This is the second of a two part series of the Kentucky Accomplishments for Fiscal Year of 2005

Farm programs are designed to improve the economic stability and viability of the agriculture sector and to help ensure the production of an adequate and reasonably priced supply of food and fiber for American citizens. Each program dollar paid to a producer turns over in the local community an estimated seven times.

$115 Million in Farm and Program Support: Kentucky producers received $115 million in Commodity Credit Corporation program benefits in fiscal year 2005

$64.9 Million in Direct and Counter-cyclical Program Payments: The Direct and Counter-cyclical Program helps to stabilize U.S. agriculture by providing payments to eligible producers who enroll their farms each fiscal year during the life of the currant farm bill. Over 64,000 Kentucky producers enrolled in the Direct and Counter-cyclical Program for fiscal year 2005 and received $64,959,548 in direct payments.

$3.2 Million in Marketing Assistance Loans: Marketing assistance loans provide producers interim financing at harvest time to meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows. In fiscal year 2005, Kentucky made 48 commodity loans for $3,233,857.

$3.9 Million in Market Gains and Loan Deficiency Payments: Marketing assistance loans provide producers interim financing at harvest time. A producer realizes a marketing loan gain if the loan is repaid at less than the loan principal. Producers who agree to forgo a marketing assistance loan may obtain Loan Deficiency Payment (LDP). Kentucky producers received $3,945,272 in market gains and LDP payments in fiscal year 2005.

$407,061 in Farm Stored Facility Loans: Loans are made to producers to build and upgrade farm storage and handling facilities. In FY 2005, 12 loans were disbursed totaling $407,061.

$53,823 in Milk Income Loss Contract (MILC) Payments: FSA's MILC program compensates dairy producers when domestic milk prices fall below a specified level. In FY 2005, Kentucky dairy operators received $52,823 in payments to help compensate for low milk prices.

$13.1 Million in Crop Disaster Assistance: Kentucky producers who suffered losses to agricultural commodities due to damaging weather or related conditions in 2003 or 2004 were reimbursed $13,122,375. To qualify for reimbursement, production must have exceeded 35% and quality losses must have exceeded 20%.

$27.2 Million in Conservation Reserve Program Payments: Land owners enroll environmentally sensitive lands for terms of 10 to 15 years in the Conservation Reserve Program (CRP). In return for planting a protective cover, they receive an annual rental payment. Cost-share and incentive payments are also available. Kentucky has 15,139 contracts protecting 349,765 acres. Kentucky producers received $27,298,939, making the state the 19th largest recipient of CRP funds nationally.

$58,058 in Noninsured Assistance Program (NAP) Payments: Eligible producers who suffered losses to noninsurable crops in Kentucky receive $58,058 under NAP for fiscal year 2005.

$1,068 Million in Conservation Reserve Enhancement (CREP) Payments: CREP is a Federal, State, and local partnerships targeting an 8 county watershed of the upper Green River. The Green River is the most biologically diverse and rich branch of the Ohio River System. At the end of FY 2005 there were 468 contracts covering 9,073 acres under CREP.

$854,543 in Emergency Conservation Program Payments: ECA provides emergency cost-share funding for farmers to rehabilate farmland damaged by natural disasters that create new conservation problems. The assistance may be used for removing debris from farmland; grading; shaping and releveling farmland; and restoring livestock fences. Kentucky producers received $854,543 in fiscal year 2005 to help farmers restore farmland damaged by natural disasters.

$243 Million in Tobacco Transition Payment Program (TTPP): The tobacco marketing quota and the price support loan programs ended with the 2004 crop. Payments will be made under TTPP that are intended to help tobacco producers make the transition from a Federally regulated program which provided the safety net of price support loans, to an environment in which there will be no planting restrictions, no marketing cards, and no safety net of price support. Sign-up for TTPP began on March 14 and ended on June 17, 2005. Payments begin in 2005 and end in 2014. For 2005 TTPP payments, 224,859 contracts have been approved for $243,184,495