Call to Order and Roll Call
The 10th meeting of the Tobacco Settlement Agreement Fund Oversight Committee was held on Wednesday, November 2, 2016, at 10:00 AM, 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, and 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; Kimberly Richardson, Division Director, Division of Conservation; Representative Dennis Keene; and Representative Dean Schamore.
LRC Staff: Lowell Atchley, Kelly Ludwig, and Marielle Manning.
Upon motion by Senator Hornback and second by Senator Westerfield, the October 5, 2016 minutes were approved by voice vote and without objection.
Governor’s Office of Agricultural Policy
Mr. Warren Beeler explained the Governor’s Office of Agricultural Policy Fiscal Year 2016 Annual Report.
Mr. Warren Beeler, Executive Director, and Mr. Bill McCloskey, Deputy Executive Director, Governor’s Office of Agricultural Policy presented projects receiving the Agricultural Development Board approval at its October 2016 meeting. Those included farm market expansion, agritourism facility upgrades, farmers market construction, on-farm investments, environmental stewardship, shared-use equipment, and major statewide or regional projects.
Responding to a question from Representative Stone, GOAP officials explained there is a list of eligible machinery for the shared-use equipment program.
In response to Representative McKee, GOAP officials said they would provide a list of counties that are without the Dead Animal Removal Program service to staff.
In response to Senator Parrett, GOAP officials stated that hay tedders did not pass the board’s approval for shared-use equipment.
Responding to Representative Stone, GOAP officials stated there is a different list of eligible equipment for direct purchase by the applicant.
Representative McKee and Senator Parrett encouraged the board to reconsider adding a hay tedder to the list of eligible equipment in the Shared-use Program.
Responding to Senator Gibson, GOAP representatives explained that board members only receive compensation for travel, such as mileage and overnight expenses. Board members serve for four years.
Representative Stone commented that Bobby Foree is an attorney with farming experience and is a good fit for the Agricultural Development Board.
The committee received reports on three regional projects: (1) Hill View Farms Meats, LLC, approved by the board for $7,000 in Daviess County funds to expand its newly created on-farm market and to purchase a commercial freezer, refrigerator, ice cream freezer and other equipment; (2) Little Hickory Farms, approved by the board for $9,000 in Daviess County funds for expansion of its operation to include guided horseback tours and to upgrade the horse barn with stalls, a tack room and other facility improvements in addition to grounds improvements; (3) Owensboro Farmers Market, Inc., approved by the board for $69,563 in Daviess County funds and $163,502 in State funds to construct a permanent farmers market facility with a commercial kitchen.
GOAP officials described one funding denial: (1) Christian County Conservation District, turned down for $15,000 to purchase a no-till tobacco setter. The board denied this request based on staff’s recommendation and the fact that the equipment is not eligible in the Shared-Use Equipment program.
GOAP representatives answered committee members’ questions about the three regional projects received by the board in October.
In response to Representative Stone, GOAP officials stated that Owensboro Farmers Market, Inc. will lease the land for the new facility from Owensboro Health Regional Hospital.
In response to Senator Embry, GOAP officials stated that Daviess County Fiscal Court committed $50,000 to the Owensboro Farmers Market, Inc. project.
Responding to Senator Parrett, GOAP officials explained that a commercial kitchen will be constructed in the second phase of the Owensboro Farmers Market, Inc. project.
In response to Representative McKee, GOAP officials explained that Pendleton County should contact GOAP officials and make an application for a farmers market. There is no deadline to do so.
Representative Denham commented that he would like to see some State funded projects come out of his district, as it is the most tobacco-dependent district in the state. GOAP officials explained that it is difficult to find projects that meet the criteria for state funding based on farm impact.
Responding to Representative Stone, GOAP representatives stated that vegetable production comes closest to replacing tobacco dollar for dollar.
Kentucky Soil Erosion and Water Quality Cost Share Program
Ms. Kimberly Richardson, Director, Kentucky Division of Conservation, provided a presentation on the Soil Erosion and Water Quality Cost Share Program and the Soil Stewardship Program, which receive tobacco settlement fund appropriations. Established in 1994, the program provides financial assistance to individuals to implement Best Management Practices on farm and forest operations to improve soil quality and water quality. They also provide Conservation District Environmental Grants and assistance to landowners who have received a “notice of violation” from the Division of Water under the Corrective Measures protocol.
Responding to Representative McKee, Ms. Richardson stated that around $500,000 to $600,000 is the standard that they put into the District Environmental Grants.
In response to Representative Tipton, Ms. Richardson stated there are some current studies looking at the difference of human and animal sources of nutrients into waterways. USGS is studying the production of nutrients from agriculture in Christian County.
Responding to Representative Stone, Ms. Richardson explained the federal projects have a seven year lifespan.
Documents distributed during the meeting are available with meeting material in the LRC Library. There being no further business, the meeting was adjourned.