I'd have to do a little homework to do a true comparison...
But if I remember correctly that your land is in KY and you'll be operating in KY, then the KY trust may make the most sense.
Some states take a very dim view (better said, a view that they think protects their citizens from "foreign
" - out of state - entities).
So when you incorporate or set up the trust in a state other than the state where you want to do business you have to jump through two different sets of "hoops."
And you MAY lose some of the "benefit
of the doubt" that comes with being an actual domestic (registered in the state where you're doing business) entity - regardless of whether it's a business trust, LLC or a Corporation.
... just to get you a quick answer, my intuition says that you'd be better off registering as a KY business trust for the following reasons:
(1) you have to "register" in KY either way, either as a domestic entity or as a foreign entity - so registering as a KY business trust saves administrative overhead, time, keeping up with two sets of registrations, etc.
(2) Again, you'll be (for lack of a better word choice) "treated better." You'll be a KY company doing business in KY
(3) Protection against law
suits, creditors, etc is almost always better for domestic "home state" entities. Not protecting you against a creditor or lawsuit is typically one of the first things that goes, if you don't keep up with all the requirements of the registration as a "foreign" entity (as in, if you formed the trust in Delaware)
On the other side of the coin ... Delaware has the largest body of business/incorporation (business entity in general) law out there. If it's been done anywhere it's probably been done in Delaware.
If you were interested in going public, raising capital from shareholders
(other trust beneficiaries in your case) Delaware might be the way to go.
And the price for that ... is typically cost. For example, in Delaware (for Corporations) they tax you on shares AUTHORIZED, NOT outstanding ... in other words they tax you on the shares as if you actually had those shares issued and money in the bank.
My GUT says, that for your purposes, a KY trust does everything you need and may even have some protecting advantages
and definitely has some cost and simplicity of operation advantages.