Our Farmland

The equine industry is one of the largest industries in Central Kentucky, contributing billions of dollars to Kentucky’s economy each year.

Keeneland Sales | Photo by Jeff Rogers, www.jeffrogers.com

The horse industry contributes $3.5 billion to our state’s economy. This signature industry is responsible for 96,000 jobs in the state, and more than 194,000 Kentuckians are involved in the business as horse owners, employees, and volunteers. $758 million of the $3.5 billion comes from the horse show industry.^[1] Cash receipts from sales of horses and stud fees in Kentucky made equines the second agriculture product in 2009, according to state agriculture commissioner Richie Farmer.  2009 farm gate cash receipts totaled $4.26 billion. ^[2]

Our signature equine industry stretches far beyond farm-gate receipts, and into a wide-array of Lexington businesses. In 2010 there were 10,797 jobs directly associated with Kentucky’s Thoroughbred breeding industry and an additional 6,860 jobs indirectly related to this industry. For every $1 in earnings paid within the Thoroughbred breeding industry another $1.1 in earnings was paid in other industries within the economy. The 2010 estimated total earnings for the Thoroughbred breeding industry were $352.7 million.^[3] This is incredibly important, as Lexington is a payroll tax community. Over 80% of our local government revenues come from payroll taxes.^[4]

Today, Lexington is the Horse Capital of the World. This title is proudly displayed everywhere, from government stationary to local business slogans.

Horse at Fence | Photo by Jeff Rogers, www.jeffrogers.com

According to the Lane Report, “We have this honor because world-renowned horse farms, bloodstock companies, veterinary clinics, sales agencies, and racecourses are located here.”^[5]

Thirty-Five national and international equine associations are headquartered at the Kentucky Horse Park. Lexington is also home to Keeneland and Fasig-Tipton, the two largest thoroughbred sales facilities in the world.^[6] The 2011 fall sales at both Keeneland and Fasig-Tipton were both significantly stronger than the 2010 sales, with the average sale per horse up nearly 20%. The combined total of these two sales came to more than $261 million.^[7]

Additionally there are 536 horse farms in the Bluegrass region, 183 of which are located here in Lexington.^[8] With so many equine related businesses choosing Lexington as their home, it is no wonder that the title, “Horse capital of the world,” has become a slogan of local pride.

However, it’s not just about Thoroughbreds. Sport-horses are locating here from all over the world. Only 1/3 of the horses in Kentucky are thoroughbreds, the rest are Quarter Horses, Morgans, Warmbloods, and Arabians—a diverse range of breeds and disciplines. To further illustrate the importance of sport horses in our equine industry, in 2011 The Kentucky Horse Park hosted 14 national events, including the National Horse Show—the oldest in-door horse show in the United States.  The combined economic impact of these events is estimated at $44.2 million.^[9]

The equine industry has great cultural, natural, and economic significance for Lexington-Fayette County.

Grazing Horses | Photo by Jeff Rogers, www.jeffrogers.com

The thoroughbred industry, as reflected by the recent Keeneland, Fasig, and Saratoga sales, has stabilized. Projected foal crops will continue to decrease in an effort to “reduce supply” to “increase demand”…And this approach is working, as the average and sales price of each horse has increased 20-40% from previous years.^[7] Lexington and the state of KY are still the epicenter of an international industry; Kentucky-based stallions accounted for 39.4% of the mares reported bred in North America in 2010 and 47% of the live foals reported for 2011.^[10]

Additionally, In the fall of 2010, Lexington hosted the Alltech FEI World Equestrian Games. This honor was bestowed on Lexington because the equestrian plays a significant role the Bluegrass Region. More than half a million visitors attended the event bringing the unique beauty of the Bluegrass and its equestrian heritage to an international audience.^[11]

1. (Return to text.)“Keeneland Head Worries About Death of Industry in It’s Job Capital” by Erik A. Carlson, Business Lexington, April 16, 2009
2. (Return to text.)USDA Economic Research Service 2009 Report
3. (Return to text.) “The Kentucky Thoroughbred Breeding Industry and State Programs That Assist the Equine Industry”, Program Review and Investigations Committee, Draft November 10, 2011
4. (Return to text.) LFUCG General Fund Budget, 2012
5. (Return to text.) “Market Review”, The Lane Report, 2007-2008
6. (Return to text.) “Hub of the Horse Industry,” The Lane Report, September 2010
7. (Return to text.) “Fasig Tipton Sale Posts Strong Increases Over 2010” by Alicia Wincze Hughes, Lexington-Herald Leader, November 2, 2011
“The Keeneland Fall Sale: A look at what happened”  by Jeff Beach, Business Lexington, September 27, 2011
8. (Return to text.)Only farms registered with the Kentucky Thoroughbred Farm Managers’ Club are included these in numbers, meaning that the number of horse farms in our area may be much higher. Kentucky Thoroughbred Horse Managers’ Guide, 2011
9. (Return to text.) “National Horse Show Readies to Begin: Show caps post-WEG year that brought $44.2 million economic impact from 14 new equestrian events”, by Margaret Buranen, Business Lexington, November 1, 2011
10. (Return to text.) “As expected, 2011 foal crop numbers down” by Frank Angst, Thoroughbred Times, September 15, 2011
11. (Return to text.) Alltechfeigames.com

For more information,
“KY QHA-KY Horse Racing Authority”, Lexington Herald Leader, December 3, 2007.
“Strategies for Developing Agricultural Opportunities in the Greater Lexington Area”, Dr. Timothy A Woods, U.K. Department of Agricultural Economics, 2005

Fayette County is not only famous for its horses, but also its livestock.

Cattle in the Bluegrass

Kentucky is the 8th largest cattle-producing state in the US.In our state 38,000 beef farmers raise approximately 2.2 million head of cattle, making it the largest cattle-producing state East of the Mississippi River. In addition to cattle raised for beef Kentucky has 78,000 milking cows that produce approximately 135 million gallons of milk every year.^[1]

The Blue Grass Stockyards, located here in Fayette County, is the largest single cattle auction East of the Mississippi River and is ranked in the top 5 nationally. This market is an extremely important point of price discovery, not only for Kentucky but for cattle producers all over the Eastern US. The highly competitive market sets the pace for cattle prices in the East. ^[2]

The cattle industry contributes millions of dollars to Kentucky’s economy each year.

It should come as no surprise that the Bluegrass Region has the largest assembly of cattle brokers in the Eastern United States. S&B Cattle Company, Eugene Barber and Sons, American Cattle, Conley Livestock and Brian Bogie Livestock are but a few of the major order buyers operating out of Central Kentucky. In 2011, the Blue Grass Stockyards handled over $110 million in cattle sales. Over 200,000 head of cattle were marketed with over 160,000 of them moving through the live auction in downtown Lexington and the balance being marketed over the internet for direct shipment from farm to buyer.^[2]

The value of this industry stretches beyond that of cattle sales. In 2011 the payroll for Blue Grass Stockyards was over $2 million. The average production cost for a beef cow ranges from $450-600 per cow per year. Most of this production cost is captured by local farm suppliers, veterinarians and local feed dealers. These dollars turn many times in the local economy.^[2]

Lexington is home to Market Management Services, which manages 7 livestock markets in Kentucky including Blue Grass Stockyards. These markets collectively sell over 500,000 cattle annually for producers from all of Kentucky and 9 other states. These businesses employ over 150 people and clear over $400 million in livestock transactions annually.^[2]

Lexington, Kentucky truly is the hub of the cattle industry in the Eastern United States.  The success and volume of this vital industry helps keep Central Kentucky green, beautiful and thriving.

To learn more about cattle farming in the Bluegrass check out this video by Business Lexington.

1. (Return to text.) Governor’s Office of Agricultural Policy
2. (Return to text.)The Bluegrass Stockyards
3. (Return to text.))“Tenn. and Ky. beef profits hit historic highs” by Randall Dickerson and Bruce Schhreiner, Associated Press, 2.10.12

For more information,
“Kentucky Agricultural Statistics 2008-2009 Bulletin” National Agricultural Statics Service: Kentucky Field Office, 2008-2009
Clark Family Farms Powerpoint Presentation

Blue Grass Tours Group

Agriculture in Fayette County isn’t just horses, livestock, and crops… it’s also about tourism

In 2010 according to the USDA, Fayette County had farm sales of $504.1 million and was ranked the number one agricultural county in Kentucky.  Fayette (one of 120 counties in Kentucky) achieved 10.4% of all agricultural farm sales in the state.^[1] The significance of this booming industry lies not just in the direct industry but also in the multitude of visitors who come to our region specifically to witness our unique agricultural heritage.

According to the The Lane Report’s Prep Magazine the economic impact of tourism in Kentucky was $11.3 billion in 2010, an increase of 4.8 percent from 2009. State and local tax revenues from this booming industry topped off at over $1.18 billion the same year.  Additionally, tourism was responsible for 169,258 of the jobs in Kentucky in 2010, an increase of 2,657 from the year before.^[2] The Kentucky Horse Park is home to 35 national equine associations, which contribute $260 million to the local economy. Tourism creates a major financial boost to air and ground travel, hospitality, food service, local attractions and retail businesses.^[3]

More than 1 million people come each year to experience our rural heritage.

Agritourism attracts visitors to Central Kentucky’s equine venues (Keeneland Racing, Kentucky Horse Park, Thoroughbred horse farms and related equine events).  In 2011 825,000 visitors made their way through the Kentucky Horse Park—investing needed money in our hotels, restaurants, and local businesses.^[4] At the 2010 Alltech FEI World Equestrian Games more than 500,000 visited the Kentucky Horse Park over the course of 15 days. The economic impact of this tremendous event was found to be nearly $400 million, significantly higher than the predicted $201 million impact.^[5]

Agritourism is a growing industry, bringing a wealth of economic benefits to our region.

The economic value of ag-tourism is not limited to the 2010 World Equestrian Games.  In November 2011, John Nicholson, director of the Kentucky Horse Park, estimated that the economic impact of equestrian events at the park to be $44.2 million this past year. This can be largely attributed to the addition of 14 new equestrian events at the Horse Park in 2011.^[6] As the number of visitors traveling to see our unique landscape has continued to grow, so has the importance of protecting our signature Bluegrass landscape. It’s not just about preserving a “scenic view shed,” but also about preserving a major agricultural attraction that brings visitors from far and wide to our region.

1. (Return to text.) USDA Economic Resource Service 2010 Report
2. (Return to text.) “Tourism Grows 4.8 Percent; 2010 Econ Impact is $11.3B” The Lane Report’s Prep Magazine Summer 2011 p. 3
3. (Return to text.)“Hub of the Horse Industry,” The Lane Report, September 2010
4. (Return to text.) The Kentucky Horse Park, March, 2012
5. (Return to text.) “Alltech FEI World Equestrian Games By the Numbers” alltechfeigames.com, October 20, 2010
“FEI says 2010 WEG had nearly $400M in economic impact” By Janet Patton, Lexington Herald-Leader, November, 17 2011
6. (Return to text.) “National Horse Show Readies to Begin: Show caps post-WEG year that brought $44.2 million economic impact from 14 new equestrian events” by Margaret Buranen, Business Lexington, November 1, 2011

For More Information,

“Strategies for Developing Agricultural Opportunities in the Greater Lexington Area”, Dr. Timothy A Woods, U.K. Department of Agricultural Economics, 2005
LFUCG Division of Planning Comprehensive Plan Survey, Spring 2005
“Realtors get scoop on state of the horse industry” by Margaret Buranen, Business Lexington, March 8, 2011

Mustard Field | Photo by Jeff Rogers, www.jeffrogers.com

Although row crops are one of the smaller agricultural industries in Fayette County, they are still vital to Lexington’s farm economy.

There are 46.5 square miles of harvested cropland in Fayette Co. accounting for 16.45% of the county. In 2008, crop receipts in Fayette County totaled $14.4 million, a significant number coming from such a small sector of our economy.

In 2008 statewide crop receipts increased $368.3 million from the previous year. Fayette County’s crop receipts also increased nearly 5% from 2007-2008.The top selling crop in Fayette County was soy-beans.

Food security is a growing issue in our country.

For the first time in our nation’s history, the United States imported more food products by value than it exported in 2006. Food increasingly comes from distant, sometimes unsafe sources. The average foodstuff travels over 1,500 miles to its destination.

By the year 2030, China will demand more food alone than is produced in the entire world today. Indeed, food is a limited and potentially priceless commodity that is essential to human survival.

Fayette County agriculture is a “new economy” opportunity– as our local community, the Bluegrass Region, and the world need food, and more efficient food production techniques.

Soybeans | Photo by Jeff Rogers, www.jeffrogers.com

The inner Bluegrass Region has some of the world’s most fertile farmland, and is located in a relatively temperate climate. With improved processing, distribution, and marketing systems in place, food could become an incredibly powerful Fayette County industry in the near future. Other cities have taken advantage of this opportunity, and created a major business. For example, Madison Wisconsin is the capitol of a $9 billion local food industry. Fayette County could follow in Madison’s footsteps, as Lexington is located a day’s drive within 70% of the U.S. population…creating an ideal market condition for this emerging industry.

Wine, and locally produced organic foods are growing in the inner Bluegrass Region at burgeoning rates. These industries are crucial to our national security, food safety, sustainability, and economic development. The average value per acre of farmland in the Bluegrass grew at a rate of 42% between 1997 and 2002, the largest increase in value of all regions with significant farming operations. This statistic is particularly impressive as 14 of 23 other comparative regions in the U.S. were stagnant or declining. As the need for food and other agricultural commodities continues to grow the value of our farmland will continue to increase.

However, the more we expand as a city the more we eat away at one of our best assets.

In 2010, statistics were released showing that America loses an acre of farmland every minute. The U.S. has lost more than 6 million acres of farmland since 1997—amounting to the size of Maryland. Unfortunately the land that is most agriculturally productive is on the fringe of our cities, and the most threatened by development. Nationally, these areas produce 91% of our fruit and 78% of our vegetables. Protecting Fayette County farms is important not just on a local scale but also on a national one—essential to the food security of our county, state, and country.

Rural Texaco Station | Photo by Jeff Rogers, www.jeffrogers.com

Biofuels are also important to our national security.

Biofuels are often derived from plant sources. They are environmentally safe, reduce our carbon footprint, promote energy independence, and create jobs. US Congress passed several renewable energy mandates known as, “The Renewable Fuel Standards.” These mandates dictate that by 2022 44% of all fuels for cars and trucks in this country must be 2nd generation cellulosic biofuels. Basically, our dependence on petroleum has put us at risk and at the mercy of imported fuel sources, a risk that can be decreased by increasing our knowledge and production of biofuels.

In 2011 the University of Kentucky was awarded a $6.9 million federal grant for biofuel research. A majority of the grant money is designated to the study of growing switchgrass and miscanthus to create biofuel for farm equipment in an effort to decrease our nation’s dependence on imported oil.

Alternative types of agricultural development could place Lexington at the fore front of innovation.

Summer Cutting Hay | Photo by Jeff Rogers | www.jeffrogers.com

In fact, many experts believe that Kentucky’s greatest potential may come in alternative fuel technology and production. These are powerful market ideas, considering that oil production is peaking, and world demand is expected to increase 50% by 2030.

Kentucky’s fertile land makes it an ideal place to grow plant based alternative fuel sources. Some areas for exploration include switch grass ethanol production and industrial hemp. As the demand for such fuel technologies continues to grow Kentucky could reap great economic benefits. This demand has already increased the value of our farmland as evidenced by the multi-million-dollar federal grant UK received to explore biofuel research.

Simply put, Fayette County agriculture has a significant role to play in today’s world, as natural resources become scarce and need increases.

For More Information:

“UK gets $6.9 million federal grant to help reduce reliance on imported oil”, Kentucky.com, Mary Meehan, May 6, 2011
American Planning Association, January 2008.
“Task force touts many benefits of biomass” Kentucky.com, Bill Estep, January 11, 2010
“State looks at grasses, grains, wood products to produce fuel” Kentucky.com, Bill Estep, September 3, 2009
“The Grass Is Greener” Business Lexington, Tom Martin, April 16, 2009
“A Pep Rally for Boldness” Lane Report November 2008
The Lane Report, November 2008.
American Planning Association, January 2008.
The Progressive Farmer, March 2008
“Kentucky Agricultural Statistics 2008-2009 Bulletin” National Agricultural Statics Service: Kentucky Field Office, 2008-2009

Despite the economic, environmental, and cultural significance of our precious Fayette County farmland…we are losing it at an alarming rate.

Encroaching Sprawl

In 2005 the Inner Bluegrass Region, including Fayette County, was placed on the World Monuments Fund’s list of one of the one hundred most endangered cultural landscapes in the world… because of our alarming loss of farmland to sprawl development. The Taj Mahal in India, and the Great Wall in China are also on this list. USA Today estimated that 137 acres a day of prime agricultural land in the Bluegrass is lost to urban sprawl.

In addition, Fayette County has lost over 19,000 agricultural acres since 1997.

As mentioned above, in 2010, statistics were released showing that America loses an acre of farmland every minute. The U.S. has lost more than 6 million acres of farmland since 1997—amounting to the size of Maryland.

LFUCG PDR Map

These are shocking statistics.

Although farmland preservation and progressive planning efforts have helped curb this effect, 6 years later there is still much more to be done in Lexington-Fayette County.

In 2007 the US census showed that there are 810 farms in Fayette County accounting for 29,796 acres of harvested cropland.

While these numbers are higher than they were in 2002, they are still much lower than in 1997. It is important that we continue to build momentum in the efforts to protect our signature land—the anchor of our environment, economy, and culture.

Click Here to learn more about the LFUCG PDR Program. Click Here to learn more about Bluegrass Conservancy and their efforts to protect the Bluegrass.

Urban Sprawl threatens Rural Settlements in Fayette County.

Historic rural settlements such Athens, Jimtown, Uttingertown, Mattoxtown, and Coletown are threatened by encroaching urban development.

Many of these settlements are close to the current Urban Service Boundary, and if it is expanded, many will be in danger of encroachment and destruction.

With new development, many of these rural hamlets will experience an influx of traffic, noise, and commercial, industrial, and residential development—compromising their historic integrity and sense of place.

The 1996 Rural Land Management Plan recognized this potential problem, and expressly mandates their preservation. The plan states, “Historic rural settlements are an essential part of the rural character of Fayette County, and the rural land management plan requires the preservation and enhancement of these settlements.”

Currently, there are approximately 27,375 agricultural acres under conservation easement in Fayette County—preserving this farmland for agricultural uses forever.

Lexington Farmland | Photo by Jeff Rogers, www.jeffrogers.com

However, farming and most forms of development cannot co-exist side by side, as the trespassing, noise, litter, and stormwater run-off caused by encroaching development makes it difficult for farms to operate in an economically feasible fashion.

Yet, Fayette County farmland is some of the most fertile in the world—ideal for agricultural production.

The topography of our soil consists of Maury Silt Loam soil associations. These associations are considered prime soils for row crops, equine and livestock production, and pasture land. They are located all over Fayette County from North to South and East to West:

Lower South Elkhorn: 774 acres consisting of prime agricultural or core equine agricultural land.
Man O’ War: 89% is core equine agricultural or prime agricultural land.
Old Frankfort Pike: 99% are core equine agricultural or prime agricultural land.
Ironworks Pike: 37% of land is core equine agricultural or prime agricultural land.
Avon/I-64: Over 70% is core equine agricultural or prime agricultural land.
Delong Road/Richmond Road: Over 82% is core equine agricultural or prime agricultural land.

Click Here to see a Fayette County soil map.

Click Here to see Fayette County soil descriptions.

Therefore, the expansion of our Urban Services Boundary into more farmland for development must be discouraged. We must focus our growth efforts inside our current city limits.

If done right, this approach will revitalize our urban areas—making Lexington a more attractive place to live—while also preserving our farmland, which is the factory floor of our significant $3 billion agricultural and agritourism industries.

Click Here to learn more about Lexington’s Urban Service Boundary.

For more information:

“Strategies for Developing Agricultural Opportunities in the Greater Lexington Area”, Dr. Timothy A Woods, U.K. Department of Agricultural Economics, 2005
LFUCG Purchase of Development Rights Program
Bluegrass Conservancy
2005 USDA Annual Report
“The Bluegrass battle: Horse farms vs. developers”, USA Today, November 2, 2005
“The Bluegrass Region: A Finite Resource”, UK Dept. of Landscape Architecture, 1999
USDA National Resources Inventory 2007
1996 Rural Land Management Plan