Economy

For many years Kentucky's economy was based on its natural resources—farmland, coal, and timber. Rapid industrial growth occurred after World War II. Today, manufacturing provides the largest single share of the state's earnings. However, the older economic activities, especially mining, continue to predominate in parts of eastern Kentucky. Other major contributors to the state economy in terms of earnings and jobs include wholesale and retail trade, government (federal, state, and local), and the service industries.

Most of Kentucky's manufacturing is located in cities in the Ohio River valley, from Ashland in the east to Paducah in the west. Louisville is the chief industrial center. The Lexington, Owensboro and Covington-Newport areas are also sizable manufacturing centers.

The assembly of trucks and automobiles leads all manufacturing activities in terms of total earnings. Louisville is the center of truck assembly, and Bowling Green and Georgetown are automobile assembly centers. Other major manufacturing activities include the production of chemicals, machinery, food and beverages, and primary metals. Also produced are a variety of textile, wood, rubber, plastic, glass, and leather products.

Kentucky is well known for the production of cigars, cigarettes, and bourbon whiskey. Well over half of the world's bourbon is produced here. Cities with large distilleries include Bardstown, Frankfort, Lawrenceburg, and Loretto.

Fertile soils and moderate climate provide parts of the state with excellent conditions for farming. About 20 per cent of the state's land area is used for crops. A similar amount is used for pasture.

Tobacco is the most valuable cash crop, and Kentucky is second only to North Carolina in its production. Lexington is one of the largest tobacco markets in the world. Corn, soybeans, and hay are also major crops.

Cattle and calves are the state's leading source of agricultural income from sources other than crops. Also important are milk and dairy products. Kentucky has long been known for the breeding and raising of horses, primarily thoroughbreds. The horse farms, many of them internationally known, are concentrated in the Bluegrass around Lexington.

Bituminous coal, mined in the Cumberland Plateau and in coalfields south of Owensboro and Henderson, accounts for most of the state's mineral wealth. Kentucky is one of the nation's largest producers of coal. Crude petroleum and natural gas come from scattered wells in or near the coalfields. The oil is of excellent quality, but only small amounts are produced. Limestone is the most important nonfuel mineral produced.

Almost half of the state's area is forested. Most of the forests are of commercial value and are privately owned. Hardwoods predominate and make up most of the annual cut; softwoods, mainly pines, are also harvested.

Kentucky's highway system includes five Interstate highways and several intercity toll roads called parkways. Louisville and Lexington are the chief points of convergence for major highways.

Several major railways operate in Kentucky, providing mostly north-south freight service. At Ohio River terminals, such as Louisville and Cincinnati (across the river in Ohio), connections are made with some of the large northern railways.

Scheduled air service is provided at five of the state's airports, the busiest being Greater Cincinnati International Airport, west of Covington, and Standiford Field in Louisville. The Ohio and Mississippi rivers carry large amounts of barge traffic. Parts of the Kentucky, Green, and Cumberland rivers are also navigable by barge.