Value-Added Agriculture in Kentucky

Value-added agriculture generally focuses on production or manufacturing processes, marketing, or services that increase the value of primary agricultural commodities, perhaps by increasing appeal to the consumer and the consumer's willingness to pay a premium over similar but undifferentiated products. Examples could be selling cheeses or ice cream instead of milk or allowing customers to U-pick their produce for a farm experience.

According to the USDA, a value-added addition is usually a worthwhile investment because it generates higher return and helps create brand identity or develop brand loyalty.

Since value-added is considered by some to be a movement that could significantly change production agriculture and provide opportunities for rural America, the Value-added Producer Grant Program (VAPG) has been part of the farm bill since 2002. The application deadline for the 2024 VAPG is April 11 and should be submitted through the USDA Rural Development office.

There are many resources available to help Kentucky farmers enter the value-added product market, including various programs of the Cooperative Extension Service, the Kentucky Proud and Farmers Market programs through the Kentucky Department of Agriculture, and the Kentucky Farm Bureau Certified Farm Market program.

Where to Start

The Kentucky Center for Agriculture and Rural Development (KCARD) is a non-profit organization established to facilitate agricultural and rural business development in Kentucky. They provide educational opportunities, technical assistance, and business support services to new and existing agribusinesses. This includes finding sources of funding and reviewing business and marketing plans.

The UK Food Systems Innovation Center was created to assist processors, producers and entrepreneurs to maximize their market capabilities by having access to UK's technical and business expertise and applied research solutions.

They offer consultations, services and training to help every producer, from small start-up processors to long-standing companies. The FSIC can help determine consumer acceptance of a product; identify potential flavor, visual and other sensory issues; and provide feedback. They can also help you comply with the latest product and nutrition labeling requirements.

Value-Added Marketing Assistance

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Food Systems Innovation Center

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