The state’s Railroad Board recently approved increasing the loan amount to a soybean processing plant in Mitchell.
The Davison County Regional Railroad Authority requested an additional $5.7 million for a loan to High Plains Processing in Mitchell. No payments have been made on the original loan.
The money will fund completion of railroad infrastructure for the plant.
Mike Lauritsen is secretary for the Davison County Regional Railroad Authority and requested the increase from the state board. He called the half-billion-dollar project the “gold standard” of economic development projects.
“You have a project that our local producers are growing in the Mitchell area, we have a place for producers to take this product to High Plains Processing, adds value to their soybeans—they’re actually getting paid $0.20-0.30 higher per bushel at an induvial facility compared to other places around South Dakota and outside of South Dakota," Lauritsen said. "We’re hearing that from the soybean farmers. That makes us excited. Especially with the tariffs, they have somewhere new to take their product”
Board members voted unanimously to increase the loan. The full loan amount is now $18.31 million at a 2% interest rate.
