In December 2022, less than six months after devastating floods, a storefront sign in Hindman, the Knott County seat, expressed optimism for the future. (Kentucky Lantern photo by McKenna Horsley)
The University of Kentucky’s demographic data paints a stark picture of Eastern Kentucky’s future. Letcher, Knott, Perry, and Harlan counties are among the fastest shrinking in Appalachia. Across the border in Virginia, Buchanan County is projected to lose nearly half its population by 2050, but the pattern in Kentucky’s coal counties is identical: Young people leave, older residents remain, and the math no longer supports schools, clinics, or small businesses.
As one observer put it, “There are more hearses headed to the cemetery than moving vans pulling into the driveway.”
Yet buried in the demographic projections was a crucial caveat: Their forecasts could prove “too dire if people start moving into the region.” In other words, decline is not destiny. The question is how to reverse the exodus and transform Eastern Kentucky from a region people leave into one they choose to call home.
Recent floods underscore the urgency. In July 2022, torrential rain killed 45 people and forced families from their homes in Knott, Breathitt, and Perry counties — part of a pattern of repeated disasters that make rebuilding in the hollows increasingly untenable. Despite billions of dollars in federal investment since the 1960s, from highways to retraining programs, the region continues bleeding people and opportunity.
The problem runs deeper than jobs. It’s about land — who controls it, where homes can safely be built, and whether working families have secure, affordable ground beneath their feet.
A framework already in place
For years, I’ve advocated for a modern Homestead Act for Central Appalachia — not as nostalgia for the Homestead Act of 1862 but as a practical strategy built on existing legal and institutional frameworks. The tools for transformative land reform already exist; what’s missing is the political will to coordinate them at scale.
Kentucky passed land bank legislation that allows localities to create public land banks that can acquire tax-delinquent or abandoned properties and prepare them for productive reuse. Louisville has already pioneered one of the nation’s largest and most active land banks, demonstrating how city governments can move neglected properties back into productive use.
Community Land Trusts (CLTs), pioneered in Georgia and operating successfully in rural Tennessee since the 1970s, keep land affordable while preventing speculation.
Federal brownfields law shields new property owners from environmental liability when proper cleanup protocols are followed. Most importantly, billions in federal funding for mine reclamation, infrastructure development, and climate-resilient housing are already flowing through existing programs.
The legal infrastructure exists. The funding mechanisms are operational. What we need now is a comprehensive implementation plan.
The blueprint: 3 million acres across Appalachia
Here’s how a regional Homestead Act could work in practice, focusing initially on Eastern Kentucky while coordinating with similar efforts across the broader Appalachian coalfields.
A federal-state partnership administered through the Appalachian Regional Commission would target three categories of property for acquisition. Thousands of acres of reclaimed surface-mined land, already reforested under federal reclamation requirements, could be developed for housing, renewable energy or agroforestry systems. Secondly, corporate-owned undisturbed land, much of it controlled by coal and timber companies, includes rich soils and abundant water resources; with companies facing bankruptcy or divestment pressures, prime tracts could be secured at below-market prices.
Finally, underused federal holdings such as portions of national forests could be designated for homestead development, especially on higher ground suitable for climate-resilient communities.
Initial capitalization of $100 million from the Infrastructure Investment and Jobs Act would support land acquisition, supplemented by state contributions and private partnerships. Funding could be raised through several methods. Strategic auctions at bankruptcy sales of distressed coal company assets would allow large tracts to be secured cheaply by government agencies and conservation groups. Negotiated sales with struggling corporations could provide tax benefits and structured payments in exchange for below-market land transfers. Land swaps would allow governments to trade less desirable holdings for prime private land needed for homestead development. Green bonds, issued by states or municipalities and backed by federal guarantees, would finance large-scale land acquisition and infrastructure expansion.
Tourism and recreation — from farm stays to outdoor adventure — could capitalize on the region’s natural beauty and cultural heritage. (Getty Images)
The program would offer 10- to 40-acre plots to eligible participants at nominal cost, in some cases as little as $100 to $500 per acre for reclaimed mining land, with higher prices for greenfield properties. To encourage long-term settlement, families would receive 10-year property tax exemptions, giving them time to establish farms and businesses before local taxes phased in.
Development incentives would include relocation grants, low-interest loans for housing and agriculture, and five-year income tax exemptions for those committing to stay a decade or more. Each community would also be guaranteed modern infrastructure: improved roads, stormwater management and reliable broadband access.
If divided conservatively into 30-acre parcels, Kentucky’s potential 1.3 million acres could support over 43,000 homesteads — enough to stabilize population decline and lay the foundation for renewal.
Eligibility and priority systems
Three categories of participants would be eligible for the homestead program. The first would be families already living in Appalachia but seeking safer, more affordable housing or land for small-scale farming and business development. The second would be returning members of the Appalachian diaspora who left the region for work but could now return thanks to remote employment and homestead incentives. The third would be newcomers from outside Appalachia prepared to commit long-term to farming, renewable energy, health care education, or small business.
Priority would be given to applicants who pledge at least 15 years of residency, to families with children who would stabilize rural schools, and to those with agricultural or entrepreneurial skills most likely to contribute to long-term community development.
Infrastructure as foundation
Modern homesteading requires 21st century infrastructure. Every homestead community would be developed above the 100-year floodplain, ensuring safety while saving taxpayers from repeated disaster recovery costs. High-ground development would be paired with advanced stormwater systems using retention ponds, permeable surfaces, and native landscaping.
Universal broadband would connect each home with fiber-optic service capable of supporting remote work, online learning and e-commerce. Cooperative service networks, rooted in Appalachian traditions of mutual aid, would allow communities to pool resources for equipment, purchasing, marketing, child care, and elder care — lowering costs and strengthening resilience.
Economic development through land use
Economic growth would be driven by land use tailored to the region’s landscape.
Specialty agriculture such as orchards and vineyards could revive Eastern Kentucky’s fruit-growing heritage and expand into grape production for wine and juice. Agroforestry systems would combine tree crops with pasture, providing multiple income streams while restoring ecosystems. Controlled-environment agriculture — greenhouses and high vertical structures — would allow year-round vegetable and herb production. Non-timber forest products, from ginseng to mushrooms, could build on traditional mountain practices.
Carbon forestry, replanting blight-resistant chestnuts and native hardwoods, would generate steady revenue through carbon credit markets. Value-added processing in food plants, sawmills and craft workshops would ensure local producers capture more of the wealth they create. Finally, tourism and recreation — from farm stays to outdoor adventure — would capitalize on the region’s natural beauty and cultural heritage.
Governance through democratic land trusts
Community land trusts would be the foundation of governance. Families would own their homes and improvements, but the trust would retain ownership of the land to prevent speculation. Resale formulas would ensure housing remained affordable across generations, while community assemblies would make decisions on infrastructure, land use, and cooperative ventures.
The role of educational institutions
Kentucky’s universities and colleges must serve as technical assistance and training hubs. The University of Kentucky and Eastern Kentucky University could lead mine land reclamation, agriculture, and engineering. Berea College could provide civic, cultural and organizational leadership, consistent with its historic mission to serve Appalachia. Together, they would create a research and training network to support homesteaders.
Learning from precedent
Gov. Andy Beshear’s response to Eastern Kentucky’s devastating 2022 floods demonstrates climate-resilient relocation in practice. Eight new high-ground communities are being built across the coalfields, including the Skyview neighborhood in Hazard. “We cannot keep putting people back in the same places and expect a different outcome,” Beshear said at one groundbreaking.
Energy efficient homes are under construction at Skyview near Hazard in Perry County. (Housing Development Alliance)
This model — relocating families to safer ground while building modern infrastructure — could be replicated across Appalachia. Other examples, from Valmeyer, Illinois, to Scotland’s Isle of Eigg, show how coordinated relocation and community ownership can create vibrant new settlements.
Economic impact and fiscal benefits
A comprehensive homestead program would generate significant economic activity throughout Eastern Kentucky. Initial infrastructure development — roads, broadband, water systems and housing — would create thousands of construction jobs in the first decade. Using conservative estimates of $150,000 per homestead for housing and infrastructure, 43,000 Kentucky homesteads would generate over $6 billion in construction activity.
Small business development would follow. If half of all homesteads created enterprises averaging $25,000 annually, that would represent more than $500 million in new economic activity. The property tax base would expand as reclaimed land bought for $500 an acre and improved with housing, barns and orchards reached assessed values of $3,000 to $5,000 per acre within a decade. Meanwhile, stronger employment and population growth would reduce demands on social services, stabilizing schools, clinics, and local governments.
Implementation timeline
The program would roll out in phases. Pilot projects in two or three Eastern Kentucky counties during the first two years would establish proof of concept. Regional expansion in years three through five would scale the model to thousands of homesteads. Full implementation in a decade would integrate Kentucky’s coalfields into a broader multi-state homestead strategy.
Monitoring and accountability
A modern homestead initiative must be accountable. Annual monitoring would measure job creation, business formation, income growth and rising property values. Demographic trends such as school enrollment, age distribution and family formation would show whether the program is attracting and retaining young residents. Environmental monitoring would track soil restoration, water quality, biodiversity and carbon sequestration to ensure development improves rather than degrades ecosystems.
Community development indicators — participation in cooperatives, civic organizations and cultural programs — would reveal whether homesteads are building stronger, more resilient communities.
Beyond economic development: proving ground for democracy
The homestead program’s value extends beyond economics. By returning land and decision-making power to families, it strengthens the democratic foundations of rural life. It offers a path to renewal based on ownership, responsibility and cooperation.
Conclusion: from decline to renewal
Decline is not destiny if people start moving back to the region. A modern Homestead Act provides the framework, incentives, and community structures to make that migration not just possible but attractive.
The total new investment dollars I am proposing are small compared to the amounts the country has spent on other relief projects. The Appalachian Regional Commission’s designation of Central Appalachia is 60 mainly coalfield counties in four states: Southwest Virginia, Southern West Virginia, Eastern Kentucky and Eastern Tennessee. The 2020 census showed a population of 1,852,312 but declining.
ARC designates 80% of those 60 counties as economically “distressed” out of the 118 distressed counties in all of Appalachia. Following Hurricane Katrina in 2005, the U.S. spent $120.5 billion restoring New Orleans and the Gulf region. The total population there was 1.4 million. The total benefit to the nation in restoring the Appalachian coalfields far outweighs the projected costs.
The tools exist. The funding streams are available. The communities are ready. What’s needed now is the political will to coordinate these resources at the scale the challenge demands.
Eastern Kentucky stands at a crossroads. One path leads to continued decline, aging communities and economic stagnation. The other leads to renewal, sustainable prosperity, and communities that can weather any storm.
The choice is ours. The time is now. The land is waiting.