Kentucky Agricultural Development Fund (KADF) Project Funding (KADF)

The Kentucky Agricultural Development Fund's main project program. Farmers, agribusinesses and nonprofits can request county and/or state tobacco-settlement money for projects that raise farm income, such as capital improvements, equipment, farmers markets, greenhouses and permitted kitchens. For-profit applicants can get up to 50% of new project costs for capital improvements and equipment. Nonprofits can get grants for regional, community or statewide projects that serve Kentucky farmers. The Kentucky Agricultural Development Board decides monthly, and county councils prioritize requests for county funds.

• For-profit applicants: eligible expenses are 'limited to capital improvements and equipment'. Match must be new project expenses paid in cash; in-kind products, services and labor are not eligible match.

• Non-profit regional or community applicants (e.g. farmers markets, high school greenhouses, permitted kitchens) and non-profit statewide organizations that provide marketing, distribution, educational or technical assistance to Kentucky farmers.

• 'Make sure the organization/entity formally exists and is registered with the Secretary of State.'

• Projects should show economic viability, become self-sustaining, and have a significant impact on farm income for multiple producers.

• Farmers Markets track: the applicant must be 'an organization (an entity that has a tax ID number and is not an individual)' and needs a high-priority county commitment.

Cost-reimbursement for receipts dated after KOAP receives the application; no cash purchases. Loans over $25,000 require a security agreement, equipment loans require a UCC filing, and all loans are serviced by KAFC. Annual progress reports are required. The recipient must request a no-cost extension 60 days before expiry if needed.

Published amounts: For-profit applicants: 'may apply for funding up to 50% of the new project costs incurred after the application was received', limited to capital improvements and equipment with a cash match. Non-profit regional/community applicants: grants up to 50% (e.g. 'farmers markets, high school greenhouses, and permitted kitchens'). Non-profit statewide applicants: grants for new project costs. Farmers Markets track: 50% cost-reimbursement, 'no more than $250,000 in state funds', and a county lifetime cap of $250,000 since 2001. 'Projects approved for any type of loan will require personal guarantees'.

County funds only: apply to the county agricultural development council(s), which prioritize the request and forward it to the KADB. State funds only: apply to KOAP. For both, apply to the county council(s) and to the KADB at the same time. Submit digitally (contact a KADF Project Manager, 502-573-0282 or KOAP@ky.gov) or by mail to the Kentucky Office of Agricultural Policy, 107 Corporate Drive, Frankfort, KY 40601. Use the 2026 KADF Project Application Request for Funds and the Project Budget Template.

Deadline text on the page: Monthly: 'Project proposals received in the Kentucky Office of Agricultural Policy (KOAP) by the last Friday of the month will be referred to the board’s application review committee at the following month’s KADB meeting.' 'All applications expire after 3 months from the date stamp received in our office.' KADF page: 'The KADB meets the third Friday of the month'.