When 80 Acres Farms landed its record-setting $160 million fundraise a few months ago in August, CEO Mike Zelkind hinted at future expansion to come.
The Hamilton-based vertical farming startup now has its newest site in mind in Boone County, a $74 million investment that will create 125 jobs in the region.
The Kentucky Economic Development Finance Authority preliminarily approved a 10-year incentive agreement worth up to $2 million for the project Thursday. Additionally, KEDFA approved up to $250,000 in tax incentives through the Kentucky Enterprise Initiative Act.
80 Acres will convert an existing, vacant 200,000-square-foot building on more than 22 acres, a few miles from Florence Mall in unincorporated eastern Boone County. It’s the startup’s largest facility to date, nearly triple the size of its flagship farm in Hamilton, which opened officially last January.
Mike Zelkind, 80 Acres CEO, said it’s the first of many new farms planned, an expansion fueled by the company’s recent Series B.
The Boone County farm will more than double its total production and put it in closer proximity to retail partners in Lexington and Louisville as well as introduce its product to more Kentuckians, he said.
Operations will begin in the third quarter of 2022.
“Since our fundraise, we’ve been evaluating multiple locations, and our site selection is driven by our customers,” Zelkind told me. “We’re completely out of capacity in the Greater Cincinnati area and growing really fast. We’re always looking for ways to increase our impact, and this farm is the biggest step forward for us yet.”
The KEDFA agreement, approved unanimously during a virtual meeting Thursday morning, can provide up to $2 million in tax incentives, based on the company’s $74 million investment and if 80 Acres meets annual targets. The targets include:
- Creating and maintaining 125 full-time jobs for Kentucky residents over 10 years.
- And paying an average hourly wage of $45, including benefits across those jobs.
The additional $250,000 KEIA funds aim to help the company recoup tax on construction costs, building fixtures and equipment.
The farm, previously identified as “Project Magic Bean,” will be a four-phase roll out, Zelkind said. 80 Acres’ farms operate using 100% renewable energy and without the use of pesticides, and the farm will initially grow leafy greens, then tomatoes, and eventually berries. The facility will feature next-generation design, including high-tech harvesting, packaging and distribution capabilities.
Northern Kentucky Tri-ED CEO Lee Crume said customers throughout the Cincinnati region and the commonwealth will be able to access fresh produce. Once fully operational, the farm will produce millions of servings each year.
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,” Crume said in a release. “A lot of collaboration with Duke Energy, Boone County and the Kentucky Cabinet for Economic Development brought this project to fruition.”
Overall, 80 Acres, founded in 2015, has raised $250 million to date and is eying national as well as international expansion. The Boone County farm will be its ninth location — and first in Kentucky and first major production farm outside Ohio. The company has 280 employees.
Previous farms have been built on both greenfield sites and converted several brownfields, including its Cincinnati farm in Spring Grove, and in North Carolina and Arkansas, Zelkind said.
“It is a big step,” he said. “We’re taking the technology we’ve developed and tested in Hamilton to the next level.”
