In 2024, we reached a new mile­stone—$8.3 billion in agricultural cash receipts. That’s not just a number. It’s a clear reflection of the strength and innovation of Kentucky’s farm families. And it represents only a portion of ag­riculture’s estimated $49.6 billion im­pact on the state’s economy.

From poultry—our top farm com­modity—to beef cattle, where we lead the nation east of the Mississippi, to staple row crops like corn and soybeans that each generate over $1 billion annu­ally, Kentucky agriculture is a story of diversity, resilience, and growth. Nearly half of our total acreage is dedicated to agriculture, and no matter where you go in the Commonwealth, you’ll find it—on livestock farms, in greenhouses, and at bus­tling farmers’ markets. Agriculture is our way of life. It’s who we are.

But the agricultural landscape in Kentucky looked very different three decades ago. Back then, tobacco was king. It contributed nearly 25% of the state’s an­nual agricultural cash receipts. It defined small towns, seasons, and livelihoods. From planting to harvest, it marked the rhythm of life in rural Kentucky. Tobacco festivals, parades, and pageants were woven into our cultural fabric.

That began to shift in the late 1990s with the Tobac­co Master Settlement Agreement. Kentucky, along with other states, reached a landmark agreement with major tobacco companies. As part of that settlement, Kentucky committed to diversifying agriculture and helping farm families adapt to changing times.

Since the first payments were received, Kentucky has directed half of its $2.8 billion in settle­ment funds to Early Childhood Devel­opment and the Kentucky Health Care Improvement Fund. The other half has been invested in agricultural diversifi­cation—thanks to the work of the Ken­tucky Agricultural Development Board (KADB), the Kentucky Agricultural Fi­nance Corporation (KAFC), and the Kentucky Office of Agricultural Policy (KOAP).

These organizations, and the dedi­cated board members who serve them, have made it possible for our farmers to expand, innovate, and try new things. We’ve seen major investments in local food systems, agritech, and infrastructure that support a more resilient agricultural future.

Tobacco still plays a role in Kentucky’s economy. We continue to lead the nation in burley, fire-cured, and dark air-cured tobacco production. In 2023 alone, Ken­tucky tobacco generated more than $200 million in farm-level receipts. It’s a part of our story—and a part of our future.

But it’s no longer the only story.

Today, Kentucky’s agriculture is built on a founda­tion of innovation and diversification. We’ve embraced change to ensure our farmers not only survive but thrive. And as we mark 25 years of investing settlement funds into the diversification of Kentucky agriculture, we’re better positioned than ever to take on the challenges of the next 25.

We owe it to our farmers, our families, and future generations to keep pushing forward. Because in Ken­tucky, agriculture isn’t just an industry—it’s a legacy worth protecting and a future worth building.

Jonathan Shell
Kentucky Agriculture Commissioner