An Iowa agency will license a newly created company to manufacture medical marijuana in the state by the end of 2018.

The Iowa Department of Public Health says it intends to license MedPharm Iowa to manufacture cannabis oil. The company is owned by Chris Nelson, president and CEO of Kemin Industries, a Des Moines-based global ingredient company.

A company press release Tuesday says MedPharm Iowa will have an agreement with Kemin to contract for a range of services. A manufacturing facility will be located on the Kemin campus.

The Republican-controlled Iowa Legislature passed legislation this year expanding Iowa's existing cannabis oil program to allow the sale and manufacturing of such oil within the state. It requires the oil to be supplied to the public by Dec. 1, 2018. Smoking marijuana remains prohibited.