The Diversification Program
The Ag Development Board has invested 35% of the Ag Development Fund into county-level projects geared toward helping farmers either diversify or become more efficient producers. Many of these projects have taken the form of one of nine model programs which are selectively adopted by counties according to their available funds and priorities set by local ag leaders.
One of the popular model programs has been the Diversification Program. This program provides up to $5,000 in a cost sharing with the farmer for investment in commercial horticulture, herbs, sweet sorghum, ornamentals, greenhouse conversion, specialty aquaculture, silvaculture and other enterprises. The program provides seed funding for farmers seeking to develop these new ventures with the goal of encouraging the development of new sectors of agriculture that may not have been traditional enterprises in that county.
Each county can adapt the program to fit their situation, so the program may vary slightly from county to county. But generally, farmers are required to complete a marketing plan in their application and invest at least an equal amount of their own money to launch or expand the enterprise.
Eighty different counties have adopted this program to date with over $7.8 million invested from the Ag Development Fund so far. Over 1500 applicants have been funded and are using this money to try some new things on their farm. A handful of farmers in Jackson County have used the program to grow and market pumpkins together. With some assistance in production from regional horticulture specialists, they are working out the kinks and developing skills necessary to make this a profitable enterprise for the long term. Numerous other entrepreneurial producers have taken advantage of this program to develop enterprises related to cut flowers, small fruit, value-added dairy and specialty livestock products. The program has encouraged many producers to look at their farming business in a new way and to become more market-oriented.
The long term impact of this program remains to be seen. New enterprise development takes time and substantial investment by the farmer to make something sustainable. Marketing is a critical success factor, as well. Technical support is need for many production, harvesting, and distribution decisions. Fortunately, there appears to be a strong commitment from the universities and state and local economic development groups to support these efforts. For diversification on the farm to be successful around Kentucky, it requires many partners to be on board. Patience and perseverance are also key ingredients.
If you're interested in finding out more about the Agricultural Diversification Program or to see if your county offers the program, check with your local county extension office. Most of these programs have an application cycle they try to follow and many counties are trying to get funds in place even now so farmers can use them this growing season.
For More Information
For additional information, please contact Tim Woods.