Arkansas has an abundance of resources to help food processing companies succeed. The Arkansas Economic Development Commission works directly with food processing companies looking to start-up, expand or relocate. In addition, we assist companies with finding the best incentives so companies are able to make money quickly and efficiently.
There were 522 food and beverage companies in Arkansas at the end of 2022. These companies employed 55,130 people. Arkansas is home to Tyson Foods and numerous other food processing facilities, including Nestle, JBS USA, Kraft Heinz, Mars Inc., Cargill Inc., Hormel Foods Corp, Riceland Foods, Pilgrim’s Pride, ConAgra Brands Inc., Land O’ Frost and Frito-Lay, Inc.
Arkansas has the 5th largest percentage of food processing workers in the United States. The growth rate of the food and beverage industry from 2017 to 2022 was 6 percent in Arkansas.
The food processing industry is booming in Arkansas and continues to grow exponentially. Eight of the top 10 food and beverage companies by revenue in the world have manufacturing facilities in the state.
Arkansas is meeting the workforce needs for food processing companies. The state now has the second-largest number of food processing workers in the US and Arkansas has responded to industry growth by modernizing the workforce.
As a business-friendly state, Arkansas has a lot to offer companies wanting to open, expand or relocate to the state. From cash rebates to community grants, Arkansas business incentives encourage job creation and investment, leading to greater economic stability in Arkansas.
Arkansas uses a mix of tax refunds, tax credits and payroll rebates to attract and encourage expansion in businesses in Arkansas, including the Tax Back program, Advantage Arkansas, ArkPlus, Create Rebate and the Equity Investment Incentive Program. Investment incentives criteria may include the strength of the company, number of jobs, average wage, project investment and costs associated with facility or site improvements. Job creation incentives are based on new payroll and use the state-established tier system, which can be found as indicated on the map in our downloadable Incentives report.
Many exemptions from sales and use taxes are available for qualified businesses. Providing company childcare facilities for employees, purchasing recycling equipment, and replacing or repairing manufacturing machinery and equipment are just a few examples of business activities that may qualify for tax incentives or credits in Arkansas.
In an effort to continually strengthen the state’s workforce, Arkansas provides a state income tax credit to eligible companies for reimbursements they make on behalf of employees for approved educational expenses. There are also a number of credits and incentives to encourage start-ups, research and development, as well as technology-related activities. Other specialized incentives include digital production and film, and tourism development.
Grants are available for qualified facility and site improvements, the transfer and deployment of innovative technology to Arkansas-based enterprises, and applied research between private industry and Arkansas colleges and universities.
Certain targeted industries are eligible for a variety of incentives, as shown in the infographic to the right.
To learn more about the various incentives, grants and rebates available for businesses opening, expanding or relocating in Arkansas, download our Incentives report.
