Henry County Comprehensive Plan. Master Settlement Agreement Phase I Proposals

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1 Henry County Comprehensive Plan Master Settlement Agreement Phase I Proposals Prepared by: Henry County Agricultural Development Council Philip Sewell Chairman David Douglas Vice Chairman Carla Gerding Secretary Guy Coombs John David Yount Ryan Roberts Brian Stivers Chuck Smith Steve Moore Extension Agent Revised December 18, 2007 Approved with Revisions January 14, 2008

2 Henry County Comprehensive Plan for Agriculture I. Overview of Henry County The physical structure of Henry County is characterized by its location in North Central Kentucky near the Kentucky River. The 184,960 acres of land is mostly rolling, and nearly 25% is wooded. About 141,592 acres are listed as farmland in the 2002 census of agriculture, down from nearly 150,000 in the 1997 census. The rolling topography and soil types make a significant portion of Henry County best suited for permanent vegetation such as pasture or woodlands. At the close of the twenty first century, agriculture is still a vital part of the County s economic structure agriculture income is reported by the Kentucky Agriculture Statistics Service as $24,704,000; down significantly from the $29,612,000 in 1999, ranking Henry County 51 st among Kentucky s 120 counties. Of note is the high ranking for tobacco (9 th ), alfalfa production (13 th ), and all other hay production (19th). Tobacco production on Henry Counties 833 farms in the 2002 census was 3,713,600 lbs. which is a large percentage of our total farm income. Instability in the burley tobacco market created a decrease of the number of farms directly involved in the production of tobacco. After the announcement of the tobacco quota buyout in 2002 many (heretofore full-time) small tobacco farmers have begun off-farm employment. However the Census of Agriculture for 2002 reports Farm Operators whose Principal Occupation is farming as 523, an increase of 79 farms over the 444 on the 1997 census. The increase in the number of farms could very well be attributed to the State allowing 50% of the tobacco buyout money to be shared with the tobacco producing counties. These funds are helping farmers diversify and transition into non traditional farm production. Livestock enterprises contributing to Agriculture Income are: Beef, Dairy and Goats. In beef, mostly spring calving commercial cow-calf operations herds are present, with nearly all farms supporting some beef production. An estimated 14,800 brood cows produce a crop of weanlings sold as feeder calves in the late fall. Several producers are backgrounding calves, going directly to feed yards and to CPH sales and some are kept for their replacement stock. Nearly no finishing and local slaughter takes place. Twelve Dairies remain, with a total milk production of 14.4 million pounds. The number of Dairies has decreased relatively slowly the past 2 or 3 years, after two decades of decrease. Conservative estimates of Henry County s Forage Production potential would indicate that we could support marked increases in ruminant animal production. In the 5-year period between the latest Census of Agriculture findings, the statistic with the most extreme change was the average value of land per acre. Between 1997 and 2002, that value jumped from $1,714 to $2,398 per acre. By late 2007, that value has continued to escalate. The influence of our proximity to Louisville likely contributes to

3 this increase. The trends indicate that the number of small farms (1-49 acres) is increasing, as is the number of large farms (1000 acres or more). The small farms have more off-farm income, yet feature increased efforts at niche marketing, due to the State Agricultural Diversification Programs that allow for 50/50 cost share on traditional and non-traditional products and services. We have already seen increase community based marketing through efforts such as the Henry County Farmer s Market. Because of the proximity to Louisville, Cincinnati, and Lexington Population centers, the potential for expansion of markets for a variety of farm enterprises may be extremely good. Larger farms are and will likely be more production oriented. Efficiency in production is a market advantage as is having larger quantities at sale time. Larger farms will likely provide employment for general labor, and even specialized managers. Henry County s total resident population in 2007 was 16,178, with a poverty rate of 10.4%. The unemployment rate is 5.7%. Net cash return from agricultural sales for each of the 883 farm units in 2002 was $5, We feel that this low figure can be attributed to tax write offs and other similar accounting procedures. The median household income for 2000 was $37, compared to the median household income in 1995 of $29,452. Henry County is located in the triangle between Kentucky s three most populous cities, and has two interchanges on busy Interstate 71 between Louisville and the urban Northern Kentucky area near Cincinnati. Over 1,500,000 potential customers for agriculture products live within a 50 mile radius of the County. The Kentucky River creates approximately 30 miles of the northern boundary of the County. The growing season (freeze to freeze) is at least 170 days 8 out of ten years, with average rainfall of 45 inches, 24 inches between April and September. Most productive soil types include Shelbyville, Lowell, and Nicholson, and those whose slopes would support cultivation amount to approximately 17% of our total acreage. Crops currently grown on this acreage include tobacco, alfalfa, vegetables, corn for grain and silage, and soybeans. The West and Central parts of the County have rolling topography with broad ridge-tops, and are used for uncultivated crops, hay, and pasture. The hills in the Eastern portion of the County are steeper, with more narrow ridge- tops, and contain a significant amount of 2 nd growth hardwood woodlands. Soil tests indicate slightly acidic soils, requiring amendment in the form of lime for many agronomic crops. A high grade limestone quarry is located near the Kentucky River in our county. The majority of residences in the county are served by municipal water from large wells under the Ohio River. II. Review of the Process The Henry County Agricultural Development Council has sought input from many sources in the development of the comprehensive plan. These include statistics, data, and training from the Extension Service, and personal contacts with individuals by Board members. One or more of our Henry County Agricultural Development Council members attend all of the farm related activities where they receive feed back from farm leaders and fellow farmers. The top interest areas include: hay, forages, developing farmer s market facilities, improving the beef cattle industry, tobacco, goat industry and

4 developing the 50% state funded diversifications projects. A large percentage of our farmers keep up to date on education in their various fields by attending the County Extension Service various meetings and field days. III. Assessments A. We find the strengths of Henry County Agriculture resources to be good, fertile farmland, an excellent location between I-71 and I-64, a farmerbase in traditional crops, equipment and infrastructure. A large percentage of our farmers keep up to date on new developments and practices. B. Weaknesses include topography of some sloping land that is unsuitable for traditional row crops, lack of a large marketing infrastructure, especially for non-traditional commodities, no possibility for large acreage row crops, a short and unreliable labor supply. C. Opportunities for Henry County agriculture include a central location for marketing to the population centers of Louisville, Lexington and Cincinnati with a potential of taping a 1.5 million-consumer base within a 50- mile radius. D. The greatest threat to Henry County agricultural community is the development of urban sprawl and increased cost of farm land. IV. County Council Objectives a. Our vision for Henry County is to have in the future a strong agricultural industry that will allow farmers to produce a level of farm income that will allow them and future generations to remain on the land. Our mission is to help develop a strong agricultural economy that will allow this to occur. b. The short-term priorities include encouraging all farmers in Henry County to explore new alternative enterprises and/or expand and improve traditional crops and livestock enterprises. This encouragement has been reinforced by the 50% cost sharing programs established by the State Legislature with the tobacco Phase I money. This has stimulated the agricultural economy of Henry County and allowed producers to try new and improved management techniques according to state models. To also experiment with new alternative enterprises that may hold the promise of replacing our lost tobacco income. Another short- term priority involves helping to develop markets for all traditional and non-traditional commodities with an emphasis on direct marketing. Specifically the Henry County Agricultural Development Council would like to see our farmers continue to take advantage of the following cost share

5 enterprises that are available to them, along with others that may be approved, Traditional enterprises both group and individual applications Livestock enterprises with a emphasis on genetics, equipment, facilities and herd health and Forage enterprises with a emphasis on seeding, fertilizing, liming, fencing and equipment. Alternative enterprises both group and individual applications Fruit, vegetables and berries with an emphasis on machinery, equipment, facilities and plants, Nursery and Turf with an emphasis on machinery, equipment, plants and facilities, Silviculture with an emphasis on machinery, equipment, plants and facilities, Marketing with an emphasis on salaries, office, advertising, facilities, equipment, Miscellaneous with an emphasis on the development of any new and alternative enterprises not covered, Value Added with an emphasis on machinery, equipment and facilities, Education with an emphasis on stipends, tuition, equipment, facilities and services. c. Our long-terms goals for Henry County include keeping the rural character of the area by encouraging investment in agricultural enterprises that will allow our people to live on the land and continue a viable agricultural community with controlled urban development for future generations. V. Evaluation and Review All proposals will be evaluated based on the following criteria. 1) Proper completion of the application, including FSA farm #. 2) Probable returns from labor. 3) Tobacco quota holders and producers at the time of the buyout are to be acknowledged with a minimum of 20 % value of a point system with verification required (1099 or buyout certificate). 4) Small farmers will be given the same equal access to funds as large farmers. 5) Funds will be distributed without regard to age, race, sex and disability. 6) No one individual producer or entity will receive more than a cap of $2, cost share per year or funding cycle, and shall not exceed state caps in each state model program. There shall also be a maximum cap of $2, per FSA Farm # per year. 7) Council members will abstain from discussion and vote on requests from themselves and immediate family members and should not be present in the meeting at the time of the discussion. 8) All State approved enterprises to be given equal priority based on a point system.. 9) Request must be based on sound business practices. 10) All approved projects will require a match investment equal to 50% of new project cost. Preference is for cash contributions. In-kind contributions will be in the form of unencumbered fixed assets, with back up appraisal required for documentation of value. For grants requesting funding for non-fixed assets the match requirement will be cash only and will equal 50%.

6 11) In a request for equipment it must be newly made and or approved by the HCADC or the entity granted to dispense the funds. 12) Each application must include a statement of full disclosure detailing those individuals who would benefit financially if the proposal if funded. 13) Highest priority will be given to applications facilitating success in areas with the potential to reach the most farmers. Any legally formed entity may apply. 14) First emphasis will be on applications from organizations comprised of groups of individual farmers or organizations clustering around a particular type of activity. While individuals may apply for funds, in all cases every applicant will demonstrate commercial viability with a significant impact on farm income and have high potential for growth with potential to include other farmers in the future. 15) An applicant is not to receive Phase I Cost Share Funds if other state or federal funds have been received on the same project. The Henry County comprehensive plan is to be evaluated on an annual basis. Two or more officers from each entity receiving funds must meet with the HCADC once per year to help us determine our effectiveness.