"Kentucky's agriculture industry plays a vital role in economic development and sustainability in the commonwealth. The issues surrounding Kentucky's agriculture community reach far beyond the farm gate. Agriculture impacts individuals across the commonwealth, from the equipment dealer to the consumer.
Kentucky's gubernatorial candidates were recently asked to give their thoughts on several key agriculture issues. In the article below, the questions are posed followed by the written response received from each candidate. Responses provided by Democratic challenger Steve Beshear appear first, followed by those offered by Republican Gov. Ernie Fletcher. Some responses have been edited for space considerations.
If elected what are the top three issues that would be on your agenda for the upcoming legislative session, and how would these issues impact Kentucky's agriculture industry?
BESHEAR: The people of Kentucky deserve to have leaders they can trust to put their interests and the interests of Kentucky first. I believe that in order to realize economic growth in our state and create jobs, we must invest in our people. That means investing in our schools so our kids can compete in the future. That means providing better health care for our people. And it means paying for these investments without raising taxes on the hard-working people of our state. Creating jobs and economic growth, better educating our children and providing health care for our people will be my priorities as governor. Kentucky's farmers like all Kentuckians deserve quality health care, a thriving economy and excellent schools. Achieving that and getting Kentucky moving will require shaking things up. It will require doing things differently. It's time we take care of our own, for a change, and put the people of Kentucky first.
FLETCHER: The main issue for the 2008 session will be Kentucky's budget for 2009 and 2010, therefore, the top issues will be budget related. First and most important will be to maintain 50 percent of the tobacco settlement money for agriculture. Second, to fund the renovation and expansion of the University of Kentucky Livestock Disease Diagnostic Center and the Murray State University Breathitt Veterinary Center. Third will be an overall strong budget for agriculture and rural Kentucky, (and) this will include continuing to deliver record funding for roads, a strong budget for agricultural research at our land-grant and regional universities, along with the Cooperative Extension Service.
Since the Agricultural Development Fund was established in 2001, over $250 million has been invested in agricultural diversification projects across the state, ranging from producer-level projects to statewide infrastructure development. Do you feel that it is time to use those funds to forward another initiative in the state other than agriculture? Why?
BESHEAR: As Governor, I will personally monitor the work of the Agriculture Development Board to ensure that 50 percent of the funds from the Master Settlement Agreement continue to go to increase net farm income and diversify the agriculture of Kentucky. I will make sure that this funding is not diverted to pay for other projects and programs that should be funded from the General Fund.
FLETCHER: In 2003 I pledged to dedicate 50 percent of the tobacco settlement money to agriculture; I have kept that commitment and will continue to do so. The Agricultural Development Fund was created to assist our farmers and rural Kentucky to transition from a tobacco-based economy to one that is economically strong and diversified. In a second Fletcher administration, we will continue to build on the success of this transition by making investments in value-added processing, market development and other innovative proposals that have increased net farm income.
Do you support restoring the agricultural development funds that are being used to pay bond payments on sewage and water line bonds?
BESHEAR: I believe the agriculture development funds should be used solely to increase net farm income. I also understand that our local governments are under tremendous strain to fund their infrastructure needs. That is why I have proposed two ways to increase tax revenue for our state. First, I have an economic development plan that will concentrate on Kentucky businesses and providing the right kinds of incentives. Second, I will conduct a comprehensive efficiency study that will save the state approximately $180 million. However, if we are going to meet Kentucky's growing needs faster, we need a new source of revenue. That is why I, as governor, will work with the House and Senate to place a constitutional amendment on the ballot, which would allow expanded gaming in Kentucky. It is time that the people be allowed to vote on whether they want expanded gaming in our state and the resulting economic benefits that it will provide. I have pledged that, if passed, I will devote a percentage of the funds from this source to local governments to use for infrastructure needs.
FLETCHER: Yes, each year over $15.8 million from the state portion of the Agricultural Development Fund is used to for bond payments on water and sewer projects. Although these funds have provided rural Kentucky the much-needed boost to extend water to rural areas of the commonwealth, we should make these payments the responsibility of the General Fund.
Traditionally Kentucky's agriculture receipts are calculated at the farm gate, and much of our value-added investments are not captured in those numbers. Do you agree that it is time for agriculture to look beyond the farm gate to understand the value of the industry in Kentucky's overall economy? If yes, how do you propose that should be done? If no, why not?
BESHEAR: Agriculture is a multi-billion dollar industry in Kentucky, and it should receive the attention and promotion it deserves. I agree that it is time for agriculture to look beyond the farm gate to understand the value of the industry in Kentucky's overall economy, and as governor, I will sit down with farmers and agriculture experts to determine how that should be done.
FLETCHER: We need access to both farm gate receipts and the value further processing creates for those agricultural commodities and benefits to Kentucky's economy. In the past three years, total farm income surpassed $4 billion for the first time in history and net farm income reached new highs. During my administration, we have made it more attractive for companies such as Sister Shubert's, Marzetti's and Land O'Frost to locate in Kentucky, while growing Kentucky-based businesses such as Owensboro Grain Biodiesel. Capturing the total value of agriculture to our commonwealth will provide the support and resources needed to continue building that portion of our Kentucky economy.
How do you feel the commonwealth should preserve the agricultural resources in the state, when there are limited funds available in the farmland preservation program?
BESHEAR: The success of Kentucky relies in large part on the success of the agriculture industry. We have great natural resources, which are critical to all Kentuckians, including farmers. As governor, I will work with the agriculture industry to explore how we can ensure that farmland preservation is adequately funded.
FLETCHER: First, Kentucky must continue to maximize the federal funds available for farmland preservation. These federal funds along with limited state and local funding can protect some of our most endangered farmland. Agricultural leaders working with local officials to develop land use and conservation efforts to protect our most productive farmland should remain our most effective government approach. Beyond farmland preservation programs, a strong profitable agriculture industry is the best way to protect our agricultural base.
This year Kentucky has faced disaster with the drought and early freeze. At this time there is discussion on how the state should handle such catastrophic weather conditions and one option that has been mentioned is turning to the Agriculture Development Fund to provide assistance. Do you agree with this direction? Why?
BESHEAR: I recognize the great devastation that weather conditions have on our agriculture economy. As governor, I will work with our federal government to ensure we receive the emergency assistance farmers need. I will also sit down with farmers from across the state to determine whether we should use Agriculture Development Funds to help farmers in these emergencies.
FLETCHER: I have twice requested and received disaster declarations from USDA this year, first for the Easter weekend freeze and most recently the drought. Federal farm programs such as crop insurance, emergency disaster loans and direct disaster payments are the most effective way to handle disasters to the magnitude we have seen this year in Kentucky. In September we made changes to the County Model Programs to make them more "drought friendly," while keeping the intent of the program. We will continue to make every effort to assist our farmers through this difficult time including the Agricultural Development Fund if the use remains within the intent of the program.
The Kentucky Department of Agriculture has made great strides in the last four years to brand Kentucky's agricultural products. If elected how would you support the efforts to brand Kentucky's products?
BESHEAR: Kentucky's farmers produce amazing products — from dairy and cattle to produce and everything in between. We must be creative and innovative in educating the rest of the country and world about the great products that we produce. As governor, I will work to promote these products by encouraging value-added agricultural endeavors, and supporting the Office of Agricultural Marketing and Product Promotion and entrepreneurship centers. I also support the Kentucky Proud initiative, and will continue and expand this program.
FLETCHER: My administration has made market development its top priority of Agricultural Development Board investments, this includes funding for Kentucky Proud. Today, we have a united effort between my Office of Agricultural Policy, the Department of Agriculture and Commissioner Farmer to advance Kentucky farm products into retail markets. It is our administration that has fostered the public/private relationships to open doors to retail markets, made the Kentucky Proud brand one of the most recognized brands in the marketplace today, and created new opportunities for farmers to produce and add value to their commodities. This team effort has chartered new territory and built relationship in the food industry that will benefit Kentucky farmers for years to come.
If elected governor, who would you choose as the executive director of the Governor's Office of Agricultural Policy?
BESHEAR: The campaign for governor is taking me across the state, listening to the concerns of Kentuckians, examining possible solutions and getting my message out of higher wage jobs, affordable health care, quality education and ethical government. If the voters select me to be the next Governor, I will work with the agriculture community to ensure we have the most qualified person for executive director of the Governor's Office of Agriculture Policy.
FLETCHER: Keith Rogers has been a tremendous friend to Kentucky agriculture and will continue to be a superb executive director. "