Board approves tobacco settlement funds for hemp project

FRANKFORT, Ky. (AP) — The state board that manages the tobacco settlement funds has approved $500,000 in grants and loans to a Winchester company that plans to process hemp seed grown in Kentucky.

WDRB-TV in Louisville (http://bit.ly/1H0ftVZ ) reports Atalo Holdings will process Kentucky-grown seed into hulled hearts, protein powders and other legal commercial products.

The Kentucky Agricultural Development Board agreed to fund the project last month.

Joel Neaveill of the Governor’s Office of Agricultural Policy says the award is the first time settlement funds have been set aside for a hemp-related project.

Kentucky lawmakers passed a bill two years ago allowing industrial hemp to be grown in the state. Hemp and marijuana are the same species, but hemp has a negligible amount of the psychoactive compound that gives marijuana users a high.

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Information from: WDRB-TV, http://www.fox41.com

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