Expansion
High Plains Processing Hits 32.4 Million Bushels in First Year at Mitchell Soy Plant
By News Desk ·
Key takeaways
- High Plains Processing processed 32.4 million bushels of soybeans in its first year in Mitchell, South Dakota.
- The plant runs at 100,000 bushels per day with estimated capacity of 115,000 bushels per day or higher, CEO Tom Kersting said.
- High Plains received an $18.31 million loan from the South Dakota Department of Transportation for its 6.28-mile rail spur and hopes to process canola and sunflowers in late 2027.
High Plains Processing processed 32.4 million bushels of soybeans in its first year of operation in Mitchell, South Dakota, running at 100,000 bushels per day with estimated capacity of 115,000 bushels per day or higher, according to CEO Tom Kersting. Yahoo reported the figures from Kersting's facility update to the Davison Regional Rail Authority board.
High Plains Processing's First Year at Mitchell
High Plains Processing is a soybean crushing plant that turns soybeans into oil, protein and meal, and it draws most of its supply by railcar on a 6.28-mile spur line. Kersting told the Davison Regional Rail Authority board on Tuesday that the plant brought in six to seven hundred-car units of soybeans in its first year, many of them from South Dakota.
"If you would have told me we were going to bring in hundred-car units of soybeans by rail in our first year... I would have said no way, and we brought in six to seven hundred-car units, a lot of them from South Dakota," Kersting said.
The rail board sponsored High Plains Processing for an $18.31 million loan from the South Dakota Department of Transportation for the rail line. The first payment on the loan was $1.42 million, paid directly by High Plains to the DOT, and the loan comes due in seven years and can be refinanced, according to Davison County Commissioner and rail board chair Randy Reider.
Kersting said he could not release unaudited financials and described operations as "doing well." He said drought has lowered yields, while delivered soybeans have been of good quality for oil, protein and moisture content. The plant has had a few operational issues, including spaces with grating, lumpy soybeans and unloading hurdles.
According to rail board secretary and treasurer Mike Lauritsen, the Mitchell Area Development Corporation CEO, High Plains paying 30 cents more per bushel above market price comes to about $9.6 million to local farmers. High Plains paid a $15,000 fee toward the rail board's start-up costs.
Continental Refining and CEC Bank Expansions
Continental Refining Company announced a biodiesel production expansion that will double capacity and is expected to be completed by November 15, PR Newswire reported. Its soybean processing plant remains idled after a July 5 fire, and it is seeking a regional partner to operate its grain elevator.
CEC Bank co-financed a 45 million euro sunflower oil plant in Romania's Mihai Viteazu commune, built by Podisul Transilvaniei Agricultural Cooperative, SeeNews reported. The facility covers 8.5 ha with six silos and 600-tonne daily capacity, includes a 1.65 MW agrivoltaic installation, and is expected to become operational by end of 2027.
High Plains Processing's Crop Expansion Plans
High Plains Processing is seeking air permits to expand which crops it can produce. Kersting said he hopes to process other crops in late 2027, including canola and sunflowers, and noted a flushing process for switching which crop is being processed. Most canola seed is grown in North Dakota and Canada, with some grown in the Aberdeen area.
"It's not like we're going to walk away from soybeans. That'll (still) be the majority of what we do in 2026-2027," Kersting said. He added that changes for 2026 and 2027 renewable volume obligations regulations brought record numbers, which helped soybean oil demand and soybean prices. "Oil really is still driving the market," Kersting said.
Companies in this story
- High Plains Processing Company, LLC · highplainsprocessing.com
- Mitchell company profile · www.mitchellsd.org