Country legend Willie Nelson has announced the launch of a record label that will foster new talent.

The 73-year-old crooner, known for hits such as Blue Eyes Cryin' in the Rain and On The Road Again, made the announcement Friday at a news conference during the South by Southwest Music Festival in Austin, Texas.

Willie Nelson, seen in this undated file photo, will launch his new record label with the debut album of 40 Points, a band featuring his two sons.
(Canadian Press)

The first release for Pedernales Records will be a debut album by 40 Points, a four-person band featuring his sons Lukas and Micah.

Pedernales is named after the river that flows by Nelson's home outside of Austin where he also owns Pedernales Country Club and Pedernales Studios.

"I just think it's a good idea," Nelson told Billboard.com. "There's other artists I think could use a good record label. Everything just seems so right about it."

One of the co-owners includes producer James Stroud, who has worked with the likes of Neil Diamond, Hank Williams Jr. and the Neville Brothers.

Nelson says he will now record solely for his own label. The singer says he has a "whole lot of material" recorded from 25 years in his studio, including collaborations with Wynton Marsalis, Les Paul and Jackie King.

Nelson continues to produce new music. He recently wrote Right to Dream for the film Tennessee with Mariah Carey.

"She's a sweetheart and she can really, really sing. It was no more left field than working with Julio Iglesias," said Nelson in reference to his To All the Girls I've Loved Before duet with the Latin superstar in 1984.

With files from the Associated Press