[LEXINGTON, Kentucky] — The Bluegrass AgTech Development Corp has announced the winning companies for its second round of Challenge Grant funding, supporting transformative agricultural startups that are helping reshape the future of food, farming and sustainability in Kentucky.
The Challenge Grant program, launched to attract and grow agtech and food-based businesses in the commonwealth, received applications from more than 30 innovative companies. After a competitive review process, three were selected to receive a combined total of $300,000 in grant funding.
Bluegrass AgTech is a partnership among 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. Its mission is to cultivate an innovation ecosystem for entrepreneurs and startups in the agricultural sector of the Bluegrass.
“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:
- Kanbol Inc. is advancing Kentucky agriculture’s circular economy by transforming corn stover, a byproduct of corn production, into compostable food containers. Using patented technology, Kanbol creates sustainable alternatives to plastic packaging while opening a new value stream for farmers.
- Orb Technologies is reimagining construction with its Biomie bio-composite block, a multifunctional building material made from straw and grass crops. These materials replace high-carbon construction inputs while providing new income opportunities for Kentucky farmers who supply biomass.
- Santerre International is developing a zero-waste process that converts invasive carp into fertilizer products for use by organic producers. These products address a critical barrier for Kentucky’s organic farms which often lack affordable, consistent access to quality soil amendments.
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.
“We are thrilled to help support innovative agtech startups like these,” said Laura Stephenson, Vice President for Land-Grant Engagement and Dean of the Martin-Gatton College of Agriculture, Food and Environment at the University of Kentucky. “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.”
“The future of farming depends on our ability to innovate. That’s why Alltech is proud to support Bluegrass AgTech and the entrepreneurs it funds. Their bold ideas are helping producers become more sustainable, efficient and resilient, building a bridge between today’s challenges and tomorrow’s solutions,” said Dr. Kyle McKinney, Vice President of Innovation at Alltech.
The 2025 Challenge Grant program opened in November 2024 and was available to registered, for-profit businesses located in or willing to relocate to Kentucky, with a strong emphasis on early-stage and startup ventures. Each recipient was eligible to receive up to $100,000 in grant funding to accelerate its growth and impact.
“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.”
The first round of Challenge Grants, announced in August 2024, included seven companies focused on advancing the future of agriculture and the environment in unique ways, from developing sustainable materials, renewable fuels and biodegradable plastics to innovations in animal health, equine technology and crop protection. The grant recipients received a total of $625,000 in funds, which have already been leveraged into more than $6.9 million in follow-on investment. Their work has supported 56.5 jobs, created 12.5 new jobs and engaged 36 Kentucky farms in projects ranging from crop trials to supply contracts. These early outcomes highlight how Challenge Grant investments are driving innovation while delivering real economic and on-farm impact across the commonwealth.
“Bluegrass AgTech Development Corp is working to make Kentucky the place where agriculture and technology meet. These awards show what’s possible when we back bold ideas that can change farming and food systems for the better. I am excited to lead this initiative and cultivate Kentucky into the nation’s leader in agtech. ” said Jacob Ball, Executive Director of the Bluegrass AgTech Development Corp, appointed in July 2025.
To learn more about the Challenge Grant program or explore opportunities to contribute to BADC’s mission of building Kentucky into a hub for agtech innovation, visit bluegrassagtech.org or reach out directly at info@bluegrassagtech.com.
Press Conference Recording: https://www.youtube.com/live/l0KLyyVgeYU
