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Could a New South Dakota Soybean Plant Bring Farmers More Stability Amid Tariffs?

High Plains Processing could diversify soybean marketing options, but its announced capacity does not prove it can replace exports or stabilize farm prices.
From TheFinanceBase Team3 min to read
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Possibly—but the plant was presented as an additional market outlet, not a proven replacement for soybean exports or a guarantee of higher, steadier farm prices. In August 2025, South Dakota Soybean Processors CEO Tom Kersting said High Plains Processing, a planned facility near Mitchell, could help reduce uncertainty for farmers. The report anticipated an October 2025 opening; it does not establish whether the plant opened or how it has performed since.

What is High Plains Processing?

High Plains Processing is a planned oilseed-processing facility near Mitchell, associated with South Dakota Soybean Processors. South Dakota Searchlight reported on August 22, 2025, that the project was expected to cost $500 million and process up to 37 million bushels a year. The report compared that expected capacity with roughly 16% of South Dakota’s 2024 soybean production, using USDA data. These figures describe the project as announced in 2025, not verified operating capacity or actual throughput. South Dakota Searchlight’s August 22, 2025 report

How could local processing help farmers?

Instead of selling all soybeans as whole beans into export markets, farmers could have another potential outlet if the facility buys and processes their crop. Kersting said the plant could take some export uncertainty out of the marketplace. Kevin Deinert, president of the South Dakota Soybean Association, said more local use could make producers less dependent on whole-bean exports to China.

That is a diversification argument, not proof of a price benefit. A processor’s demand might give farmers another marketing option, but the report does not establish purchase prices, delivery terms, premiums, how much crop the plant would actually buy, or whether its demand could replace exports to China. Those details matter to a farmer deciding where and when to sell.

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What was the plant expected to make?

The planned facility was expected to refine soybeans and produce soybean meal, hulls and lecithin. Kersting said its equipment could also process canola, camelina and sunflowers, though the report does not verify which crops the plant has accepted in practice.

Local processing could connect soybean demand to markets for oil and byproducts as well as whole beans. The Searchlight report said soybean oil demand for biofuels had grown and cited a USDA Economic Research Service chart showing about 46% of soybean oil went to biofuel production in 2022 and 2023. That historical figure describes soybean oil use nationally, not a guaranteed source of demand for this particular plant or a forecast of what farmers will receive.

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Why do tariffs make the question important?

South Dakota Searchlight reported that about 60% of the state’s soybeans are exported and described slower export markets, including China and Southeast Asia, amid U.S. tariff policy at the time. When a large share of a crop depends on overseas buyers, tariffs and retaliation can add uncertainty to demand and prices.

The tariff outlook was unsettled in the report. U.S. Sen. Mike Rounds said “the jury is out” on whether tariffs would help or hurt agriculture, pointing to retaliatory tariffs as a risk while also noting the possibility of new trade deals and demand related to ethanol. A local processor may diversify where some beans go, but it cannot by itself settle trade policy or guarantee that other markets will absorb displaced exports.

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What farmers should verify before relying on the plant

The August 2025 report anticipated a mid-October 2025 opening, but it does not confirm that the facility opened. It also provides no current evidence of operating status, realized throughput, accepted feedstocks or farmer delivery arrangements. Before treating it as a marketing option, producers would need current, direct information on:

  • Whether the plant is operating and buying crops for the relevant season.
  • Which crops it accepts, and any quality or delivery requirements.
  • Available delivery windows, locations and logistics.
  • Pricing, basis, fees and contract terms compared with other available outlets.
  • Actual buying capacity and whether it is taking deliveries at the time needed.

Without those details, the announced capacity is not the same as accessible demand for an individual farm. The report establishes the rationale and expected scale of the project in 2025, but not a farmer’s likely net return from selling there.

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