Kentucky Department of Agriculture Works to Streamline Profits for Value-Added Agriculture
In partnership with: Kentucky Department of Agriculture
Value-added agriculture takes a commodity, such as corn, cattle, or chickens, and modifies, enhances, or processes it so the finished product is worth more than the initial raw goods. This puts more money into the farmer’s pocket. The Kentucky Department of Agriculture (KDA), under the relatively new direction of Commissioner Jonathan Shell, is working hard to create more value-added opportunities for Kentucky farmers.
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Keep It Kentucky
Since January 2024, KDA has been asking the biofuel, large animal processing, and vegetable industries in the state two main questions: How do we help secure you for the next generation? How do we help you expand?
“The closer we can get from the farm gate to the food plate, the more profitability we’re going to find on the farm,” Shell said. “And the more that we can have ownership from the farm through that process, the more profitable that is as well.”
Similarly, Jacob Estes, KDA Director of Agricultural Economic Development, travels the state to network with stakeholders and determine what is necessary to keep that value chain in Kentucky. In an effort to connect the ag and economic sectors, KDA is hosting regional agricultural economic development meetings to get producers and economic developers talking.
“Right now, there’s not a lot of overlap between those two industries,” Estes said. “In the future, we plan to take what we have learned from these meetings and develop some tangible action steps.”
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Kentucky Proud
As for programs already in place to create value-added agriculture products, the most recognizable is Kentucky Proud. Kentucky Proud promotes products raised, grown, or processed in Kentucky and is designed to help producers get their products to a wholesale and retail-ready version.
Kentucky has also partnered with the U.S. Department of Agriculture for the Resilient Food Systems Infrastructure Program. This allows for business expansion by putting in wash lines, adding cold storage, and expanding processing capacity as a solution to gaps in the supply chain. So far, around $8 million has been invested in accepted applicants.
Then there are programs such as the Local Food Purchase Assistance (LFPA). KDA has received a total of $11,035,420 from the USDA for this program.
“This program works to get local food into food boxes for more vulnerable populations,” Shell said. “We’re also working on the Food is Medicine campaign with hospitals and insurance companies to put a better focus around fresh food and well care rather than sick care.”