FRANKFORT, Ky. (KT) – The state’s burgeoning hemp industry has sparked a new business to locate in central Kentucky.
International Farmaceutical Extracts LLC, which specializes in CBD oil extraction and distillation, has announced plans to build a $6 million-plus manufacturing plant in Boyle County that would create up to 34 full-time jobs over a 10-year period.
“The hemp industry is flourishing in Kentucky, and we are excited by the announcement of the International Farmaceutical Extracts facility in Danville,” said Gov. Matt Bevin. “As the commonwealth becomes a focal point for hemp-related businesses, this latest project significantly accelerates our progress. We are grateful for IFE’s strong commitment to Kentucky, and we look forward to a long and successful partnership.”
IFE plans to buy an 11,750-square-foot facility in Danville to house their manufacturing operation. The company will use its patented extraction and distillation technology to produce up to 5,000 pounds of high-quality CBD oil from up to 50,000 pounds of industrial hemp flower pellets a day.
Positions at the new operation will include management, production, maintenance and shipping. At full capacity, the facility will use hemp flowers from approximately 15,000 acres of local farms.
Martin Smith, who also serves as CEO of United Global Co-opportunities of Lawrenceburg, established IFE in 2017, with a goal of establishing long-term relationships with hemp farmers to service the CBD market.
Kentucky Commissioner of Agriculture Ryan Quarles said companies like IFE are key to the success of hemp in the state.
“With about 1,000 licensed hemp growers, it is clear Kentucky is leading on industrial hemp,” Quarles said. “We know that having many hemp processors turning harvested hemp into products is key to making sure Kentucky remains a national leader for this crop that connects our past to our future. I congratulate IFE on this announcement and wish them much success in the years ahead.”
Boyle County Judge-Executive Howard P. Hunt III welcomed the new company, noting the area has had a long history in the hemp industry.
“In 1889, Boyle County was one of 10 Bluegrass counties that together produced over 90 percent of the entire US yield in hemp,” said Hunt. “With recent changes to federal law championed by US Sen. Mitch McConnell, Kentucky is poised once again to outpace the country in acreage under hemp cultivation. Boyle County is increasing its share in the new hemp industry with International Farmaceutical Extracts’ planned investment. Agribusiness is alive and well in Boyle County.”
According to the Danville Advocate-Messenger, hemp and CBD oil is now a growing business in Danville and Boyle County. In addition to multiple stores that have recently begun selling CBD oil products, the Peterson Farms-owned Kentucky Heritage Hemp Company on Bluegrass Pike west of Danville is growing as many as 200 acres of organic, CBD-rich hemp this year.
People use CBD oil to treat a wide variety of health problems.
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority has given IFE preliminary approval for tax incentives up to $800,000 through the Kentucky Business Investment program.
The performance-based incentive allows a company to keep a portion of the new tax revenue it generates over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.