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.

Additional Context and Comparative Insight

The High Plains Processing plant is expected to create over 60 permanent jobs and dozens more during peak harvest operations, supporting both economic development and rural employment. The facility's modern automation systems and renewable fuel-ready processing lines position it among the most technologically advanced in the region.

Compared to other Midwest facilities, its capacity of 35 million bushels per year ranks slightly below Iowa's Shell Rock plant (38.5 million bushels) but remains one of the largest in South Dakota. Plants in Minnesota and Nebraska process similar volumes, with strong linkages to local poultry and dairy industries.

Approximately 15% of the state's 2024 soybean crop will be processed locally, reducing the need for long-distance freight to export terminals or distant crush plants. According to local estimates, transportation cost savings alone could boost farmer profits by $0.30-$0.50 per bushel.

The refined soybean oil is already being positioned for the renewable diesel market, with potential buyers including fuel producers across the Midwest and West Coast. This provides critical diversification for producers facing shrinking global demand.

The facility also aligns with state-supported infrastructure improvements, including highway access, updated power grids, and expanded water treatment systems, ensuring long-term viability and sustainability.

From a regulatory standpoint, the plant was developed under South Dakota's Value-Added Agriculture Subfund, receiving partial funding and permitting support from state programs aimed at strengthening farm income.

Environmental management protocols have been implemented to minimize water use and emissions, positioning the plant as a potential model for future processing infrastructure in the U.S. soybean belt.

While optimism remains measured, the collective impact of Mitchell's facility, combined with regional investments and a pivot toward domestic processing, signals a strategic shift in U.S. soybean policy and farm-level economics.