North Dakota Soybeans Processing Plants Increase Opportunities

In partnership with: North Dakota Department of Agriculture

The North Dakota soybean is small but mighty. It has many uses, from oil used in cooking to animal feed to sustainable fuel. In 2021, North Dakota soybeans had a production value of $2.32 billion, and the state was home to the top three soybean acreage counties in the U.S. – Stutsman, Cass and Barnes.

For the state’s soybean farmers, production provided a solid income; however, soybeans were shipped out of state for processing and the potential to capitalize more felt like a missed opportunity – until now.

See more: North Dakota’s Top 10 Agricultural Commodities

A Plant of Their Own

Located just outside Casselton, the new North Dakota Soybean Processors Plant is being built as a joint venture between Minnesota Soybean Processors and CGB Enterprises.

“The location was chosen because it’s at an intersection of two different rail lines, which is extremely important for commodity transportation,” says Melissa Beach, community and economic development director at Casselton Economic Development. “For our growers, this plant will have a significant long-term impact since having a processing facility near them raises the price of their product naturally. We’re taking out the middle market that was previously out of state.”

The plant is a huge win for soybean producers, who support many communities in the state, but Beach says there are a variety of positive economic impacts for Cass County and North Dakota as a whole.

“The short-term impacts to Cass County alone will be close to $100 million spent in the construction phase on services like steel, for instance,” she says. “That’s very immediate. But we’re also looking at long-term job creation, ongoing maintenance of the facility that requires support companies, and by allowing soybeans to be processed in state, we’re keeping dollars in North Dakota.”

The plant is on target to be complete in 2024. In its first year, it’s expected to crush approximately 42.5 million bushels of soybeans to produce food-grade soybean oil and meal. Oil may go into the food industry or be turned into renewable fuel, whereas the meal will likely be used as livestock feed. The plant aims to provide roughly 50 to 60 high-paying jobs.

“The soybean crushing facilities that will soon be in operation are of great benefit in a state like North Dakota as a top 10 producer of soybeans in the nation,” Agriculture Commissioner Doug Goehring says. “The plants will add value for producers and create a variety of products including food-grade soybean oil, soybean meal and fiber for livestock feed and vegetable oil for renewable diesel. We are positioned to further develop animal agriculture with local crush facilities in our state.”

“It’s so important that growers have more opportunities to have their commodities processed in state. The more times you can add value and keep it in North Dakota, the more beneficial it is for everyone.”

– Melissa Beach, Casselton Economic Development community and economic development director

A Neighboring Facility

The North Dakota Soybean Processors Plant isn’t the only value-add facility being built in the state. About 70 miles to the west in Spiritwood, Green Bison Soy Processing is also under construction.

A joint venture between ADM and Marathon Petroleum, the $350 million facility will process $150,000 worth of bushels of soybeans per day into oil, meal and fiber, with an estimated 600 million pounds of vegetable oil being sent to the Marathon refinery each year. The plant is expected to be up and running by the 2023 harvest, providing approximately 70 full-time jobs.

See more: Where to Buy Local Beef in North Dakota

With these two plants coming online, North Dakota will process and add value to more than half of its soybean crop in the next couple of years. Previously, it was exporting close to 90% of the crop.

Beach sums it up best. “It’s so important that growers have more opportunities to have their commodities processed in state,” she says. “The more times you can add value and keep it in North Dakota, the more beneficial it is for everyone.”