Elliott County Agriculture Development Council Comprehensive Plan. February 2008

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1 Elliott County Agriculture Development Council Comprehensive Plan February 2008

2 Elliott County Agriculture Development Council Jeff Barker Tracy Kitchen HC 75 Box 140 HC 75 Box 3000 Sandy Hook, KY Isonville, KY David Harper Venessa Gaye Maggard RT 3 Box 395 B Rt 3 Box 556 Olive Hill, KY Olive Hill, KY John Paul Skaggs Kenneth C. Skaggs HC 75 Box 750 Rt 1 Box 1065 Sandy Hook, KY Sandy Hook, KY Donnie Rose Carl Fannin RT 7 Box 165 HC 81 Box 760 Olive Hill, KY Sandy Hook, KY 41171

3 Overview of County Agriculture statistics, trends & projections Elliott County has a long, proud tradition of producing burley tobacco. Burley tobacco production has been a common thread running through farm families over the last few generations. Sandy Hook, the county seat of Elliott County, has hosted the Annual Tobacco Festival every Labor Day Weekend for the past 33 years. Tobacco production impacts nearly every citizen of the county directly or indirectly. Elliott County is the head of the Little Sandy River watershed; there is only a small portion of the county that drains into another river (Licking River). We are fortunate to have so much control over the quality of our water. This situation means that we alone are responsible for the quality of our water supply. Many communities are at the mercy of those upstream. The land is very diverse, consisting of pastures, cropland, hills, river bottoms, gorges, forests and minimal development. This all contributes to a tremendous amount of scenic bexauty and a high quality rural lifestyle. The 2000 Effective Quota for burley tobacco in Elliott County was 1,149,080 lbs, compare this to the 1997 Effective Quota of 3,147,882 lbs and it is obvious why farm cash receipts are projected to be 59.3 % less this year than they were in Without TLAP and Phase II payments to help offset this lost income the farm financial picture would have been very dire. From the Effective Quota averaged 2.41 million lbs, through that period Elliott County farmers produced 87.6% of that Effective Quota. The average value was $3,900,000, representing 78.9% of total farm receipts. In terms of total personal income, tobacco receipts accounted for 7.9% from The Kentucky Long-Term Policy Research Center ranked Elliott County as the 4th most vulnerable tobacco dependent county. Besides tobacco, cattle and timber are two of the largest sources of farm income in Elliott County. Farms with cattle increased from 204 in 1992 to 225 in Number of cattle increased over 11% during that same period. In terms of land coverage (Figure 1), forests occupy more land than every other land use combined. Forests cover over 82% of Elliott County, these forests represent a major source of income, contribute significantly to water quality and are one of the greatest resources of the county. Click on map for larger view Figure 1. Current land uses in Elliott County.

4 There was a lot of change in Elliott County from for the farm community. Acreage in farms decreased 5%, from 60,294 acres to 56,035 acres. Farm size increased 15%, from an average of 114 acres to 131 acres. The 1997 Census of Agriculture reports there are 427 farms in Elliott County. Over 26% of the farms are less than 50 acres, 49% range in size from acres, and 24% of farms are greater than 180 acres. Full time farms decreased 23%, from 222 to 171. During that same period the market value of agricultural products sold decreased 8%. Eighty - one percent of farms had sales less than $10,000 dollars. Average farm production expenses were $8,490 and total farm production expenses were $3,651,000. The configuration of Elliott County farmers has also changed. Average age of farmers in Elliott County is 51.8; less than 10% of farmers are under 35 years of age; half of the farmers are between the ages of 35-54; nearly 45% are older than 55 years of age. Forty- Seven percent of farm operators listed farming as their principal occupation. The average farm operator has over 19.6 years on the farm. One hundred and eighty-five farm operators reported working more than 200 days or more off the farm. Demographic Data Population trends (Figure 2) in Elliott County have shown a gradual decline since 1900, a 'timber boom' during that time swelled the population to over 10,000. Currently, the population is roughly 7,000 and has remained fairly stable since Twenty-seven percent of the population is under 18 years of age, 38% of the population is between years of age and 35% of the population is over 45 years old. Over 99% of the population is white non-hispanic.

5 Figure 2. Population trends in Elliott County. There are over 2,500 households in Elliott County and on average there are 2.55 people per household. Number of households is projected to grow slowly over the next twenty years while the average number per household is expected to decline over that same period. Over half of those employed in Elliott County are proprietors. That speaks well of the entrepreneurial spirit of the county but it displays the lack of other types of employment. Besides farming, the largest employers in the county are the services industry, local government and retail industry in descending order. Over half of the workforce must commute to other counties for employment. Elliott County is well known for its pipefitters and construction workers. The unemployment rate was in double digits over much of the last decade. In 1997, the female unemployment rate was more than double that of males. Median household income in Elliott County was $24,441 in 2005; that is more than $12,000 lower than the state average. The poverty rate in 2004 was over 25%, which is 9% higher than the state average. These trends are fairly common throughout Eastern Kentucky. Review of the Process A series of newspaper articles ran in the Elliott County News informing the public about Phase I and the role the county council has in the process. Three public forums were held in Elliott County. These public forums were held at the elementary schools because they are spread out across the county and gave everyone equal access without having to travel across county. Advertisement for these meetings was extensive. Announcements were made in the local paper and advertised on all of the area radio stations; in addition, posters announcing the public forums were posted in local businesses and some churches. The children of each school took a flyer home to their parents announcing the upcoming meetings. People also contacted members of the council as well as the Extension staff to share ideas and their thoughts on this process. Assessments Strengths There are many strengths in Elliott County. Many of those strengths are tied to our family farms and their heritage. A willingness to help out neighbors in times of need and to support the community are outstanding traits that people in Elliott County possess. Natural resources are abundant. While much of the easily accessible coal has been mined, many natural resources remain. Water, timber, oil and natural gas can be found in many

6 parts of the county. These natural resources are important to local income as well as our way of life. The water and forests contribute significantly to the natural beauty of the area. There is also considerable strip-mined land that is not being used and has potential. An interest and the desire to follow new and innovative agriculture regulations are displayed in various ways. Over the last five years, 31 cattle waste facilities have been constructed throughout the county and 19 more are planned. There are also numerous service agencies that support agriculture in the county. Soil Conservation Service, Natural Resource Conservation Service and the University of Kentucky Cooperative Extension Service are all dedicated to making agriculture safer, more productive, better for the environment and more profitable. Kentucky Farm Bureau also works to support the family farm. Elected officials, local and state, continue to be very supportive of agriculture and the family farm. Each of these entities is comprised of dedicated individuals that have a vested interest in agriculture. The knowledge and understanding of tobacco is one of our strongest agricultural strengths because of its long history as the major cash crop. Elliott Countians are known for more than just tobacco though; we have a strong tradition of talented individuals working in the arts, crafts and musical fields. Several are world renowned for contributions to their profession. We are also fortunate to have strong support from the local media. There are other strengths that are in progress or in the planning stages. Major road improvements to Route 7 have increased access to the county. More highway improvements are in progress. The state will start construction on a prison that should contribute to overall economic development. Water treatment facilities and 32 miles of new water line extensions are also being developed. The past few years and the upcoming ones have and will see a tremendous amount of change in Elliott County especially in terms of infrastructure. Weaknesses Geographic isolation is considered a major weakness in relation to agriculture progress. Elliott County is a rural agriculture community and many of the citizens are forced to commute outside the county to work because there is a lack of employment opportunities here. The isolation of the county also limits our access to markets. There are no large farm stores in the county, if bulk fertilizer is needed the farmer is forced to drive to a nearby county. While infrastructure is improving in the county, there is still a large need for more improvements. The geology and topography of the land contribute to the natural beauty but also limit opportunities that require abundant level land. The county's dependence on tobacco, nearly 80% of farm receipts were from tobacco, has contributed to the general lack of knowledge toward other agricultural enterprises. While unemployment levels are high it is still difficult to find adequate farm labor and in recent years some farmers have resorted to using migrant labor. A major concern for Elliott County is the outward migration of our youth; lack of opportunities for gainful

7 employment is a contributing factor. Another issue is the lack of lodging in the county, there is a single Bed & Breakfast serving the overnight lodging needs of the entire county. Various other weaknesses affect Elliott County farms. Many of our farms are deteriorating because of a lack of funds. Health issues such as cancer, diabetes and heart disease all weaken the family farm and absorb resources (time and money) that could be put back into the farm. Government assistance to welfare recipients and farmers has helped hold back financial ruin for many. Invasive, noxious weeds have established strong holds in parts of the county and are major players in the deterioration of our farms as well as a gradual economic shift toward less dependency on agriculture. The political structure has been skewed to one political party here in Elliott County and some feel this weakens our community, including our farms. While there appears to be many weaknesses in Elliott County, purchasing land here can be difficult because few people are willing to sell. Opportunities Every weakness is an opportunity; this was obvious as we worked through the plan. The Tobacco Master Settlement Agreement and the resulting Phase I and Phase II funds present a significant opportunity to improve agriculture in Elliott County. Farmers need better access to markets and a better understanding of marketing in general. This could be enhanced through partnerships or collaborations with other counties. Road improvements will also increase access to markets. A local farm supply store could support local agriculture and reduce travel time for farmers picking up supplies. Elliott County is isolated and sparsely populated. However, from a regional perspective (Figure 3) there are more than 10 million potential customers within a 250-mile radius. The agri-tourism industry is growing and presents a prime opportunity for Elliott County to market the family farm as well as the artisans, crafters and musicians to all of those potential customers. Increased public involvement could lend support to new agricultural enterprises. New opportunities are clearly viable in various areas. Council members have contacted FFA members about potential involvement. They expressed interest and we hope to get them actively involved in supporting agriculture in Elliott County. Last year was the first for the Elliott County Farmers Market and we hope that business will continue to grow and supply another source of farm income for some farmers. There is also some interest in organic farming; which could work well with our small farms while providing additional opportunities for farm diversification.

8 Figure 3. There are more than 10 million people within a 250-mile radius. These people are potential customers. Threats The biggest threat to agriculture in Elliott County is the loss of tobacco. The Kentucky Long-Term Policy Research Center ranked Elliott County as one of the most vulnerable tobacco dependent counties. Income lost will further contribute to the deterioration of family farms. Regulatory intervention with lending institutions may make it more difficult for farmers to obtain enough credit. The cool down of the hot economy and low morale in the farming community also pose threats to agriculture. A major reason so many of our youth are leaving is because they are finding better employment opportunities elsewhere. That poses a major threat to the county, we understand that some will leave regardless but we must try to give the youth a reason to stay. Complicating the matter is the high dependency on tobacco, which has put many farmers in a routine that may not be appealing to today's youth. It is difficult to have a strong vision for the future when things have been 'status quo' for so long. While Elliott County is fortunate to have so much forestland, a lot of it has been harvested. Much of the land that was harvested did not have proper forest Best Management Practices applied and this poses a threat to our water quality. There is a need for some land use management planning especially if the county is going to grow as many people anticipate. Economic problems resulted in population migration. People that once lived here and were forced to move, to find gainful employment, continue to return to Elliott County to spend their retirement and many of them have a limited income. There is also concern that our farms will start growing houses instead of agricultural products.

9 County Council Objectives Mission Statement The mission of the Elliott County Agricultural Development Council is to keep farming a viable option and to insure that Phase I funds are spent appropriately. We further intend to invest in the future and fight for profitable agriculture. Through education we will benefit all farmers, increase public interest in agriculture, entice young farmers to stay and improve the morale of all those involved in agriculture. Short Term Priorities One of the first priorities of the council is to further educate farmers about the Phase I funds and how they can benefit their farm. It is important that the council remove as many obstacles as possible to assist farmers throughout the process. We fully realize that there are numerous opportunities to improve current farm operations. Practices can be improved, but farmers must be shown better ways. Pilot projects present a unique opportunity to try things on a small scale, to determine how well they work, before time and resources are committed on a larger scale. It will be important to assist farmers in exploring and researching new farming enterprises. We must also insure that chemicals, solid waste and dead animals are disposed of properly. All projects must be environmentally sound and not diminish existing resources. Marketing is an area that many farmers are not comfortable with and could use as much assistance as possible. Farmers must know what markets exist and how to access those markets; the council can assist farmers in this area through support from the State Agricultural Development Board. Improving farms capability and capacity is an important part of sustainable agriculture. Physical improvements such as fencing, ponds, buildings, equipment, and other improvements that increase farms capability and capacity should be supported. Our ability to produce quality forages to support livestock should be enhanced as well as improving herd health and genetics. There is also great interest in developing multi county projects. Projects that can benefit multiple counties should be explored and fully supported. Because of our small size, some projects will only be successful if there are more people involved. Within the county, projects that have promise to impact many people should be encouraged and have a high priority. One area that has the potential to impact a lot of people is forestry, since many farmers are also woodland owners. Projects that improve forest productivity, improve water quality and support better forest management have the potential to impact the current generation and future generations. All efforts that enhance forest management should be encouraged and supported. Various other interests have been expressed. Specialty crops such as grapes, herbs, sorghum, berries, orchards and others have the potential to provide favorable margins to

10 our farmers. While these crops may not be special in other areas, the limited knowledge our farmers have of them make them special to us. Before farmers can realize those crops potential they must be educated about their production and marketing. Organic farming may also work well on our small acreages where control features may be easier to apply. The local farmers' market should also be supported. There is also opportunity to merge agriculture and tourism; the Tobacco Festival and the county fair are excellent examples, projects that have the potential to enhance both agriculture and tourism should be encouraged. Applicants and the council should not be fearful of making mistakes on projects, but we will do everything possible to minimize them. We must be willing to try new ventures and explore new opportunities. Information gained from projects must be made available and shared with others and we must support the exchange of knowledge among all of those involved in agriculture. Long Term Goals Long-term goals for Elliott County farmers are varied. Greater market access for agriculture products is extremely important if we are going to make agriculture sustainable. Farmers should be more self-supportive without depending on government bailouts. Funded projects should reach a sustainable status, ultimately resulting in agriculture education levels being increased, farmers feeling more comfortable about new farm enterprises, and morale improved. Retention of farmland, establishment of new farm enterprises, and free distribution of gained information are all long-term goals of the council, as well as improved forestry practices and herd health. Projects with other counties should be established and proven successful. Tactics for Leveraging Funds Multi-county projects are an excellent way to leverage funds for larger projects. Private foundations and other grant providers should be fully explored for possible funding sources. There are also many existing cost share programs available and farmers will be encouraged to take full advantage of those sources. It is also important to use all resources provided by the State Agricultural Development Board. Evaluation and Review Proposal evaluation will be based on the Investment Application Evaluation Criteria developed by the State Agricultural Development Board. Successes and failures will be measured by increased farm income, the number of new markets reached, an increase in cash receipts, increased public participation, and increased sales at farmers' market. Longer-term measures of successes and failures would include changes in farm acreage and the number of projects that reach sustainability after initial funding. It is important to realize that every proposal presents a learning opportunity.

11 This comprehensive plan must be flexible enough to address a wide variety of agricultural opportunities, but structured enough to give clear guidance to farmer applicants. We understand that this plan will need to be revised from time to time. Any proposed changes will be made available to the public prior to those changes taking effect. Before changes are made the Elliott County Agricultural Development Council will vote and six of eight votes will be required for approval. References Kentucky: By the Numbers, Poverty Update, Elliott County September 1999 Programs, Rural Sociology Kentucky: By the Numbers, Earnings Update, Elliott County; October 1999 Kentucky: By the Numbers, Income Update, Elliott County; September 1999 Kentucky: By the Numbers, Employment Update, Elliott County; October 1999 Kentucky: By the Numbers, Unemployment Update, Elliott County; November 1999 Kentucky: By the Numbers, Labor Force Update, Elliott County; November 1999 Kentucky: By the Numbers, Household Projections Update, Elliott County; November 1999

12 Kentucky: By the Numbers, Population Update, Elliott County; September 1999 Kentucky: By the Numbers, Agriculture Update, Elliott County; November 1999 Elliott County, Kentucky Agricultural Statistics, ; December 1999 Kentucky Agricultural Statistics Service 1997 Census of Agriculture County Profile Elliott, Kentucky; United States Department of Agriculture, Kentucky Agricultural Statistics Service Summary Data for Kentucky Tobacco Counties , Will Snell, University of Kentucky Kentucky Long-Term Policy Research Center, Foresight Vol. 7 No. 1, Page 3, 2000.