Distillers tell committee bourbon remains a major buyer of Kentucky corn and a driver of rural jobs

The Kentucky Distillers Association briefed the joint interim Agriculture Committee on July 2 about the industry's economic and agricultural footprint and what it means for Kentucky farmers.

Adam Johnson, vice president of external relations for the association, said distillers filled more than 3 million new barrels in 2024 and that about 16.1 million barrels are aging in the Commonwealth. He said the industry's value chain supports roughly 25,000 direct and indirect jobs and generates substantial tax revenue (the presentation cited approximately $372 million in state and local taxes and about $2 billion in federal taxes).

Johnson told lawmakers distillers processed about 27 million bushels of corn in 2024 and that roughly 84% of that corn came from Kentucky farmers. He said the industry increasingly purchases locally and that demand growth over the past decade has meaningfully benefited county-level farm economies in counties that host or neighbor large distilleries.

Beyond crop purchases, Johnson highlighted research and education partnerships, including work with the University of Kentucky's James B. Beam Institute on soil health, nutrient management and precision-conservation tools designed to help farmers reduce inputs and improve environmental outcomes. He also described tourism links: the Kentucky Bourbon Trail drew roughly 2.7 million visitors in 2024 and 2025, increasing local economic activity for farms and hospitality partners.

Johnson acknowledged headwinds, including inventory growth (barrels aging), shifting consumer patterns and international trade pressures that can affect barrel demand. He urged continued policy support for agricultural programs, tax parity for alcohol, and measures to facilitate international trade and market access.

What happens next: Committee members thanked the association for the data and discussed the larger interplay between agriculture, tourism and processing. Several members urged continued attention to farm support programs and trade issues that affect exports.