FRANKFORT, Ky. (Aug. 31, 2022) – Today, Gov. Andy Beshear congratulated Delavan Ag Pumps Inc. on plans to locate a new manufacturing facility in Todd County, a project creating 30 full-time jobs with a $2.3 million investment, as Kentucky’s agribusiness sector continues to showcase rapid growth.
“It is great to see the continued success of our state’s agritech sector with growth of existing businesses and the addition of new companies like Delavan Ag Pumps,” Gov. Beshear said. “This is a great project for Todd County and the families who will benefit from the job creation associated with this investment. Thank you to the leaders at Delavan for having faith in the commonwealth and our talented workforce.”
Delavan will locate in the Marsh Building on West Main Street in Elkton, which will house production and warehouse operations to support the company’s recently expanded lawn and garden business. The location also will have the capability to take on additional product lines in the future. Jobs created at the facility will include management, engineering and assembly roles. The operation is expected to come online in October.
Company leaders highlighted the ideal geographic location in Southwestern Kentucky and the skilled workforce throughout the region as factors in the decision to locate in Todd County.
Delavan Ag Pumps is a division of Delavan Fluid Power. Delavan’s business began in Des Moines, Iowa, in 1941 with the production of ag spray and fuel burner nozzles before adding pumps and hydraulics to the company’s line of products. In 2020, Delavan, now headquartered in Minneapolis, Minnesota, began producing sprayers and tanks. Earlier this year, the company expanded its lawn and garden product line.
Delavan’s new manufacturing facility adds to Kentucky’s growing agribusiness sector, which currently employs more than 20,000 people statewide. Since the start of the Beshear administration, companies within the industry have announced $935 million in new investment and nearly 2,100 full-time jobs for Kentuckians.
Todd County Judge/Executive Todd Mansfield noted Delavan’s new operation's positive impact on the surrounding region.
“On behalf of Todd County Fiscal Court and our county’s residents, we thank Delavan Ag Pumps for their investment in Elkton, Todd County and southwestern Kentucky,” Judge Mansfield said. “With their relocation and expansion of a new division, Delavan Ag Pumps will create new opportunities for individuals, families and businesses throughout our region. We are excited to work with company leadership and to ensure we provide exceptional service so the company can grow and succeed in our region.”
Elkton Mayor Arthur Green anticipates a successful partnership between the community and the company.
“The City of Elkton is honored that Delavan Ag Pumps has decided to invest in Elkton and Todd County, creating 30 new jobs for our community,” Mayor Green said. “As a leader in agriculture pump manufacturing, we welcome the company and its newest division to our community. We have no doubt that they’ll enjoy success in our city and region for years to come.”
Carter Hendricks, executive director of the South Western Kentucky Economic Development Council, said the company has found a long-term home in the commonwealth.
“We want to thank Gov. Andy Beshear, Cabinet for Economic Development Secretary Jeff Noel, Todd County Fiscal Court and the City of Elkton for their strong support of Delavan Ag Pumps in their decision to open operations in southwestern Kentucky,” Hendricks said. “With our long and proud agriculture heritage, we are confident Delavan Ag Pumps will find this to be the right choice as they expand their manufacturing presence in the region. With our less taxing and more relaxing environment, we look forward to working with the company’s leadership to ensure long-term success in southwestern Kentucky.”
John Bradley, Tennessee Valley Authority (TVA) senior vice president of economic development, welcomed the company to the region.
“TVA and Pennyrile RECC congratulate Delavan Ag Pumps Inc. on its decision to establish operations in Todd County,” Bradley said. “Working to attract jobs and investment to the region is fundamental to TVA’s mission of service. We are proud to partner with South Western Kentucky Economic Development Council, City of Elkton, Todd County and the Kentucky Cabinet of Economic Development to further that mission and celebrate this announcement together.”
Delavan’s investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the pandemic.
In 2021, the commonwealth shattered every economic development record in the books. Private-sector new-location and expansion announcements included a record $11.2 billion in total planned investment and commitments to create a record 18,000-plus full-time jobs across the coming years. Kentucky’s average incentivized hourly wage for projects statewide in 2021 was $24 before benefits, a 9.4% increase over the previous year.
In the past year, the Beshear administration announced the two largest economic development projects in state history. In September 2021, Gov. Beshear and leaders from Ford Motor Co. and SK Innovation celebrated a transformative $5.8 billion investment that will create 5,000 jobs in Hardin County. And in April of this year, the Governor was joined by leadership at Envision AESC to announce a $2 billion investment that will create 2,000 jobs in Warren County. These announcements solidify Kentucky as the EV battery production capital of the United States.
The economic momentum has carried strongly into 2022, with both S&P Global Ratings and Fitch Ratings upgrading Kentucky’s financial outlook to positive in recognition of the commonwealth’s surging economy.
And Site Selection magazine placed Kentucky at 6th in its annual Prosperity Cup rankings for 2022, which recognizes state-level economic success based on capital investments.
Kentucky has posted record low unemployment rates for four consecutive months, falling from 3.9% in April to 3.8% in May and 3.7% for June and July.
In July, the Governor reported the highest annual growth rate in 31 years. And for the second year in a row, Kentucky’s General Fund budget surplus has exceeded $1 billion. Also in July, Gov. Beshear reported that the state’s rainy day fund is up to a record balance of $2.7 billion, significantly higher than the $129 million balance the fund had when the Governor took office.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) last week preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $300,000 in tax incentives based on the company’s investment of nearly $2.23 million and annual targets of:
- Creation and maintenance of 30 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $28.49 including benefits across those jobs.
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, Delavan can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
For more information on Delavan, visit DelavanFluidPower.com.
A detailed community profile for Todd County can be viewed here.
More information on the Governor’s AgriTech Initiative is available at AgriTech.ky.gov.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
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