A $500 million soybean processing plant has officially opened in South Dakota, offering farmers a rare boost in a season marked by trade losses and market instability. The new High Plains Processing facility south of Mitchell is expected to crush 35 million bushels of soybeans annually, turning a portion of the state's crop into soybean oil and high-protein livestock meal.

With China pulling back from U.S. soybean imports amid continued tariff tensions, many growers see the plant as a timely investment in local infrastructure that could stabilize farm incomes and reduce reliance on volatile export markets.

"If it wasn't for demand sources like this facility, it'd be very, very tough out there," said Tom Kersting, CEO of South Dakota Soybean Processors, which manages the plant. He noted that China had been South Dakota's top soybean customer before the trade conflict escalated.

The plant's opening follows years of planning by co-op leadership and state officials, including Governor Larry Rhoden, who attended the ribbon-cutting and praised the facility as a model of value-added agriculture. "We're talking about enhancing our number one industry, which is agriculture," he said.

The facility is designed not only to serve soybean producers but also to handle other oilseeds like sunflowers, giving farmers more flexibility in what they plant and sell. According to Kersting, the refined soybean oil produced on-site can be used in food production or converted into renewable diesel, a growing market that has added new value to soy oil.

"There's great demand for soybean oil from the renewable fuels industry," he said. "And soybean meal is the preferred high-protein feed additive for hogs, poultry, dairy-you name it."

In 2024, South Dakota farmers harvested 238 million bushels of soybeans, making the plant's capacity significant but not comprehensive. Still, Craig Weber, board president of South Dakota Soybean Processors, emphasized its impact on farm-level economics. "The closer the processing facility, the less money lost to freight," he said. "That directly affects farmers' bottom line."

But not everyone believes the new plant alone can solve the deeper crisis facing soybean producers. Doug Sombke, president of the South Dakota Farmers Union, offered cautious optimism. "It helps, yeah, but it's going to take a lot more," he said. "Farmers are in a lot of trouble. We're going to lose farmers if we don't do something quick."

Sombke recently traveled with a delegation of 40 South Dakota farmers to Washington, D.C., where they pressed lawmakers to support policies that address export losses, input costs, and insurance protections.

As the U.S. continues to miss out on soybean sales to China-once its top buyer-local investments like the Mitchell facility represent a new path forward, blending cooperative-driven solutions with market diversification.

While no single facility can replace the scale of global exports, ag leaders across the Midwest hope that value-added projects, renewable fuel markets, and policy reform will collectively help rebuild farmer resilience in an increasingly uncertain trade environment.