NICHOLAS COUNTY AGRICULTURE DEVELOPMENT COUNCIL COMPREHENSIVE PLAN JANUARY 2, Submitted by. Michael Phillips, Agent

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1 NICHOLAS COUNTY AGRICULTURE DEVELOPMENT COUNCIL COMPREHENSIVE PLAN JANUARY 2, 2001 Submitted by John Cleaver Jr., Chairman Jim Caswell, Secretary Silas Cleaver III Doug Hamilton Dr. Robert Sparks Jim Simons Paul Judge Cecil Duncan Michael Phillips, Agent Demographic Data Ag Development Nicholas County Nicholas County is nestled in the outer Bluegrass region of central Kentucky, comprising 197 square miles of land area. Our population has seen a small increase starting in the mid 1990's. As of 1997, Nicholas County s population was reported to be 7,036, an increase of 311 from Carlisle, the county seat of Nicholas County, has a population of There are 5 smaller communities within Nicholas County: Barterville, East Union, Headquarters, Moorefield, and Myers. Nicholas County is comprised of approximately 130,500 acres of land. Nearly 60 percent of the land is Eden Shale. This particular land type limits the agriculture productivity. This land is mostly suitable as a pasture/forage enterprise. The most productive land types are near creek bottoms and generally have a high potential of flooding and are limited in size. Nicholas County has one major river, the Main Licking, extending the entire northeast boundary of the county. Other major water sources include Hinkston

2 Creek, Crooked Creek, Stoney Creek, Cassidy Creek, Somerset, and Lake Carnico. Water quality, water quantity, and flood control are all major concerns. The county water district has just started the fifth phase of a water expansion project that will make public water available to 95 percent of the county households. A limited number of county residents are still without indoor plumbing. The need to upgrade and expand the Carlisle Sewage System is having a limiting effect upon attracting additional industries to the community. In addition, as water usage increases due to public water service, the need to develop a county sewage system continues to increase. Presently, persons building new homes are faced with few alternatives for sewage disposal. Due to heavy clay soils, water will not quickly penetrate these soils. This factor limits a septic tank type system. Many of the new homes have utilized an open lagoon system that is both unsightly and can be hazardous to small children. There may be some evidence of water contamination of private wells. The handling of solid waste, the closure of the Nicholas County Landfill, and the monitoring of it are very important. However these procedures have proven very costly to the county. Water well testing, emphasized as a county concern in prior years, provided little evidence that agriculture was a contributor of water pollution. The need to prepare a solid waste plan is becoming critical. The county is projected to see many subdivision developments occur in the next ten years. Plans have to be in place to handle these needs very soon. One of the main attractions for new residents is the rural setting that our county has to offer. We are already seeing evidence of these developments occurring. Land use is becoming a major concern to area producers. Producers are experiencing great difficulty in competing with land prices that are three to four times the price that agriculture uses can afford to justify. Currently, the lack of adequate transportation has limited industrial development. US# 68 is under major repair and relocation that will greatly improve this situation. This could become another major highway artery connection with Ohio. Another highway improvement project that is very near Nicholas County is State Road #11. This project, when completed, will connect into Interstate 64 that will bring us closer to having access necessary to compete with other communities for industrial development. There are presently 2,966 households in Nicholas County. The average number of people per household is Median household income for Nicholas County is estimated to be $25,311, approximately $3,600 below the state median average. People of all ages in poverty in the county is 20.5 percent of the total population of the county. Of this group, 482 youth, 18 years or younger, fall into this category. The closing of the Jockey plant in Carlisle last year displaced 330 workers. This was 52 percent of the workers employed within Nicholas County. In addition, when you look at the decline of the tobacco quota that occurred over the past 4

3 years, from an effective quota of 6,704,295 pounds in 1997 to 3,071,947 pounds in 2000, you can quickly see the severe economic plight faced by the county s government officials and the individuals that depended on these revenue sources. Tobacco accounts for over 50 percent of the total agriculture revenue for Nicholas County. To say that the county is dependent of tobacco doesn t always clearly state the total picture. Over those last 3 years of declining quota, the county s tobacco producers lost $7,413,057 on which they and the merchants within the county depend. Most economists say that a dollar will turn 7 times within a community. If this is true, Nicholas County collectively lost nearly 51.9 million dollars since the tobacco quota cuts began to occur. Farm land prices will surely decline due to this economic loss. Farm acreage has also shown change. In the 1997 Census of Agriculture, a decrease of 5 percent less occurred from 1992 thru Acreage in farm land reduced from 112,409 acres to 106,292 acres. During this same period of time, farm size actually increased. In 1992, there were 171 acres per farm; in 1997 this had risen to 187 acres per farm. The number of full time farmers also shows decline. The 1992 census reported 657 farms in Nicholas County. In 1997, this number had dwindled to 567. When the new census data is completed, I feel sure the decline will once again reveal an even smaller number of farms remaining within the county. The main reduction in farm land has been due to the number of new housing starts. This trend will continue to compete for additional farm land. OVERVIEW Traditionally, Nicholas County s agriculture has been made up of tobacco, livestock, and forages. Tobacco has and still remains the top revenue source in the agriculture economy. With the loss in tobacco revenues, the small family farm has suffered tremendous economic hardship. Beef cattle continues to be the second leading economic producer. With the declining tobacco revenue some producers are very near equal in what their beef operation generates. Nicholas County, though near the bottom in land size, ranks 46th in beef numbers within the state. The January 2001 inventory shows an excess of 10,000 head of beef cattle in the county. With nearly 98,000 acres in pasture and forage base, beef cattle seems to be an area where additional expansion could occur. Areas that would help in this expansion would be adding new fences, water systems, and pasture improvement. Forages is the other important piece of the agriculture picture. Most all of the forages produced in the county are utilized by the livestock operations on farm. Due to the small number of tillable acres, the county s grain production is of little significance. The small amounts that are produced are utilized by the producers for livestock. Alternative crops are just beginning to be looked at by a few producers.

4 Presently, one producer is utilizing vegetable crops to supplement farm revenues. Several factors have prevented a faster influx of producers from entering this new arena. Labor is the number one problem. Most all of the vegetable crops are very labor intensive. The second would be the additional capital needed to produce these new crops. Cost of additional equipment and lack of managerial skills for these new ventures have prevented more from becoming involved. Nicholas County agriculture has experienced a downward turn since In 1996, the total agriculture economy was $17,698,000. In 1999, it had declined to $13,784,000. These factors reveal the importance of House Bill 611 to Nicholas County s agriculture, and more importantly to farm families and the citizens of Nicholas County. OPPORTUNITIES The Nicholas County Agricultural Development Council has determined the areas of greatest interest for expanding agriculture development. These were ascertained through a survey in the local newspaper, public forum, and interested parties attending monthly council meetings. LIVESTOCK & FORAGE Nicholas County s beef cow numbers have maintained approximately 10,000 head. These cow numbers generate income of nearly four and one-half million dollars. With 75,000 acres of permanent pasture available, it would appear that a great opportunity exists for additional livestock growth. To further illustrate this fact, when you add the additional 18,000 acres of hay and meadow base, the total acreage that can be devoted to cattle production increases to 93,000 acres. The ratio of cows to available acres becomes 1cow for every 9.3 acres of land. In order to expand, there is a need to improve fencing, develop new water systems, improve forage quality, and improve cattle genetics. Improvement in these areas would provide producers the opportunities to enhance income potential. TOBACCO Nicholas County ranks 40 th in tobacco production in the state. In spite of the vast reductions realized over the past 3 years, tobacco continues to be the leader, generating the greatest portion of agriculture in the county. In 1997, we harvested 2,890 acres of tobacco. This produced over 5.7 million pounds of tobacco, grossing over 10.8 million dollars of revenue. In 1999, we harvested over 2,500 acres of tobacco. This produced nearly 4 million pounds of tobacco, yielding over 7.5 million dollars of revenue. Labor is the most critical part of the production problem. New technology that could help elevate a portion of the labor problem would be welcomed. The cost of maintaining buildings and equipment is also very high. Most producers have had great difficulty in finding the necessary dollars to re-invest back into their tobacco enterprise with the tremendous cuts they have had

5 to endure. Producers continue to seek new ways to help utilize their product on a more local level, where they have greater control in the decision making process of this vast industry. Due to the culture and interest in tobacco production, tobacco will continue to be an important piece of the fabric that characterizes Nicholas County. ALTERNATIVE CROPS Nicholas County producers over the years have sought various crops to incorporate into the total production picture. In the midseventies, 7 or 8 producers grew peppers for 3 or 4 years with a less than successful experience. Most producers either broke even or showed very small profit. For the following years, through the late 90's not a single producer expressed any interest in getting back into vegetable production. One producer is helping change the perception that there is a way to have profit from a horticulture enterprise. Other producers are starting to express an interest in joining the alternative crops parade. As with any new venture, there are capital requirements for the purchase of new equipment and supplies. New management techniques have to be learned. Vegetable crops have an even higher labor requirement and the window of performing certain tasks is most critical. This is quite different from the crops they have previously grown. With small amounts of tillable acres available to many of the producers in the county, they may now convert the idle acres once used to produce tobacco into other production enterprises. Vegetables are not the only alternative; fruits, sod, shrimp, and greenhouse production are all possibilities for our producers. Nicholas County has a variety of assets that can provide an advantage for producers to experience success in these new ventures. These assets include: 1. Abundance of water resources. 2. Necessary fertile acreage to support specialty crops. 3. Under utilized greenhouse facilities. 4. Utilization of migrant labor force to support enterprises. 5. Easy access to Central Kentucky Growers Cooperative. We are within one and one-half hour s drive to two major cities, and one day s drive of nearly half of the U.S. population. There are some needs that must be met for success to be achieved. These needs include: 1. Specialized equipment and facilities must be secured. 2. Management skills must be learned. 3. Markets must be developed along with marketing skills. 4. Investment capital secured. 5. Liability issues resolved. The potential is great to enhance our farm income through the adoption of one or

6 more of these new enterprises. This alone may not replace all of the income lost through the tobacco quota reduction but it certainly will help. SPECIALTY PROJECTS/INTEREST The feeling of the board was to allow all producers to explore all avenues to help elevate their particular situation. This segment of the plan was designed to allow those producers out of the box exploration. Project ideas that do not neatly fit into the above areas still can be evaluated on their own merit. Producers need not be penalized for submitting a project that involves an area outside of this scope. For example, someone may wish to propose a forestry project. By having this area of the plan, we can accept this proposal for further consideration by the board. Another area might involve reeducating an individual to pursue another endeavor. The Nicholas County Ag Development Council has discussed the possibility of receiving requests for educational assistance and fully intends to fulfill those requests that can assist producers farming opportunities. THREATS Nicholas County is a rural area that seemingly has been identified as a new development opportunity by outside investors. They seem to feel they can attract new citizens by offering urban conveniences in a rural setting. Due to this new activity we are seeing land prices escalate. Small producers already experience difficulty in securing land at prices that could be repaid through agricultural enterprises. New development creates additional liability issues that must be addressed by producers. One of the major areas of expansion is the potential increase in beef numbers. Increased beef numbers creates additional waste problems. This could create another problem between new development and farm expansion. The influx of new citizens, unfamiliar with rural living, may find some of the farming practices offensive. Environmental issues could also become another difficult topic. Each year environmentalists seem to capture more and more of the headlines. As standards increase in severity, farm life could become more difficult to maintain. MISSION/VISION STATEMENT The mission for the Nicholas County Agricultural Development Council will be to promote and encourage agriculture programs and projects that will expand the agricultural industry of Nicholas County. The income provided by the Phase I funding will allow Nicholas County producers the opportunity to explore alternative enterprises that will provide additional farm revenue, helping to secure the family farm. The Nicholas County Agricultural Development Council fully believes that agriculture must be preserved as a vital segment of Nicholas County s economy.

7 SHORT TERM PRIORITIES The Nicholas County Agricultural Development Council has developed the following short term priorities: 1. Allow access to the Phase I funding to every producer in Nicholas County, with priority given to those producers suffering the greatest hardship from the tobacco reduction. 2. Develop a working relationship with the Phase I State Board. 3. Provide the necessary proposal forms to producers on a timely basis. 4. Assist producers in development of proposals. 5. Review proposals on a timely basis. 6. Work with other county groups on potential regional proposals. LONG TERM GOALS The Nicholas County Agricultural Development Council has adopted the following long term goals: 1. Accept proposals that assist Nicholas County producers and create healthy agricultural economy. 2. To stimulate the agricultural economy of Nicholas County. 3. To promote additional opportunities for marketing agricultural commodities produced in Nicholas County. 4. Develop a working relationship with neighboring counties for exploring future projects. 5. To protect the Family Farm. TACTICS FOR LEVERAGING FUNDS The Nicholas County Agricultural Development Council 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. Proposals should clearly outline who the funds will be directed to and who will be responsible for the expenditures. A budget, outlining expenses, expected revenue sources, and expected potential impact on overall farming operation will be required. For projects utilizing multi-county funds or state funds, a request of Nicholas County funds must show evidence of the expected benefits to the citizens of Nicholas County, or the increased agricultural economy of Nicholas County. EVALUATION AND REVIEW The Nicholas County Agricultural Development Council will consider each proposal on a timely basis. The Council will determine if the proposal submitted follows the guidelines established by the Nicholas County Comprehensive Plan. The evaluation of each proposal will be based on the criteria established by the local council and by the standards established by the state board. The Nicholas County

8 Council would assume that some reporting form will be developed by the State Board and will be forth-coming for reporting progress on each funded project. The Nicholas County Agricultural Development Council has determined the following priorities for the comprehensive plan. The following percentages have been established and these priorities are: Livestock and Forage Initiatives - 40% Alternative Crops - 20% Tobacco - 20% Unique Agriculture Situations & Special Projects - 20% This document has been based upon current information obtained from producer input and from the needs expressed. If and when the county situation changes, the need may arise to amend the comprehensive plan. Therefore, the Nicholas County Agricultural Development Council reserves the right to make the changes necessary to facilitate a sustained agricultural economy for Nicholas County.