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.

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.

Our signature equine industry stretches far beyond farm-gate receipts, and into a wide-array of Lexington businesses. Over 21,000 local jobs are supported by Agriculture and agritourism—including construction, service, research, veterinary, real estate, law, architecture, farm supplies, etc. This incredibly important, as Lexington is a payroll tax community. Payroll tax constitutes over 80% of our local government revenues. Veterinary payroll alone amounts to an estimated $17 million in LFUCG coffers.

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.”

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. In 2006 and 2007 they collectively had more that $1.1 billion in sales.

Additionally over 200 horse farms are located in Fayette County. 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. In fact, there are more Quarter horses in Kentucky than anywhere else in the United States. Learn more about the growing sport-horse industry in our region.

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

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

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 gross sales prices of horses have increased 20-40% from previous years. Lexington and the state of KY are still the epicenter of an international industry, and breeds, foals, and raises more thoroughbreds than all other states COMBINED.

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. 

For More Information:

“The Kentucky Thoroughbred Breeding Industry and State Programs That Assist the Equine Industry”, Program Review and Investigations Committee, Draft November 10, 2011
“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
The Lexington Convention and Visitor’s Bureau
TheHorse.com, 2009
The Jockey Club, 2008
“Not Just a Business Center”, The Lane Report, June 27, 2006.
KY Horse Farm Manager’s Directory, 2004
“Market Review”, The Lane Report, 2007-2008
KEEP, 2007
Alltechfeigames.com

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

Cattle in the Bluegrass

Kentucky is the 3rd largest cattle-producing in the U.S. Our state has over 1.1 million beef cows with an overall cattle inventory of 2.4 million, making it the largest cattle-producing state east of the Mississippi River.

The Bluegrass Stockyards, located here in Fayette-County, are not only the largest stockyards in Kentucky but also the largest stockyards East of the Mississippi River. The Bluegrass Stockyards is also where price discovery takes place in Kentucky, and this market establishes the basis for the entire industry

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

In 2008 total cash receipts from livestock in Kentucky totaled $2.26 billion. Fayette County ranks first in the state for livestock production.

It should come as no surprise that the Bluegrass Region has the largest assembly of cattle brokers in the nation. Eastern Livestock (the largest buyer in the country), S & B Cattle Co., and Eugene Barber & Sons, are just a few of the cattle companies located here in Lexington. In 2010, the Bluegrass Stockyards had over $144 million in cattle sales, accounting for more than 1/5 of all cattle income recorded in Kentucky. Over 226,000 cattle passed through the Bluegrass facility. 219,636 were sold at auction with an additional 48,835 sold on-line.

The value of this industry stretches beyond that of cattle sales. In 2010 the Bluegrass Stockyards’ total payroll for Lexington and surrounding communities grew to $2.8 million. The average production cost for a beef cow ranges from $450-600 a head per year. Most of this production cost is captured by local farm suppliers, veterinarians, and feed industries, essentially keeping as much money in the Bluegrass as possible.

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

For More Information:

The Bluegrass Stockyards
Clark Family Farms Powerpoint Presentation
“Kentucky Agricultural Statistics 2008-2009 Bulletin” National Agricultural Statics Service: Kentucky Field Office, 2008-2009

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. 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 Lexington Convention and Visitor’s Bureau agritourism contributes over $1 billion a year to the regional economy, in addition to 13,000 jobs. Tourism in Fayette County generated a $1.66 billion dollar economic impact in 2009, and supported over 23,420 jobs with a payroll of exceeding $530 million. In fact, over 60% of tourists came to Lexington specifically to see our farms. 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.

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).  Keeneland and the Kentucky Horse Park combined attract over 1.5 million attendees annually. In 2006, The Kentucky Horse Park alone hosted nearly 900,000 visitors, 15,000 competition horses, and 100 special events. In 2009 The Kentucky Horse Park hosted over one million visitors and the Convention and Visitors Bureau assisted 135,000 meeting/convention goers in Lexington and Fayette County hotels provided lodging for 2.7 million overnight visitors. 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.

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.  Over the last few years the number of people visiting the Kentucky Horse Park has grown from 1.4 million in 2004 to nearly 2 million in 2010—investing needed money in our hotels, restaurants, and local businesses. 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 viewshed”, but also about preserving a major agricultural attraction that brings visitors from far and wide to our region.

For More Information:

“FEI says 2010 WEG had nearly $400M in economic impact” By Janet Patton, Lexington Herald-Leader, November, 17 2011

“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

“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

The Lexington Convention and Visitor’s Bureau, 2006

“Alltech FEI World Equestrian Games By the Numbers” alltechfeigames.com, October 20, 2010

“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.

Old Homestead | Photo by Jeff Rogers, www.jeffrogers.com

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