Todd County Phase I Agricultural Development Plan Originally adopted December 27, 2000 Revised April 30, 2001 and December 4, 2007

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1 Todd County Phase I Agricultural Development Plan Originally adopted December 27, 2000 Revised April 30, 2001 and December 4, 2007 I. Overview of Todd County Todd County is located on the Tennessee border in southwestern Kentucky. It is a largely rural community with a population of 12,101. Median Household Income (2004 data) is $32,173, about $4,900 below the state average. The 2002 Census also shows that Todd County has 676 farms. More than 60 percent of all farm operators (419) list farming as their principal occupation. And contrary to national and state trends, farm numbers here increased between 1992 and 2002 (from 653 to 676 farms). Todd County s 2005 cash receipts totaled over $74 million (excluding eggs) making it the 13th largest agricultural county in Kentucky (if you exclude eggs). Todd County ranks 7th in the state in terms of cash crop receipts (over $42 million) and is a major producer of corn (ranked 8th), soybeans (ranked 10th), soft red winter wheat (ranked 3 rd ), dark-fired tobacco (ranked 5th), dark air-cured tobacco (ranked 4th), burley tobacco, hay, and barley for grain (ranked 3rd). Major livestock enterprises include beef cattle (mostly cow-calf production), dairying, and hog production. Todd County still has more than 40 dairy farms and ranks 10th in Kentucky milk production. Amish and Mennonite families moving into the county have replaced several traditional dairies as farmers retire or shut down their operations. The county is the #1 producer of eggs for human consumption in Kentucky. Todd County is also the home of many of the breeder houses (to produce eggs which become the chicks in Cagles-Keystone broiler houses). Several farmers also grow broilers for Perdue. Todd County was one of only fifteen Kentucky counties that increased the amount of burley tobacco produced when the federal tobacco price support program was abolished in Tobacco remains a viable farm enterprise for many Todd County farms, and local farmers particularly want to continue growing dark air-cured and dark fire-cured crops (acreage of those crops also increased in 2005). Total tobacco receipts were more than $8 million in Tobacco acreage has continued to increase in 2006 and Overall, Todd County s agricultural economy is more diversified than those of most Kentucky counties. Non-traditional and/or minor agricultural enterprises include sheep, goat, rabbit, deer and elk production; produce production (for fresh consumption); and greenhouse bedding plant and tomato production. Many traditional grain farmers are also involved in producing some type of specialty crops; including white corn, waxy corn, amylase corn, high oil corn, popcorn, and white wheat, etc. Forestry and related wood products business are also important components of the natural resources economy. 1

2 Figures from the 2002 Census of Agriculture list the following uses for Todd County s approximately 183,972 acres total farmland area (NOTE: these numbers will not total 183,972). Harvested cropland ,915 acres Cropland used only for pasture... 16,580 acres Other cropland... 13,792 acres Other pastureland... 11,383 acres Land in house lots, ponds, roads, wasteland, etc.... 6,372 acres Land under Conservation or Wetlands Reserve Programs.. 10,501 acres Total woodland... 30,930 acres Major transportation routes include US 68, a major four lane east-west highway that connects with Interstate 65 at Bowling Green to the east, and to the west connects with the Pennyroyal Parkway at Hopkinsville, and with Interstate 24 between Hopkinsville and Cadiz. I- 24 nearly touches the southern border of the county; and can be accessed to south via Kentucky routes 104 and 181. River transportation of soybeans and wheat is within driving distance through Hopkinsville Elevator Company s elevator on the Cumberland River at Clarksville, Tennessee. CSX operates a major rail line that passes through the Todd County communities of Trenton and Guthrie. This railroad provides some opportunities for shipping grain (especially corn) into the grain-deficit states to our south. II. Review of the Plan Development Process The original plan was developed with input from agricultural, business, and government leadership along with input from the general public. A public hearing was held in October 2000 to gather ideas from the public concerning ways to generated additional agricultural income and to ease the effects of lost burley tobacco quota. Written comments were also received on two different types of questionnaires that were circulated in the community. The county Phase I Agricultural Development Council drafted the plan based upon the input gathered, and upon their own experiences in agriculture. After a rough draft was developed, it was circulated in the community to solicit reactions and suggested changes. No changes were suggested; so the council formalized this final draft, which incorporates only minor grammatical alterations and clarifications to the original draft. It has been revised/updated twice. III. Assessment of Todd County A. Strengths 1. Seventy-six percent of the land in Todd County is considered to be suitable for cultivation (capability classes I, II, III, and IV). Over 50 percent of all land is class I and II. 2. Todd County has a strong history of progressive agricultural production. Over 60 percent of all farmers in Todd County farm full time. Agricultural income is fairly evenly divided between crop and livestock enterprises. 3. County agriculture is already fairly diversified. 2

3 4. Significant agricultural infrastructure exists in the county and region. Todd Co. has: (a) four farm supply stores, plus three just across the county line in Tennessee: (b) two grain elevators (plus one just across the line in Tennessee and another one just across the county line in Pembroke). Some of these elevators deal with specialty grains such as food grade corn and popcorn, etc. Barge access is available at Clarksville, TN (c) one feed mill in Elkton (d) a US Tobacco facility in nearby Hopkinsville (e) burley contract receiving stations in Hopkinsville and Russellville (f) a produce auction house just across the county line at Fairview (g) livestock auction markets in Guthrie, Russellville, and Hopkinsville, plus an order buyer receiving station in Hopkinsville (h) milk markets in Nashville and Murray (i) nearby value-added user of wheat (Siemer Milling Co.) (j) one large-animal veterinarian in Todd County plus others in nearby towns (k) a hardware store and a lumber yard in the county (l) full-line farm equipment dealerships in Hopkinsville, Russellville, and Clarksville, TN (m) several sawmills in the county (n) several pallet mills in the county (o) a good system of roads for local transportation (p) county wide no-cost (to the farmer) dead animal pickup service 5. A relatively large urban market (Clarksville, TN) borders the county on the south 6. The county B. Weaknesses 1. A shortage of skilled farm labor 2. A shortage of seasonal (mostly unskilled or semi-skilled) farm labor 3. Intense competition for row crop acreage = high cash land rents 4. No nearby slaughter plants for hogs, cattle, or cull cows. 5. High feed costs (compared to areas where corn basis is weak) C. Opportunities 1. A significant urban market for produce and other products exists just across the state line in Clarksville, TN. (How saturated the Clarksville market is with straight-from-the-farm agricultural products is not known.) 2. Limited opportunities for non-traditional (speciality) enterprises exist, but in most cases the producer must be the one to find, develop, and defend his/her marketing opportunities. 3. Opportunities to grow and sell produce are provided by the Fairview Produce Market. This auction market provides a hybrid market situation with prices ranging between roadside stand prices and those found in wholesale markets (depending upon the supply/demand situation). 4. Opportunities for improving beef cattle income: (a) use of superior beef bulls could significantly improve the quality and weaning/sale weights of beef cattle. (b) coordinated bull-buying (or AI) efforts between farmers could result 3

4 in larger groups of consistent type and weight cattle that might possibly be marketed in trailer-load lots. (c) alliances between beef producers and feed lots/packers could generate additional options for marketing feeder calves (full or partial retained ownership, etc.) (d) improvements in rates of gain and total pounds of beef sold per acre could be realized with the improved utilization of pasture resources through rotational grazing. 5. Marketing education can help producers control price risk for grains, milk, and livestock. 6. Timber stand improvement could greatly improve the long-term productivity and income potential for the county s woodlands. D. Threats 1. A major threat to agriculture in any community is urban (or town) sprawl. The city of Clarksville has grown right up to the Todd County line on Highway 104 below Trenton. If Tennessee passes a state income tax, there will be increased pressure for Clarksville to push into Todd County. 2. Economic pressures toward larger farms continue without letup. The need to spread fixed costs such as equipment and family living expenses creates a need for more acres of crop or pounds of tobacco for each farming unit. As the average farm unit expands in size, some farming operations must shrink and/or go out of business to make room. Few if any family farms are immune from the risk of being squeezed out of business as farming units become larger. 3. Public understanding/tolerance of agricultural operations is declining. Even in an area as rural as Todd County, fewer and fewer people have direct connections to farming. As generations pass and people s farm roots get stretched thinner and thinner, people become less tolerant of the dust, noise, spray drift, and animal odors that result from common farming operations. Those problems are often compounded by greater numbers of city or town dwellers who move out into the country to escape urban or suburban life. Many move to the country expecting country living to be similar to living in a public park, as opposed to expecting the dust, noise, odors, and disturbances that are normally associated with production agriculture. 4. Farming is becoming more regulated. Regulations that have come into effect over the past ten years have greatly restricted the locations for confined livestock operations. Other regulations with major farm impacts have included IRS regulations requiring income tax and social security withholding on day labor, the federal Worker Protection Standard, the Kentucky Ag. Water Quality Act, and the new federal water quality regulations that will soon be in place. 5. Tobacco production in Todd County is now highly dependent on migrant labor, most of which is H-2A labor from Mexico. Any regulation which threatens the opportunity to bring in this seasonal labor, or that drives up the cost of H-2A laborers is a threat to local tobacco production. 4

5 IV. Todd County Ag. Development Council Objectives A. Mission/Vision Statement The Todd County Phase I Agricultural Development Council will invest monies from the Kentucky Agricultural Development Fund in proposals that have potential to increase the county s net farm income, or have potential to alleviate the economic and social stresses created by changes in the local agricultural situation. This may be achieved through a variety of methods including, but not limited to: discovering, stimulating, or creating markets for Todd County s agricultural products; finding new ways to add value to local agricultural products; exploring new production opportunities for the county s farm families; and helping farmers become more productive and efficient with their farm enterprises. B. Short Term Priorities (1) To help provide educational opportunities to members of farm families who have been impacted by the recent changes in agriculture. This assistance could be in the form of financial support of vocational agriculture programs (or perhaps other vocational programs) in Todd County. The assistance might also take the form of tuition reimbursement for impacted farmers and their immediate families (spouses or dependent children) who take college, technical, or vocational education classes. (2) To support the exploration and/or development of ways to add value to traditional Todd County farm enterprises; and/or to make them more profitable. Specific programs that have received significant Todd County Phase I monies have been the cattle genetics improvement programs; the cattle handling facilities programs, and the forage improvement programs, etc. The greatest emphasis has been on the expansion/improvement of commodities that are currently being produced, and that emphasis will likely continue. (3) To support the exploration and/or development of alternative (non-traditional) enterprises for Todd County farmers. Thus far, producer interest has been relatively low in using Phase I monies for non-traditional programs, but some efforts are being made in that area. New programs are constantly being added to the Todd County Phase I program offerings. The horticultural Agricultural Diversification program was offered for the first time in (4) To support the exploration and/or development of methods to improve the profitability and/or sustainability of tobacco production in Todd County. A program of costshare grants for certain tobacco-related expenses (similar to the 2001 Farm Income Improvement Program) would be considered most desirable. In Todd County, cost-sharing on greenhouse trays, steamers, labor housing, curing structures, and irrigation equipment would provide the greatest benefit to tobacco growers (although some other things might also be considered). (5) To cooperate with other area or regional Ag. Development Councils on agricultural economic development projects that promise potential benefit for Todd County farmers, but which can best be addressed through the combined efforts and resources of multiple counties. For example, the Todd County Agricultural Development Council has supported the Commonwealth Agri-Energy ethanol plant that was built in Hopkinsville, the Owensboro Grain Biodiesel plant, and the Seimer Milling Company s glue production facility built to utilize lowquality wheat.. 5

6 C. Long Term Goals To promote the economic and social sustainability of Todd County s agriculture industry through: (1) more efficient use of agricultural inputs and existing production resources; (2) adding value to some of the county s commodity production; (3) continuing to discover and exploit niche markets for non-traditional (specialty) enterprises; (4) promoting the education and workforce preparation of Todd County citizens; and (5) preserving rural lifestyles and values in the county. D. Tactics for Leveraging Funds (1) Regional partnerships The Todd County AD Council has participated in some regional or multi-county partnerships and will probably continue to do so for worthwhile projects. Participation will be dependent upon whether the project sufficiently addresses Todd County s Phase I Agricultural Development Plan s goals; and upon whether a partnership arrangement is considered to be the best way to approach the project. (2) State Ag. Development Board resources There are no plans to ask for state Ag. Development Board resources at this point. (3) Other local/state/federal resources Farmers and organizations who propose projects to the Todd County Ag. Development Council will be required to cost-share on the expenses of those projects. (4) Agricultural Development Fund (Phase I) contributions to any program or project cannot exceed 50 percent of the cost of the project. V. Evaluation & Review A. How Proposals Will Be Evaluated Proposals will be evaluated on their perceived potential to either increase production efficiency, improve marketing efficiency, add value, or create new products with new markets for Todd County farmers. B. How Success/Failure Will be Measured The Todd County Phase I Agricultural Development Council knows that making money in agriculture is not easy. Tobacco has long been the most consistently profitable enterprise available to Kentucky farmers, and as of 2007 it has continued to be a foundation for Todd County s agriculture. No other crop or livestock enterprise that can be legally produced in the county can generate so much income on so few acres. Success of local Phase I programs will be measured in a variety of ways, including (1) the number of farmers who are assisted through Phase I programs, (2) income improvement of participants, (3) increased safety on the farm (such as has occurred because of investments in cattle handling facilities, (4) the development of new commodities or enterprises, and (5) the improvement of our agricultural resources (such has been achieved by the tile drainage program). 6

7 The returns on investments in education are often difficult to measure and may only be evaluated over an extended period. However, it is commonly known that additional education is often the key to unlocking employment opportunities, and on the average results in higher lifetime incomes. Fund recipients will be required to submit a report on a periodic basis to insure that they are meeting the requirements of the funded project, and so that an estimate of the outcome can be made. C. How The County Comprehensive Plan Will Be Revised The Todd County Agricultural Development Council will update and/or revise its plan (1) as the perceived county needs change; (2) as project efforts are evaluated to be a success or failure; and (3) as it becomes aware of new projects or agricultural enterprises need to be explored or developed. Adopted 12/ 27/ 2000 Revised 4/ 30/ 2001 Revised 12/4/2007 7