KENTUCKY

Timothy D. Hughes
Marketing and Business Development Coordinator
Kentucky Agricultural Finance Corporation
404 Ann Street
Frankfort,KY 40601
(502) 564-4627 Ext. 232
(502) 330-7551 Mobile
www.kafc.ky.gov
TimD.Hughes@KY.Gov

Linked Deposit Investment Program
1996
Timothy Hughes
Kentucky Abandoned Property Account
Farming operations and agribusinesses

The purpose of the Linked Deposit Investment Program is to provide financing assistance to any person or entity in Kentucky engaged in an agricultural endeavor.

To qualify for this program an individual or entity must meet certain requirements including but not limited to:

• Applicant must be actively engaged in agricultural endeavors in Kentucky.
• Applicant must show annual gross earnings of no more than $1 million with at least 50% of that gross income from farming.
• Applicant cannot hold a position as an officer or director in an eligible lending institution.
• Maximum participation for any investment is $100,000.

Local lending institutions will make all credit determinations. KAFC will work as the liaison between local lenders and the State Investment Commission. Funds for the program are made available through the Kentucky Abandoned Property Account.

Kentucky Agricultural Infrastructure Loan Program
2005
Timothy Hughes
Kentucky Agricultural Finance Corporation

The Agricultural Infrastructure Loan Program (AILP) is designed to help Kentucky agricultural producers, who have been involved in tobacco production, to finance infrastructure projects. The KAFC portion of the AILP loan can not exceed $100,000 or 50% of the project. The initial interest rate is 2% for AILP loans originating from a participating lender and this rate can be fixed for up to 10 years. The lender is allowed to charge the borrower up to an additional .75% interest on KAFC's portion of the loan for origination and servicing. The other portion of the loan will be at the lender's normal rate.  

Kentucky Producer Accelerated Payment Program
2005
Timothy Hughes
Kentucky Agricultural Finance Corporation

The Producer Accelerated Payment Program (PAPP) is designed to offer entities marketing Kentucky grown agricultural commodities the ability to offer advance payments of up to 75% of wholesale value to the producer in an expedited manner upon the delivery of their products. The program is available to any wholesale marketer of Kentucky grown agricultural commodities. The KAFC will require the marketer to pledge their accounts receivables as security for the loan and the funds will be managed by a third party administrator.  This program will allow produce growers and other producers who normally wait 60 to 90 days for payment to get a substantial portion of their income much earlier.

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