Kentucky Agricultural Finance Corporation:
Programs

Agricultural Processing Investment Fund

Established December 2004, the Agricultural Processing Investment Fund was developed to provide loan opportunities to companies and individuals in Kentucky interested in agricultural processing.

KAFC will provide and/or participate in loans or make investments in entities in Kentucky that add value to Kentucky grown agricultural commodities through further processing. Funding opportunities will be made available to entities pursuing capital expansion.

KAFC will work in harmony with lenders that have offices in Kentucky to assist these ventures in putting together attractive financing plans. Effective interest rate will be determined by evaluating the financial soundness and economic benefits to farmers. The term of the loan can not exceed 20 years or the expected useful life of the item(s) being financed. Loans can not be used for operating capital or to refinance existing debt. KAFC has a statutory investment limit of $1,000,000 per loan, although through June 30, 2008, this limit has been raised to $5,000,000.

KAFC will further consider financing projects that secure potential marketing opportunities for producers. KAFC has the opportunity to own the real estate and improvements and enter into a lease agreement with the lessee. Program emphasis will be on projects that directly benefit counties heavily impacted by the loss of tobacco income. Financial assistance from the Kentucky Agricultural Finance Corporation is limited to no more than fifty percent of any project.

Programs within the Agricultural Processing Investment Fund include the Agricultural Processing Loan Program, and the Producer Accelerated Payment Program.

Applications are due two weeks before the Board meeting date. See application deadlines for scheduled dates.