A $500 million soybean processing plant has opened in Mitchell, South Dakota, at a time when U.S. soybean growers face a steep decline in Chinese demand. The High Plains Processing facility is now crushing up to 35 million bushels annually, transforming soybeans into refined oil and high-protein meal.

This investment is a direct response to trade uncertainty. China, once the top buyer of U.S. soybeans, has pulled back dramatically in recent seasons, opting for Brazilian and Argentine supplies. In 2025, China imported 42 million metric tons of soy from Brazil and only 16.5 million from the U.S.

"Without local demand like this, our margins would be unbearable," said Tom Kersting, CEO of South Dakota Soybean Processors. He emphasized that the new facility offers regional producers better pricing and freight savings.

The plant is equipped to handle other oilseeds, such as sunflower, increasing planting flexibility for farmers. The soybean oil produced may enter the renewable diesel market, which continues to grow in the U.S., while the meal supports livestock production.

However, experts caution that no single facility can replace the scale of global trade. "This helps stabilize incomes locally, but we still need export markets," said Doug Sombke, president of the South Dakota Farmers Union.

Sombke and a group of 40 farmers recently traveled to Washington, D.C., urging lawmakers to support crop insurance reforms, address input cost inflation, and provide tools to make value-added agriculture more accessible.

As South Dakota's 238 million-bushel harvest seeks new homes, investments in infrastructure like the Mitchell plant mark a shift toward domestic resilience-but one plant alone won't reverse the broader trade imbalance.