Tobacco Settlement Agreement Fund Oversight Committee




<MeetMDY1> July 5, 2017


Call to Order and Roll Call

The<MeetNo2> 5th meeting of the Tobacco Settlement Agreement Fund Oversight Committee was held on<Day> Wednesday,<MeetMDY2> July 5, 2017, at<MeetTime> 10:00 AM, in<Room> Room 129 of the Capitol Annex. Senator C.B. Embry Jr., Chair, called the meeting to order, and the secretary called the roll.


Present were:


Members:<Members> Senator C.B. Embry Jr., Co-Chair; Representative Myron Dossett, Co-Chair; Senators Stephen Meredith, Dennis Parrett, and Whitney Westerfield; Representatives Kim King, Phillip Pratt, and Brandon Reed.


Guests: Warren Beeler, Executive Director, and Bill McCloskey, Deputy Executive Director, Governorís Offce of Agricultural Policy, Dave Maples, Executive Vice President, Kentucky Cattlemenís Association, Becky Thompson, Director, Kentucky Beef Network, and Cary King, Chairman, Kentucky Beef Network.


LRC Staff: Lowell Atchley, Kelly Ludwig, and Susan Spoonamore and Rachel Hartley, Committee Assistants.


The June 7, 2017 minutes were approved by voice vote, without objection, upon motion made by Represenative Reed and seconded by Representative King.


Governorís Office of Agricultural Policy Report

Warren Beeler described the Agricultural Development Boardís approved projects and future projects under the program. Bill McCloskey highlighted programs including County Agricultural Investment Program, Deceased Farm Animal Removal Program, Shared-use Equipment Program, Youth-Agriculture Incentives Program, and Kentucky Agriculture Development Fund.


The projects discussed were:

        TerrePURE Kentucky Distillers, Inc., approved for up to $300,000 in State and County funds to construct feedlot facilities for managing distillery by products.

In response to a question from Senator Parrett, GOAP officials stated any farm or individual can bypass county and request funds directly from state.

        City of Mt. Sterling, approved for up to $130,000 in State and $10,000 in Montgomery County funds for the construction of a farmerís market structure.

        Fleming County Board of Education, approved for $50,000 in State and $5,000 in Fleming County funds for the construction of a farmerís market pavilion.

        Victory Hemp Foods, LLC, approved for up to $296,002 in State and County funds to update commercial scale processing plant.

        Henderson County Fair, Inc., approved for $5,000 in Henderson County funds to build a livestock pavilion.

        Baesler Farms, denied request for $97,522 in State funds and $15,000 in Fayette County funds to produce CBD oil.


Beef Industry Report

Dave Maples discussed Kentucky beef industry assets including millions of acres of fescue, water, and marketing structure. KCA produces additional funds through membership fees, monthly publications, and concession stand at the state fairgrounds. Funds between two organizations, the KCA and the Beef Network, are separate.


††††††††††† KBN training programs include Beef Quality Assurance, Cattle Handling and Care, Certified Pre-Conditioned for Health, and Integrated Traceability Solutions Process Verified Program.


††††††††††† Integrated Reproductive Management was created to enroll farms from eastern Kentucky with a goal to change producer behavior. He said the pregnancy rate increased from 83 percent to 89 percent which increased revenue by 24 percent.


††††††††††† The University of Kentucky offers master series programs including Master Cattlemen, Master Stocker, Applied Master Cattlemen, and Master Grazer. Eden Shale Farm in Owen County is utilized as an educational farm with the barn as a classroom.


††††††††††† As part of the project, consumer research conducted concluded longer shelf life is needed. Styrofoam will no longer be used for packaging products.


Kroger approached the KBN to create a project for its stores. Beef Solutions, LLC formed to act as a middle man between Kroger and farmers.


††††††††††† The Yards is a new project which will function as a classroom environment with a lobby that will resemble a museum. Public will be invited to stockyard.


††††††††††† In response to a question by Representative King, Becky Thompson explained certification and equipment needed before a product roll out. The goal is to enroll cattle in September and have product ready for distribution in October.


††††††††††† In response to a question by Senator Parrett, Dave Maples stated there are no other states creating this type of project and the number of jobs created will depend on success of project. Ms. Thompson stated it will reinforce existing jobs to keep them in the state.


††††††††††† In response to a question by Representative Dossett, Ms. Thompson stated the amount of revenue the beef industry puts into the state is over a billion dollars.


††††††††††† The chair stated the next meeting is August 4, 2017. Documents distributed during the meeting are available with meeting material in the LRC Library. There being no further business, the meeting was adjourned.