan Shell, and James Tipton.
Guests: Warren Beeler, Executive Director, Governor’s Office of Agricultural Policy, Bill McCloskey, Director of Financial Services, Governor’s Office of Agricultural Policy and Luther Hughes, Project Manager, Governor’s Office of Agricultural Policy.
LRC Staff: Lowell Atchley, Kelly Ludwig, Sara Saxson-Lyle, Marielle Manning and Susan Spoonamore, Committee Assistant.
Upon motion made by Representative Denham and seconded by Representative Mills, the January 12, 2016, minutes were approved, upon voice vote and without objection.
Governor’s Office of Agricultural Policy
Mr. Warren Beeler, Executive Director, Mr. Bill McCloskey, Director of Financial Services, and Mr. Luther Hughes, Project Manager, Governor’s Office of Agricultural Policy, presented the projects receiving Agricultural Development Board approval at its January 2016 meeting. Those included a farmers market pavilion, next generation farmer support program, On-Farm Investments, Shared-use Programs, and major statewide or regional projects.
The GOAP representatives responded to committee members’ questions about the Shared-use funding commitments.
The committee received reports on two regional projects – Washington County Cattleman Association, Inc., approved by the board for $109,855 in Washington County funds to conduct a next generation farmer cost-share program, and the City of Pikeville, approved for $250,000 in state funds to construct a farmers market pavilion.
The GOAP officials responded to committee members’ questions about the Washington County project, such as the funding arrangement.
Responding to Representative Stone, the GOAP officials explained that a 50/50 match is required for the participating farmer and the fund. For example, the participating farmer must spend $10,000 to receive $5,000 back.
The project included a mentoring aspect. Responding to Representative Tipton, the GOAP officials indicated that similar mentoring programs had been done in previous years. GOAP officials also had suggested there needed to be more substance in the program for beginner farmers and that the University of Kentucky was involved in teaching four specific classes.
The GOAP officials provided additional details on the city of Pikeville project, such as the type and location of pavilion planned and the scope of local input.
Responding to Representative McKee, the GOAP officials discussed the usual 50 percent funding for similar projects. GOAP officials mentioned commitments from other counties for the project.
The GOAP representatives described one funding denial, Whispering Hollow Farms, LLC, turned down for $45,074 in LaRue County funds to establish a horse boarding and trail camp park to promote outdoor recreation. Concerns about lack of farmer impact and impact on agricultural economy were mentioned as reasons for the denial. In response to Representative Denham, Mr. McCloskey explained that there is no GOAP policy on “horse projects” but that people can apply for CAIP funds and Kentucky Agriculture Finance loan. Mr. McCloskey said the GOAP did a grant for an operation in Clark County.
In response to Senator Webb, Mr. Hughes explained that GOAP staff often ponder how to reach out to those who do not reach out to them and using horses as a means of diversification was important to consider. Mr. Beeler also expressed it was a good time to reflect on the CAIP application process.
Representative Mills commented that therapy horses can be beneficial for autistic children through the use of Agriculture Development funds and can bring diversity to farmers.
Co-Chair Stone welcomed Representative Tipton to his first meeting with the Tobacco Settlement Fund Oversight Committee.
Representative Denham commented on the loss of the Bluegrass Stockyard and asked for a resolution from the committee. Senator Webb moved that the resolution be reported with favorable expression. Representative Mills seconded the motion. The motion carried by unanimous voice vote.
Documents distributed during the meeting are available with meeting materials in the LRC Library. There being no further business, the meeting was adjourned.