REVISED anderson plan.txt Anderson County Agricultural Development Council Comprehensive Plan

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1 Anderson County Agricultural Development Council Comprehensive Plan Revised March 16, 2001 General Overview of County Anderson County is located in the outer Bluegrass about 25 miles of Lexington, 40 miles east of Louisville, and 10 miles south of Frankfort. The Bluegrass Parkway, US 127, and US 62 run through the county, and Hwy. 64 is just north of the county line. Historically the county's major economic base was small tobacco and dairy farms. It was one of the lower per capita income counties in Central Kentucky. The county, in the past 25 years, has become one of the more economically well off in the state. Per capita income for 1998 was $19,659, and by most economic measures the county consistently ranked in the states top twenty. White-collar jobs make up 46% of employment. Income sources are manufacturing 33%, trade 17%, government 13%, services 13%, and farming 8.5%. Slightly over 50% of all workers commute to out of county jobs. The education level is high with an average of 13 years completed for the adult population. The county is one of the five fastest growing in Kentucky. Its population has doubled in less than twenty years and is predicted to be 20,994 by the end of Agriculture Economic Impacts While not as important as it once was, agriculture is still an important factor in the economic well being of the county. The 691 farms in the 1997 Census generate nearly $75 million in community economic activity. Without the net income per farm of $5285 reported in the 1997 Census these 691 farm families would likely fall well below average per capita income. Especially hard hit by tobacco quota cuts since 1997 are the 259 families that derive over 50% of their family income from agriculture. These quota losses represent reduced sales per farm of $6946 for all 691 farms. Even if primarily a part-time enterprise for many of our farmers, agriculture income is a supplementary income source that allows these families to maintain higher family income and generate a lot of community economic activity. Agriculture Resources and Characteristics The 84,000 acres in farm land ranges from gently rolling in the east to very hilly in the west. About 80% of these acres are not suitable for any tillage crop production. Most of the remaining 20% has factors such as erosion hazards that exclude continuous tillage crop production. Many of our most productive tillable crop fields are being lost to housing and breaking up into mini farms. The county's major farm enterprise was once tobacco and dairy, but has evolved to a beef and tobacco county. Anderson County is one of the few Central Kentucky counties where food animal production is the number one farm income producer in most years. Tobacco has been the stability factor and generally has made up around 40% of income that could be counted on each year. Page 1

2 There has been steady growth in beef production over the last quarter century. While cow numbers have followed national cycle trends, with each cycle the county cowherd peak numbers have been higher. Many of the tobacco farmers also have been cattle enterprise. Forages are the backbone of almost all production other than tobacco. A slowly evolving cash hay enterprise is being adopted by increasing numbers of farms. In the 1997 Census hay sales were reported at $450,000, which is a twenty-five-fold increase in 15 years. The total of pasture and hay forages is easily our highest value crop. Outside of tobacco, beef, dairy, and hay sales all other enterprises combined make up less than 3.5% of farm income. For some individual farmers other enterprises are important income sources, but none have been adopted as income sources by more than a handful of producers. Planning Process The local county council has followed the guidelines in the County Council Action Guide that was approved by the State Agriculture Development Board. County Council nominations and selection was carried out as required by House Bill 611. The actual planning process began at a council meeting on July 31, Agriculture census and economic data was reviewed as a basis for future planning. News articles in the Anderson News, agriculture newsletters, a survey, and council member presentations to several local organizations were all used to solicit public input and increase awareness of this ongoing process. Two public forums were held in early November to solicit further input on both type of project proposals and how best to prioritize investments of locally earmarked funds by this council. In addition, a rough draft of the county comprehensive plan was circulated through the community, and a public comment meeting was held prior to final adoption of the finished plan. ASSESSMENTS Strengths Good location with easy transportation access to markets is a plus. The US 127 corridor carries a high daily traffic volume. Almost a million in population live within practical market area. There is a large forage base, and beef cattle enterprises have been successfully expanding, improving genetics and management. The county is centrally located in the largest beef cow population region in Kentucky. With a largely part-time population, beef cattle has fit in well with off-farm work especially as a supplement to off-farm income. While limited tillable land is available those fields suitable for cultivation are highly productive soils suitable for most crops. Even though becoming a more suburban community and less dependent on farm income, many in the community still want to be involved in production Page 2

3 agriculture and support keeping it as a viable part of the economy. The Anderson County Cooperative Extension Service, USDA Agencies, Vocational Agriculture, and local farm organizations have a strong working relationship. They have strived to compliment and supplement their efforts in assisting the farm community. Weaknesses A long dependence on tobacco as the stable regular farm income source has hindered both a need for diversification and the building of a management knowledge base into any enterprise beyond tobacco. Because tobacco was so dominant in determining the farm family well being, even the livestock enterprises have not received the management efforts needed in most farm operations. The soil characteristics and topography greatly limit the options available to diversify for any large number of farmers. Opportunities do exist for some farms to prosper in various non-traditional enterprises but from a reality standpoint most overall farm income growth will be forage and livestock based. Even in forage-based livestock the pattern of land being held in mostly small tracts that have none or at best poor fencing and limited water sources is a negative factor. While there is a progressive segment of the farm operators that are quite knowledgeable and utilize solid management in their livestock operations this is not the norm for producers. In most other potential enterprises for diversification there is not more than a handful of operators that have the knowledge or experience to take advantage of these opportunities. A negative factor is the lack of a focal center for farm and family activities. Currently there is no place that will hold more than persons for educational training, group meetings, farm family or youth events that are available to the overall agriculture community. In recent years the few other facilities that are in the county have become almost unavailable and cost prohibitive to use. Opportunities Several viable opportunities are available due to the county's location. Direct marketing of products like fruit, vegetables, nursery/landscape plants, wine, and meat can be supplementary or complimentary enterprises. While no one of these is likely to become a major enterprise county wide, in total they can affect a significant number of farmers. Being within an hour or so of nearly 100,000 horses offers a potential expansion of a cash/hay market. Good access to interstates and rail could expand this both in and out of state to horse or dairy markets. Beef cattle income can be enhanced through related enterprises such as replacement heifer programs, increased backgrounding/preconditioning, cull cow feeding, and producing bulls. In addition a lot of value added can be gained through pre-conditioning, grouping calves for sale and market alliances. Improving genetics through AI, bull leasing or purchase incentives and estrous synchronization programs can offer significant short and long term economic gains. In addition a lot of cost per pound or production savings opportunities exist in cutting hay losses, improving winter feed quality, and doing a better job of pasture utilization. With a large hilly forage base an alternative livestock such as meat goats could fit in well in the county and market infrastructure already exist. Page 3

4 Impediments REVISED anderson plan.txt The combination of greatly reduced tobacco income outlook along with lack of experience, knowledge or history of diversification has encouraged a negative mind set as to opportunities in agriculture. While intelligent enough to realize that it doesn't exist, most farmers look for a quick, easy answer (like tobacco can be grown and sold without marketing skills in an assured market structure). Those that really want to stay in farming are reluctant to face the uncertainty of change and do not have the experience, knowledge or examples to make the change. Council Objectives This council will strive to utilize Agriculture Development Fund money in a manner that it becomes a stimulus for increasing and diversifying sources of Anderson County farm income. The input from local farmers, agribusiness, agriculture professionals and civic leaders will be used to determine the most effective targeting of these funds to meet the county's needs. The overall objective is to encourage the development of value adding and expansion of current enterprises and support the development of new enterprises that will diversify the income base. A key component for success is not just to encourage and support but to educate farmers so they will be capable and confident in making their own decisions to successfully make the transitions that diversify and improve income from farming. Mission Statement The Anderson County Agriculture Development Council will recommend investments of money from the Agriculture Development Fund for projects which provide the potential to increase net farm income and positively affect farm families and the communities in which they live. Those proposals that this Council considers sound investments in the future success of agriculture in Anderson County will receive the highest priority. Consideration will be given to a proposal's short and long-term effects. A proposal that improves income of existing enterprises, that stimulates diversification of income sources, that serves the local agriculture industry, that adds value or opens new markets for local production will be looked at as likely targets for investment. Priorities for the Short Term Livestock and forage production provides the greatest opportunities to improve farm income for largest number of farms in the county. Projects that can increase income by adding production, cutting cost, expand markets, add value or develop new related enterprises will be given a high priority. With an excellent location for direct marketing especially for horticulture products, those proposals that provide opportunities for profitable expansion in this area are another priority. Lack of knowledge and experience is a limiting factor for much of the changes needed to reduce dependence on tobacco farm income. In addition no facility to carry out a sustained continuing educational effort is available to the agriculture community. Therefore, proposals for both continuing educational programs and the facility to accommodate them will be looked for to answer this Page 4

5 need. REVISED anderson plan.txt Non traditional agriculture related enterprises can offer opportunities in projects such as agri-tourism, non traditional livestock and specialty crops. Sound proposals in these areas as a group or pilot venture are areas that can be promoted. Long-Term Priorities Improving the knowledge base and confidence that will allow our farmers to reduce tobacco income dependence and expand farm income is the ultimate objective for all projects to be approved. Those proposals that can be used as examples, prove or disapprove viability of a new enterprise and offer long range income or agriculture development potentials will be most favorably looked upon for approval. Proposal Evaluation The Anderson County Agriculture Development Council will follow the State Board's guidelines for what constitutes a good proposal. Of special interest are numbers of farms potentially affected, has given full consideration to the economic viability of the proposal, and has potential to be expanded to other farms or groups of farmers. All proposals must meet the minimum of having all details included, a 50% risk of total investment by the applicant and backed by sound information sources and support data. A major consideration is to be given to the percent of available funding that is requested by any one application and initially follow the state target investment areas philosophy of the State Board. Funding Proposals that involve cost share or interest cost reductions can be awarded. Plan Review As this is a new process and philosophy of farm development, this council sees the planning and objectives as a growing and changing program. It is our intent to make modifications to this plan as the process evolves within the guidelines and with State Agriculture Development Board approval to any changes that might be made. This Comprehensive Agriculture Development Plan for Anderson County is respectively submitted by the Anderson County Agriculture Development Council members: Eddie Stevens, ChairmanJeff Harrod Lannas Tedrow, Vice Chairman Joseph Sea Cathy Buckley Jim Speray Gary Stevens Glen Smith Page 5