Browse Ambrook’s collection of funding programs by Kentucky Department of Agriculture (KYDA)

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.

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.

A payment that requires some percentage of matching contributions by the recipient.

Cost Share

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).

Apply through a participating Kentucky lender who prepares and submits the loan application to KAFC. For more information, contact Bill McCloskey at the Kentucky Office of Agricultural Policy, (502) 382-6093 or kafc@ky.gov.

Bill McCloskey

The Agricultural Infrastructure Loan Program (AILP), offered by the Kentucky Agricultural Finance Corporation (KAFC), assists Kentucky agricultural producers by providing them access to below-market financing for the acquisition, renovation, and construction of agricultural structures that enhance the profitability of their farming operations.



For borrowers showing eligibility, maximum KAFC participation is $250,000 or 50% of the project, whichever is less. Household and/or operation may have multiple KAFC loans but is limited to an aggregate balance of $250,000 across all programs (excluding the Agriculture Processing Loan Program). The borrower must receive at least 20% of gross income from farming for the previous two years (evidenced by federal income tax returns), be a Kentucky resident, and the project must be located on property in Kentucky.

A payment that must be returned to the provider following specified terms of repayment and interest rate.

Loan

The participating lender must be a financial institution with offices in Kentucky, and the lead lender prepares and submits the loan application. The interest rate on the KAFC portion is fixed at 2% a.p.r. for the life of the loan (KAFC may adjust the rate on new loans as market conditions change). The lender services the loan for no more than 0.75% (75 basis points). Maximum KAFC loan term is 15 years or the useful life of the asset (loans secured by real estate may be amortized over 25 years with a 15-year balloon). There is no prepayment penalty. Construction projects must commence within six months of loan approval and be completed within eighteen months. Eligible projects include aquaculture, beef, dairy, equine, grain, poultry, swine, and tobacco facilities, plus tiling and water irrigation/pivot systems. Operating or refinancing loans are not eligible.

Apply through a participating Kentucky lender. Contact Bill McCloskey at the Kentucky Office of Agricultural Policy, (502) 382-6093 or kafc@ky.gov.

The Diversification through Entrepreneurship in Agribusiness Loan Program (DEALP), offered by the Kentucky Agricultural Finance Corporation (KAFC), is designed to assist agri-entrepreneurs with the purchase, establishment, or expansion of a business that sells agricultural products or services to farmers or consumers.



Eligible applicants are agri-entrepreneurs and agribusinesses that sell agricultural products or services to farmers or consumers.

DEALP is a KAFC participation loan made through a participating Kentucky lender at a below-market rate. Consistent with other KAFC loan programs, the KAFC portion carries a fixed 2% a.p.r. and the lender services the loan for up to 0.75% (75 basis points).

Apply through a participating Kentucky lender. Contact Bill McCloskey, (502) 382-6093 or kafc@ky.gov.

The Horticulture Incentives Loan Program (HILP), offered by the Kentucky Agricultural Finance Corporation (KAFC), assists specialty crop producers with access to working capital.



KAFC will loan up to 50% of the project cost, not to exceed $250,000. If the applicant has existing agricultural debt with the participating lender and/or FSA, that debt can be used as match so that KAFC can participate up to 100% of project costs; otherwise KAFC is limited to 50%. Priority consideration is given to borrowers with agricultural education and/or experience. The borrower must be a Kentucky resident and the primary operation must be in Kentucky.

The interest rate on the KAFC portion is fixed at 2% a.p.r. for the life of the loan; the lender services the loan for no more than 0.75% (75 basis points). The KAFC maturity date is December 31st of the year the application was submitted. Borrowers are limited to 10-year lifetime eligibility of the program and to a $250,000 balance in HILP. The loan must be secured with real estate, fixed assets, or equipment (and the specialty crop), with a combined loan-to-value no greater than 85%. Borrowers must submit a business plan and carry NAP, Whole-Farm Revenue Protection, Micro Farm insurance, or other approved specialty crop insurance; new vegetable producers must have a contract with a buyer (waived after 3 years of production). There is no prepayment penalty. Eligible projects include seasonal working capital and other agricultural investments at the discretion of the KAFC Board.

BFLP assists individuals with farming experience who desire to develop, expand, or buy into a farming operation. Eligible projects include purchases of livestock, equipment, agriculture facilities, and real estate; securing working capital; or investing into a partnership or LLC.



1. A KAFC Beginning Farmer will be defined as someone who: 
- Has not owned a farm or ranch for more than 10 years (deeded in name) 
- Has participated in the business operation of a farm for at least three years c. Will be substantially participating in the proposed operation 
2. For Borrowers meeting the above definition, KAFC will loan up to $250,000, or 50% of the project cost. If applicant has existing agriculture debt with the participating lender and/or FSA, this debt can be used as match such that KAFC can participate up to 100% of the project costs, not to exceed $250,000. If there is no current debt with the participating lender and/or FSA to be matched, KAFC will be limited to 50% of the project costs, up to $250,000. 
3. Annual, off-farm, household income must be less than $175,000, as evidenced by three year’s tax returns based on W-2 income. Income derived from ag-related occupations may be excluded from this calculation (as determined by the board). 
4. Borrower must be a Kentucky resident, as evidence by a Kentucky driver’s license or other valid documentation. 
5. Project must be located on property in Kentucky. 
6. Gross farm income generated by the operation (the entire operation proposed by the applicant, including the property to be purchased or improved) should be at least equal to the annual installments for any debts associated with the real estate purchase or improvement(s). 
7. Household and/or operation may have multiple KAFC loans but is limited to an aggregate balance of $250,000 in all programs, excluding the Agriculture Processing Loan Program. 

Eligible Projects: 
- Agricultural facilities
- Funds to invest in a farm partnership, LLC or other farm business structure
    - Borrower must receive equity equal to the investment being provided 
    - Business into which borrower is investing must show a positive gain in net worth over the past five years 
- Equipment purchases 
- Livestock purchases 
- Permanent working capital with provisions to lower KAFC’s involvement each year.
- Real estate, up to 50%, this does not include residence 
- Other agricultural investments at the discretion of the KAFC board

- Kentucky Cabinet for Economic Development 
- Kentucky Department of Agriculture
- BFLP Guidelines


Historically Underserved

1. Participating lender must be a financial institution with offices in Kentucky. 
2. Lead lender is required to prepare and submit the loan application. There must be a commitment by a participating lender who will work with the borrower to capitalize the initial investments outlined in the three-year business plan. The lender will continue to evaluate additional credit needs; however, any additional credit will be at the discretion of the lender and according to their normal underwriting policies. 
3. Interest rate on the KAFC portion of the loan will be fixed at 2% a.p.r. for the life of the loan. KAFC reserves the right to adjust the rate on any new loans as market conditions change. 
4. Lender must agree to service the KAFC participated loan for no more than 0.75% (75 basis points), for the life of the loan. This fee will be added to the KAFC rate to determine the blended rate. 
5. Maximum KAFC loan term shall not exceed 15 years or useful life of asset, collateralizing loans. Loans secured by real estate may be amortized over 25 years with a 15 year balloon. 
6. Loan must be secured with both fixed assets and the personal guarantee of the borrower. 
7. Lender is encouraged to include KAFC as part of any FSA guarantee request or application. a. In most cases, FSA will waive the 1.5% guarantee fee when the Lender utilizes the KAFC BFLP. Please contact local FSA office for eligibility. 
8. KAFC will consider subordinating debt to participating lender. No future debt can be incurred on mortgaged property without notification of KAFC. 
9. Borrower must submit a three-year business plan (outline available) showing a reasonable return and an ability to retire the KAFC debt.
10. Borrower must identify a Mentor who meets the criteria described in the application, who will assist the applicant in carrying out the proposed business plan objectives, who has no financial interest in the borrower’s farming operation, who is not an immediate family member (father/mother, son/daughter, brother/sister), and who agrees to meet with the borrower at least once a year, throughout the term of the loan. The mentor is asked to provide an annual report outlining these meetings for a minimum of five years or until notified otherwise. a. KAFC and the applicant recognize the mentor as a volunteer advisor and release the mentor of any liability. 
11. Borrower must acquire all relevant permits and the project must meet all required construction codes. Property must be in compliance with all environmental regulations. 
12. Construction projects must commence within six months of loan approval and must be completed within eighteen months of loan approval. 
13. Participating lender and/or borrower will provide interim financing during construction of project. KAFC will transfer loan proceeds upon satisfactory completion of project. 
14. Any principal and interest payments made by borrower will be shared pro-rata by lender and KAFC unless both parties agree to modified terms. There shall be no prepayment penalty on the KAFC participated loan. 
15. Only expenses incurred after the Beginning Farmer Loan Application has been received by KAFC will be eligible for consideration under this loan program.
16. KAFC shall review each application and supporting documentation; loan approval will be at the discretion of the KAFC board. 
17. The KAFC Loan Review Committee must review applicants with credit scores below 600 for evaluation and funding recommendation. 
18. Applications with a combined loan-to-value up to 85% may have a government guarantee, but it is not required. 
19. Applications with the approval and obligation of a government guarantee, shall not have a combined loan-to-value greater than 100%. 
20. Any application with a combined loan-to-value greater than 85% without a government guarantee will be referred to the KAFC Loan Review Committee for evaluation and recommendation.

Wineries must submit a grant application, label graphic files, and production cost estimates to the Kentucky Grape and Wine Council for consideration, and receive written confirmation of approval prior to purchasing labels. Direct inquiries and mail applications and forms to: The Kentucky Grape and Wine Council, c/o The Kentucky Department of Agriculture, 111 Corporate Drive, Frankfort, KY 40601, (502) 782-4117, tyler.madison@ky.gov.

Tyler Madison

The Kentucky Grape and Wine Council Wine Labels Cost-Share Grant is intended to assist licensed small farm wineries, defined by KRS 241.010(45), by reimbursing up to 50% of future approved label production costs for wines comprised of at least 75% Kentucky grown fruit. The funding&#x2004;will be distributed on a first come, first served basis. By offsetting label production costs on Kentucky grown wines, this grant aims to increase the number of these wines by decreasing the overall price per bottle, ultimately growing demand and resulting in vineyard expansion. Funding for this program is provided by the Kentucky Agricultural Development Fund. This grant program is administered by the Kentucky Grape and Wine Council (KGWC), in collaboration with the Kentucky Department of Agriculture.



The Kentucky Grape and Wine Council Wine Labels Cost-Share Grant is intended to assist licensed small farm wineries, defined by KRS 241.010(45), by reimbursing up to 50% of future approved label production costs for wines comprised of at least 75% Kentucky grown fruit. The funding will be distributed on a first come, first served basis. By offsetting label production costs on Kentucky grown wines, this grant aims to increase the number of these wines by decreasing the overall price per bottle, ultimately growing demand and resulting in vineyard expansion. Funding for this program is provided by the Kentucky Agricultural Development Fund. This grant program is administered by the Kentucky Grape and Wine Council (KGWC), in collaboration with the Kentucky Department of Agriculture.

A licensed Kentucky small farm winery (as defined by KRS 241.010(45)) may be reimbursed up to 50% of future approved label production. All label costs eligible for reimbursement must be for wines comprised of a minimum of 75% Kentucky grown fruit. Front labels must list 'Kentucky' as the designation of origin (which, by Alcohol and Tobacco Tax and Trade Bureau law, requires a minimum of 75% of the fruit sourced originating from the state specified). Labels (front or back) must contain the Kentucky Proud logo (only Kentucky Proud members are allowed to utilize the Kentucky Proud logo).

A lump sum of money for a specific purpose that does not need to be paid back.

Grant

Grants are awarded from January 1 – October 31. Wineries must submit a grant application and receive written confirmation of approval prior to purchasing wine labels; no expenses are eligible prior to KGWC's approval. KGWC provides a reimbursement cost share of 50% of approved label costs, distributed on a first come, first served basis with a limit of $1,000 per winery. Should funds remain after October 31, additional requests beyond the stated cap may receive consideration of further reimbursement (new caps determined by dividing remaining funds equally among eligible participants; rollover payouts only issued if new caps exceed $50 per participant). All reimbursement requests must be submitted to the KGWC within 60 days of purchase.

Fill out the application, making sure to complete everything on the checklist on the first page, and mail or email it to:

Johnathan Van Balen
Kentucky Department of Agriculture 
111 Corporate Drive 
Frankfort, KY 40601
Jonathan.VanBalen@ky.gov


Jonathan Van Balen

The Kentucky Department of Agriculture facilitates a number of grant opportunities for Kentucky farmers and other businesses that grow and help&#x2004;market Kentucky grown agricultural products. Sources for these investments include the United States Department of Agriculture, the Kentucky Agricultural Development Fund, and General Funds from the Commonwealth of Kentucky. Each program has specific expectations, guidelines, award levels, and timelines. For more details on each funding area, select the program link or contact KDA staff for information.


Kentucky Proud members who have direct Kentucky farm impact may be eligible to receive up to 50% reimbursement for eligible advertising and marketing expenses.





The Kentucky Department of Agriculture facilitates a number of grant opportunities for Kentucky farmers and other businesses that grow and help market Kentucky grown agricultural products. Sources for these investments include the United States Department of Agriculture, the Kentucky Agricultural Development Fund, and General Funds from the Commonwealth of Kentucky. Each program has specific expectations, guidelines, award levels, and timelines. For more details on each funding area, select the program link or contact KDA staff for information.

Kentucky Proud members who have direct Kentucky farm impact may be eligible to receive up to 50% reimbursement for eligible advertising and marketing expenses.



You must be a member of Kentucky Proud® for grant consideration. Please apply for membership at www.kyproud.com.


Certification

Distribution

Diversification

Events

Trade Show

Farmers Market

Certified Organic

Trade Relief

Food Systems

Deadlines: 
Meetings take place the second Wednesday of each month. Applications that are incomplete or missing forms (survey for past POP participants, notarized affidavit, or EZ Vendor Registration Form) will not be considered for funding until these items are submitted. Applications are due the last day of the month to be considered at the next month’s meeting.

The grant maximum: 
Grants are awarded between January 1 and December 31 and cannot exceed 10 percent of the applicant’s reported direct Kentucky farm impact. The maximum award is $8,000. Grantees have 6 months from their application’s approval date to use funds. 
- Lifetime maximums are $36,000 beginning with the use of 2014 funds at the request of the KADB. 
- If you will not use your grant, or if you require a lower amount, you must inform KDA no later than 3 months after approval. If you do not, whatever amount you were originally approved for will be counted against your lifetime maximum. 

Your grant will be withheld if you are delinquent in state taxes. KDA reserves the right to audit the compliance, amend the guidelines, revoke the award, or interpret the intent of this grant at any time, without liability, at its sole discretion. All funds are first-come, first-served.

Apply via the KDA Specialty Crop Block Grant Program page. Contact Anne Harney at (502) 782-4102 or Anne.Harney@ky.gov.

Anne Harney

The Specialty Crop Block Grant Program (SCBGP) is a USDA program that helps the Kentucky Department of Agriculture fund projects that enhance the competitiveness of specialty crops in the state and support specialty crop growers through marketing, education, and research.



Privately owned companies, small business owners, 501(c)(3) nonprofit organizations, and quasi-government entities (including public universities) are eligible to apply. Applicants must reside in Kentucky, or their business or educational affiliation must be in Kentucky. The KDA will not award grant funds for projects that solely benefit a particular commercial product or provide profit to a single organization, institution, or individual.

For 2026, Kentucky anticipates receiving $413,908.66 in SCBGP funding. Matching funds are encouraged but not required.

See the KDA RFSI webpage or contact RFSI@ky.gov, (502) 573-0282.

The Kentucky Department of Agriculture was awarded $8.6 million through the USDA Resilient Food Systems Infrastructure (RFSI) program. Eligible projects expand capacity for aggregation, processing, manufacturing, storing, transporting, wholesaling, and distribution of food products — for specialty crops, dairy, grains for consumption, aquaculture, and other food products (excluding meat and poultry).



Kentucky food and farm businesses in the middle of the supply chain are eligible. Infrastructure grant applicants can apply for a minimum of $100,000 and a maximum of $3 million, with a 50% match of the total proposed project cost (some historically underserved farmers and businesses may be eligible for a reduced 25% match). Equipment-Only project applicants can apply for grants between $10,000 and $100,000 with no match required.

Two funding streams: Infrastructure Grants ($100,000–$3,000,000, 50% match / 25% for some underserved applicants) and Equipment-Only Grants ($10,000–$100,000, no match). Meat and poultry are excluded.

List of Kentucky Department of Agriculture (KYDA) Funding Opportunities