Increased Soybean Processing Keeps More Value In South Dakota

Upon the grand opening of High Plains Processing, LLC, in September 2025, South Dakota's nameplate soybean processing capacity is now approximately 120 million bushels per year. The new state-of-the-art facility, which sits just south of Mitchell, will also process other oilseed crops in addition to soybeans.

"We are very, very fortunate to have four processing plants here in South Dakota," says Bruce Haines, District 1 Director for the South Dakota Soybean Research and Promotion Council. Haines farms ground not far from High Plains Processing, and he believes the new crush plant — along with the three plants already operating in Aberdeen, St. Lawrence and Volga — will dramatically impact farmer profitability. "Once everything gets online and finetuned, we'll be able to process 45 to 47 percent of the soybeans that we raise in South Dakota," he says. "That's going to help us a lot with our basis."

Economic Benefits From Increased Crush Capacity

It stands to reason that basis at local elevators will be more favorable to farmers with increased processing happening in-state. "That takes the transportation number out of the equation, and we're not shipping [as many soybeans] to the East Coast, West Coast, down the Mississippi," explains Haines. In fact, a recent study commissioned by United Soybean Board and American Soybean Association determined that a new soybean processing plant coming online impacts basis prices at local elevators by 9 to 23 cents per bushel, depending on proximity.

The increased volume of soybean processing happening in-state impacts more than just basis levels. Crush plants primarily yield two high-demand co-products — soybean oil and soybean meal — that will keep more value right here in South Dakota by securing additional opportunities for biofuel production, livestock expansion and other activity to support our local economy.

Why Are New Processing Plants Coming Online?

The opening of High Plains Processing is part of a growing trend in the U.S. over the past several years, during which new soybean processing plants and expansions to existing sites have dramatically increased domestic crush capacity.

What's behind this trend? In short, this is largely due to increased demand for biomass-based diesel fuels like biodiesel, renewable diesel and sustainable aviation fuel. Clean Fuels Alliance America has conducted research indicating a projected demand for these three petroleum diesel alternatives exceeding 6 billion gallons by 2030. A vast majority of this biofuel production will occur domestically, utilizing feedstocks that are largely produced in the U.S.

"Almost anything that we could make out of petroleum can be substituted with soybean oils," says Haines. "I think the growth of soybeans and the growth of soybean oils is in its infancy. My goal is to see soybean processing hit the same numbers as ethanol hit with corn twenty years ago."

Farmers' Soybean Checkoff Plays A Key Role

Haines is quick to point out that soybean farmers cannot fund brick-and-mortar projects like High Plains Processing through their checkoff. But one key role the soybean checkoff has played in this new development was to explore rail transportation options surrounding the plant.

"The soybean checkoff helped to engineer a rail study to be able to move train cars in and out of that plant more efficiently and more effectively," says Haines, who helps determine how checkoff dollars are spent through his role as a director for the South Dakota Soybean Research and Promotion Council.

The checkoff also actively promotes soybean uses to help support demand, both domestically and internationally. This includes educating consumers about the benefits of biomass-based diesel fuels, funding research on soybean inclusion in livestock rations and promoting sustainability practices adopted by South Dakota farmers. "If we see a need to help develop markets and/or products, that's where we come in," says Haines.

What's Next For South Dakota Farmers?

A strategic investment has taken place in South Dakota that positions farmers for a strong future, and the South Dakota Soybean Research and Promotion Council is poised to seize that opportunity. "We're working very hard," says Haines. "We're leaving no stone unturned. Those checkoff dollars are allowing us to look at everything with a new set of glasses to say, 'Where are those markets that we can develop?'"

To learn more about the work of South Dakota Soybean, please visit sdsoybean.org or talk to your district director.