80 Acres Farms Plans Boone County, Kentucky, Vertical Farming Facility
The company will locate an existing 200,000-square-foot building on more than 22 acres. The facility will be converted into a vertical farming operation to serve the local market and is expected to begin operations in Q3 2022. It will include a high-tech indoor vertical farm and harvesting, packaging and distribution capabilities for leafy green, microgreens, berries and tomatoes. Once fully operational, the controlled-environment farm will produce millions of servings of local, fresh produce for the surrounding area.
“Opening a farm in Boone County will allow us to grow closer to our retail partners in Lexington and Louisville and introduce our fresh, healthy, locally grown produce to many more Kentuckians,” said 80 Acres CEO Mike Zelkind. “We’re always looking for ways to increase our impact, and this farm is the biggest step forward for us yet, more than doubling our total production and growing our footprint outside Ohio.”
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2 million in tax incentives based on the company’s investment of $74 million and annual targets of creation and maintenance of 125 Kentucky-resident, full-time jobs across 10 years and paying an average hourly wage of $45 including benefits across those jobs.
Additionally, KEDFA approved the company for up to $250,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments. In addition, 80 Acres can receive resources from Kentucky’s workforce service providers.
"Agritech growth is a major part of our effort to create a sustainable economy that works for all Kentuckians, and I am very pleased to welcome 80 Acres Farms to the commonwealth,” Governor Andy Beshear said. “These well-paying jobs will create quality opportunities for our workforce. I want to thank the company’s leaders for locating in Kentucky and I can’t wait to see the facility up and running this year.”
Founded in 2015, 80 Acres operates indoor farms using 100% renewable energy and without the use of pesticides. The company’s flagship farm, located in Hamilton, Ohio, has capacity to grow 10 million servings of produce annually. 80 Acres currently operates eight farms and produces a range of food products, including salad blends, microgreens, tomatoes, basil and cucumbers, with plans to begin production of strawberries. The company supplies more than 300 Kroger stores nationwide, as well as other regional grocers.
“80 Acres is leveraging its science and technology to grow its products and scale its supply chain with much success,” added Northern Kentucky Tri-ED CEO Lee Crume. “A lot of collaboration with Duke Energy, Boone County and the Kentucky Cabinet for Economic Development brought this project to fruition. I’m excited to buy 80 Acres’ Kentucky-grown produce at my local Kroger.”
Kentucky’s food, beverage and agritech sector continues to grow with the addition of 80 Acres. Currently, the industry includes more than 350 facilities and employs over 52,000 people. Since the start of 2020, new location and expansion projects within the industry are expected to create more than 2,600 full-time jobs with over $1.8 billion in new investments.
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