South Dakota
Jobs and money follow new agricultural processing in SD
MITCHELL, S.D. – Several cranes tower above a busy construction site along state Highway 37 south of Mitchell where work is rapidly progressing on a $500 million grain plant that will be the latest addition to South Dakota’s growing agricultural processing industry.
For generations, the state has served as an agricultural production hub in the Great Plains, growing millions of bushels of corn and soybeans and raising millions of cows and hogs annually. For many years, most of the state’s high-output food producers shipped their goods to be processed at plants elsewhere.
As those commodities left the state, so too did the businesses and jobs needed to process agricultural products into their final form. Rural communities in South Dakota lost the potential for growth in local employment, housing and economic development generated by agricultural processing plants.
“Historically, for some reason, here in South Dakota we’ve been content to raise commodities — corn, soybeans, cattle and hogs – and ship them out of state for processing,” said Scott VanderWal, president of the South Dakota Farm Bureau.
But over the past 30 years, and with increasing frequency in recent years, the state agricultural industry has begun to take advantage of what insiders refer to as “added value.” The term refers to the ability of those in the agriculture industry to generate more revenue from a single product. For instance, growing corn and then using it for food products, animal feed and in ethanol production.
By processing soybeans closer to where they are grown, South Dakota farmers can grow and sell more grain, which leads to spin-off revenues for a host of businesses, including in transportation, fuel, feed and machinery.
“We’re now finding out that we can make a little more money, generate local economic activity and create more jobs if we start adding value to the things we produce,” VanderWal told News Watch.
Details reveal size, scope of new plant
The High Plains Processing plant, now under construction 2 miles south of Mitchell, is being built by South Dakota Soybean Processors, a farmer-owned business that has a soybean plant in Miller and another in Volga, where the company is headquartered.
CEO Tom Kersting said the new plant will provide good-paying jobs now and well into the future and create new revenues for a host of businesses and farmers throughout the region. It will also generate significant new property taxes for local governments and sales taxes for state government, he said.

Construction costs are estimated to be about $500 million, and the target date for operations to begin is October 2025, Kersting told News Watch. The plant will be able to process soybeans as well as sunflower seeds and other grain products if market conditions warrant, he said.
Finished products will mainly include oils and animal feed. The plant will have capacity to process 100,000 bushels of soybeans a day (about 35 million bushels a year), which makes it the second-largest plant behind the AGP soybean plant in Aberdeen, which has an annual capacity of 50 million bushels.
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The Mitchell plant has about 300 construction workers on site now and expects to employ 75 to 85 full-time employees once operational. The expansion will create another dozen or so positions that will work at the company offices in Volga in support of the plant.
Kersting said the addition of new, consistent capacity for grain products at the Mitchell plant should not only stabilize but also increase the prices paid to local soybean and sunflower farmers.
“Without it, you’d be much more dependent on the export markets for pricing,” he said. “By having the demand locally, and having it year-round, there’s an opportunity for higher prices for farmers.”

In addition to oils, used in biofuels and in some food products, the plant will also produce seed meal that is used to feed animals, mainly hogs and poultry, he said. Kersting said that once fully processed, a 60-pound bushel of soybeans will yield about 44 pounds of meal feed, 11 pounds of oil and 4 pounds of husks, with a slight amount of moisture loss making up the final pound.
The new plant will be strategically located just 2 miles from Interstate 90 and within shouting distance of the Burlington Northern Santa Fe Railroad line, Kersting said.
Benefit to Mitchell and well beyond
The excitement over the plant’s potential for economic benefits is palpable even in a brief conversation with David Lambert, regional development director for the Mitchell Area Chamber of Commerce.
“We’re just tickled,” he said. “From our perspective, we feel that the impact is going to be huge.”
Lambert said the plant’s economic impact will be felt most in Mitchell, where he expects many workers will live and spend money. The plant will create new revenue opportunities in several economic sectors, including housing, grocery, retail and transportation, he said. Nearby cities and towns will also see benefits, not only from increased capacity to sell grain but also in the same tangential ways Mitchell will benefit economically, he said.
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The regional farm economy will also see a big boost, Lambert said. For instance, the new demand for soybeans created by the plant could raise the price of beans by 20 cents per bushel, which could generate $6 million a year in new income for area grain producers, he said.
“We know that when farmers have money, they spend that money, and they tend to do it locally,” Lambert said. “So the regional impact is so huge, and that is even after you take into account the 75 new, well-paid employees with an annual payroll over $4 million.”
Lambert said the chamber has already heard from businesses directly or indirectly related to the grain industry that are eyeing a potential move to or expansion within the regional Mitchell market.
“We’ve already started to see some new opportunities from folks who want to take advantage of the economic activity that will be created by the plant,” he said.
A value-added revolution in South Dakota
The South Dakota processing expansion began in earnest roughly 35 years ago when Poet biofuels began production of ethanol from corn in Scotland in the late 1980s. Since then, ethanol production has expanded to nine companies processing 740 million bushels into roughly 1.3 billion gallons of ethanol worth about $3 billion annually.
South Dakota could see a huge economic benefit from the $1 billion Net-Zero 1 plant proposed by the company Gevo for a site east of Lake Preston, where corn would be processed into sustainable biofuel for jets. Officials from Colorado-based Gevo said the proposed plant, which recently received a $1.46 billion commitment from the Department of Energy Loan Programs Office, could create thousands of jobs once operational.
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The state has also seen rapid expansion of milk processing, with new or expanded cheesemaking plants in Milbank (Valley Queen Cheese), Brookings (Bel Brands) and Lake Norden (Agropur). The increased processing capacity has allowed the state’s population of milk cows to more than double over roughly the past decade, from 91,000 cows in 2012 to about 210,000 in 2023, according to the U.S. Department of Agriculture.
According to the USDA, South Dakota dairy farmers produced 4.5 billion pounds of milk in 2023, up from 3.1 billion pounds in 2020 and 2 billion pounds in 2013.
Agricultural processing plants serve as major employers in several South Dakota cities. The Dakota Provisions pork and poultry plant in Huron has variable employment that can range from 600 to 1,000. The state’s largest soybean plant, the AGP plant in Aberdeen that opened in 2019 at a cost of $300 million, has about 60 full-time workers.
In addition to jobs in the plant and an increase in production capacity for individual farmers, increased processing of commodities closer to where South Dakota farmers produce them creates jobs and revenue for local trucking companies, parts and maintenance firms, fuel providers and sellers of machinery, VanderWal said.
“We’re providing jobs or creating economic activity because those processing plants need supplies and parts and people to run them, and all those things that go along with that,” he said.
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VanderWal said recent efforts to expand in-state processing of beef cattle, as reported by News Watch in 2023, would also generate new income and reduce costs for South Dakota ranchers, who raised 3.5 million cattle and calves in 2023, according to USDA data.
On Nov. 13, 2024, a 30,000-square-foot beef plant proposed for a site just north of New Underwood in Pennington County was awarded a $600,000 South Dakota Works Loan from the Governor’s Office of Economic Development for first-year operational funding.
“In the cattle industry, especially years ago, most of our feeder cattle actually got shipped out of state for feeding even, and then further processing,” he said. “We’ve put a lot of effort in the last few years into feeding them here. So we’re using our own feed stuff, so corn, basically, and silage and things like that. So then the next step to avoid having to haul them so far when they’re finished and ready for market, is to process them here.”

This story was produced by South Dakota News Watch, an independent, nonprofit news organization. Read more in-depth stories at sdnewswatch.org and sign up for an email every few days to get stories as soon as they’re published. Contact Bart Pfankuch at bart.pfankuch@sdnewswatch.org.
South Dakota
Work, housing and staffing: How South Dakota’s corrections chief aims to keep inmates from returning
SIOUX FALLS – South Dakota’s repeat offense rate for people who leave prison can return to the low point it saw a a dozen years ago, the state’s corrections secretary said Tuesday.
Nick Lamb, now six months into his role atop the Department of Corrections, laid out the agency’s plan Tuesday at the Correctional Rehabilitation Task Force at its meeting in Sioux Falls. The plan includes work release programs, residential housing for inmates and a top-to-bottom restructuring of how the department operates.
Recidivism measures how many inmates return to prison within three years of their release. The figure for South Dakota stood at
50%
in the most recent data, which was based on the performance of inmates released in 2021.
South Dakota’s lowest recidivism rate in the last two decades was 39% in 2014.
“We’ll get back there,” Lamb said Tuesday.
Lamb told reporters after the meeting he wants “to start getting in the business of closing prisons” during his tenure.
“Our population is too high for our state,” Lamb said. “We need to get our population down, but we’ve got to give the offenders the tools they need that they haven’t always had.”
Several recommendations presented on Tuesday, by Lamb and other criminal justice experts, will require more staff and funding.
State Rep. John Hughes, R-Sioux Falls, worries that the Legislature’s budget-setting committee will balk at new spending.
“My concern is that we put all these elaborate proposals together, then when we get to appropriations we’re going to hit the wall,” Hughes said.
Inmates return to work release
Under Lamb’s predecessor, Kellie Wasko, pay for inmate work performed outside the prison walls
was increased to minimum wage
. After that policy change, fewer communities and organizations contracted inmate workers for community service jobs.
Rep. Tim Reisch, R-Howard, said most of the roughly 250 minimum-security prisoners he oversaw during his tenure as corrections secretary participated in work release.
“They got up and they all had jobs. They were used to getting out of bed, going to work, getting in a habit of that,” Reisch said.
When he toured the prison last year, fewer than 20 were working, he said.
Lamb has cut inmate wages below minimum wage since he started.
“We reached out to a lot of these communities, basically asking if they need help,” Lamb said. “We lowered the wage, which upset some people, but we need them out working.”
This summer, inmates will work at Sioux Falls parks and at its regional landfill, and they’ll prepare the fairgrounds in Huron for the State Fairgrounds in August. They’ll also help out during Riverboat Days in Yankton, and pitch in on tournament preparation for the National Field Archery Association.
Statewide residential facilities planned
Lamb also wants to establish a residential corrections program. He shared a presentation showing how such a program
operated in Iowa
, where he served as deputy director of institutional operations for the Iowa Department of Corrections before his move to South Dakota.
In Iowa, most residential facilities were filled with people on probation, parole or work release. He envisions a similar program in South Dakota, with housing outside of traditional prison settings designed to help transition back into the community, but he hasn’t finalized details or a timeline.
“We’re going to try it,” Lamb said. “I’ll be honest, I haven’t talked to the lieutenant governor or anybody else about it, but we need to try it. It works.”
The program has been in Iowa for decades. Iowa’s three-year recidivism rate peaked at 38.9% in 2019 and has since fallen to 32.8%, based on the
latest data available
.
“I’m not trying to throw you a sales pitch,” Lamb said, but residential programming is “a good idea.”
Lamb said he doesn’t want to replace programs like the one run by the Sioux Falls-based nonprofit St. Francis House, but to add to it.
St. Francis House doesn’t cap how long residents can stay and limits rent to $250 a month. Lamb said a state-run program would include a time limit and higher rent.
A lack of “felon-friendly housing” is a major driver of recidivism, said Sioux Falls Mayor Paul TenHaken, who’s leaving his position soon after two terms in office. The problem won’t improve without government involvement, he added.
“If the state ever chooses to invest in St. Francis House programming, it’s money well spent,” TenHaken said.
Justice Center recommendations
The percentage of inmates who got rehabilitative programming increased from 27%to 44% between 2023 and 2025, according to a report presented Tuesday by the Council for State Governments Justice Center.
The national nonprofit was contracted to analyze the state’s prison system and help guide the task force’s work.
Despite the gains in programming, the group reported, 46% of inmates released in 2025 received none. Access was also limited by where inmates were held, due to space and staffing restrictions.
The justice center recommended several changes, including:
- Creating a rehabilitation and reentry division and hiring several new positions.
- Creating a centralized waitlist for programs.
- Streamlining the program catalog to reduce overlap and fill gaps.
- Sequencing programming to cover an inmate’s entire stay, rather than stacking programs in the last few months of their sentence.
- Creating a dedicated parole violation program track.
Many of those recommendations hinge on hiring and retaining adequate staff — one of the department’s most significant challenges, according to the group.
Sara Friedman, program director with the Justice Center, said her team consistently heard in interviews that the department tends to shift employees around when attempting new initiatives, rather than hiring. That creates gaps for inmates seeking programming.
Sometimes, for example, shifting staffing patterns will leave facilities without enough security staff to transport inmates to classrooms.
“Technically, you’re fully staffed, but you’re fully staffed so thinly that the moment one thing goes wrong, the waterfall effect is people are not getting their rehabilitative services,” Friedman said.
Lamb told South Dakota Searchlight after the presentation that he wasn’t surprised by the staffing recommendations. The department lacks adequate staff to backfill for sick or vacationing employees, he said, though he didn’t say how many more employees would need to be hired to address the issue.
The department is already working to create the new rehabilitation and reentry division and centralize its scheduling.
The task force plans to meet two more times before it’ll finalize its recommendations for the Legislature ahead of the next session, which starts in January.
— This story was originally published on southdakotasearchlight.com.
South Dakota
South Dakota Republicans reject censuring John Thune over stalled SAVE America Act
South Dakota Republican delegates rejected a push to censure Senate Majority Leader John Thune (R-S.D.) over the stalled SAVE America Act, exposing a fight within the GOP over how far the party should go to force through sweeping new voting restrictions.
South Dakota Republicans voted down a proposed censure of Thune at the state party convention Friday after a resolution accused him of blocking President Donald Trump’s election agenda.
The measure had advanced out of the party’s Resolutions Committee, but failed before the full convention.
The resolution targeted Thune for what it called “his failure in regards to the SAVE America Act,” a Republican-backed bill that would impose strict proof-of-citizenship and photo ID requirements to vote.
Voting rights advocates have warned the bill could block millions of eligible Americans from registering, especially people who do not have easy access to passports, birth certificates or documents matching their current names.
Trump has sharply escalated pressure on Republicans to pass the bill. This week, he abruptly canceled a planned signing ceremony for a bipartisan housing affordability bill, tying the unrelated legislation to his demand that Congress first pass the SAVE America Act.
“Today’s Housing News Conference and Signing is hereby cancelled until such time as we pass the desperately needed SAVE AMERICA ACT, which I consider to be a National Emergency,” Trump wrote.
The censure push reflects growing anger among Trump allies who want Senate Republicans to change or bypass filibuster rules to pass the bill. A filibuster is a Senate procedure that usually requires 60 votes to move most legislation forward. Republicans do not have those votes.
“We don’t have the votes, either to proceed to a talking filibuster nor to sustain one if we got one,” Thune said last week. “That’s just a function of math. There isn’t anything I can do about that.”
For pro-democracy advocates, the fight is not simply about Thune. It is about a broader Republican effort to turn Trump’s election denialism into federal policy. Noncitizen voting is already illegal and exceedingly rare.
But the SAVE America Act would use that false crisis to create new barriers for eligible voters.
The South Dakota vote shows the limits of MAGA pressure even in a deep-red state. Delegates were willing to debate punishing their own Senate majority leader, but ultimately rejected escalating the internal fight.
Still, the episode underscores how central voting restrictions have become to the Republican agenda ahead of the midterms.
South Dakota
17 Republican attorneys general, including South Dakota’s, sue California over plastics law
Seventeen Republican attorneys general, including South Dakota’s, have sued California over a state law that requires plastic packaging producers to move away from single-use plastics, alleging that the law will raise costs for consumers across the country.
Led by Nebraska Attorney General Mike Hilgers and the National Association of Wholesaler-Distributors, the
complaint
filed Monday in the U.S. District Court of the Eastern District of California challenges California’s Plastics Act. Under the law, which took effect May 1, plastic packaging producers
must reduce single-use plastic
by 25% and ensure all packaging is recyclable or compostable by 2032.
Joining Hilgers in the lawsuit are the attorneys general of Alabama, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Missouri, Montana, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, Utah and West Virginia. They say the law is an attempt by California “to impose its own policy preferences on the entire nation.”
The law “will cause steep and persistent price increases” on products used daily by consumers in other states, the plaintiffs argue.
South Dakota Attorney General Marty Jackley said in a news release that the California law “imposes unreasonable, burdensome requirements on businesses and consumers nationwide.”
The attorneys general also assert that the law violates the Commerce Clause of the U.S. Constitution by interfering with interstate commerce, and that it improperly extends regulatory authority to a private organization. California appointed a nonprofit, the Circular Action Alliance, to help develop, administer and implement the law.
“Once again, California is trying to enact a policy that negatively impacts the rest of the country. If California goes unchecked, consumers will be forced to pay more for basic necessities,” Hilgers said in a news release. “Nebraska is continuing to fight for consumers against California’s overreach.”
Environmental advocacy groups also
sued
California earlier this month, alleging the new regulations “fall short” in meeting the state’s aims of reducing plastic packaging, and that they contain loopholes for producers.
— This story was originally published on southdakotasearchlight.com.
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