Ag Processing Inc.’s new soybean crushing facility is set to open in 2025 and a groundbreaking ceremony was held May 17 at the Butler County Event Center in David City, not too far from Platte County.
Ag Processing Inc. (AGP) announced in 2022 its plans to construct a facility capable of processing more than 50 million bushels of soybeans per year in David City. It will be located in the north part of town.
The cooperative processes soybeans into two primary products – soybean meal and soybean oil. AGP is also involved in biodiesel.
AGP CEO Chris Schaffer said during the groundbreaking that AGP is a regional cooperative, headquartered in Omaha, owned by 15 farmer-owned cooperatives across the Midwest, which represents over 200,000 farmers.
A lot of time and effort went into management’s recommendations to expand AGP’s crush capacity by 15% as well as selecting David City as the next site, he said.
“Soybean origination and product market destinations were considered, as well as operational factors such as labor availability, infrastructure, transportation and community support. David City checked all the boxes,” Schaffer said.
AGP operates 10 other soybean processing facilities, which are located in small towns throughout the Midwest.
“After 38 years on the board of directors, I have witnessed firsthand the value that AGP brings to rural communities,” said Lowell Wilson, AGP board chairman. “Once operational, David City’s plant will provide strong markets for soybeans and better access to soybean meal to support value-added agriculture. In addition, this project will add well-paying jobs and excellent benefits, growth opportunities for local businesses, infrastructure improvements and increase for local organizations.”
AGP’s cooperative model is successful, Wilson said, because it’s designed to benefit the local community and local producers. AGP’s earnings are returned to its local member owners who do business with them, he added. The economic impact on the David City community will be considerable.
“The AGP board approved this $700 million project because it fits well in our vertically integrated soybean processing platforms strategic plan,” Wilson said.
AGP’s board and management appreciate the cooperation and support they have received from officials with David City, Butler County and the State of Nebraska, he added.
Governor Jim Pillen also spoke at the groundbreaking.
Pillen, who grew up roughly 30 minutes from David City, noted the current state capitol is about 100 years old; the State of Nebraska is 156 years old.
“One hundred years ago, the governor then was Gov. (Samuel R.) McKelvie and he broke ground with a horse and a plow. He was the last governor of Nebraska that lived and breathed … living in agriculture,” Pillen said.
“Agriculture drives the State of Nebraska; always has, always will, because of what’s taking place here.”
He noted the importance of agriculture in Butler County.
Working together for agriculture, Pillen said, is something that makes him excited about the arrival of the AGP plant.
“The dream and vision for all of us in Nebraska, is that we don’t export an ounce of corn and soybeans, we consume that here and then we sell product…” he said.
Pillen touched on renewable fuels and the 20-some ethanol plans that have been built in Nebraska since President George W. Bush’s efforts in 2007.
AGP’s plant will be a “tremendous” opportunity to continue to grow value-added agriculture in the form of renewable fuels, he added.
“To me, that’s the future. That’s the key to having great H3 (high wage, high skill and high demand) jobs and making sure that we have really, really successful family farms for generations and generations to come,” Pillen said.
The governor also mentioned, among other things, that Nebraskans are risk takers, entrepreneurial, innovative, problem solving – always figuring out how to get better and better.
“That’s why this is a great place to build a plant. That’s why it’s a great (area) to be for all of us in agriculture. And that’s why it’s such an awesome place to live and raise your families,” Pillen said.
Source – The Columbus Telegram; Hannah Schrodt