County Agricultural Investment Program (CAIP) (CAIP)

The County Agricultural Investment Program (CAIP) offers 11 incentive areas that provide Kentucky agricultural producers cost-share assistance on practices that increase net farm income and opportunities to try new/innovative technologies or systems that improve farm efficiency and productivity. CAIP is funded by the Kentucky Agricultural Development Fund (KADF) and administered locally through each County Agricultural Development Council.

The program shall be open to all county producers and shall not be tied to participation in any organization. An application shall be accepted if the applicant's farm is located in the county and the cost-share will be used in the county, even if the Farm Serial Number (FSN) is registered in another county. A Universal Producer Application from an individual without a Social Security Number (SSN), Farm Serial Number (FSN), and signature shall be considered incomplete. Counties may choose to limit eligible producers to receive funding every other year; this rule applies to anyone within the same household.

CAIP provides cost-share across 11 incentive areas (such as farm infrastructure, fencing and on-farm water, innovative agriculture systems, and value-added & marketing). Producer maximums are set annually in the Incentive Area Guidelines. Funds are disbursed on a reimbursement basis upon completion of the project. Each producer who receives $600 or more shall be supplied an IRS Form 1099. The statewide minimum scoring threshold is 44 (a county may raise it).

Applications to administer this program are directed through the local County Agricultural Development Council. Following execution of the Legal Agreement, producer applications are made available to producers for a minimum of 15 business days. Producers apply using the Universal Producer Application developed by the Kentucky Agricultural Development Board, submitted to the local CAIP administrator for scoring and approval. Funds are disbursed to producers on a reimbursement basis, upon completion of the project. Direct questions to the Kentucky Office of Agricultural Policy (KOAP) at (502) 573-0282 or KOAP@ky.gov.