Instructions for enrolling in the CAIP Trainings in the Online Learning Environment - go to https://anr.ca.uky.edu/caip-training. Click Open Training, then click Continue.

1. Participation in CAIP requires the applicant to complete a minimum of one (1) educational
component prior to the disbursement of funds related to farm management, production, best
management practices or marketing. Eligible sessions include extension-sanctioned activities,
such as workshops, seminars, field days, on-line courses, webinars, etc.

     a. Documentation of attendance is required and the session must not have been submitted
to meet the CAIP education requirement for a prior year.
     b. A county extension agent must sign off on all educational components by signing an
individual producer’s “Certification for Educational Requirement” form.
In special circumstances, Agents may use discretion on who completes the educational
requirement with prior notification to KOAP.
     c. Cost-share payments shall not be issued to producers before the educational
requirement has been met. The educational component may be attained anytime prior to
disbursement of funds, but no more than 6-months prior to the execution of the Legal
Agreement.

2. Educational Videos: The following Investment Areas have an optional educational video
component. The videos may fulfill the educational requirement referenced in D.1. above.
     a. Large Animal – “Cattle Handling & Care (BQCA)” or “Cattle Genetics”
CAIP Standard Guidelines - 2023 11 of 11
     b. Farm Infrastructure – “Commodity Storage & Livestock Handling”
     c. Fencing & On-Farm Water – “Installation & Regulations”
     d. Forage & Grain Improvement – “Farm Practices & Recommendations”
     e. AgTech & Leadership Development – “Farm Safety”

All educational videos are available through the County Cooperative Extension Service. (After the new ANR Agent is in office.)

3. Exclusion: Attendance at an informational meeting to review updated guideline changes and
discuss the producer application does NOT satisfy this requirement.

Funded participants shall adhere to all local, state, and federal rules and regulations.
Any application that does not meet eligibility requirements will not be scored.

The County Administrative Entity and/or the County Program Administrator reserves the right to request or require additional documentation to verify information provided in producer’s application.

Confirmation of fraudulent responses shall result in disqualification for participation in this year’s CAIP.

Applicants are only eligible to receive funds in one of the following programs per program
year: CAIP, Next Generation Beginning Farmer, Youth Agricultural Incentives Program

Tenant farmers or those leasing land where capital construction improvements will be located
shall provide a redacted copy of their Schedule F and written approval from the land owner or an
FSA-578, giving permission to use the owner’s FSN and granting access to the cost-share
item(s) (a minimum of five years for capital improvements).

Each producer who receives $600 or more shall be supplied an IRS form 1099 or equivalent tax
accounting documentation. The program administrator is responsible for distributing the
necessary tax information.

For approved applicatants:

Funds disbursed to producers will be on a reimbursement basis, upon completion of the project.

CAIP funds received shall be used for improvements on the land assigned to the Farm Serial
Number (FSN) provided on the producer’s application, independent of the county in which the
FSN is registered.

CAIP funds received shall be used for improvements in the county in which funds are awarded,
regardless of the counties the FSN may span.
If the FSN spans multiple counties, then the producer shall provide verification that all projects are located in the county in which funds are awarded. There are no exceptions to this policy.

NO CASH PURCHASES are allowed for reimbursement.

1. Funds disbursed to producers shall be on a reimbursement basis, upon completion of the
project.

2. CAIP funds received shall be used for improvements on the land assigned to the Farm Serial
Number (FSN) provided on the producer’s application, independent of the county in which the
FSN is registered.

3. A producer is eligible for up to the county’s maximum cost-share per producer limit not to exceed $5,000. Producers shall not receive more than $5,000 statewide per producer per program year (program year is defined by the year the application is approved by the Kentucky Agricultural Development Board).

4. In the event that it is determined that a producer has received more than $5,000 in a program
year, then the producer will be asked to return the amount over $5,000 to the last county that
reimbursed the producer.

If the producer fails to reimburse the amount over $5,000, then the producer is ineligible to
receive further CAIP funding (statewide) until repayment is made.

5. The producer shall supply a dated receipt indicating buyer and seller information, along with a
description of the item(s) purchased in order to be eligible for payment. Payment shall only be
made for eligible cost-share items.

6. NO CASH PURCHASES are allowed for reimbursement.

7. Beginning in 2020, producers shall submit proof of payment – either a cancelled check, copy of relevant credit/debit card statement, financing paperwork or other method of payment, excluding cash.

8. Approved producers shall submit the Producer Report & Certification form completing the
sections for the program/investments being cost-shared, before reimbursement funds are
received.

9. Deadlines: Should the producer fail to use approved funds by the program administrator’s
reimbursement deadline, said funds shall be reallocated to the next eligible applicant time
permitting.

C. Exclusions

1. Reimbursements for purchases, including labor, from the producer’s immediate family (e.g.
father/mother, son/daughter, brother/sister, aunt/uncle, niece/nephew), including in-laws and
step family, are not eligible.

2. Cost-share shall not be provided for items traded or sold between producers who share interest in a farm operation. This includes the use of a third party to buy/sell the same items amongst the producers.

3. Documented hired labor is an eligible cost-share item; however, reimbursement will not be
awarded for labor provided by the producer and/or the producer’s immediate family (e.g.
father/mother, son/daughter, brother/sister, aunt/uncle, niece/nephew), including in-laws and
step family.

4. Beginning in 2010, all transport equipment was removed as eligible cost-share items from all
investment areas. This exclusion includes trailers, wagons, and carts with the primary function
of transportation.

5. Beginning in 2012, all fertilizer, pesticide, herbicide, and soil amendments (excluding lime)
were removed as eligible cost-share items from all investment areas.

Capital Improvements – Equipment, Fencing, Farm Structures

1. CAIP funds received shall be used for improvements in the county in which funds are awarded,
regardless of the counties the FSN may span.

If the FSN spans multiple counties, then the producer shall provide verification that all projects
are located in the county in which funds are awarded. There are no exceptions to this policy.

2. Producers shall maintain ownership of the property for five (5) years past the participation date in the program.

   a. Should a producer fail to maintain ownership of property for the entire 5-year period,
administrators shall request a return of funds on a pro-rated basis.

   b. Emergency early release is possible in the case of death, illness, physical inability or
transfers within immediate family and must be approved by the local administrative entity
and documentation kept on file for future reference.

  c. Failure to return funds will result in the producer being ineligible to receive additional
Kentucky Agricultural Development Funds until repayment is made.

   d. Administrators shall provide producers failing to meet the ownership requirement a
written notice, giving a minimum of 30 days to repay the pro-rated amount.

3. Producers shall retain adequate insurance coverage, if applicable, to replace any and all
capital improvement/equipment projects funded with Kentucky Agricultural Development Funds.
Proof of insurance may be requested by the program administrator at the time of reimbursement
or during a site visit.

4. Tenant farmers or those leasing land where capital construction improvements will be located
shall provide an FSA-578 or a redacted copy of their Schedule F and written approval from the
landowner, giving permission to use the ower’s