Since 2002, the Laurel County Extension Office has worked with the Laurel County Agricultural Development Council and Cattlemen’s Association to distribute cost-share grant funds from the Kentucky Agricultural Development Fund (KADF) to local producers.  Funded by the county’s portion of the Tobacco Master Settlement agreement, the goal of these projects is to assist Laurel County producers with diversifying their farming operations as agricultural needs and opportunities in the community evolve.

The annual amount allocated to each Kentucky county depends on the overall settlement received by the state and the division of funds as determined by the state government.  In 2021, Laurel County was awarded $160,000 in County Agricultural Investment Program (CAIP) funds to support local projects.   The ANR agent and Extension staff assisted with preparation of the grant application and marketing the program to the community, then served as the submission point for applications.   During the application period, the agent and staff assisted producers with questions about the program and the application process, including information about obtaining Farm Serial Numbers, Agricultural Water Quality Plans, and other requirements of the KADF.   Sixty-five applications were received, of which the 33 applicants with the highest scores were approved for funding by the Cattlemen’s grant review committee.  

Under KADF guidelines, producers are required to complete their projects, provide copies of paid receipts and cancelled checks, and attend at least one educational workshop before grant funds can be released.  Each producer is eligible for reimbursement of 50% of the expenses for their project with a maximum reimbursement of $5,000.  The ANR agent and staff provided guidance to the producers as they planned and completed their projects and then worked to ensure that all required information was included in the receipts before they were presented to the grant review committee for approval.  During the fourteen-month process, Extension provided educational workshops for cost-share recipients, maintained financial records for grant funds, and completed detailed periodic reporting as required by KADF.

A new CAIP cost-share program is currently underway utilizing newly allocated funds. Seventy producers applied for the current program, but only twenty were approved due to a decrease in the amount of available funds.  

Since the KADF programs began in 2002, Laurel County producers have received $3.8 million in funding for agricultural diversification projects.  With the required 50% match from producers, the agricultural industry in Laurel County has realized an overall investment of $7.6 to date through the implementation of these programs.