By JORDAN STRICKLER

Kentucky Correspondent

PARIS, Ky. — AgTech Scientific has just broken ground for a new 50,000 square-foot facility on 10 acres in Bourbon County. The facility is part of AgTech’s plan to work with Kentucky farmers to grow hemp, and to partner with the University of Kentucky (UK) on research.

“The hemp industry is expanding rapidly, and Kentucky is on the leading edge of this growth in terms of its science and commercial viability,” said Gov. Matt Bevin. “AgTech Scientific’s exciting new venture represents a unique collaboration with the state’s agricultural community, the University of Kentucky and the commonwealth of Kentucky.

“We are grateful for AgTech’s investment in Bourbon County, and we look forward to the innovation and job growth that will take root in the Bluegrass State as a result.”

Founded in 2015 by Canadian entrepreneurs, AgTech Scientific spent several years searching for the right location before landing here. “Kentucky used to be responsible for the large majority of industrial hemp production,” said Mike French, founder and president of the company.

“Growing conditions for it are excellent, and we really like its geographical location and the fact that it’s near large-scale ‘pick-and-pack’ facilities like Amazon.”

AgTech’s initial product will be an energy drink incorporating cannabidiol – more commonly known as CBD, a compound in hemp believed to have medical benefits – with plans to expand its product lineup in coming years.

In partnership with the UK College of Agriculture, Food and Environment, AgTech is researching potential health benefits of hemp-based additives for animal food and plans, to eventually begin manufacturing pet and equine foods, among other products, contingent on changes to regulations.

French said the thing that really makes AgTech stand out is the promise to farmers to pay prior to the final delivery. After its first planting was completed in July, the company said it made initial payments of more than $125,000 to farmers.

It initially planned on planting 2,000 plants, but ended up putting 200,000 in the ground as interest in the project spread. The founders hope that will exceed 4 million in 2019.

“Kentucky needs to replace tobacco as a cash crop, but growers are used to getting a price before they plant,” said French. “While hemp is a great product, one problem is that there is not a known commodity price. We are going to work with farmers and will give them a net price per acre through our Kentucky Farmer Value-Added Partnership.”

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in January preliminarily approved the company for tax incentives up to $2.4 million through the Kentucky Business Investment Program.

The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments, by meeting job and investment targets.

“The KEDFA funds will be a big help,” French explained. “A majority of that will be used for infrastructure and to pay employee salaries once construction is completed. We will original start with around 50 employees, but hope to grow to around 270 within the next three years.”

“(AgTech’s) impact on our farmers has already been very positive and will continue to bolster our already leading-edge agricultural economy,” said Bourbon County Judge-Executive Michael Williams. “They will truly be pioneers in an industry that is positioned to bring new prosperity and a bright future to our farms and businesses.

“Their plans for more than 200 jobs in the processing plant is a major impact to the economy, and their confidence and support of Bourbon County will be the inspiration for other businesses who will consider our community in the future. It’s a great day for Bourbon County and a great day for Kentucky.”