A new $500 million soybean processing facility is poised to reshape South Dakota agriculture, providing producers with a buffer against volatile global trade conditions and surging input costs. The High Plains Processing plant, set to open in mid-October just south of Mitchell, is expected to process up to 37 million bushels of soybeans annually-roughly 16% of the state's 2024 production, according to USDA data.

At Dakotafest, Senate Majority Leader John Thune didn't hold back: "Commodity prices are in the tank. Input costs are at an all-time high, and the margin for farmers is upside down." He stressed that expanding domestic processing capacity is essential, especially as soybean exports-particularly to China-decline under Trump-era tariffs.

Speaking on a panel before South Dakota's congressional delegation, Tom Kersting, CEO of South Dakota Soybean Processors, said the plant offers a direct response to export uncertainty. "This will kind of take the place of that export problem farmers are facing right now," Kersting told South Dakota Searchlight. "We're there every day. These export customers come and go."

The plant also signals a shift toward value-added agriculture, offering co-products like soybean meal, hulls, and lecithin-key ingredients in food, lubricants, and biofuels. Beyond soybeans, the facility is equipped to handle canola, camelina, and sunflower seeds, offering flexibility to meet growing domestic and global demand for vegetable oils, especially for renewable diesel and biodiesel markets.

According to South Dakota Soybean Association President Kevin Deinert, the plant will lessen reliance on China and enable more regional use, while also opening access to new markets. "It's about resilience and independence," Deinert noted.

Oil markets are shifting dramatically. In 2022 and 2023, 46% of U.S. soybean oil went into biofuels, a sharp contrast from a decade ago when nearly all was used in food. "This flexibility was driven by growing demand not just in the U.S., but globally," Kersting emphasized.

While the new plant promises stability, national trade policy remains a wildcard. Senator Mike Rounds acknowledged the mixed outcomes of tariffs, stating, "The jury is out" on whether they'll ultimately benefit or harm agriculture. He noted some Pacific Rim nations are now exploring U.S. ethanol purchases as a result of tariffs, which could indirectly benefit South Dakota's ethanol sector.

"We've absolutely got to be adding value to every single product we've got here in South Dakota," Rounds said. "That means running it through as many times as we can."

As producers face historic market pressures, the High Plains Processing plant arrives as a beacon of economic diversification and supply chain resilience, signaling a future less dependent on geopolitics and more grounded in local value creation.