Tobacco settlement oversight committee elects co‑chairs, hears Ag Development Board project report

The Tobacco Settlement Oversight Committee elected Senator Jason Howell as the senate co‑chair and Representative Sarge Pollock as the house co‑chair and approved the previous meeting’s minutes before hearing a report from the Kentucky Agricultural Development Board covering December 2024 through April 2025.

Mr. Reed, presenting the board’s summary, told the committee that $5,000,000 authorized by the General Assembly will be available in July for economic development projects and that board staff will accept applications and begin due diligence once the funds arrive. "When July rolls around, the $5,000,000 will come down to our accounts, and then we can take on applications and do due diligence on projects," Reed said.

Bill McCloskey walked members through selected projects from the board’s packets. Highlights included a farmers‑market award for the Cowen Community Action Group (approximately $251,000 in state funds with additional county support), a Community Farm Alliances award of about $868,000 that leveraged more than $2.2 million in federal nutrition dollars, a Metcalfe County 4‑H project funded with $2,063 in county funds to support youth ham projects, and board support for a Hopkinsville Elevator Company rail expansion intended to increase loading capacity.

On workforce and service gaps, the board reviewed its large‑animal and food‑animal veterinary incentive program, started in 2023 to address shortages. McCloskey described program rules that allow applicants to request up to 75% of project costs, capped at $100,000, and said recent awards support facility upgrades where producers bring animals for veterinary care.

Committee members praised local impacts and urged close stewardship of the tobacco settlement funds. Senator Webb urged new members to read House Bill 611 and its history, saying, "We are the stewards of this money." Representative Dawson thanked staff for supporting the Hopkinsville rail project and noted its potential to raise loading capacity from about 15 cars to roughly 50, which she said will aid regional agribusiness development.

Members also discussed a denied application from Grow Farms LLC for cold‑storage expansion. McCloskey said the board and applicant could not agree on a forgivable‑loan formula linking funding to minimum levels of Kentucky‑sourced purchases; the applicant could not commit to the required performance level, and the funding request was not approved.

Before adjourning, Mr. Reed invited members to the Ag Development Fund’s 25th‑anniversary event at the Kentucky History Center on June 20, which will include a joint Ag Finance Board and Ag Development Board meeting and presentations of a contracted strategic plan. The committee set its next meeting for June 12 at 10:30 a.m. and adjourned.

Votes at a glance - Election of co‑chairs: Senator Jason Howell (senate co‑chair) and Representative Sarge Pollock (house co‑chair) — nominations made and accepted; no roll‑call recorded. - Approval of minutes: Motion by Representative McPherson; seconded and approved by voice vote.

What’s next Staff will distribute materials requested by members, including a copy of House Bill 611 and details about the 25th‑anniversary event and strategic‑plan briefing; the board will continue monthly reporting and expects to accept applications for the $5,000,000 economic development allocation in July.