OMAHA, NEB. — Ag Processing Inc. (AGP) is seeking approximately $1.5 million in state and local financing as part of a planned $72 million expansion of its soybean processing facility in Sergeant Bluff, Iowa. AGP previously expanded the Sergeant Bluff facility in 2017 with the addition of a soybean oil refinery.
“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,” said Chris Schaffer, chief executive officer of AGP. “Domestic and global demand for soybean meal and soybean oil continues to grow. In addition, we believe the expanded soybean processing plant will generate economic benefits for the Sergeant Bluff area.”
Lowell Wilson, chairman of the board of directors at AGP, said the expansion project is aligned with the cooperative’s strategic plan of continued growth of its core soybean processing business to better serve the cooperative system and its rural communities.
Meanwhile, Mark Sandeen, chief marketing officer at AGP, added that the availability and quality of the soybeans in the Sergeant Bluff area “make it an excellent location to expand our crush capacity.”
“AGP continues to invest in areas that enhance our competitiveness,” Mr. Sandeen said. “Our Sergeant Bluff facility has performed very well over the years, and we have a strong connection to the community. We have a great team in place to support the expanded operations, and we are excited to move forward with this project to return value to our members and their farmer-owners.”
Company officials noted that 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,” Mr. Sandeen said.
AGP is the largest cooperative soybean processor in the world. It is owned by more than 150 local and regional cooperatives throughout the Midwest, representing over 200,000 farmers.