By Wesley Wach, NSB Demand & Utilization Coordinator
After years in the making, increased domestic soybean utilization is arriving in Nebraska, with ribbon cuttings to prove it.
The demand for soybean oil to be used in renewable fuels like biomass-based diesel (BBD) has led to soybean crush facility developments across the country. However, some of these projects have stalled due to supply chain issues and tightening margins. Despite this, Norfolk Crush in Norfolk and Ag Processing Inc. (AGP) in David City are both going to be operational in 2025.
soybean processing facility, joined by Nebraska leaders, plant leadership and
community partners including the Norfolk Area Chambers of Commerce.
On May 29, Norfolk Crush celebrated its grand opening with more than 100 visitors, including Gov. Jim Pillen and Sen. Deb Fischer.
Speaking about the opening in Norfolk, Chad Spohn, president and CEO of Norfolk Crush, said soybean crush capacity in Nebraska is growing exponentially as two new soybean crush plants are creating significant growth in demand for Nebraska-grown soybeans. “Many soybeans that were leaving the state for export through the Pacific Northwest and Mexico will now be crushed locally,” Spohn said.
These shifting dynamics are significant, as almost 50% of the soybean value has traditionally come from whole soybean exports, according to the U.S. Department of Agriculture.
“As a result of the change, soybean meal will now be a featured export commodity as this additional crush will be met with the need to move soybean meal from the Midwest toward various export markets,” Spohn said.
Crush capacity at the Norfolk site is estimated to be about 39 million bushels per year, with the ability to crush almost 110,000 bushels of soybeans every day.
value to our ag products, supports livestock production and exports meal to new foreign markets. At the same time, it is supplying oil as a feedstock to the growing biofuels industry.”
The new facility has provided a means for farmers to market their soybeans to a domestic end-user, while also adding value to the community as it has begun operations over the past year.
Mike Tomes, a farmer from Utica and District 6 NSB director, attended the grand opening and is optimistic. “The new Norfolk Crush facility is quite impressive. Very efficient unloading for farmers delivering soybeans. This is a great opportunity to market soybeans in northeast Nebraska.”
On July 17, near David City, Nebraska, Ag Processing Inc. (AGP) hosted a grand opening of its new plant, and it hopes to receive soybeans this year. Attendees were able to receive tours of the facility.
The completed plant has the capacity to crush 150,000 bushels of soybeans per day and degum 1.8 million pounds of crude soybean oil per day, creating more than 60 jobs to support the local economy.
Brett Kinney, senior merchandiser at AGP, said, “AGP is set to begin operations at our second Nebraska soybean processing facility in David City this fall. We are pleased to provide increased opportunities for the Nebraska soybean grower and our member cooperatives by expanding demand for their soybeans and transforming them into high value products.”
50 million bushels of soybeans annually
The plant will have strong access to rail infrastructure, supporting domestic customers in addition to international markets.
“The facility will produce high-protein soybean meal for local livestock operations, as well as soybean oil for use in food production and biofuel processing,” Kinney said.
This investment in Nebraska also coincides with AGP’s Port of Grays Harbor expansion and redevelopment of Terminal 4 in Aberdeen, Washington. It is a project that includes the addition of a new, dualtrack railcar receiving facility, feeding a three-tower ship loader capable of loading Panamax-size ships, increasing annual soybean meal exports from 3 million metric tons to over 6 million metric tons.
These developments will elevate Nebraska’s role in the global soybean ecosystem because it brings value to communities in the state while providing vital nutritional needs to millions around the world.
Gregg Fujan, United Soybean Board director and soybean grower from Weston, lives only 15 minutes from the David City facility. “It’s a natural fit for locally grown soybeans to be processed locally with the meal fed to poultry and other livestock in the area to add profitability to those same soybean farmers. With three crush plants within a 40-mile radius of my farms, increased competition for soybeans will mean better profit opportunities for area farmers.”
Nebraska’s total crush capacity will now be roughly 234 million bushels of soybeans, which is more than 70% of the 300 million bushels typically produced each year.
