Home » Delavan Ag Pumps is locating in Elkton with $2.3 million investment

Delavan Ag Pumps is locating in Elkton with $2.3 million investment

ELKTON, Ky. — Delavan Ag Pumps Inc. announced 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.

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 will also be able 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 began producing sprayers and tanks, now headquartered in Minneapolis, Minnesota. Earlier this year, the company expanded its lawn and garden product line.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program last week. 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. These include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

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