Metro Lex News

Seven businesses, including five from Lexington, have been awarded the first Bluegrass AgTech Development Corp incentive grants. These grants aim to encourage agtech and food-based businesses to establish operations in Kentucky.

“We want to become the international address of agtech businesses, and this is an exciting step forward,” Mayor Linda Gorton stated.

Bluegrass AgTech focuses on fostering an innovation ecosystem for entrepreneurs and startups in the agricultural sector. Its partners include the City of Lexington, the Kentucky Department of Agriculture, its Kentucky Agricultural Development Fund, the University of Kentucky Martin-Gatton College of Agriculture, Food and Environment, and Alltech.

The grants program was announced last November by Bluegrass AgTech. Out of 29 applications received, seven were selected for funding. The winning companies are HempWood, Iristrac, Lepidext Inc., Parasight System Inc., RedLeaf Biologics, Spirited Inc., and Sunflower Fuels.

“The vision for Bluegrass AgTech was developed over four years ago and the announcement of these awards is a major milestone,” said Dr. Nancy Cox, Vice President of Land-grant Engagement and Dean of the Martin-Gatton College of Agriculture, Food and Environment.

Through this challenge grant program, Bluegrass AgTech connects agricultural innovators with public and private funding sources and incentives. This initiative aims to attract new agri-food and agri-business companies to Kentucky while boosting the economy and promoting a more affordable, nutritious, and environmentally sustainable food future.

“Agriculture plays a fundamental role in not only producing food but also preserving the planet. Funding innovative agtech entrepreneurs is critical to achieving this mission – and to helping transform Kentucky into the agricultural technology capital of the United States,” said Dr. Mark Lyons, president and CEO of Alltech.

Bob Helton, executive director of Bluegrass AgTech Development Corp., mentioned that these challenge grants provide incentive funding along with valuable resources such as mentorships, referrals to professional services, connections to local growers and research teams, as well as other business development assistance.

Each applicant could apply for up to $100,000 in grant funding during this first year. The seven grant recipients were awarded a combined total of $625,000. Applicants were required to provide a 100% match. The program was open to registered for-profit businesses located in or willing to establish a presence in Lexington or Kentucky with an emphasis on startups and early-stage businesses.

Lexington contributed $1 million to initiate the grants alongside another $1 million provided by the state through the Kentucky Agricultural Development Fund.

Jonathan Shell, Kentucky Commissioner of Agriculture stated: “The Bluegrass AgTech grants empower innovators and entrepreneurs, cementing Kentucky's leadership in agricultural innovation.”