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Soybean Group Moves Ahead With Proposed $500 Million Project South Of Mitchell

Soybean Group Moves Ahead With Proposed $500 Million Project South Of Mitchell

 By Andrew Kronaizl

A rendering of the proposed soybean plant south of Mitchell.

South Dakota Soybean Processors is continuing with plans to build its biggest processing facility yet — a $500 million plant near Mitchell that recently received a permit from Davison County.

The new plant will be the company’s third, adding to its main location in Volga and its facility near Miller. The Mitchell plant will also have the highest production capacity of the three, being able to take in 100,000 bushels of soybeans a day compared to Volga’s 85,000 and Miller’s 15,000. It will also be able to process sunflowers.

Construction is scheduled to start in 2023, and the plant could be operating by 2025.

According to South Dakota Soybean Processors CEO Tom Kersting, the company has had its eyes on a location in Mitchell for a while.

The new plant will be located two miles south of Interstate 90 and along a BNSF rail line, connections that Kersting said are important for receiving soybeans and sunflowers.

South Dakota Soybean Processors is expecting the plant to add 75 jobs in the Mitchell area and another 10 at the company’s headquarters in Volga. While the budget for the project is $500 million, Kersting said the company has prepared for inflation and supply chain issues to change the final cost.

The Davison County Commission unanimously approved a conditional-use permit for the facility at its July 12 meeting.

According to consultant Kyle Peters of A1 Development Solutions, the development group that South Dakota Soybean Processors hired for the project, the biggest concern people raised was how the plant would impact traffic and road conditions on Highway 37.

The South Dakota Department of Transportation is conducting a traffic safety study for the proposed plant, and South Dakota Soybean Processors says it will make the changes the study recommends.

Another concern residents expressed was the noise and smell the plant would create. Peters said the company was transparent about those effects during public meetings.

Many community members spoke in favor of the project, especially farmers. Some of the positive impacts they talked about were the jobs the plant would bring and how producing soybeans locally would benefit the town’s economy.

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Wheat Yields in USA and China Threatened by Heat Waves Breaking Enzymes

Video: Wheat Yields in USA and China Threatened by Heat Waves Breaking Enzymes

A new peer reviewed study looks at the generally unrecognized risk of heat waves surpassing the threshold for enzyme damage in wheat.

Most studies that look at crop failure in the main food growing regions (breadbaskets of the planet) look at temperatures and droughts in the historical records to assess present day risk. Since the climate system has changed, these historical based risk analysis studies underestimate the present-day risks.

What this new research study does is generate an ensemble of plausible scenarios for the present climate in terms of temperatures and precipitation, and looks at how many of these plausible scenarios exceed the enzyme-breaking temperature of 32.8 C for wheat, and exceed the high stress yield reducing temperature of 27.8 C for wheat. Also, the study considers the possibility of a compounded failure with heat waves in both regions simultaneously, this greatly reducing global wheat supply and causing severe shortages.

Results show that the likelihood (risk) of wheat crop failure with a one-in-hundred likelihood in 1981 has in today’s climate become increased by 16x in the USA winter wheat crop (to one-in-six) and by 6x in northeast China (to one-in-sixteen).

The risks determined in this new paper are much greater than that obtained in previous work that determines risk by analyzing historical climate patterns.

Clearly, since the climate system is rapidly changing, we cannot assume stationarity and calculate risk probabilities like we did traditionally before.

We are essentially on a new planet, with a new climate regime, and have to understand that everything is different now.