Woodland, being the majority of our land in Powell County is under utilized and under managed for maximum production.

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1 I. County Overview Powell County Agriculture Development Council Comprehensive Plan A. Agricultural Data: Powell County, Kentucky is a small rural county located at the outer edge of the Bluegrass and the foothills of the Appalachian Mountains. Best known for its natural resources, Powell County is home to the Natural Bridge State Resort Park and the Red River Gorge. Approximately 60% of the county lies within the boundaries of the Daniel Boone National Forest. With the county's vast displays of majestic cliffs, rivers and streams, and forest land, it has become a haven for tourists from across the country. Powell County is a small county in agricultural numbers. Most of the farmers in Powell County are part-time farm operators, either working at other jobs during the day or farming in retirement. The average farm is composed of around 63 acres. There were a total of 288 working farms according to the 1997 U.S. Census of Agriculture. As with the state average, farm numbers in Powell County are decreasing each year. According to the Powell Wolfe FSA Office, Powell County had 711,617 pounds of effective quota for tobacco (approximately 360 acres). Tobacco receipts in 2000, compared to the year 1997, were down 46.1%, with tobacco income down to $1.3 million dollars for the county. According to the 1997 U. S. Census of Agriculture Powell County also had 887 acres of soybeans, 200 acres of corn and 3500 acres of mixed hay. Seventy county farms produce around 2000 head of beef cattle. Horses and goats are produced on an even smaller scale. Farmers are producing small amounts of commercial vegetables and fruits to sell at Farmers Markets. According to the Kentucky Agriculture Statistics, Powell County's total crop receipts were around $1.7 million with total livestock receipts around $730,000, giving a total of a little over $2.4 million in agricultural crop and livestock sales. Woodland, being the majority of our land in Powell County is under utilized and under managed for maximum production. B. Demographic Data Powell County has a total population of 12,614 people. Ninety nine per cent of the population is white, 1% is black. The county seat is Stanton with a population of approximately 3000 people. Other smaller communities include Clay City, West Bend, Slade and Bowen. Stanton and Clay City have immediate access to the Mountain Parkway which provides 4-lane Page 1

2 access to Winchester, Lexington and Hazard. The county is also served by Kentucky highways 11,15,82 and 213 giving easy access to such towns as Mt. Sterling, Richmond, Beattyville and Irvine. With a civilian work force of over 7000, 41% of our citizens are employed in manufacturing jobs, 20% in wholesale and retail trade and 22% in state and local government. Agriculture accounts for less that 3% of the county's work force. Powell County's unemployment rate hovers around 5%. The poverty rate in Powell County is higher than the state average, at 25% according to the most recent census data. There are approximately 4100 households in the county with 2.9 persons per household. The median household income in 1990 was $19, II Review of the Process Per the directive from the State Development Board, the Powell County Agricultural Development Board has sought input from many sectors of the county. Board members developed a survey to determine farmers needs and suggestions. These surveys were given to farmers at local feed and farm stores, banks and from the Extension Office. During a fall tobacco meeting held in November 2000, all farmers in attendance were given the opportunity to fill out this survey and discuss the needs of local farmers. Time spent during this tobacco meeting became an open discussion meeting among the 50 tobacco farmers in attendance and allowed them to discuss and present their viewpoints. In addition to the tobacco meeting and surveys, several other efforts have been implemented to seek public comments on this program. Multiple radio programs on WSKV were presented by the ag agent relating to dispersal of the Phase I funds. Agents weekly column featured Powell county's role in the Phase I funding process in October. Newsletter sent in November also made 240 farmers aware that input was needed for spending Phase I dollars in our county. III Assessments A. Strengths a. Location Powell County has many strengths which make it a wonderful place to work and live. Powell County's location with the Mountain parkway as it's primary roadway makes travel into the larger cities easy. Stanton, the county seat is only 45 minutes away from Lexington, 90 minutes from Frankfort and only 2 hours from Louisville, the state's largest city. b. People Powell County's farmers and farm families have extensive knowledge of tobacco, Page 2

3 beef cattle, forages and grain crops. The horse industry, especially the pleasure horse industry is growing in our area. Some of the states most knowledgeable trainers and horsemen are located in our county. Farmers are striving to adapt new commercial crop enterprises such as vegetables and fruits to sell at Farmers Markets. c. Natural Resources Powell County's soil is varied from the drier hill and ridge areas to the rich and fertile Red River bottom area, making it excellent ground to produce crops such as tobacco, vegetables, soybeans and corn. The county has numerous sources of water from the Red River and many of the smaller tributaries which feed in to the river. Water can be utilized for agricultural purposes from any of these streams. The Beech Fork Reservoir now has become the main source of public water for the citizens of the county. Powell County's woodlands are becoming more of an income producing enterprise for county land owners. Several productive timber based industries such as H&S Lumber, Burke Parson's Bowlby, Miller Post Yard and Red River Hardwoods have added value to timber and provided many jobs for our area. d. Education Powell County has an excellent educational infrastructure for formal instruction as well as continuing education. The public school system provides quality education for the K-12 which has won national achievement awards. The county's proximity to the University of Kentuckyin Lexington and several state colleges at Morehead, Richmond and Georgetown offer many of our residents the opportunity for expanding their education. Continuing education programs offered by local Cooperative Extension Service and Community Education programs provide ongoing educational programs in areas needed by residents to meet the changing needs and interests of the county. B. Weaknesses a. Markets Powell County's farmers have demonstrated the ability to produce efficiently a wide range of agricultural crops and livestock. The primary problem those same farmers have faced has been in the marketing of those efforts. For products other than tobacco and livestock, direct marketing by the farmers has generally been the only option. Unfortunately, most farmers are not knowledgeable or comfortable in marketing especially since most county farmers are part time Page 3

4 producers with off-the-farm jobs with limited time at home. b. Small land holdings The average size of a Powell County farm according to the 1997 agriculture statistics is 63 acres per farm. Most tobacco producers, especially younger farmers do not own enough land to expand forage and livestock production. Many acres of good farm land is owned by out-of county operators who maintain ownership due to tobacco quotas. Even with lease arrangements, it is unlikely that younger farmers will make long term investments on these farms such as fencing, buildings or even sufficient fertilizer and lime. c. Prior Negative Experience with Vegetables Many Powell County farmers have grown vegetables in the past but have had unfavorable experiences with these crops. Powell County's high humidity levels in mid summer make it a haven for disease pressure, especially on vegetable plants. Marketing of produce has also been a problem. Canners, processors and cooperatives have operated in our region but quickly fell by the wayside due to low prices, high overhead or low quality crops. Many farmers also have the tobacco mentality of raising a crop and may not be willing to devote the necessary time to produce a vegetable crop. As a result of these conflicts, many farmers are wary of vegetable production in general. A change in this attitude may take a generation to take place. d. Natural Resources While agricultural resources such as soil and water are conducive to productive agriculture, the county has several limitations. One of the greatest limitations is that many soils are wet in nature with a high clay content. During a wet season, many crop's fail to produce efficiently due to soil compaction, disease pressure or stunting. Extra water also invites extra disease pressure during the hot growing season, again causing crop production losses. Powell County's soils are typically in need of lime and potash for most crop growth. e. Reliance on Tobacco With the above mentioned weaknesses, Powell County farmers have relied on tobacco primarily to pay their end of the year bills and sustain their family farms. For many small farmers, changing their crops and their production methods will not be feasible. Many farmers will not make necessary investments to "start over" in other enterprises. For those who do stay in agriculture, change will be gradual and more difficult than in many parts of the state. Page 4

5 C. Opportunities a. New Markets Powell County's roadway system, its central location and its natural beauty has the potential to expand its agricultural base, especially if geared toward the millions of tourists who visit our county each year. The ever growing tourism industry in the county may lend itself to new markets for fresh produce, value added agriculture products and other. b. Forage and Livestock The livestock industry has great potential to expand in Powell County with little additional investment necessary. With thousands of acres of rolling hillsides not suited for cropland, beef cattle, horses and goat numbers could be increased to improve farm profits. c. Timber Production Over 60% of Powell County is in woodland, but land owners are often uncertain about the value of their timber resources. BMP's of woodland ownership should be followed to protect this resource. Land owners need to be more aware of what real value their woodlands have. D. Threats a. Aging farmer population The average age of a Powell County farmer is around 64 years old. Younger men and women must find off-farm work to simply pay the bills. Most young farmers do not have the capital needed to purchase land and equipment for farming. Each year more "hobby" farmers are purchasing land and becoming somewhat involved in agriculture, but more for aesthetics than for family income. b. Health Care/Health Insurance Most Powell County families have one or more members of their family employed off the farm simply to obtain family health insurance. High costs of health insurance make it almost impossible for farmers to afford health insurance on their own. Those who do not have off-farm income or who have part time jobs are under-insured and have little or no needed health care. c. Urban sprawl As the county population increases each year, what once was productive farm land is becoming sought after property for homes, businesses and industry. Farmers who need extra Page 5

6 cash are being caught in the web of selling off the farm in small lots to retire on or add needed cash to the family cash flow. IV County Council Objectives A. Mission /Vision Statement The mission for the Powell County Agricultural Development Council will be to promote and encourage projects and programs that will expand the agricultural industry in our county and assist farm owners in sustaining the family farm. We further hope to serve as a resource for learning new technology and exploring new possibilities that will enhance and expand our county's economy. The Council believes that farming must continue to be a vital part of our economy and our family heritage. B. Short Term Priorities The Council will devote the majority of its funds allotted to Powell County in the first two years to cost share programs which will maximize production in the following areas: Beef cattle/forages, horticultural crops, timber and tobacco. Cost sharing will be determined by the council based on the type and scope of the investment. Farmers who have been approved for funding will submit receipts for reimbursement. Priority will be given to projects which will have benefits which will extend into several years, rather than just one season. According to county survey of farmers, the following areas, although not inclusively, will be anticipated for funded projects: Livestock water supply development and intensive grazing programs; Weed control in pastures and hay fields, vegetable production equipment; cost sharing for pasture renovation, fertilization and liming; improved feeder cattle marketing systems; improved marketing of value-added agricultural products and enhanced educational programs. C. Long Term Goals The long term goal of the Council will be to allocate the county's appropriated funds to stimulate the economic well being of Powell County and to assist small farmers in improving production and sustaining those small farms. The council will work with local cooperators, businesses and county decision makers in expanding agricultural production and improving agricultural markets. Although tobacco will play an important role in the county's economy for the short term, these funds will allow local farmers to move away from complete dependence on the tobacco crop and expand their knowledge base and economic opportunities into other crops and livestock enterprises. Page 6

7 D. Tactics for Leveraging Funds Proposals for funding will clearly outline who will be responsible for funds and who will these funds will be directed to. As per the state councils recommendation, a matching of 50% of the total projects costs shall be required of all proposals. 'In Kind' contributions can be comprised of labor, buildings, equipment already in existence to make the project complete. Cost share programs will be available at the rate of 50% as recommended by the State council. Cost shares will be demonstrated on application budget work sheets. Projects using multiple funds from other sources must show evidence of the benefit to the citizens of Powell County. E. Evaluation and Review 1. How will proposals be evaluated? The county council will review proposals monthly and will use the following criteria to evaluate proposals: *Farmers who are dependent on tobacco will be given high priority. *Does the applicant have sufficient equity in order to carry out project? *Small farmers will be given equal opportunity as large farmers. *Applicant's program should be in line with county comprehensive plan. 2. How will success and failure be measured? All proposals will be required to give a report of their project at least bi-annually in the form of financial statements, producer's involvement and project activities. The council requests that all projects have short term and long term measurable benefits to the community. 3. How will be county comprehensive plan be revised? The County plan will be revised annually, or more often if needed, to meet the needs of the people of Powell County. Sources: 1. "Welfare Reform by the Numbers"-Powell County Ky, U.K. College of Agriculture-rural sociology 2. Kentucky Agriculture Statistics Service, U.S. Census of Agriculture Report-Published December Kentucky Agriculture Statistics Market Review of the Bluegrass Page 7