The Davison County Commission on Tuesday approved a Tax Increment Financing District, or TIF, for a 3,000-ton-a-day multi-seed processing plant just south of Mitchell. The High Plains Processing plant, which is expected to bring between 75-85 jobs to the area, will be located at the intersection of 257th Street and Highway 37.
South Dakota Soybean Processors CEO Tom Kersting says this will be one of the largest ag operations in the state’s history. “This is gonna be a first of its kind facility for South Dakota, and it’s designed to meet the rapidly growing demand for vegetable oil and protein for both the food and energy markets,” Kersting said. “Cost of this project is over $500 million, and when completed, will be one of the largest projects in South Dakota history.”
Kersting explained why the 20-year, $21.2 million TIF was needed. “Without the TIF, we’d have to seek additional debt, and that’s gonna probably jump up our interest rates, potentially change our covenant structure, and ultimately have a negative impact on the project.”
He added that the project is being led by a producer-owned South Dakota company with limited resources, not a large multi-national company.
No one spoke against the TIF or the project at Tuesday’s meeting. The Davison County Commission voted unanimously in favor of the TIF.