OHIO COUNTY AGRICULTURAL DEVELOPMENT COUNCIL COUNTY COMPREHENSIVE PLAN

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1 OHIO COUNTY AGRICULTURAL DEVELOPMENT COUNCIL COUNTY COMPREHENSIVE PLAN Developed by the Ohio County Agricultural Development Council: * Tim Karn - Chairman * Don McLemore * Tyson Sandefur * Annette Beddow * Garry Igleheart * Chad Porter * Jerry Black * Mark Turner Advisor: Greg Comer / County Extension Agent for Agriculture (Updated 12/12/07) OVERVIEW OF COUNTY : Ohio County is located in the Western Kentucky Coal Field Region of Kentucky. Historically the county had been heavily dependent upon coal mining and agriculture, until the decline in demand for high-sulfur coal in the 80's. Now, however, the economy is dependent upon a mix of agriculture and industry, with the largest employers being agriculturally related industries. Ohio County is the fifth largest county in Kentucky, with 381,574 acres - 51% forested. The Ky Ag Statistics indicates 167,077 acres in production agriculture. A strong, diverse composition of agricultural enterprises consisting of corn, soybeans, wheat, burley tobacco, dark tobacco, beef cattle, poultry, swine, and forages exists on the 1006 farms in the county. Enterprise *Based upon Ky Ag Statistics Rank in State % of Farm Receipts 23,200 acres of corn 15 13% 32,500 acres of soybeans % 1300 acres of wheat 34.40% 310 acres of burley tobacco % 70 acres of dark tobacco 14.5% 19,200 cows and calves % broiler production % Farm cash receipts continue to climb, totaling $73.6 million in Crop receipts generate about $19.4 million per year and livestock receipts account for $54.2 million per year. Since the

2 beginning of broiler production in 1995, with Perdue Farms, farm cash receipts have more than doubled. Tobacco incomes have dwindled from being 10.75% of farm cash receipts to 1.9% of farm cash receipts, with the tobacco buyout in FY2000. Tobacco income still remains a major income source for a more limited farmer base, than before the buyout. The topography of Ohio County ranges from nearly level river bottoms to hilly. The soils on the uplands range from gently sloping to steep. Generally, the river bottoms are utilized for cultivated crops and the steep soils are forested. Other soils, which are intermediate in slope, are cultivated, pastured or forested. As noted earlier, these forested lands account for 51% of the acres today. They do however, possess a valuable source of income for private landowners and a substantial source of employment in the timber and primary or secondary wood industry with over 650 employees over 10 businesses. In 1995, Ohio County ranked 3 rd in the state in lumber production volume and 8 th in secondary industry employment. Timber enterprises and related industries generate around $6.5 million in farm gate sales, $8.8 million in payroll income, and $40.2 million in sales each year. Currently, the largest primary wood industry in Ky. is located in Ohio County - Dunaway Timber. Various non-traditional crops and livestock, including contract pepper production, ratites, cage raised catfish, and meat rabbits have been attempted, but most have not survived due to markets not being well established. Vegetable production has been tried on the commercial level, in the area, but was unsuccessful due to the highly seasonal market prices. Today, the limited vegetable production is utilizing area farmers markets and private sales for viability. Aquaculture production, mainly shrimp and catfish, shows some interest as well. A limited number of farms are producing sheep, meat goats, cash hay, and milk goats, but not at significant production levels. The pleasure horse industry, however, has seen a significant rise in interest since the early 1990's. This enterprise generates a good supplemental income for many part-time producers. Local producers do not have any local market for their grain or livestock production, but with an excellent highway system in place, producers utilize markets for grain in nearby Livermore or Owensboro and livestock in Irvington, Bowling Green, and Owensboro. Ohio County producers have equipped their operations with either the equipment to transport or have developed networks with commercial haulers to reach these markets. The 1997 Ag Census, listed 604 part-time farmers or 64% of all Ohio County farmers. This was a 14% decrease in full-time farmers from The county also continued a trend seen across all U.S. farms with an increase in the average age of farmers to 53.7 years of age.

3 DEMOGRAPHIC DATA: The population in Ohio County is fairly level at 22,105 people, with a projected population of 23,282 in 2010 and 23,718 by These figures reflect 10,652 males and 11,453 females. The two largest segments of the population are the age bracket at 28% of the total population and the 18 years of age and under accounting for 27% of the population. The population in Ohio County is 98.8% white and 1.2% minority races. The county seat is Hartford. It is however, only the second largest city at 2410 population, with Beaver Dam being the largest at 3200 population. Other incorporated cities include : Fordsville, Rockport, Centertown, and McHenry.. The total civilian work force in 1997 was 12,159 persons, with an unemployment rate currently at 6.1%. REVIEW OF THE PROCESS : The Ohio County Agricultural Development Council made concerted efforts toward collecting input from local citizens to be used in developing the direction of this county comprehensive plan. To begin the information flow between all parties, two Open Forum meetings were held in different communities of the county. Agricultural leaders, community leaders, and local citizens were invited thru letters, personal invitations, news releases, radio, and public notices. Information was presented about agriculture in Ohio County and about the objectives of the Agricultural Development Council. An exchange of ideas, opportunities, and challenges was then allowed among the parties in attendance. In addition to these meetings, council members have spoken with numerous citizens privately; with information collected shared at council meetings. Farmers were also given the opportunity to share their views on needs, ideas, and opportunities at the Extension tobacco, grain, vegetable, aquaculture, and beef meetings thru surveys. To date, over 1000 contacts have been made with local citizens for input and ideas. In addition, news articles in local or area papers as well as, local/ area radio have kept local citizens informed as to the local board developments. ASSESSMENTS : Strengths The greatest asset the Ohio County has is the vast abundance of natural resources - good productive agricultural land, timber and coal!!! You could call Ohio County - A Sleeping Agricultural Giant. With around 55,000 acres currently being used for row crop production, only 50% of the available Class I & II soils are being utilized. This leaves an additional 50-60,000 acres of

4 highly productive soils being underutilized. Soils which could easily support profitable grain yields, thus doubling farm incomes from grain production. Secondly, according to the latest Ky Ag Statistics, only 11,000 beef cows are currently being raised in the county. These cattle are again underutilizing the available forages on 135,000 acres. The forage production on these acres could economically support a quadrupling of beef production to - 45,000 cows, thus significantly increasing farm gate receipts. The next most valuable resource for Ohio County landowners, are the vast acres of standing timber. 50% of Ohio County s acres are still covered with timber. As with most forested acres across the U.S., much of the timber is not properly managed. With proper production and harvest management, these acres could provide increased income support for landowners. These acres also provide the opportunity for supplemental income to many landowners thru lease hunting. Ohio County has an outstanding transportation infrastructure, with two main - north, south and east, west - parkway corridors intersecting in the middle of the county. Even though no agricultural markets for grain or livestock exist in the county, this infrastructure provides attainable access to available markets nearby. This infrastructure is also attractive in economic development with new industry, for movement of their products. The Paducah and Louisville Railway provides mainline railway service. River transportation, on the Green River, is available at the southern border of the county, with a nine-foot navigation channel maintained. Ohio County, being a rural county, enjoys a local government which is responsive to agricultural needs and issues. Landowners and urban citizens have economical tax rates, with good governmental services provided. The county has an excellent educational infrastructure for formal instruction, as well as, technical training. Primary and secondary education is provided by the Ohio County School system, thru the six elementary schools, one middle school and high school. Eight institutions of higher education are located within 60 miles of Hartford. Vocational education is provided by the Ohio County Technical School located in Beaver Dam. The Ohio County Cooperative Extension Service continues to serve the needs of the local citizens in the areas of farm management, production agriculture, new enterprise development, and community development. Agricultural entities also have local access to USDA agency services thru the NRCS and FSA offices. Weaknesses Lack of local markets - even though we have excellent road infrastructure to livestock and grain markets, the cost of transporting these products to market continues to rise each year. This puts additional strain upon the profitability of operations trying to survive considerable input cost increases. There are a limited number of producers growing vegetable for area farmer s markets, roadside stands and private sales, but currently no local farmer s market has been established.

5 Value-added markets - many grain producers in the county grow value-added grains, when premiums provide the opportunity for increased profits. These opportunities have also been enhanced by the useage of high-oil corn by the livestock industry and/or low linolenic soybeans, which are a growing market opportunity. The premiums offered are however, inconsistent in availability. Additional value-added industries, such as ethanol production, beef cattle processors, or food processing, etc..are needed to add greater stability to local grain and livestock economies. Available water - the location of Perdue Farms, one of the largest poultry companies in the U.S., in Ohio County has provided an opportunity to further diversify farming operations in the county. But, it highlighted a major need for water availability to many areas of the county. Since local water districts have not kept pace with rural needs, the increased needs of agriculture have spurred a major expansion of rural systems, at the expense of triple digit water rate increases, thus creating additional restraint on profitability of operations. High % of part-time farmers - the profitability of agricultural operations over the last 30 years has created a continual increase in the number of part-time farmers in Ohio County. These producers have excellent production agriculture skills, but do not have enough scale of operation to remain viable as a full-time operation. These producers would like to be full-time producers, but it is difficult to build a full-time operation with part-time labor. Brain Drain - the loss of many of the better young minds from communities is a major problem for many rural areas across the U.S. Until more employment opportunities are available, within Ohio County, this brain drain will continue. Natural resources - the availability of coal resources under much of Ohio County has kept some landowners optimistic the coal boom of the past will return someday. In many cases, this has limited the development of agricultural enterprises on this land. Opportunities The vast natural resources (land, forages & timber) available in Ohio County, provides good opportunities for the expansion of grain, beef cattle and timber production. As stated earlier, beef cattle production could be increased by 40-45,000 cows, without any additional acres. Simply improving production and utilization of forages available would allow this beef production levels to be even higher. Increased utilization of marketing alliances and technology will also improve livestock incomes and create expanded production. Grain production expansion opportunities are tremendous. With an additional 5-60,000 acres of Class I and II soils available, grain production could easily double. The increasing use of technology in grain production will aid in improving yields, while reducing input costs for producers. Timber sales and wildlife management offers an opportunity for many of the timbered and reclaimed mine acres in the county. With increased education in proper timber management for optimum growth and improved sales skills at timber harvest, landowners could have improved

6 incomes.the opportunities in lease hunting are unlimited in the county, with the level of deer, turkey, rabbits and other wildlife presently available. There is some interest in fresh market vegetables by local farmers. The development of cooperative sales was not successful, but the opportunity in farmer s markets is growing and shows promise, even for small producers. Diverse small ruminant livestock, aquaculture and other horticultural production are being utilized by farmers. Opportunities exist for other producers in these areas as well. Value-added industries, such as a forestry product industries, offer a unique opportunity to not only expand employment opportunities, but also can add value to locally produced raw resources. Threats Increased environmental regulations threaten livestock and crop production expansion. Regulations are necessary, but must be practical and research based in order to truly protect the environment, while allowing farmers to operate using least-cost production practices which keep their operation viable. Drainage of valuable crop land becomes increasingly tougher, with more environmental regulations and the high initial cost of tilling, still Ohio County has a vast opportunity to increase row crop production, but increased problems from wildlife, such as beavers, make it difficult to keep drainage ways open. The loss of young people from the county causes a major brain-drain, which is necessary for a consistent leadership base within a county. Improved employment opportunities and/or improved agricultural incomes are imperative to stopping this youth outflow. COUNTY COUNCIL OBJECTIVES : Mission/Vision Statement The Ohio County Agricultural Development Council shall seek to support programs or projects which enhance and/or diversify agricultural production and the agricultural economy, of the county. The council will invest settlement monies in the agricultural community as a catalyst for adding value to agricultural products and build upon the strong and diverse agricultural base of Ohio County. We seek to foster a cooperative atmosphere among local and regional alliances which cultivate an improved quality of life for farm families in the future.

7 Short term priorities The Ohio County Agricultural Development Council, after collecting ideas from local citizens and council consideration, have identified the following areas as short term priorities for diversifying the agricultural base, stimulating new farm enterprise developments, and adding value to agricultural products of tobacco farmers and our agricultural communities in the county. - Expansion & improvement of livestock and forage production - Genetic improvement of herds - Forage quality & utilization improvement - Equipment and facility improvement - Marketing alliance building - Herd performance evaluation - Support of existing agricultural enterprises - Grain production - Including the use of technology to improve efficiency, management, and Sustainability. - Support of new agricultural enterprises - Vegetable production, such as farmer s markets - Aquaculture production Long term goals The long term goals of the Ohio County Agricultural Development Council will be to continue support of expansion and improvement of our livestock, forage, and grain base, since it provides our most available opportunity to enhance our farm economy. We will seek opportunities to add value to local agricultural products thru further processing industries for timber, livestock, grain and/or horticultural commodities. Other agricultural enhancing opportunities will be evaluated and short or long term goals adjusted as the opportunity arises. Tactics for leveraging funds The Ohio County Agricultural Development Council will consider each proposal and determine its merit relative to the short term priorities and long term goals of the council. Proposals should show an increase in net farm income and effect tobacco farmers, tobacco communities and agriculture across Ohio County, by stimulating markets for county agricultural products, finding new ways to add value to agricultural products, and exploring new opportunities for county farms and farm products. Highest priority will be given to proposals exhibiting success in areas with the potential to reach the most farmers. Alliances in regional and/or state proposals which sufficiently address the County Comprehensive Plan initiatives are encouraged. The council will expect proposals to show evidence of in-kind or matching funds equal to at least 50% of the total project cost. Proposals should clearly outline expenses, expected revenue and sources, cash flows, growth expectations, and whom the funds will be directed to. Multicounty/area proposals must show evidence of a proportional benefit to the farmers of Ohio County. The council may consider waiving the cost share requirements for special proposals from non-profit agencies and associations.

8 EVALUATION & REVIEW : A. How will proposals be evaluated? The Ohio County Agricultural Development Council will consider each proposal and determine its effect upon the short term priorities and long term goals of the council. Proposals should show an increase in net farm income and effect tobacco farmers in the county, by stimulating markets for agricultural products, finding new ways to add value to agricultural products or thru exploration of new opportunities for farm and farm products. Criteria to be considered by the council members/administrative groups when prioritizing proposals include : dependency on tobacco, number of people impacted by the proposal, applicants contribution towards project, self-sustaining capability, practicality of project, past participation, opportunity to effect net farm income, and contribution to county/ state comprehensive plan. Applicants will be required to show evidence of in-kind or matching funds equal to at least 50% of the cost of the total project. Highest priority will be given to proposals demonstrating the potential to reach the most farmers. Priority will be given to multi-farmer or group/ association proposals. 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 the of an individual proposal and subject to adequate performance in the first year of the project. Individual applicants should demonstrate the ability of the proposed project to be self-supporting within one year after completion of the project. B. How will success and failure be measured? Applicants/ administrative groups will be required to provide timely progress reports on the status of each project in the form of financial, capital improvement, and participation impact.

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