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South Dakota is witnessing a remarkable transformation in its agricultural sector. Along state Highway 37 south of Mitchell, a 0 million grain plant is rapidly coming to life, set to become a key player in the state's growing agricultural processing industry. For generations, South Dakota has been a hub for agricultural production, but now, with the addition of this new plant, the state is taking advantage of "added value" and generating more revenue from its products.

Unlock the Potential of South Dakota's Agricultural Processing

Construction and Location

The High Plains Processing plant, currently under construction 2 miles south of Mitchell, is being built by South Dakota Soybean Processors. This farmer-owned business already has plants in Miller and Volga. The strategic location near Interstate 90 and the Burlington Northern Santa Fe Railroad line ensures efficient transportation of products. Construction costs are estimated at 0 million, and operations are targeted to begin on October 1, 2025. The plant will have the capacity to process 100,000 bushels of soybeans a day, making it the second-largest in the state behind the AGP soybean plant in Aberdeen.This new plant will not only provide good-paying jobs but also create new revenues for various businesses and farmers throughout the region. It will generate significant property taxes for local governments and sales taxes for the state. With about 300 construction workers on site currently and expecting to employ 75 to 85 full-time employees once operational, it is set to have a substantial impact on the local economy.

Products and Benefits

Finished products from the plant will mainly include oils and animal feed. A 60-pound bushel of soybeans will yield about 44 pounds of meal feed, 11 pounds of oil, and 4 pounds of husks. This added value not only increases the revenue for farmers but also creates new economic opportunities in sectors such as transportation, fuel, and machinery.David Lambert, regional development director for the Mitchell Area Chamber of Commerce, is excited about the plant's potential. He believes the economic impact will be felt most in Mitchell, where workers will live and spend money. Nearby cities and towns will also benefit from increased grain sales and economic activity. The regional farm economy is set to receive a big boost, with the potential to raise soybean prices by 20 cents per bushel, generating million in new income for area grain producers.

Value-Added Revolution in South Dakota

South Dakota's processing expansion began around 35 years ago with Poet biofuels producing ethanol from corn. Since then, ethanol production has expanded to nine companies, generating billions of dollars in revenue. The state is also seeing rapid expansion in milk processing, with new or expanded cheesemaking plants. The increased processing capacity has led to a significant increase in the state's milk cow population.Agricultural processing plants serve as major employers in several South Dakota cities. The Dakota Provisions pork and poultry plant in Huron has variable employment, and the AGP plant in Aberdeen has about 60 full-time workers. In addition to jobs in the plants, increased processing closer to where farmers produce their commodities creates jobs and revenue for local businesses.VanderWal also mentioned recent efforts to expand in-state processing of beef cattle, reducing costs for South Dakota ranchers. By feeding cattle with local feed and processing them locally, the state is reducing transportation costs and creating more economic activity.This story was produced by South Dakota News Watch, an independent, nonprofit news organization. For more in-depth stories, visit sdnewswatch.org and sign up for our email newsletter to stay updated. Contact Bart Pfankuch at [email protected] 2024 Dakota News Now. All rights reserved.