Daviess County Agricultural Development Council

Transcription

1 Daviess County Agricultural Development Council COMPREHENSIVE PLAN November 2000 (Revised March 2001) (Revised May 2007) Submitted by: C.A. Pantle Jr. (Chairman) Jimmy Gilles (Secretary) Mike Edge Brian Fischer Joan Hayden Herschel Horn Jerry Knott John Wright Clint Hardy (Facilitator, Daviess County Cooperative Extension Service)

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3 DAVIESS COUNTY AGRICULTURAL DEVELOPMENT COUNCIL COMPREHENSIVE PLAN OVERVIEW OF COUNTY The Ohio River, a mid-west location, excellent primary and post-secondary educational facilities, and modest climate are major benefits enjoyed by citizens of Owensboro and Daviess County, Kentucky. Grain is the dominant crop in the region, with the county growing 75,000 acres of corn, 80,000 acres of soybeans, and 10,000 acres of winter wheat annually, which rates us in the top three counties for farm receipts from crops in the state. Commercial fruit and vegetable acres have increased in recent years and tobacco has remained the main source of farm income for all farm sizes. Supporting this agriculture resource is an excellent infrastructure that provides the agricultural sector the inputs to expand and prosper. Major agricultural retail establishments provide production inputs as well as management expertise that utilize knowledge gained by working internationally. The willingness to diversify and a sense of entrepreneurship have allowed the community to be recognized as leaders in new agricultural efforts. Agriculture in the 21 st century will require the utilization of emerging technologies such as biotechnology, alternative crop production, new livestock production and marketing programs, and the recognition of sustainable agricultural principles. The establishment of Kentucky Bioprocessing, a bio-technology firm, the agricultural technology program at Owensboro Community and Technical College, and grass roots efforts to develop cooperative ventures in the area of commercial vegetables and beef marketing provide the framework for future growth in the agriculture sector of the local economy. DEMOGRAPHIC DATA Owensboro, the county seat of Daviess County, is the third largest city in Kentucky with a population of 54,000 along with a county population of 37,000. The area economy prior to the mid 20 th century was tied heavily to agriculture production, marketing, and processing, including such current industries such as Owensboro Grain, Field Packing Company, and the distillery 1

4 industries. Over the second half of the past century, our community moved away from their dependence on agricultural processing or marketing to a more diversified economy integrating manufacturing, retail, and service sectors. Our county continues to grow as a retail center of the region, increasing service jobs and expanding retail outlets. Flat or lower population growth in the city and near double-digit growth in the county illustrates the ongoing challenge of production agriculture coexisting with urban sprawl that has increased land value and threatens the use of normal farming practices. From , more than 6,500 acres of farmland was lost due to urban planning. Agriculture, and particularly agribusiness, remains a driving force in the area, accounting for revenue from agricultural earning $23 million and revenue from agricultural services of an additional $4 million. As in all industries, consolidation has been a driving force in agriculture production, with the average size of farming operations continuing to increase with a higher percentage of the land being leased or cash rented. The number of part-time farmers is decreasing as well as the number of full-time farmers. The county lost 21 percent of their full-time farms over a five-year period between 1992 and 1997, with an additional 9 percent lost from 1997 to REVIEW OF THE PROCESS Per the directive from the State Development Board, the Daviess County Agricultural Development Council has sought input from many sectors of the community. Early in the development of the Daviess County Agricultural Development Council, two open public forums were held inviting the entire agricultural community and other community organizations to provide input for the development and direction of Phase I tobacco settlement funding allocation and goals that were to be accomplished. Many great accomplishments can be credited to strong leadership early in the process. The Green River Beef Improvement Group was formed of five counties within the Green River Area to process funding applications and to administer county cost share programs. Agriculture was introduced to the Green River Area Development District which also serves as an administrator for several model programs. The Cooperative Extension Service had found regard across the state for technical assistance and education provided with program applications. The Daviess County Agriculture Development Council and the Daviess 2

5 County Extension Agricultural Advancement Council met on March 29, 2007 to identify agricultural issues and opportunities that have presented themselves since this document was revised in March ASSESSMENTS Strengths We have many strengths in Daviess County that provide us opportunities to excel in agriculture production and marketing and the fertile level farmland is conductive to row crop production. Over 80 percent of our land base is suitable for production agriculture with nearly 64 percent considered prime agricultural land. Our proximity to the Ohio River provides an excellent marketing channel for our grain crops and provides delivery for inputs such as fuel and fertilizer. We have a diversified agricultural base with nearly $80 million in farm receipts. Over $56 million of that total is from crop sales including corn, soybean, wheat, and tobacco with approximately $26 million from livestock enterprises that include beef, poultry, dairy, and swine. The 2005 tobacco quota buyout legislation was passed in November Tobacco production restrictions which limited gross farm income were eliminated and more than $48 million dollars was earmarked for Daviess County tobacco quota holders and producers to be distributed over a ten-year period. Daviess County has long been the marketing location for the northwest region of Kentucky. The tobacco quota buyout closed the chapter of Owensboro being the hub of regional tobacco marketing. Tobacco is now direct contracted with manufacturers. One manufacturer operates a receiving station in Owensboro, but much tobacco leaves Owensboro for other delivery points in the state. Owensboro Grain Company is a major soybean processor that consumes most of the area production as well as imports from other grain regions of the country. Owensboro Grain announced in 2006 that soy oil processed in Owensboro would be value added for use as a motor fuel. The announcement came as the United States is desperately looking to reduce dependence on foreign oil. Seven major grain buyers are located within a 40-minute drive of most farms in Daviess County, providing great market competition and price advantages for producers. 3

6 The county has an excellent educational infrastructure for formal instruction as well as technical training and continuing education. The three school systems in the county provide high quality education for the K-12 that is recognized nationally for their achievement. Secondary and post-secondary technical schools provide excellent training opportunities in the health, trades, and high technology fields. Continuing education is an expanding area of need especially in the agriculture sector. The Daviess County Cooperative Extension Service continues to serve the needs of the clientele in the area of production, marketing, new enterprise development, and rural economic development. Continued support of the Extension Service and the land grant university system will be vital to insure that communities maximize the opportunities available through the Phase I tobacco settlement funds. Natural resources, education opportunities, and transportation systems that include railroad, good highway access, and an excellent river terminal are unique advantages for the county. However, our greatest assets are the agricultural producers and agribusinesses in the county. Their interest in improving management and production practices has allowed them to be considered some of the most innovative farmers in the country. Whether it is new wheat management approaches, commercial vegetable practices, or new livestock improvement efforts, they meet the challenge of the changing agricultural industry. Weaknesses One of the main weaknesses in our county has been the lack of opportunity to extend the marketing of our commodities to the next level. As a major grower of grain, tobacco, and livestock, few efforts have been made to add value to products to increase our share of the consumer dollar. Initial effort on identified preserved grains has been attempted with limited but encouraging success. With the closure of the killing operation at Field Packing, all livestock goes out of county for processing. Unlike areas in the northeast where producers have joined forces to develop production and marketing cooperatives, our region has remained tied to the commodity driven area of agriculture production. Opportunities 4

7 The best opportunities lie in the ability to capture more of the processing dollar of our farm products. In the area of livestock production, more marketing alliances such as the Green River Pre-Conditioning Sale will allow producers to gain market power with feedlots and to have more purchasing power through group purchases of inputs such as mineral, vaccines, and feed. The West Kentucky Grower Cooperative was a prototype of the potential of how producers can share resources toward the development of new enterprises. Fruit and vegetable growers have developed new markets and opportunities. A commitment to recruit biotech or other agribusiness related support industries can also have a possible effect on the diversification of the agricultural sector. Threats While the increasing costs of fuel, crop inputs and the world supply of grains have had the greatest immediate impact on production agriculture in Daviess County in the last three years, the greatest threats may be found closer to home. The continued urbanization of our county will challenge our community at several levels. First, the booming economy of the late 1990's provided increased disposable income for many non-farm citizens of the county. This has expanded the situation where farmland is being owned now by non-farming interests. This has resulted in increased farm land value, loss of opportunities for young farmers to purchase land, and less interest in land infrastructure and improvements. Second, urban expansion has also resulted in a direct threat to the livestock industry in the ability to manage their waste and to expand their operations. This expansion also compounds already existing flood problems for the county, which results in crop losses on an annual basis. On a related issue, more restrictive environmental standards threaten the ability of crop and livestock producers in using some of the traditional farming practices. These restrictions reduce their ability to choose the least costeffective production practices such as the use of manures, tillage practices, and chemical control of insects and diseases. County Council Objectives The goals and objectives of the Daviess County Agricultural Development Council are to serve as a catalyst for the development of projects that will further the economic welfare of this 5

8 community. We continue to solicit input from a diversified cross section of the farm and nonfarm communities to insure that we reflect the interest and aspirations of the county. Our intent is to encourage the development of new enterprises that provide a value-added component to our current enterprises and to support the development of new enterprises that will expand and diversify our agricultural economy. We strive to preserve the family farm structure as the means to provide opportunities for the next generation of farmers. Mission/Vision Statement The Daviess County Agricultural Development Council, working on behalf of the citizens of Daviess County and family farms, seeks to promote and encourage projects and programs that will expand the agricultural base of this county and region. The Council serves as a resource for farmers to explore new enterprises, preserve existing farming operations, and extend the marketing opportunities for this region. We seek to foster an atmosphere of cooperation and agreement in an effort to maintain our rural economy and its future for the next generation. Short Term Priorities Our short term priorities will be to support on-going efforts such as Owensboro Biotech Alliance, the Beef Marketing initiative in the expansion of their market development, and continued development of fruit and vegetable markets. This Council supports non-production efforts if they demonstrate an economic impact to the community and agriculture. We encourage cooperation among individuals to come together to develop proposals that are broad-based in their scope and show benefit to multiple parties. While group proposals are preferred, the Council will consider individual project proposals as long as they can show evidence that it will expand new opportunities for agriculture and could serve as a pilot project for future growth. The following are the short-term priorities for the Daviess County Agricultural Development Council and will serve as a guideline to the state in approving county requested funds. These are not listed in any certain priority. 6

9 Horticulture- Proposals that expand the marketing opportunities for local farmers by increasing market outlets, added value to the product, and capturing more of the retail dollar. Commercial Fruit and Vegetable Production and Marketing To develop and encourage production techniques that maximize yield and efficiency, and to support new market opportunities. Owensboro Farmers Market - To expand advertising to increase both grower interest and marketing expansion. Livestock - The county council favors projects that improve sustainable production systems to expand existing livestock enterprises and expand marketing outlets and opportunities. Green River Beef & Forage Initiative - The regional production and marketing efforts will provide education support with cost share funds to increase beef/forage efficiency and expansion. Grain The county council supports endeavors that will increase net farm income, improve conservation practices and improve operation efficiency. Subsurface Drainage Enhancement Program Program to help offset cost of installing subsurface drainage systems. Agriculture Technology Program Program to promote recordkeeping technology and application equipment that will improve efficiency and reduce input expense. Hay Straw & Commodity Storage Promote the economic benefits of grain and hay storage facilities for grain and livestock producers. Agricultural Education Initiative - The council supports the funding of projects that provide continuing education programming for farm producers in the areas of production, 7

10 issue education, and marketing education. The council also supports projects from formal education institutions that can show a direct influence to production agriculture. Extension Educational Programs - The committee supports educational program proposals as a method to provide unbiased information to producers across the region on production, marketing, and agriculture policy. Formal Education Programming - The council supports efforts by secondary and post-secondary education institutions to seek funds that will expand opportunities for students, especially those with a tobacco farm background, to explore new agricultural enterprises, continue their education, or become better trained to return to the farm. New Market Development - The council supports and welcomes proposals that will provide opportunities to groups or individuals that seek to explore new marketing development as a method to add value to a commodity. Not defined to date New Enterprise Opportunities - The council supports efforts by individuals or groups that will develop new enterprises that will supplement or replace lost tobacco income. Examples may include but are not limited to aquaculture, new livestock ventures, entrepreneurship type programs, etc. Agritourism development as a source of income and economic improvement of small farms and enterprises such as fairs, festivals, corn mazes, pumpkin patches, petting zoos, etc. and marketing efforts for those operations. Expansion of Established Agriculture Sectors - The committee is in favor of supporting ventures either commercial or non-profit that utilizes the expansion of existing 8

11 commodities as a method for new farm revenue. Examples may include projects that improve existing land resources, improves production efficiency, or reduces labor needs. Not defined to date Development of the Next Generation of Agriculture Producers The committee supports program and funding allocation for efforts designed to promote agriculture production and interest in youth specific programs. 4-H and FFA Agriculture production Enterprise Youth Cost Share Program. The goal of the program will be to help offset initial costs of establishing an agriculture production enterprise. Long Term Goals The long term goal of the council will be to encourage an atmosphere of cooperation among producers, rural and urban citizens, and public and private sectors toward efforts that maintain both the economic and historical importance of agriculture to this region. Expansion of the biotechnology industry led by the current work of Kentucky Bioprocessing provides tremendous opportunity to the local business economy as well as production agriculture. We hope to foster opportunities for graduates of agriculture-related technical and degree programs to remain in our region. The establishment of processing facilities to add value to our raw commodities will also remain a major key to continue strength in the agriculture sector. Tactics for Leveraging Funds We will support both direct grants to projects or funds for the purpose of buying down interest loans. The board will expect proposals to show evidence of in-kind, matching money, or other support equal to 50 percent of the total cost of the project as mandated by the Kentucky Agriculture Development Board. Proposals should clearly outline who the funds will be directed to and who will be responsible for the expenditures. A budget outlining expenses, 9

12 expected revenue sources, cash flow, and growth expectations should be outlined. For those using multiple county funds or state funds, a request of Daviess County funds must show evidence of the proportional benefit to the citizens of this county. EVALUATION AND REVIEW The Council will consider each proposal and determine its merit/need relative to direct grants or other methods of funding. The council will reserve the right to withhold or may choose to commit funds that are requested from the second year of the biennial budget relative to the merit of an individual proposal. Each program administrator is responsible for collecting the producer reports for those applying for and receiving cost share funds. 10