AGP announces soybean processing facility expansion
November 24, 2021 | Kriss Nelson
A $72 million investment will expand soybean processing in the state and provide opportunities for Iowa farmers. Ag Processing Inc. (AGP) recently announced its vision to expand crush capacity in Sergeant Bluff.
Iowa Soybean Association District 4 Director Marty Danzer from Carroll sees the planned development as great potential for producers in Iowa and surrounding states.
“The expansion of the AGP facility in Sergeant Bluff will benefit soybean producers in Iowa, South Dakota, Nebraska and Minnesota,” says Danzer. “This will create better markets for soybean producers in this region.”
The investment is reported to be nearly $72 million. The company is seeking nearly $1.5 million in state and local money to help finance the expansion.
“The project is aligned with our strategic plan of continued growth of our core soybean processing business to better serve the cooperative system and our rural communities,” Lowell Wilson, chairman of the board for AGP, said in a release.
AGP CEO Chris Schaffer noted growing demand for soybean meal and soybean oil as a catalyst for expansion.
“We have carefully evaluated this opportunity and are confident that this investment will generate strong returns for our membership and benefit farmer-producers throughout the region,” Schaffer says. “In addition, we believe the expanded soybean processing plant will generate economic benefits for the Sergeant Bluff area.”
Chief Marketing Officer Mark Sandeen added the availability and quality of the soybeans in the Sergeant Bluff area make it an excellent location to expand crush capacity, enhancing the cooperative’s competitiveness.
Company officials noted the final construction decisions are contingent on negotiations with state and local officials regarding economic development, utility rates and services and regulatory considerations.
“We are committed to working with local and state officials to develop and invest in projects that benefit AGP and the surrounding communities,” Sandeen says.
AGP, the largest cooperative soybean processor in the world, is owned by more than 150 local and regional cooperatives throughout the Midwest, representing more than 200,00 farmers. AGP’s corporate headquarters are in Omaha, Nebraska.