SHELL ROCK, IOWA — Mid-Iowa Cooperative, a farmer-owned cooperative based in east central Iowa, is partnering with Mike Kinley, chief executive officer of Mid-Iowa, to create Shell Rock Soy Processing (SRSP). Once operational in 2022, SRSP will crush 38.5 million bus of soybeans a year, or approximately 110,000 bus per day.
Groundbreaking on the new soybean crushing plant is slated for later this month. The plant will be built at the Butler Logistics Park northwest of Shell Rock, pending state and local approvals.
“We’re positioned to extract all the value possible from locally-grown soybeans,” Mr. Kinley said. “This plant can supply both food and fuel needs, and it will bring Butler County and surrounding areas into the center of the global ag economy.”
Mid-Iowa said it is seeking additional investors for the $270 million project. For its part, Mid-Iowa said it plans to help originate soybeans for the plant.
“Not only will SRSP create more than 50 high-quality jobs, but it allows our area to build on its strong agricultural heritage,” said Jeff Kolb, executive director of the Butler-Grundy Development Alliance. “This will help expand farm income potential, and it will diversify the economy, which can benefit everyone.”
Mid-Iowa said the new soybean crushing plant is expected to produce 847,000 tons of soybean meal per year (2,420 tons per day) for livestock feed markets, 462 million lbs of crude soybean oil per year (1.32 million lbs per day), and 77,000 tons of pelleted soybean hulls per year (220 tons per day). The soymeal and soy hulls (which contain highly digestible fiber) will be used in livestock feed rations, Mid-Iowa said.
“SRSP will add tremendous value to soybeans in the eastern part of Iowa,” said Mike Knobbe, an SRSP developing partner with Mr. Kinley. “This plant will also benefit the livestock sector by providing high-quality, 48% protein soymeal.”
Additionally, the soybean oil from SRSP will be able to be used for a variety of applications, including the human food industry. Approximately 25% of SRSP’s products will be used within Iowa, while 75% will be exported outside of Iowa, Mid-Iowa said.
“This soybean crush plant is a farmer’s dream,” said Jeff Reints, who farms in the Shell Rock area with his son, Clay. “Our closest plant is more than an hour away, and it’s notorious for having 3- to 4-hour waits. SRSP will increase demand for soybeans in our area. More profit potential means farmers will likely add more soybeans to their crop rotation.”
The new plant will be located near the Iowa Northern Railway and will have easy truck access, Mid-Iowa noted.
“Iowa Northern is honored to have a key role in connecting Iowa agricultural communities direct to the North American transportation network,” said Dan Sabin, president of Iowa Northern Railway Company, a Class III, shortline railroad based in Waterloo that serves industries throughout north-central and eastern Iowa. “We’re pleased to partner with Mid-Iowa Cooperative on this dynamic project and look forward to fulfilling our role in its future success.”
The plant will be built by Minnesota-based Fagen, Inc., the engineering, procurement and construction (EPC) design builder and development partner for SRSP.
“It’s a pleasure to work with the Fagen team,” Mr. Kinley said. “They are the premiere design-build partner in value-added ag processing.”