Minnesota Soybean Processors
Box 100   Brewster, MN   56119-0100
Ph: 1-507-343-6677   Fax: 1-507-727-2677

 
The Bean Counter

www.MnSoy.com

April 2002

For Minnesota Soybean Processors (MnSP) April 2 was a day of celebration and a day of membership action as they held their first annual membership meeting in Windom. "It was rewarding to see the 500-plus members and friends of MnSP who attended," said President Bob Kirchner of Brewster. "The members gave unanimous approval to build a biodiesel refinery at Brewster, elected 14 board members and celebrated the closing of the equity drive phase for MnSP."

Minnesota Soybean Processors has over 2,300 farm members who have committed in excess of $31 million to the project. Funds were raised over an 18-month period. Kirchner added, "We are pleased with the support we have received. We have a strong equity base to enter the soybean processing industry. Once MnSP's board has the opportunity to analyze the financial feasibility of a biodiesel refinery, we will decide if MnSP will want to raise more equity."

The investment in a 20-million-gallon soydiesel refinery adjacent to the soybean processing facility at Brewster became feasible following the approval of a biodiesel bill by the Minnesota Legislature in March. 'We expect to finalize our financial analysis over the next 45-60 days," commented Rodney Christianson, MnSP's CEO. "Now that we know what legislation has passed, we will re-view and update our financial analysis including plant size, capital investment and profitability. Biodiesel has been a part of the long-term strategy for MnSP's investment in Minnesota. MnSP's environmental permit applications included plans for soydiesel production."

Business included election of 14 board members. With seven incumbent members the full compliment of 21 directors is now seated. Following are directors for MnSP:

Resolution Supports Refinery Study

President Robert Kirchner presented a resolution from the board of directors:

WHEREAS the Minnesota Legislature passed a 2% biodiesel content requirement for the nearly 600 million gallons of diesel fuel sold in Minnesota. This action creates an estimated demand of 16 million gallons of biodiesel within the state of Minnesota.

WHEREAS the Federal Government, under proposed rules by the Environmental Protection Agency, is proposing to reduce sulfur levels in all on-road diesel fuel sold in the United States from current levels of approximately 500 ppm to 15 ppm by 2007.

BE IT RESOLVED: MnSP's Cooperative membership sup-ports that MnSP move forward to build a 20 million gallon per year biodiesel plant contingent on a positive financial analysis.

Reconstituted Board Returns Four Officers

Officers of Minnesota Soybean Processors were re-elected at the first meeting of the expanded board of directors in Worthington April 15.

Returned to their positions were President Robert Kirchner, Brewster; Vice President Ron Obermoller, Brewster; Secretary Bruce Hill, Worthington, and Treasurer Paul Henning, Okabena.

The original board had 10 members, and another 11 were added at the annual meeting in April. The entire, expanded board is listed on page 2 of this newsletter.

From the Desk of the CEO

S.D. Members Challenged to Enact Biodiesel Bill

It was invigorating seeing so many familiar faces at the annual meeting in Windom. The enthusiasm and optimism of SDSP members is contagious and I'm looking forward to working with the new 21-member board to build a facility which will put more of the food dollar m our farmers' pockets.

Congratulations and thank you to the 2,200 MnSP and SDSP members who helped get a 2% biodiesel content requirement passed and into law in the state of Minnesota! We would be remiss if we did not express our gratitude for the leader-ship provided by the Minnesota Soybean Growers Association over their two-year campaign. And to the many other farm groups and friends of Minnesota agriculture who let their voices be heard, we also say thank you! Without the grass roots effort prior to and during the legislative session and to the governor the biodiesel requirement would not have survived the 2002 legislative process.

The Minnesota biodiesel effort stands out as a shining example of farmers working together. Our South Dakota members have been issued a good-natured warning: Minnesota directors of our two co-operatives have thrown down the gauntlet on behalf of the 2,200 Minnesota members (.045 % of Minnesota's population). Can the 1,300 MnSP and SDSP South Dakota members (.17% of South Dakota's population) get a 2% biodiesel content requirement passed in South Dakota's 2003 Legislative session?

Now being a South Dakota resident who grew up in Minnesota, I would suggest that not only will we pass the legislation in 2003 but we could one-up our Minnesota friends by enacting the content requirement faster! Oh by the way, members in other states, we will be counting on you to achieve the same results!

Minnesota's legislation will create a demand for 16 million gallons of biodiesel, three times the U.S. usage just three years ago. The biodiesel content requirement will take effect a) after Minnesota has the capability to produce 8 million gallons within the state, and b) 18 months after the passage of an excise tax credit or on June 30, 2005, whichever comes first.

Rodney Christianson
CEO, Minnesota Soybean Processors

At the annual meeting, members of MnSP passed a motion to close the coop effective midnight April 2, 2002.

MnSP now has 2,344 members, and $31.6 million in-vested (including SDSP's investment).

The first 30% equity payment is due June 1, 2002. Look for a notice in the mail around May 1.

On March 8 something historic happened in Minnesota. A requirement that 2% biodiesel be blended in every gallon of diesel fuel sold in the state became law. This biodiesel success would not have been possible without the efforts, enthusiasm and support of the Minnesota Soybean Processors. Your efforts in providing transportation to St. Paul at the most crucial times in the biodiesel campaign went above and beyond the call of duty. Your commitment to biodiesel, to farmers and rural economics is greatly appreciated. We commend and thank you for your outstanding support.

Sincerely
Ed Hegland, President
Minnesota Soybean Growers Association.