$700M Soybean Crushing Operation to Start in Nebraska’s David City by Late August

By Cindy Gonzalez

LINCOLN — A new soybean crushing facility that owners say brings a $700 million investment to Nebraska’s David City and will support 80 jobs is set to launch commercial operations by the end of August.

On a site that spans nearly 275 acres, the Ag Processing Inc. plant at full speed is expected to process 50 million bushels of soybeans and produce 700 million pounds of refined soybean oil. Such byproducts are used for animal feed, cooking, and biofuel.

The operation about an hour northwest of Nebraska’s capital city, will be the 11th soybean processing location for AGP, an agribusiness headquartered in Omaha and owned by local and regional cooperatives representing farms and producers across the U.S. 

A spokesman said the latest plant location, announced in 2022, was chosen largely for proximity to cooperative members, a reliable supply of soybeans, workforce, and transportation access. Infrastructure was another factor, said AGP’s Michael Dolch, as the grounds include 2.5 miles of paved roads and nearly 13.6 miles of rail track.

“As a cooperative, AGP’s mission is to add value to our members’ soybeans by processing the beans into meal and oil, selling those products in the open market, and returning the earnings to our local owners,” Board Chair Dean Thernes said in a statement. 

He said David City adds to AGP’s midwestern processing capabilities and improves its competitive edge in domestic and international markets for the growing industry. The cooperative’s last soybean processing plant opened six years ago in Aberdeen, South Dakota.

State leaders including Nebraska Gov. Jim Pillen joined AGP members and industry representatives on Thursday for a ceremonial grand opening.

Pillen talked about Nebraska’s reliance on agriculture and said the new plant would consume more than 15% of the state’s soybeans grown.

“AGP’s processing facility is creating fantastic opportunities for our soybean farmers and bringing rewarding careers to David City,” he said. “This plant … improves the basis for local markets and puts more cash in producers’ pockets.”

AGP managers credited local support for helping the project to materialize.

“With the amount of rail track on site, AGP will load a unit train of 110 cars every three to four days. We will be able to hold a loaded unit train, receive an empty unit train and continue to build a third unit train of soybean meal,” said Lou Rickers, chief operations officer.

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