South Dakota Railroad Board Approves $5.7M+ for High Plains Processing

High Plains Processing

MITCHELL, S.D. - The South Dakota Railroad Board approved a $5,710,700 loan to complete rail infrastructure for High Plains Processing in Mitchell.

High Plains Processing is a multi-seed crush facility under management of South Dakota Soybean Processors, LLC. At the end of October, the Davison County Regional Railroad Authority (DCRRA) board voted to seek an additional loan from the South Dakota Department of Transportation to pay “for the balance of the $25 million dollar rail project” at the plant, according to a report. DCRRA was established in 2024 and seeks to support rail infrastructure development throughout the county.

Previously, the project received a $12.6 million low-interest loan from the state. On November 12, the DCRRA was scheduled to appear before the SDDOT Board to make its case for the additional funding. Mitchell Area Development Corporation CEO Mike Lauritsen and High Plains Processing CEO Tom Kersting gave the joint presentation to highlight the economical impact of the project.

Now, the DCRRA announced it has been approved for more than $5 million in a low-interest loan, bringing the total loan to $18,310,700 for the project. This will cover an additional 33,159 feet of track, 2 new BNSF mainline turnouts, room for 100 cars in unit trains, and 22 new industrial turnouts, according to DakotaNewsNow. The terms of the loan are as follows; 2% interest rate, 15 year amortization schedule, and a seven year balloon structure.

CEO Kersting said, ““Rail is essential to our competitiveness as we expand into multi seed processing and international markets. . . 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.”

“This project brings new dollars into South Dakota rather than simply recycling activity within our borders,” said CEO Mike 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.”