Call to Order and Roll Call
The 10th meeting of the Tobacco Settlement Agreement Fund Oversight Committee was held on Wednesday, December 6, 2017, at 10:00 AM, 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, Dennis Parrett, and Robin L. Webb; Representatives Rick Rand and Brandon Reed.
Guests: Warren Beeler, Executive Director, Governor’s Office of Agricultural Policy (GOAP); Bill McCloskey, Deputy Executive Director, GOAP; and Kimberly Richardson, Director, Kentucky Division of Conservation (KDC).
LRC Staff: Stefan Kasacavage, Tanya Monsanto, Kelly Ludwig, and Rachel Hartley.
The November 1, 2017, minutes were approved by unanimous voice vote.
Governor’s Office of Agricultural Policy Report
Warren Beeler stated the Governor’s Office of Agricultural Policy (GOAP) has initiated an intern program. The applicant must be enrolled in college and work through the summer.
There is a potential project with the Water Resource Board that will involve water harvesting and quality.
Mr. Beeler discussed his schedule for the months of November through January.
In response to Representative Dossett, Mr. Beeler stated GOAP is utilizing social media to recruit interns for its program. GOAP has contacted universities throughout the state. Two interns will be selected to participate in the program.
Bill McCloskey described the Agricultural Development Board’s projects for November. Mr. McCloskey highlighted programs including the County Agricultural Investment Program (CAIP), Deceased Farm Animal Removal Program, Next Generation Beginning Farmer Pilot Program, and Youth Agriculture Incentives Program.
Requested program amendments discussed included:
· Warren County Conservation District requested an additional $20,076 in Warren County Funds for CAIP. The board recommended approval, which would bring the program total to $245,660.
· Metcalfe County Conservation District requested an additional $25,438 in Metcalfe County funds for CAIP. The board recommended approval, which would bring the program total to $199,689.
· Nelson County Conservation District requested an additional $14,285 in Nelson County funds for CAIP. The board recommended approval, which would bring the program total to $111,454.
· Hancock County Conservation District requested an additional $8,526 in Hancock County funds for CAIP. The board recommended approval, which would bring the program total to $69,722.
· Green County Cattlemen’s Association, Inc. requested an additional $49,000 in Green County funds for CAIP. The board recommended approval, which would bring the program total to $234,000.
· Buffalo Trace Area Development District requested an additional $52,632 in Mason County funds for CAIP. The board recommended approval, which would bring the program total to $252,632.
Projects discussed included:
· Kentucky Nutrition Service, Inc. was approved for a loan of up to $500,000 in state funds to build a new facility, purchase software, and purchase mineral blending equipment. The loan will be at a fixed rate of two percent for a term of 15 years with payments of principal and interest due monthly. In response to Senator Parrett, Mr. Beeler stated a fertilizer or seed dealer interested in opening a commercial business in agriculture is benefitting farmers. Mr. McCloskey stated the board is loaning the money.
· Beef and Bacon Custom Processing, LLC was approved for up to $9,825 in state and McLean and Daviess County funds to transition from a custom processing facility to a United States Department of Agriculture inspected facility.
· Pulaski County Cattlemen’s Association, Inc. was approved for $2,502 in Pulaski County funds to purchase a cargo trailer for mobile cooking, serving, and marketing at agricultural events.
· Pulaski County Conservation District was approved for $1,645 in Pulaski County funds to purchase grain bin rescue equipment.
· Vance Mills Farms, Inc. was approved for $8,269 in state and Simpson County funds to conduct a study on the marketing and economic feasibility of a conventional and organic livestock processing facility.
· St. Mary School was approved for $1,799 in Bourbon County funds to purchase and install a greenhouse.
· CCGJ, LLC doing business as Versailles Brewing Company Restaurant, LLC was approved for $50,000 in Woodford County funds to purchase equipment for a new restaurant that will source locally grown food to serve.
In response to Senator Webb, Mr. Beeler stated the board is loyal to county boards with high priority projects. There is an assumption that the county understands the local economy better than the state.
Kentucky Soil Erosion and Water Quality Cost Share Program
Kimberly Richardson stated the Kentucky Soil Erosion and Water Quality Cost Share Program was established in 1994 with funding from the general fund and from Pesticide Product Registration fees from the Kentucky Department of Agriculture. The program began receiving funds from the Tobacco Master Settlement Fund in 2000.
The purpose of the program is to provide financial and technical assistance to individuals to implement best management practices on farm and forest operations to improve soil and water quality, assist landowners who have received a notice of violation from the Division of Water under the corrective measures protocol, and to provide Conservation District Environmental grants.
The program is implemented by 121 conservation districts. The program offers year-round sign-ups, which allows farmers to immediately begin planning their resource concerns. The Conservation District serves as the point of contact when a notice of violation has been issued.
The Kentucky Division of Conservation’s (KDC) recent projects include stream crossings, heavy use areas, pipeline and tanks, fencing, and pasture and hay land renovation.
Initial program funding began in 1994 with $650,000, and funding totals have been as high as $11.5 million in 2001. The past fiscal year the budget was $5 million. There are currently 1,845 applications that amount to $14.6 million. In 2017, 1,201 applications were approved for best management practices. The KDC staff reconciled all projects from past years to determine if there was a remaining balance that could be reallocated to farmers. The balance was determined to be around $5 million.
The KDC improved its ranking system, which has delayed the cutoff date for applications to February 2018. The applications are ranked and KDC makes recommendations to the Soil and Water Conservation Commission in March 2018. Farmers can begin implementing practices in March 2018 and have one year to complete, with the option of two six month extensions.
The KDC is able to leverage state cost share dollars through different initiatives including the Regional Conversation Partnership Program. The partners are the Kentucky Natural Resources Conservation Service (KNRCS), Kentucky Dairy Development Council, Kentucky Beef Network, and the University of Kentucky College of Agriculture, Food, and Environment. The KDC also partners with the Division of Water on Non-Point Source Pollution Grants. The landowner also leverages funds since they pay full cost up front and are reimbursed 75 percent.
From 1995 to 2017 the KDC managed $7.6 million in general funds, $12.8 million in restricted funds from the Kentucky Department of Agriculture, $126.5 million from the Master Settlement Agreement, and $300,000 of federal funds. A total of 52,225 applications were received with $409 million requested. There were 17,948 landowners approved for $155 million.
The United States Geological Survey conducted a study to determine the amount of nutrients that are entering and leaving Kentucky. This study aids in determining the efficacy and continued need for KDC services. The preliminary findings show that nitrogen and phosphorus decreased as the water went through the state.
In response to Senator Webb, Ms. Richardson stated there will be a budget cut across the board. The KNRCS is experiencing budgets cuts and consolidation of services. It provides technical assistance for the state cost share program. The KDC is working to address the loss of technical assistance by accepting a technical assistant grant and a training program for employees from the National Association of Conservation Districts.
The next meeting of the Tobacco Agreement Oversight Committee will be scheduled at the call of the chair during session. Documents distributed during the meeting are available in the LRC Library.
There being no further business, the meeting was adjourned.