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Central South Dakota | They are still bringing the processing plants to the grain instead of of hauling the grain to the processing plants. They are building a 80-100million gallon ethanol plant in Onida,SD. Aberdeen, SD is the future site of one of AGP's bean plants. In North Dakota was it the bean plant that got built at spiritwood, ND and an ethanol plant is coming or it could be the other way around. It's been 10 years or so since I hauled pellets out of there so I'm not sure which one got built first. Those are the new one's coming online that I can think of off the top of my head.
Like anything if you produce enough of it the processors will come. Is it cheaper to transport the raw commodity east to the plants or is it easier to transport a refined commodity. Throw in -1.25 to -.80 basis on beans and corn and it could very profitable for them to build some plants here.
It's like feeding cattle. At some point it's cheaper to haul 100 feeders to the cheap feed when they are 550 lbs than to haul all the truckloads offeed to the calves and then have to transport two loads of fats to the kill plant. Transportation can just eat a person alive. | |
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Fringe acre discussion.........
