FRANKFORT, Ky. — The Kentucky Agricultural Finance Corporation achieved a financial milestone this spring when it reached more than $100 million in total assets.
The Kentucky Agricultural Finance Corporation (KAFC) is the lending arm of the Kentucky Agricultural Development Board (KADB). Together, under the Kentucky Office of Agricultural Policy, the two work in concert to distribute funds from the Tobacco Master Settlement Agreement. The 1998 agreement, requires tobacco companies to pay settling states, including Kentucky, annual installments.
The financial milestone came after KADB committed $5 million to KAFC during its May 2021 meeting. Since 2003, the KADB has invested $80 million in KAFC for loans. The additional $20 million in assets includes loans approved by KADB and then transferred to KAFC and interest payments made on all loans over the years.