By Scout Nelson
South Dakota’s agricultural processing industry is growing with the construction of a $500 million grain plant south of Mitchell. This new facility highlights the state’s shift toward value-added agriculture, which processes commodities closer to production areas.
Historically, South Dakota shipped raw products like corn and soybeans out of state for processing, losing local jobs and economic opportunities. Recent efforts focus on creating in-state processing plants to generate local revenue, employment, and economic growth.
The High Plains Processing plant, built by South Dakota Soybean Processors, will process soybeans and other grains. Once operational in October 2025, the facility will process 100,000 bushels of soybeans daily, producing oils and animal feed. This capacity will stabilize grain prices and benefit local farmers.
The construction project currently employs 300 workers, and the plant will create 75 to 85 full-time jobs, with additional positions at the company’s Volga offices. Located near Interstate 90 and a railroad line, the plant provides convenient transportation for products and raw materials.
Local communities like Mitchell are excited about the plant’s economic potential. Increased grain demand could raise soybean prices by 20 cents per bushel, adding $6 million annually for area producers. The plant also creates opportunities in housing, retail, and transportation.
South Dakota has seen similar success in ethanol and dairy processing expansions. Ethanol production generates $3 billion annually, while dairy processing has doubled the state’s milk cow population.
Agricultural processing plants not only boost rural economies but also create jobs in transportation, maintenance, and equipment industries. With ongoing efforts to process more commodities locally, South Dakota is paving the way for a stronger agricultural economy.
Photo Credit:gettyimages-shotbydave
Categories: South Dakota, Crops, Corn, Soybeans