Overview of Kentucky Tobacco Settlement Oversight and Allocation

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Kentucky's Division of Conservation oversees the tobacco settlement allocation, providing financial assistance to farmers for implementing best practices. Funding from the Tobacco Master Settlement Agreement supports the program, with recent data showing approved requests and project money distribution across fiscal years.


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  1. TOBACCO SETTLEMENT OVERSIGHT Johnna McHugh, Acting Director Kentucky Division of Conservation August 2023

  2. FY23 Tobacco Settlement Allocation State Cost Share $2,500,000 Direct Aid $900,000 State Cost Share Appropriation 10,000,000.00 9,000,000.00 8,000,000.00 7,000,000.00 6,000,000.00 5,000,000.00 4,000,000.00 3,000,000.00 2,000,000.00 1,000,000.00 - FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

  3. FY22 Direct Aid to Conservation Districts Legend Direct Aid Dollars to Districts $0 - $2,625 $2,625 $5,061 $5,061 - $7,875 $7,875 - $9,375 $9,375 - $15,061

  4. State Cost Share Summary Originally established in 1994 and funded from General Funds and pesticide Product Registration Fees Starting in 2000, the program was funded through Tobacco Master Settlement Agreement Funds Provides financial assistance to farmers at a 75% reimbursement rate for those implementing best management practices on their farms with the assistance of local conservation districts

  5. FY22 Approved in January 2022 Requests from 1016 individuals and $12,766,485.21 Approved 387 individuals and $4,301,477.16 At 18 months 18% canceled 44% paid $1,647,612.61 still to be paid

  6. State Cost Share Projects Money FY 22 Funds Legend Legend Dollars Approved $709 - $26,698 $26,699 - $63,450 $63,451 - $129,746 $129,747 - $265,059 $265,060 - $612,250 County Boundary Lines Coun ty Boundary Polygons Dollarsapproved 709 - 26698 26699 - 63450 63451 - 129746 129747 - 265059 265060 - 615250

  7. FY23 Approved in February 2023 Requests from 960 individuals and $11,659,640.67 Approved 345 individuals and $4,203,631.62 At 6 months 3% canceled 5% paid $3,861,440.73 still to be paid

  8. State Cost Share Projects Money FY 23 Funds Legend Dollars Approved $0 - $3,963 $3,964 - $13,497 $13,498 - $27,178 $27,179 - $57,300 $57,301 - $124,150 $124,151 - $204,695 $204,696 - $339,144

  9. Total Applications Approved Legend Total Approved Applications 6 28 29 62 63 107 108 160 160 230 231 349 350 552 553 862

  10. Total Dollars Approved Legend Total Dollars Approved $26,917 251,568 $251,569 - $623,104 $623,105 1,063,125 $1,063,126 - $1,542,972 $1,542,973 - $2,200,878 $2,200,879 - $3,173,687 $3,173,688 - $4,386,900 $4,386,901 - $6,325,783

  11. Account balance $10,856,845.19 currently in the account $900,000 obligated Direct Aid to Conservation Districts Approximately $200,000 will be paid to contracted auditor during FY24 Remaining $700,000 will be distributed to conservation districts in September 2023 $1,654,987.18 obligated from FY22 $3,859,334.88 obligated from FY23 $340,000 required contingency fund set aside $20,000 has been obligated $4,102,523.13 available for award January 2024

  12. Demonstration of Need Fiscal Year 2022 funds Requests from 1016 individuals and $12,766,485.21 Approved 387 individuals and $4,301,477.16 Fiscal Year 2023 funds Requests from 960 individuals and $11,659,640.67 Approved 345 individuals and $4,203,631.62 Cut off for FY24 funding will be November 15, 2023 Approval in January 2024 Currently unobligated $4,102,523.13

  13. Contact Information Johnna.McHugh@ky.gov 502-782-6703 Kentucky Division of Conservation 300 Sower Blvd, 2nd floor

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