Challenge Grant Program

The Challenge Grant Program, administered by the Bluegrass AgTech Development Corp (BADC), aims to accelerate agricultural and food innovation across Kentucky by supporting startups that are developing scalable technologies, services, or products in the agtech space. This initiative is a core part of BADC's mission to build a robust agtech ecosystem benefiting farmers, entrepreneurs, and investors within the Commonwealth. Eligible applicants include registered for-profit startup businesses, whether early, growth, or late-stage, that are either already based in Kentucky or willing to establish a presence in the state for at least five years upon selection. The program offers up to $100,000 in grant funding per recipient, provided on a dollar-for-dollar matching basis. Matching funds may consist of cash or in-kind contributions such as staff salaries dedicated to the project. In addition to funding, selected applicants receive mentorship, referrals to professional services, and connections to growers and research teams. Applications for the 2024–2025 cycle open on November 22, 2024, and are due by March 1, 2025. A panel of judges will review submissions based on several criteria, including relevance to key focus areas, commercialization potential, job creation capacity, and team readiness. Finalists may be invited to provide additional financial documentation and present their business plans to a review panel before winners are selected. To be considered, applicants must align their project with at least one of five challenge focus areas: Ag for the Middle, Resilient Regional Food Systems, Food is Health, Future-Proof Meat & Dairy, or Kentucky Traditions. These areas emphasize innovation in mid-sized farming, sustainable food systems, health-oriented food solutions, animal protein advancements, and traditional Kentucky sectors such as distilled spirits and equine industries. Recipients must commit to maintaining operations in Kentucky through specific conditions such as establishing headquarters, manufacturing, or R&D facilities, or fulfilling job creation targets. The grant funds are distributed in stages contingent on milestone completion and the fulfillment of ongoing operational presence in Kentucky. A final grant agreement outlining mutual responsibilities is executed within 90 days of award notification.

Align your proposal clearly with one of the five focus areas; demonstrate scalability and impact; ensure readiness to operate in Kentucky for five years.