As harvest ends, we reflect and give thanks for the bounty of fresh, nutritious food and products provided by local farmers.
One important tool for the region’s farmers is the Kentucky Highlands SOAR Small Loan Production Fund. It was established in 2016 through an initial $950,000 in capitalization from the Kentucky Agricultural Development Fund investing tobacco settlement funds.
The fund has approved more than 415 loans for more than $3.8 million in less than 10 years, and more than $2.6 million in principal repayments have been made. Because of its revolving nature, the fund has almost tripled in size.
It has helped farmers such as Kate Stone, who founded Stone Gully Farm in 2013 when she and her husband moved to Kentucky and purchased a small farm in Owsley County. With two SOAR farm loans, her sales continue to double.
Stone Gully Farm has a sheep/lamb operation and also is very active at the Red River Gorge Farmer’s Market, which was started by another one of the loan fund’s recipients. At the market, the farm sells vegetables, herbs, lotions/salves and wool products such as scarves that Stone makes from wool from her sheep.
Here’s how the loan program works:
- Loans up to $10,000
- Interest rate fixed at 1%
- No fees
- Term of the loan is 5-years
- Interest-only due the first year collected at closing
- Monthly or annual payments
- Collateralized with non-livestock item
- Most any agricultural related use is eligible
- All 54 counties in the Appalachian Regional Commission designated area are eligible