By Blake Jackson
The Bluegrass AgTech Development Corp has unveiled the recipients of its second round of Challenge Grant funding, awarding $300,000 to three innovative agricultural startups committed to advancing food, farming, and sustainability in Kentucky.
The Challenge Grant initiative was designed to attract and support agtech and food-based companies in the Commonwealth. More than 30 applicants competed in this round, with three startups ultimately chosen to receive up to $100,000 each.
Bluegrass AgTech is a collaboration between the Lexington-Fayette Urban County Government, the Kentucky Department of Agriculture, the University of Kentucky Martin-Gatton College of Agriculture, Food and Environment, and Alltech. Together, the partners aim to build a thriving innovation ecosystem for agricultural entrepreneurs in the Bluegrass region.
“Agriculture is a growing part of our county's economy. A new study shows agriculture contributes $2.6 billion to our local economy each year. The goal of these grants is to grow that number by producing new jobs in agtech,” said Mayor Linda Gorton. “We want Kentucky and Lexington to become the international hub of agtech business.”
2025 Challenge Grant winners include:
- Kanbol, Inc., which converts corn stover into compostable food containers, providing a sustainable alternative to plastics while generating new income streams for farmers.
- Orb Technologies, creator of Biomie, a bio-composite block made from straw and grass crops that replaces carbon-heavy construction inputs.
- Santerre International, which transforms invasive carp into fertilizer for organic producers, addressing a critical supply need for Kentucky’s organic farms.
This year’s winners are turning agricultural and natural byproducts into high-value solutions, from fertilizers and compostable packaging to bio-based building materials, advancing Kentucky’s circular economy, while creating new opportunities for farmers.
University of Kentucky’s Laura Stephenson said, “The Challenge Grant program puts our land-grant mission into action by bringing people together to address challenges, strengthen our agricultural economy, and create a bright future for the commonwealth.”
“Kentucky farmers are some of the most innovative in the country, and these Challenge Grant winners highlight how new ideas, and technology can create real opportunities in the marketplace,” said Commissioner of Agriculture Jonathan Shell.
“From turning invasive species into organic fertilizer to creating sustainable packaging from farm byproducts, these companies prove that Kentucky agriculture is driving solutions for the future.”
Jacob Ball, Executive Director of Bluegrass AgTech, summed up the vision: “These awards show what’s possible when we back bold ideas that can change farming and food systems for the better.”
Photo Credit: gettyimages-shotbydave
Categories: Kentucky, Business