The High Plains Processing facility south of Mitchell has gotten an economic boost. The South Dakota Railroad Board recently approved an additional $5.7-million dollars in low interest loan funding to complete rail infrastructure for HPP, the state’s newest and most advanced soybean and multi seed crushing facility.
This additional funding brings the total rail loan package to just over $18.3-million dollars maintaining favorable terms including a 2.0% interest rate, a 15 year amortization schedule, and a seven-year balloon structure. These terms underscore the state’s commitment to supporting transformative projects that strengthen South Dakota’s economic foundation.
Mike Lauritsen, CEO of the Mitchell Area Development Corporation and Chamber of Commerce and Secretary/Treasurer of DCRRA, alongside Tom Kersting, CEO of High Plains Processing made the request. Their joint presentation highlighted the impact the project is already having on local producers, regional infrastructure, and the broader economy.
The additional funding will cover remaining eligible rail costs for the infrastructure expansion, which includes more than 33,000 feet of new track, 22 new industrial turnouts, 2 new BNSF mainline turnouts, and capacity for unit trains up to 100 cars. Once it’s complete the facility is expected to handle an estimated 147 rail cars per week with 3 to 5 switches weekly—an achievement that positions South Dakota as a leader in agricultural logistics.
High Plains Processing is capable of crushing 35 million bushels of soybeans annually, producing approximately 570,000 tons of meal and 300,000 tons of oil each year. The plant employs 85 full time workers with an annual payroll of $5.5 million and has already boosted local soybean basis prices by 20 to 25 cents per bushel. These numbers translate into real dollars for local producers and ripple benefits throughout the regional economy.
“This project brings new dollars into South Dakota rather than simply recycling activity within our borders,” said Lauritsen. “By purchasing soybeans from local producers, adding value through processing, and exporting products internationally, we are strengthening the regional ag economy and ensuring long term resilience. At the September ribbon cutting, more than 1,000 local investors—many of them producers—celebrated what is truly a milestone for our state.”