The Kentucky Senate Agriculture Committee voted unanimously to advance a bill establishing an agriculture economic development fund to help attract processors, feedlots and other market infrastructure to the state, committee members and agency officials said at a committee meeting in Frankfort.

Supporters said the fund is intended to raise local demand for Kentucky-grown commodities and fill gaps in processing, transportation and other parts of the supply chain so farmers can get higher prices for grain and livestock. “The more opportunities that we give our farmers in order to have that profitability … the more productive that our ground’s gonna be,” said the Commissioner (Kentucky Department of Agriculture), who testified about market and infrastructure challenges.

The bill’s backers told senators that higher local processing capacity and biofuel demand — including sustainable aviation fuel (SAF) and other biofuels — would create steady buyers for corn, soybeans and feed grain and could raise farm incomes. Lawmakers and the commissioner described programs that could be leveraged alongside the new fund, including Kentucky Proud, KOAP funding, farm-to-school programs, and federal LFPA support.

Senators described personal experience with farming and the difficulty of finding local buyers and processors. Senator Sandra Carpenter, a committee member, praised the agency’s outreach to small farmers and mentioned programs that help aggregate small producers for markets and hospital or institutional purchasing. “I like to vote aye,” said Senator Richardson during the roll call, which concluded with the chair announcing the bill “passes unanimously.”

Committee discussion included specific data and examples cited by the commissioner and witnesses: testimony said some marginal land is being brought back into production because current land prices make clearing cheaper than buying new ground; one witness described paying about $3,500 per acre to clear land versus $6,000–$10,000 per acre to purchase it. The commissioner also described a local grain-handling example: a producer who paid roughly $100,000 for a grain bin and sold corn at $4.80 a bushel after holding it from a $4-per-bushel market, noting that holding product can capture market swings. The commissioner said Kentucky currently ships much of its cattle west for finishing and that developing local feedlot and processing capacity is a priority.

On procedure, a motion to approve the bill was made and seconded; the committee took a roll call and recorded aye votes from multiple members before the chair declared the measure passed unanimously. Committee members requested an interim report in November 2025 outlining planned uses and oversight for the fund.

The committee did not provide a bill number or statutory citation during the hearing; officials repeatedly referred to it only as “this bill” or “these funds.” The committee also discussed outreach and technical assistance the Department of Agriculture will provide to small and beginning farmers to help them access aggregation, processing and market opportunities.

Members asked for continued emphasis on Eastern Kentucky and other regions that have been affected by tobacco buyout impacts; the commissioner and staff said KOAP and other outreach programs would target those areas. Outside officials mentioned recent federal engagement, including a visit by USDA Secretary Rollins, as potentially helpful to recruiting processors and supply-chain businesses to Kentucky.

The committee advanced the bill to the next legislative stage with unanimous support; the exact language, program criteria and appropriation details will be addressed in subsequent drafting and reports to the committee.