HENDERSON COUNTY COMPREHENSIVE PLAN

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1 HENDERSON COUNTY COMPREHENSIVE PLAN Overview of County Henderson County is located in the Midwest along the Ohio River. The city of Henderson is across the river from Evansville, Indiana, east of Illinois and just west of Owensboro, Kentucky. Henderson County s central location in America s heartland makes it within a day s drive of major markets in Chicago, Cincinnati, Louisville, Memphis, Nashville, St. Louis, Atlanta and Indianapolis. With major highways, parkways, waterways, railways and airport facilities, the county offers excellent primary and modest post-secondary educational opportunities. Grain is the dominant crop in the region with value-added grain production playing an ever increasing role in the 160,000 acres of corn, soybeans and wheat produced annually. Tobacco is 1.5 million of the 50 million dollars in crop income. Supporting this agricultural economy is an infrastructure that is feeling the crunch of consolidation as farms grow in size and lose the diversification that once existed. Willingness to diversify is being exhibited, but producers often lack incentives and opportunities to make it economically feasible due to rising input costs and land availability. These are contributed in part by the large number of absentee land owners and their unwillingness to be part of new ventures. The establishment of an ag-tech program at the Henderson Community College and a cooperative venture in beef and vegetable production, value-added grain production, and revitalization of the Farmer s Market has provided a bright spot for the future growth in the agricultural sector and the local economy. Demographic Data Henderson is the county seat of Henderson County. Total population is 27,000 with a rural population of 19,000 and just across the Ohio River is a largely urban Vanderburgh County, Indiana with a population of 270,000. The area economy before the mid-20th century was mainly focused on agricultural products, marketing and processing. This county has seen a shift in the types of processing that existed (tobacco, distilleries, livestock) toward Massa flour and poultry in addition to more diversified manufacturing, retail and service sectors. This county continues to expand as a retail and manufacturing center for a three-county area. Urban sprawl continues to increase land value and threatens the use of common and acceptable farming practices. The loss of the implement sector of agribusiness has placed a special burden on the farmers as our agricultural industry continues to consolidate. The average size of farming operations continues to increase. In 1982 there were 725 farms, which fell to 526 in 1997 according to Ag Census Data. We have seen that with a loss in tobacco income comes a decrease in part-time farm income. At the same time, we have seen a consolidation of farms (average size has increased 13 percent) due to lower commodity prices and higher input costs. Amended 04/23/01 Page 1 of 5

2 Process Review As directed by the state Agricultural Development Board, Henderson County has sought ideas from all sectors of the county. The first public forum was held on November 2, 2000 at Henderson County High School. The second forum was held on December 12 at the Henderson County Extension Service Office. The two meetings had representatives from the Chamber of Commerce, local county government, Downtown Henderson and Farm Bureau. In addition to two local public forums, representatives from the local board and local farmers attended a regional forum held in Daviess County in an effort to develop a regional approach to projects. Both local sessions allowed the public to bring ideas to the board. Summaries were done after the first forum and handed out at the second. Strengths and weaknesses were sought on each idea. Besides the forum, comments were sought from junior and senior high school students. Publicity was done through the Henderson Gleaner and WSON Radio, both local media outlets, and large mailings. Assessments Strengths - Henderson County has many strengths upon which to draw. The three main strengths are location, fertile, productive and diverse soils, and people with education and ability. Its location is tied to the mid-west by railroads, four-lane highways, barge transportation, and a major airport just across the river in Indiana. We have the ability to move products on the river even in severe conditions such as high water. Our soils have the ability to produce a wide variety of crops and Henderson County is in the top 1 percent in farmland under irrigation in Kentucky. Our corn and soybean production has been in the top three for over a decade. Our people can be considered of our greatest assets. We have a large portion of our agricultural community having attended college. Four four-year colleges exist within a 30-mile radius. The Community College has recently started an agriculture technology program and the high school has one of the largest vocational ag programs around. Henderson County is also the location of Kentucky s only corn research center, Novartis, which has three people with PHDs doing research in developing corn hybrids in this area. We have the ability to move grain with three barge loading facilities available in the county. We also have the only corn processing facility producing Massa flour and a chicken processing plant owned by Tyson Foods. In downtown Henderson there is also a farmer s market. All these along with low energy costs have added opportunities to our county. Amended 04/23/01 Page 2 of 5

3 Weaknesses - The primary weakness is the need of further processing of raw products. The corn processing plant has had a planned expansion, but has now put it on hold. Even with the only corn research center in Kentucky, we have failed to land a bio-tech company. Industry recruiters lack the knowledge and understanding of ag industry to attract agricultural industries that would strengthen our economy and have been forced to seek industries which are easier to attract. The loss of all farm machinery dealerships has placed a burden on producers to travel outside the county for parts and machinery. The poultry processing plant is the last ag industry to locate here and although it has increased our corn marketing opportunities, we are still in great need of further value-added processing. The location of only one cattle market within a 30-mile radius and no processing plants except two small facilities. This places a further burden on the livestock industry. Upgrading the recently opened farmers co-op is necessary to make it competitive in marketing produce. Without upgrading, its potential is limited. Opportunities Some of the best opportunities lie in increasing on-farm production quality and marketing power. There is also opportunity in further processing of grain through bio-technology. Grain quality is a strong suit and diversity of grain production, handling and storage has received emphasis from producers for years. The willingness of producers to seek horticultural opportunities is a viable opportunity. The participation of livestock producers in value-added livestock production is an untouched opportunity. Capitalizing on the needs of a large urban population across the river is an ever-increasing opportunity. Threats The continued problem of urban sprawl will challenge our community. We have more farms being split-up than ever before. Income has increased on all levels at a greater pace than agriculture, putting extreme pressure on land prices. Urban sprawl has directly affected the ability of agriculture to compete using the best available management practices. In addition, industry has grabbed some of our best farm land and placed a burden on farming operations to compete. Mission Statement The will focus its efforts on behalf of our agricultural community to promote and encourage projects that will expand the agricultural base and move it progressively into the 21 st century. Amended 04/23/01 Page 3 of 5

4 Priority Areas Our short-term priorities are to provide cost-share funds for producers who are looking to make a transition into or take advantage of on-going efforts in horticulture or beef production. For horticulture production the areas of equipment, water management, and marketing opportunities have been identified as high priority areas. For beef production the areas of genetics, forage improvement, equipment, technical assistance, and environmental concerns have been identified as high priority areas limiting producers from taking advantage of marketing opportunities. Assistance in these areas should yield immediate results. We will give a lower priority to proposals that show evidence of expanding new opportunities for agriculture through educational or demonstration projects. In the long-term priorities we hope to improve opportunities for youth and adults in agriculture through agricultural technology education, value-added opportunities through biotechnology to meet the challenges of urban and environmental impacts. The Council supports area and regional efforts that add value and opportunities in areas of marketing and value-added processing of raw materials. The following categories have been identified as priority areas: C new agricultural enterprises C areas that add value to existing ag enterprises C agricultural educational activities C areas that cut or limit production costs while implementing best management practices and/or meet environmental standards We will encourage the cooperation of individuals to come together to develop project proposals that are broad-based and stand to benefit multiple parties. Funding Methods We will consider all project proposals, both group and individual, but will place a bigger priority on group proposals. Individual proposals should show opportunity to duplicate and add future value and opportunities to our agricultural community. The (HCADC) will use cost share by asking that proposals show evidence of in-kind, matching funds or other support equal to 50 percent of the total cost of the project. Consideration will be given as to what percentage of the Amended 04/23/01 Page 4 of 5

5 Funding Methods (continued) county s allocation the applicant is requesting. Any group, business or organization applying is expected to give detailed information about the project proposal including nature of project, amount requested, total cost, operational budget, outcome objectives and the benefit to the agricultural community. All project proposals approved for funding with county funds will receive funds in accordance with both received and projected funds which could vary in total amount. Project proposals should reflect in their budget a timetable of when funds are needed. Evaluation & Progress The HCADC projects will strive to meet all merits of evaluation in accordance with guidelines set by the State Agricultural Development Council. The HCADC also requests a progress report updated annually or upon project completion if it occurs in less than one year. Reports should show progress on short term and long term goals as it relates to financial status, producers involvement and project activities. All proposals will be reviewed by HADC and receive a priority rating: high, medium, low and no priority given as to how the proposal meets the goals outlined in the County Comprehensive Plan. The proposal, after being reviewed at the county level, will then be submitted for the State Agricultural Development Council for review and final approval. Amended 04/23/01 Page 5 of 5