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2019-2020 Kentucky Proud Buy Local Program

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

Agency Type:

State

Funding Source:

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Kentucky Department of Agriculture (KDA)

Deadline Date:

07/31/20

Description:

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Grants of up to $8,000 per year to Kentucky restaurants, food distributors, and other food service businesses to reimburse the purchase or sale of agricultural products grown within the state. Funding is intended to help 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.

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.

Categories are as follows:
- 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.
- 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.
- 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.

For examples of Gold, Silver, and Bronze products, see:
http://www.kyagr.com/marketing/documents/KYP_BuyLocal_Restaurants.pdf#page=3

GrantWatch ID#:

GrantWatch ID#: 176326

Estimated Size of Grant:

The KDA will reimburse the food service on eligible items until it has reached the $8,000 annual cap, $36,000 lifetime cap, or until funding is depleted.

Food service businesses can receive a 15% reimbursement on the product costs for eligible ingredients purchased by the business and prepared for customers.

Distributors that provide detailed quarterly reports on behalf of participating restaurants will be considered for a 2.5% reimbursement on eligible sales in addition to the restaurants’ reimbursement.

Term of Contract:

Enrollment in the 2019-2020 Buy Local program will provide the program participant, reimbursement eligibility for sales and purchases made through December 31, 2020.

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.

Products not further prepared by your business as part of your menu offering and simply offered for resale through your gift shop or storefront are not eligible for the program.

Applicants may indicate one of the following tax statuses on the application form:
- Individual
- Sole Proprietorship
- Partnership
- Estate/Trust
- Corporation
- State Government
- Other Government-
- Nonresident Alien
- Foreign Business Entity

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

Restaurants and other food service participants will be eligible for a 15% reimbursement on their Gold category items. 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.

While there will be no reimbursement for Bronze purchases, applicants are asked to identify and report these purchases as a third category.

Requests for reimbursements for sales and purchases are due on a quarterly basis:
- 2019 Quarter 1 (January-March purchases) due by April 30, 2019
-2019 Quarter 2 (April-June sales/purchases) due by July 31, 2019
-2019 Quarter 3 (July-September sales/purchases) due by October 31, 2019
-2019 Quarter 4 (October-December sales/purchases) due by January 31, 2020
-2020 Quarter 1 (January-March sales/purchases) due by April 30, 2020
-2020 Quarter 2 (April-June sales/purchases) due by July 31, 2020
-2020 Quarter 3 (July-September sales/purchases) due by October 31, 2020
-2020 Quarter 4 (October-December sales/purchases) due by January 31, 2021

Contact Information:

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

Fax or email the completed application to the Customer Resource Center at
Fax: 502-564-5319
Email: finance.crcgroup@ky.gov

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

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