The Senate Standing Committee on Agriculture adopted a committee substitute for Senate Bill 28, which sets parameters for allocating $5,000,000 in state funds for agricultural economic development created in the 2024 state budget, during a committee meeting where Kentucky Commissioner of Agriculture Jonathan Shell outlined the sector priorities and local economic impacts.

Chairman Howe opened discussion on the bill and thanked the agriculture department staff for their work. "This bill puts the framework around the ag economic development money that we dropped in the 2024 budget," Howe said before turning the floor over to Shell. The committee adopted the substitute by voice vote after a motion from Senator Yates and a second from Senator Richardson; a quorum was present.

The nut graf: SB28 instructs the Kentucky Department of Agriculture on how the previously appropriated $5 million will be allocated to support projects that attract end users and processors, rather than commodity production alone, with the aim of creating market opportunities and jobs through further processing and local value-added activities.

Commissioner Jonathan Shell described the department's rationale for prioritizing processing and end-user investments. "I am Jonathan Shell, the Kentucky commissioner of agriculture, and just really appreciate the opportunity to be here with you all," Shell said. He thanked lawmakers for the 2024 appropriation and said the funds will target investors and projects that expand processing capacity in the state.

Shell provided several statistics to illustrate the economic footprint of processing in Kentucky, attributing the figures to state agricultural reports. He said state cash receipts rose from about $3.1 billion in 1996 to about $8.3 billion in the most recent report, and that poultry's share of cash receipts grew from roughly 5 percent to about 25 percent. Shell said there are now about five major poultry processing facilities in Kentucky, each processing about 1.3 million chickens or more per week and supporting roughly 1,200 to 1,400 jobs at each facility. He also said about 30 percent of Kentucky's corn production is used by the poultry sector.

Shell cited additional livestock and grain processing impacts, saying companies such as JBS operate a Louisville facility that processes roughly 10,500 hogs per day, and he highlighted a Hopkinsville grain elevator he described as a "$750,000,000 business" that directly employs about 68 people and sources grain from approximately 3,800 farmers in the region.

Committee members did not record a roll-call vote for the substitute in the portion of the transcript provided; the substitute was adopted by voice vote. The formal motion on the committee substitute was made by Senator Yates and seconded by Senator Richardson; the chair announced the sub was adopted.

Chairman Howe also recognized audience members from ag leadership groups in attendance. Following the substitute's adoption, the committee heard Shell's presentation about the kinds of projects and regional assets the department hopes to support with the new funding.

Ending: The transcript ends after the commissioner's overview of processing and farm-supply relationships. The committee adopted the committee substitute for SB28 and then proceeded with Shell's remarks; no further formal actions on SB28 are recorded in the provided transcript excerpt.