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2017-2018 Kentucky Proud Buy Local Program

Grants to Kentucky Restaurants and Food
Services to Reimburse Food Produced In-State

Agency Type:

State

Funding Source:

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Kentucky Agriculture Department (KDA)

Deadline Date:

01/30/19

Description:

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Grants of up to $12,000 per year to Kentucky restaurants and food service businesses to reimburse the purchase or sale of agricultural products grown within the state. Applicants must request the qualifying status to be eligible for this program. This program helps qualifying participants enhance their products and menus with locally-sourced ingredients.

The goal of this program is to facilitate greater utilization of farmer’s bounty, while making it easier for the food service community to prepare these products for the dining pleasure of their patrons. By sourcing Kentucky Proud food products, your customers are confirming their commitment to serving fresh and local food and supporting Kentucky’s farm families.

The KDA is focused on creating greater demand for the agricultural production made possible by the Commonwealth’s farms and these incentives are on based purchases that directly benefit these stakeholders. You will be encouraged to promote Kentucky Proud within your establishment and through your various marketing channels. Staff will be glad to assist in helping you identify more sources for Kentucky grown commodities and discussing strategies for gaining customer support for these decisions. While all segments of the food production system in Kentucky are valued, and manufactures are encouraged to seek Kentucky Proud designation for their products, this program is highlighting the role Kentucky farms are contributing through a Gold, Silver, and Bronze notation system.

Distributor Provider Application & Guidelines
-Distributors who provide detailed quarterly reports on behalf of the participating restaurants will be considered for a 1% reimbursement on their eligible sales. The distributor’s incentive will be in addition to your customer’s reward and will be contingent on both parties adherence to the program guidelines.
-Distributors must be able to substantiate the level of direct farm impact and provide guidance on the processor and/or farms from which the products originated. This information will be used to designate your portfolio of Kentucky Proud products as Gold, Silver, or Bronze.
-Your customers who participate in the program will be eligible for a 15% reimbursement on their Gold category items. An overview of the category descriptions and examples of eligible products is provided in the next section of the application.
-Your participating customer’s silver category purchases will also be eligible for reimbursement at 15%, but will be limited to no more than 25% of their total reimbursement for the quarter. For example: if a restaurant makes Gold purchases of $750 and Silver of $250, the restaurant would be eligible for a 15% rebate on the entire $1,000 of purchases, thus earning a $150 reward.
-Any Silver category purchases exceeding the 3:1 ratio as illustrated, would be ineligible for reimbursement.
-Your firm’s incentive for brokering these sales and providing the detailed quarterly reports of eligible items sold to participants will be 1% of these approved sales. If you provided all $1,000 of the products, your stipend would be $10 in the example above. Your incentive will be based on sales not exceeding the 1:3, Silver:Gold ratio per restaurant.

Restaurant and Other Foodservice Guidelines:
-Restaurants and other food service participants will be eligible for a 15% reimbursement on their Gold category items. An overview of the category descriptions and examples of eligible products is provided in the next section of the application.
-Silver items will also be eligible for reimbursement at 15%, but will be limited to no more than 25% of the participant’s total reimbursement for the quarter. For example: if a restaurant makes gold purchases of $750 and silver of $250, the restaurant would be eligible for a 15% rebate on the entire $1,000 of purchases, thus earning a $150 reward.
-Any silver category purchases exceeding the 3:1 ratio as illustrated, would be ineligible for reimbursement.
-Certain distributors may be willing to provide detailed quarterly reports on behalf of the participating restaurants. The distributor’s incentive will be in addition to your reward and will be contingent on their adherence to the program guidelines. Please contact your local distributor to ask if they are a participant.
-Program participants may make purchases directly from local farmers that are Active Kentucky Proud members and submit the invoices and summary reports quarterly.
-Vendors must be able to substantiate the level of direct farm impact and provide guidance on the processor and/or farms from which the products originated.

Gold:
Edible agricultural products that have 100% Direct Farm Impact. The intent is that these products have 100% Direct Kentucky Farm Impact with only negligible inclusion of other ingredients added for safety or other product enhancements. These direct farm impact products must be sourced directly from a Kentucky farm where the commodities were raised, from a processing plant that can identify the Kentucky farm of origin, or a distributor that can track either of these conditions. Farms or processors identified as the direct source of these products must be active members of Kentucky Proud.

Gold Examples:
-Protein: Mary’s chicken breasts from chickens raised on her farm
-Dairy: Farmer Ryan’s Dairy Products, LLC where the milk, cheese, and ice cream come from cows on his own farm
-Fresh Produce: Aubrey’s dried fruits where she purchased all of her produce from her neighbor’s farm
-Canned/Jarred: Business A’s peach jelly selections where all of the fruits are sourced directly from Kentucky farms
-Grains: Business B’s cornmeal where all of the corn is harvested from Kentucky Farms

Silver:
Edible processed agricultural products where significant portions of the commodities used to produce the products were sourced from Kentucky farms and have some level of Direct Kentucky Farm impact. The major ingredients for these products must have originated from Kentucky farms and there should be an ability to identify some of the farms involved for the promotion of the products. Processors of these products must be active members of Kentucky Proud.

Silver Examples:
-Silver Examples Protein: Business C’s burgers with beef raised on Kentucky Farms but blended with trimmings from cattle shipped in from other states
-Dairy: Ice Creamery, Inc. where they buy their milk and cream from a Kentucky Proud milk processing plant
-Fresh Produce: Business D’s fresh juices where they sourced a significant portion of the produce from Kentucky farms but also included produce from other states Canned/Jarred: Tim’s Pie Pantry where a significant part of the fruit is sourced from Kentucky Farms and blended with fruits from other states
-Grains: Melanie’s Bread Bakery where the grains are sourced from Kentucky and other states

Bronze:
Edible agricultural products harvested, produced, processed, or manufactured in Kentucky that have negligible Direct Kentucky Farm Impact. These are products where the major agricultural components are grown outside of Kentucky and the Kentucky portion of the ingredients are simply there for flavoring or other product enhancements. Processors of these products must be active members of Kentucky Proud.

Bronze Examples:
-Protein: The pork for Uncle Jim’s Country Ham comes from another state, but he cures in Kentucky
-Dairy: Aunt Angela’s Beer Cheese where she gets the cheese from another state but processes in Kentucky
-Fresh Produce: Uncle Keith’s Salsa where all of his ingredients come from other states but the processing takes place in Kentucky
-Canned/Jarred: Business D’s citrus syrups where all the fruit in the citrus jelly is sourced from other states but processed solely in Kentucky.
-Grains: Business E’s pasta where the wheat is being sourced from other states but the processing takes place in Kentucky

GrantWatch ID#:

GrantWatch ID#: 176326

Estimated Size of Grant:

The KDA will reimburse the participant on eligible items until it has reached the $12,000 maximum in 12 months, $36,000 lifetime cap, or until funding depletes.

Term of Contract:

Enrollment in the 2017-2018 Buy Local program will provide the program participant, reimbursement eligibility for sales and purchases made through December 31, 2018.

Any sales or purchases made prior to the quarterly reporting period will be ineligible for reimbursement consideration.

Additional Eligibility Criteria:

Kentucky food distributors, restaurants, and other food service businesses are eligible.

For the purpose of the program, distributors are defined as businesses that provide multiple eligible products from at least three separate farms and vendors.

Applicants may indicate one of the following tax statuses on the application form:
-Individual
-Sole Proprietorship
-Partnership
-Estate/Trust
-Corporation
-Public Service Corporation
-Government/Nonprofit

Pre-Application Information:

Applicants must have Active membership status in Kentucky Proud. If not, you can complete a Kentucky Proud application at:
http://www.kyproud.com

Participating restaurants may be reimbursed for 15 percent of all or part of the cost of eligible Kentucky Proud purchases depending on the amount of direct Kentucky farm impact. Distributors that provide detailed quarterly reports on behalf of participating restaurants will be considered for a 1 percent reimbursement on eligible sales in addition to the restaurants’ reimbursement.

Requests for reimbursements for sales and purchases are due on a quarterly basis:
-2017 Quarter 2 (April-June sales/purchases) due by July 31, 2017
-2017 Quarter 3 (July-September sales/purchases) due by October 31, 2017
-2017 Quarter 4 (October-December sales/purchases) due by January 30, 2018
-2018 Quarter 1 (January-March sales/purchases) due by April 30, 2018
-2018 Quarter 2 (April-June sales/purchases) due by July 31, 2018
-2018 Quarter 3 (July-September sales/purchases) due by October 31, 2018
-2018 Quarter 4 (October-December sales/purchases) due by January 30, 2019

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Kentucky Department of Agriculture
Office of Marketing
111 Corporate Drive
Frankfort, KY 40601

(502) 573-0282

URL for Full Text (RFP):

Geographic Focus:

USA: Kentucky