Frankfort, Ky. – The Kentucky Agricultural Finance Corporation (KAFC) recently approved more than $1.7 million in 12 agricultural loans to assist farming operations around the Bluegrass State. Topping the list of loans was the Beginning Farmer Loan Program (BFLP), which received $1,262,736 for seven operations across the state.

“The KAFC loan portfolio provides opportunities for farmers across the spectrum of agriculture here in the commonwealth,” said Gov. Andy Beshear in a statement to Farm World. “In particular, the Beginning Farmer and Diversification through Entrepreneurship in Agriculture Loan programs allow for any producer to expand their operation, whether they are just starting out in the industry or looking to grow their current work. Ensuring that all agriculturalists have the resources to grow their operation is essential as we continue to keep Kentucky at the forefront of the agriculture industry.”

The BFLP is designed to assist individuals with some farming experience who are looking 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.

One operation which benefited was Falls City Farms run by John and Amy Miller. The pair received funds for a hydroponic shipping container in which they have been able to grow about three acres of food. Overall, the container has around 8,800 spots for growth at maximum capacity for lettuces, salad mixes and certain leafy greens.

The Millers, both military veterans, were able to gain the education needed for developing the hydroponic systems through opportunities granted by the GI Bill. John said despite obstacles in the beginning, the operation is well on its way.

“We kept running into roadblocks with our funding because people didn’t believe that we could actually produce what we said we could from a tomato plant hydroponically,” John explained. “The finances and the yields just didn’t match up in their opinions.”

After falling to the wayside for five years, the couple was finally able to make the operation happen in part from the BFLP.

“It’s our goal to expand on our current lot in Louisville, maybe three or four more containers,” John said. “I think that hydroponic is going to be the future of agriculture in urban settings. As our population continues to grow in these areas, we have to find ways to feed people. I think these containers will go a long way toward helping serving the local community from restaurants to grocery stories. That is our goal.”

Other programs which received top funding were the Agricultural Processing Loan Program ($295,000), Diversification through Entrepreneurship Loan Program ($159,065) and the Agricultural Infrastructure Loan Program ($70,034).

The KAFC was created by statute in 1984. In 2002, the Kentucky Agricultural Development Board, as part of the Long-term Plan for Agriculture Development, recommended that KAFC be restructured to provide capital access for agricultural diversification and infrastructure projects. In keeping with that priority, KAFC was awarded Agricultural Development Funds in July 2003 to accomplish its mission.