By Blake Jackson
Bluegrass AgTech Development Corp. has announced the six winners of its third-round Challenge Grant program, awarding a total of $550,000 to innovative agricultural startups that are advancing food production, farming technologies, and sustainability across Kentucky.
More than 30 companies applied for the competitive program, which supports early-stage agtech and food businesses willing to operate in Kentucky.
The winning companies were honored during a ceremony at the University of Kentucky's Martin-Gatton Agricultural Sciences Building.
“This grant program, started in 2024, is already having a significant impact on Lexington and Kentucky businesses and farms,” Lexington Mayor Linda Gorton said.
“The start-up companies in our first two rounds of funding, which employ 72 people, have already spent over $1.5 million to buy crops from our farmers, processing their crops into new products. Through the new grants we are announcing today, we will continue to build on those numbers,” said Gorton.
Bluegrass AgTech is a partnership involving 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.
“Kentucky agriculture has always been built on innovation, and these companies are helping shape what comes next. By investing in entrepreneurs who are developing practical solutions for our farmers, strengthening our food system, and creating new opportunities in rural communities, we’re ensuring Kentucky remains a leader in agricultural innovation for generations to come,” said Kentucky Agriculture Commissioner Jonathan Shell.
Dr. Laura Stephenson emphasized the value of connecting entrepreneurs with research and statewide partnerships to turn innovative ideas into practical agricultural solutions.
“These Challenge Grant recipients demonstrate what is possible when we connect entrepreneurs with the research, expertise and statewide relationships of our land-grant system,” said Dr. Stephenson, vice president for land-grant engagement and dean of the UK Martin-Gatton College of Agriculture, Food and Environment.
“By helping promising ideas move from development to real-world application, we are strengthening Kentucky agriculture, creating new economic opportunities and delivering practical solutions for producers and communities across the Commonwealth,” Dr. Stephenson said.
2026 Bluegrass AgTech Challenge Grant Winners:
- FarmSense – Affordable soil moisture sensors to improve water efficiency.
- Lepidext – Biopesticides targeting destructive insect pests.
- Need More Acres Farm – Expanding Food is Medicine and local food distribution programs.
- Pascal Tags – Durable Barcode 2.0 technology for agricultural asset tracking.
- Silver Fern – AI-powered demand forecasting for greenhouse and nursery growers.
- Sunnyside Egg Co. – Scaling regenerative pasture-raised egg production in Kentucky.
For complete information, visit bluegrassagtech.org.
Photo Credit: gettyimages-frankvandenbergh
Categories: Kentucky, Business, General