Bourbon County Receives $1M CDBG for Industrial Hemp Equipment

Press Release - 06/19/2018

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FRANKFORT, Ky. (June 18, 2018) – The Department for Local Government (DLG) has approved funding for a $1 million Community Development Block Grant (CDBG) to Bourbon County Fiscal Court on behalf of the Paris-Bourbon County Economic Development Authority (PBCEDA). The federal funds will allow the development authority to purchase a Vitalis Extraction Machine, which will be leased to AgTech Scientific LLC, a diversified industrial hemp company.

These funds aid in a larger effort to establish Kentucky as an international leader in hemp production. Earlier this year, AgTech Scientific announced plans to establish a manufacturing center in Paris, Ky., where the company will partner with Kentucky farmers for the production of hemp. The company plans to extract cannabidiol (CBD) – which is different from THC, the intoxicant in marijuana – from locally grown hemp to use in products such as energy drinks.

“This partnership between AgTech Scientific, Kentucky farmers and the University of Kentucky – which will be working alongside the company to conduct research on the potential benefits of industrial hemp – stands to be game-changing for the Commonwealth,” DLG Commissioner Sandra K. Dunahoo said. “The revival of hemp production in Kentucky bodes well for future economic growth. This CDBG funding alone is expected to create 50 full-time jobs in Bourbon County.”

AgTech Scientific will operate under a license issued by the Kentucky Department of Agriculture, which administers the Industrial Hemp Research Pilot Program. The KDA operates its program under the authority of Section 7606 of the 2014 federal farm bill, now 7 U.S.C. § 5940, that permits industrial hemp pilot programs in states where hemp production is permitted by state law.

“Kentucky’s Industrial Hemp Research Pilot Program continues to grow,” said Commissioner of Agriculture Ryan Quarles. “Last year, KDA’s research pilot program brought millions of dollars in new investment and more than 80 jobs to Kentucky. I am glad to see that trend continuing this year in Bourbon County.”

The CDBG program, overseen by the U.S. Department of Housing and Urban Development, provides assistance to communities for use in revitalizing neighborhoods, expanding affordable housing and economic opportunities, providing infrastructure and/or improving community facilities and services.

To learn more about CDBG and other grant opportunities available through DLG, visit