MITCHELL, SD (Mitchell Now) – In a major step forward for South Dakota’s agricultural economy, the Davison County Regional Railroad Authority (DCRRA) announced yesterday that the South Dakota Railroad Board has approved an additional $5,710,700 in low interest loan funding to complete rail infrastructure for High Plains Processing (HPP), the state’s newest and most advanced soybean and multi seed crushing facility located just south of Mitchell.
This additional funding brings the total rail loan package to $18,310,700, 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.
The request was presented by 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. Their joint presentation highlighted the impact this project is already having on local producers, regional infrastructure, and the broader economy.
The additional funding will cover remaining eligible rail costs for this major infrastructure expansion, which includes 33,159 feet of new track, 22 new industrial turnouts, 2 new BNSF mainline turnouts, and capacity for unit trains up to 100 cars. Once fully operational, 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.”
Local leaders echoed this enthusiasm. DCRRA Chair and Davison County Commissioner Randy Reider called the project “one of the largest value added agriculture investments in South Dakota history,” adding, “Supporting infrastructure like this creates good jobs, strengthens transportation, and ensures long term economic health for Davison County and beyond. The cooperation between local, regional, and state partners has been nothing short of remarkable.”
Industry leaders agree that rail infrastructure is critical to the success of High Plains Processing. “Rail is essential to our competitiveness as we expand into multi seed processing and international markets,” said Kersting. “We are grateful for the support from DCRRA, the Railroad Board, and the Mitchell Area Development Corporation. Their leadership has been instrumental in helping this project reach its full potential.”
State leadership also weighed in as Governor Larry Rhoden praised the partnership as a model for growth. “This project will bring value and flexibility to South Dakota farmers, benefitting our economy and state for generations to come,” said Rhoden.
The significance of this project cannot be overstated. It represents the gold standard of value added agriculture—local producers grow the product, deliver it to a local processor, and the resulting soybean oil and meal are shipped out of state, primarily to the West Coast and Southeast Asia. This cycle brings new dollars into South Dakota, fuels job creation, and builds a stronger, more resilient economy for generations to come.
About the Davison County Regional Railroad Authority
Established in 2024, DCRRA supports rail infrastructure and economic development throughout Davison County, partnering with local governments and the South Dakota Department of Transportation to enhance rail access and competitiveness.
About High Plains Processing
High Plains Processing, LLC operates a soybean and multi seed crushing facility south of Mitchell, SD. Capable of processing 35 million bushels annually, HPP produces soybean meal, oil, and other high value products for domestic and international markets, employing more than 85 workers and serving as a cornerstone of South Dakota’s value added agriculture sector.