Funds will contribute to agriculture success across the Commonwealth

FRANKFORT (May 24, 2024) - Kentucky agriculture secured several key advancements during the 2024 Kentucky legislative session.

“The support our legislators showed for Kentucky agriculture was immense during the latest session,” Agriculture Commissioner Jonathan Shell said. “As a former State Representative, I’m fully aware of the demands, time, and workload the legislative session can be for our elected officials. But their acknowledgment of agriculture’s worth within our state was showcased in the funding and bills passed during this session. This year’s budget is full of growth and opportunities for Kentucky’s agriculture industry, farm families, and many other industry beneficiaries.”

During the 2024 legislative session, Kentucky Department of Agriculture (KDA) was allocated $21.6 million from general fund dollars in Fiscal Year 2025 and $22.7 million for Fiscal Year 2026. Included in the total were funds allocated for a new Division of Emergency Preparedness for KDA’s Office of the State Veterinarian (OSV) to enhance the department’s preparedness and response to animal emergencies. The division was created during last year’s legislative session with Senate Bill 46 (SB46). During this year’s session, $153,000 was appropriated for the remainder of the current budget year and $443,900 for each fiscal year for the next biennium.

In addition to creating the Division of Emergency Preparedness and Response to the State Vet office, SB46 renamed two current divisions including the Division of Animal Health to the Division of Regulatory Field Services and the Division of Producer Services to the Division of Animal Health Programs. This year’s budget included $553,700 in Fiscal Year 2025 for the Division of Regulatory Field Services and $987,100 in Fiscal Year 2026. The funding provides for increased staff and resources, allowing OSV to be better positioned for its principal role in protecting Kentucky’s animal agriculture.

KDA’s budget also includes increased investment in diverse community programs that will have broad agricultural impacts across the state, such as:

• $1 million in each fiscal year for the Raising Hope Initiative which focuses on Kentucky rural mental health, suicide prevention and farm safety;
• $850,000 in Fiscal Year 2025 and $1 million in 2026 for the Farms to Food Banks program, which connects Kentucky producers with food banks who help those who are food insecure across the state; and
• $750,000 in each fiscal year for the County Fair Grants that improve county fair facilities.

Outside of the general budget funds, legislators demonstrated a commitment to investment in Kentucky agriculture by earmarking $5 million for agricultural economic development. When secured, the funding will help incentivize and locate agricultural projects in the Commonwealth, bolstering the industry, supply chain, and farming families from Pikeville to Paducah.

In addition, $38.9 million for fiscal year 2025 and $39.9 million for 2026 was allocated out of the Tobacco Master Settlement Agreement for the Agricultural Development Fund. Through this fund, the Kentucky Agricultural Development Board and the Kentucky Agricultural Finance Corporation provide grants, incentives, and low-interest loans to help farmers and agribusinesses innovate and grow.

Several 2024 legislative budget allocations will fund projects with a positive impact on agriculture ranging from infrastructure to community programming. A few of these projects include $15 million for water infrastructure updates for construction and maintenance for riverport areas, which help Kentucky grain farmers get products to market.

Other funded projects will also have beneficial results for Kentucky agriculture, including the Cattleman's Innovation Center and Murray Vet Tech program, which will enhance the agricultural landscape from Eastern to Western Kentucky.

Advancing agriculture advances Kentucky. All combined the 2024 legislative session provided several key agricultural growth prospects for the coming years.