Call to Order and Roll Call
The 6th meeting of the Tobacco Settlement Agreement Fund Oversight Committee was held on Friday, August 4, 2017, at 1:00 PM, in Room 129 of the Capitol Annex. Representative Myron Dossett, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator C.B. Embry Jr., Co-Chair; Representative Myron Dossett, Co-Chair; Senators Stephen Meredith and Dennis Parrett; Representatives Phillip Pratt and Brandon Reed.
Guests: Bill McCloskey, Deputy Executive Director, Governor’s Office of Agricultural Policy and Beth Herbert Mobley, Director of Loan Programs, Governor’s Office of Agricultural Policy.
LRC Staff: Tanya Monsanto and Kelly Ludwig, and Rachel Hartley, Committee Assistant.
Governor’s Office of Agricultural Policy Report
Bill McCloskey described the Agricultural Development Board’s approved projects and future projects under the program. Mr. McCloskey highlighted programs including County Agricultural Investment Program, Deceased Farm Animal Removal Program, and Shared-use equipment.
Mr. Closkey stated Trigg and Campbell County are requesting additional funds of $48, 403 and $20, 237 respectively. Henry County requested an additional $35,000; however, the funding will be used for other projects.
The projects discussed were:
· Taylor County Cattlemen’s Association, Inc. was approved for $10,000 for its beef and dairy heifer chain program.
· Monreo County Extension District Board was approved for $56,297 for a certified test kitchen.
Kentucky Agricultural Finance Corporation (KAFC)
Mr. McCloskey stated there are benefits to farmers using KAFC loan programs. There is a fixed rate of 2.75% with no prepayment penalty. The application originates at the lender, and they will forward KAFC their portion.
The loan programs discussed were:
· Agricultural Infrastucture will provide access to below market financing for the acquisition, renovation, and construction of agricultural structures.
· Agricultural Processing will provide loan opportunities to individuals and companies interested in adding value to Kentucky grown or raised agricultural commodities.
· Beginning Farmer will assist individuals with farming experience to establish, expand, or buy into a farming operation. The applicant must develop a business plan and cannot have owned a farm longer than 10 years.
· Diversification through Entrepreneurship in Agribusiness will assist entry level entrepreneurs to establish or purchase into a business that provides agricultural products or services.
· Large/Food Animal Vet will assist individuals to construct, expand, equip, or buy into a veterinary practice that services farm animals.
In response to a question from Senator Parrett, Mr. McCloskey stated three loans have been submitted to KAFC to date.
Beth Herbert Mobley provided a breakdown of their loan programs. Poultry and turkey comprise 42 percent of the total loan balance.
Tobacco Settlement Scam
The Attorney General, Andy Beshear, is warning against a scam that claims Kentuckians can receive tax-free monthly payments from the Tobacco Master Settlement Agreement.
The next meeting of the Tobacco Agreement Oversight Committee will be September 6, 2017. Documents distributed during the meeting are available in the LRC Library.
There being no further business, the meeting was adjourned.