A recent economic impact analysis by the University of Minnesota sheds light on the potential short- and long-term economic benefits of emerging hemp processing plants in small communities.
The report analyzes a hemp processing facility in Waseca, Minnesota. Owners of the plant aim to invest $13 million in expanding their cannabidiol (CBD) hemp extraction and formulation capabilities, which could generate more than 100 jobs and approximately $7 million in payroll.
In particular, CBD hemp formulation would provide the brunt of the new jobs as well as lead to an increase from 645 to 1,500 acres processed.
City officials in Waseca have been interested in the potential short- and long-term benefits of building these facilities. In construction alone, the investment would yield 110 jobs and $5.2 million in labor income.
According to the report, the expansion will not only benefit construction workers, but also the wider community as a whole. Investors project annual revenues will increase by $12.6 million and create an additional $14.5 million in economic activity for Waseca.
The facility is reportedly filling a huge hole in Waseca’s local economy after a major manufacturing facility closed, taking almost 30% of the community’s jobs along with it. The CBD hemp extraction and formulation facility would be located in the now-defunct factory.
In all, the report points to both a plethora of benefits for Waseca’s workers and businesses. The facility will hire more laborers, generate construction revenues, and provide additional tax revenues to an ailing small town.
Could Waseca’s hemp CBD plans be a hint of what’s coming down the pike for other struggling small towns?