2026 legislative session created investments, opportunities for agriculture industry

FRANKFORT, Ky. (May 13, 2026) – The 2026 Kentucky legislative session delivered one of the most impactful and forward-looking outcomes for agriculture in recent history, securing major investments, expanding opportunities for farmers, and strengthening the future of the Commonwealth’s farming industry.

“Agriculture is economic growth. With nearly 70,000 farms, agriculture has a nearly $50 billion impact on Kentucky,” Agriculture Commissioner Jonathan Shell said. “This was one of the strongest legislative sessions for Kentucky agriculture we’ve seen in years. The support our legislators showed for our farm families and rural communities was tremendous, and this budget positions us for long-term growth, innovation, and success across the Commonwealth.”

During the 2026 legislative session, the Kentucky Department of Agriculture (KDA) was allocated $20.9 million in General Fund dollars for Fiscal Year 2026 and $22.9 million for Fiscal Year 2027. The budget reflects a continued commitment to programs that strengthen agriculture at every level and support Kentucky communities, including:

• $886,500 in Fiscal Year 2026 and $819,300 in Fiscal Year 2027 for the Raising Hope Initiative, addressing rural mental health, suicide prevention, and farm safety;

• $886,500 in Fiscal Year 2026 and $819,300 in Fiscal Year 2027 for the Farms to Food Banks program, connecting Kentucky farmers with food banks to fight food insecurity; and

• $720,000 in Fiscal Year 2026 and $697,500 in Fiscal Year 2027 for County Fair Grants, supporting improvements to local fair facilities and strengthening community agriculture traditions.

In addition to these investments, legislators appropriated $5 million annually from the Budget Reserve Trust Fund for the Kentucky Agricultural Economic Development Board (KAEDB). This funding represents a historic step forward — marking only the second time general fund dollars have been dedicated to agricultural development outside of the Tobacco Master Settlement Agreement.

The KAEDB plays a critical role in driving agricultural innovation, expanding economic opportunities, and supporting long-term growth across Kentucky’s rural communities. Through strategic investments, the board is helping position Kentucky agriculture for the future.

Further strengthening the industry, $35.4 million in Fiscal Year 2026 and $32.7 million in Fiscal Year 2027 from the Tobacco Master Settlement Agreement were allocated to the Agricultural Development Fund. These funds support grants, incentives, and low-interest loans through the Kentucky Agricultural Development Board and the Kentucky Agricultural Finance Corporation, helping farmers modernize operations, diversify, and remain competitive.

The General Assembly also advanced key policies to expand markets and improve quality of life for Kentuckians.

Two major legislative wins centered on the connection between agriculture and health:

• Senate Bill 5 (SB5) creates new opportunities for Kentucky farmers by making it easier for schools to purchase Kentucky-grown products. The bill allows school districts participating in USDA Child Nutrition programs greater flexibility in purchasing local food — helping keep Kentucky food on Kentucky trays while supporting local producers.

• Senate Joint Resolution 23 (SJR 23) declares Kentucky a Food is Medicine state, reinforcing the role of agriculture in improving public health. The resolution builds on the partnership between KDA and the Kentucky Hospital Association to expand access to nutritious, locally grown foods through initiatives such as medically tailored meals, produce prescriptions, and community-based food programs.

The resolution also directs the Personnel Cabinet to incorporate Community Supported Agriculture (CSA) programs into state employee wellness benefits — creating new markets for farmers while improving access to fresh food.

Additional legislative achievements further strengthened Kentucky agriculture:

• Senate Bill 30 supports Kentucky’s dairy industry by allowing milk haulers to operate more efficiently, increasing allowable weights while maintaining safety standards — reducing costs and improving logistics for dairy producers.

• House Bill 869 positions Kentucky as a leader in the emerging alternative aviation fuel industry by establishing a nonrefundable tax credit for producers. This forward-looking policy creates new markets for agricultural products, attracts investment, and strengthens the state’s role in a growing energy sector.

• Senate Bill 155 enhances animal health protections by giving the Commissioner of Agriculture, in consultation with the State Veterinarian, the authority to declare animal health emergencies — ensuring swift action to protect livestock, poultry, and the broader agricultural industry.

• House Bill 56 modernizes regulatory processes by updating inspection requirements and removing outdated statutes, allowing KDA to operate more efficiently and better serve Kentucky producers.

“This session was about more than funding — it was about building momentum for Kentucky agriculture,” Commissioner Shell said. “We’re creating new markets, investing in our farmers, strengthening rural communities, and ensuring agriculture continues to lead our economy for generations to come.”