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

January 2002

V. President
   Ron Obermoller
   Brewster, MN
   507-842-5467

Secretary
   Bruce Hill
   Worthington, MN
   507-842-5402

Treasurer
   Paul Henning
   Okabena, MN
   507-853-4669

Director
   William Fest
   Heron Lake, MN
   507-793-2585

Director
   Darol Schmitz
   Brewster, MN
   507-842-5413

Director
   Steffen VanWesten
   Reading, MN
   507-478-4552

Director
   LeRoy Kellenberger
   Beaver Creek, MN
   507-673-2283

Director
   Greg Nieuwendorp
   Sheldon, IA
   712-324-4441

Director
   David Bunde
   Stewartville, MN
   507-533-4928

Congratulations are in order to the 2,040 producers that have combined their resources. Together we will strive to capture a greater share of the food dollar. Together we have committed $28 million dollars to build a 100,000-bushel a day soybean processing plant near Brewster, MN. On December 5 Minnesota Soybean Processors' Board of Directors passed a resolution to release the funds held in escrow during the equity drive to build a soybean processing plant near Brewster, MN. This action took MnSP from the incubator of ideas to the birth of a new-generation cooperative.

The Board also took action to extend the current equity offering that was scheduled to close on December 31, 2001 for up to 120 days. The maximum allowable equity offering is $31 million dollars plus the investment from SDSP. Class A Shares are currently being offered for $2.40. The additional funds raised will provide MnSP with a strong equity position, providing the foundation to begin business in a very competitive market place. Or if an appropriate market opportunity presents itself to MnSP, (such as biodiesel, soybean oil refining, or increased crush capacity) the additional equity will allow MnSP to explore its potential.

The staff at SDSP is pleased to be part of the MnSP team. Our common goals and roots provide a great foundation for increasing profits for both organizations. Our goal for MnSP or the "END IN MIND" will be to have the soybean processing plant operating by the Fall of 2003. To meet this goal our efforts in the next six months will be focused in three arenas:

1. Working with state, county, city and other local officials in everything from permitting to forming a tax incremental financing district.
2. Engineering; Contractor bid packages; Equipment selection and bids. Letters of Intent have been issued for the major portion of the process equipment and for the Engineer of Record
3. Complete marketing studies for biodiesel and soybean oil refining, as funded by the USDA Rural Cooperative Services
Together we need to work hard to see passage in the Minnesota Legislature of the 2% biodiesel content requirement for all diesel fuel sold in Minnesota.

I hope that YOU AND YOUR FAMILY HAD A MERRY CHRISTMAS AND A HAPPY YEAR AND MAY 2002 BE A PROSPEROUS YEAR!

Sincerely,

Rodney Christianson
CEO, Minnesota Soybean Processors

MnSP Producers Eligible for Quality Premium Program

Starting in January, SDSP will be mailing oil and protein content results to producers who deliver to Volga. SDSP will utilize the sample that is currently taken to run the test. While the details are still being worked out, the results will either be posted with the other grade factors or be mailed separately. This is the next step in the Quality Premium program, which was announced a few months back. The Quality Premium program is a new way of providing member producers an incentive for growing soybeans with a higher processing value. The incentive portion of the program is expected to start in the fall of 2002. Producer members of MnSP and SDSP will be eligible to participate in the program. At this time, SDSP is looking to get as much information as possible out to the producers to help them with variety selections this spring. SDSP will also be mailing out information collected at South Dakota State University which detail oil and protein content in many different varieties.

Ag Venture Alliance/Minnesota Soybean Processors Meetings
January 21, 2002 - January 26, 2002

Call 641-494-2368 or 866-260-5775 with any questions.

The goal of raising funds to build a 100,000-bushels-per-day processing plant at Brewster, Minn., was exceeded, say leaders involved in the equity fund drive which began in August 2000.

"We reached $28 million, far surpassing the minimum requirement of $18.7 million to go forward with the project," said Connie Kelly, Chief Financial Officer for both Minnesota Soybean Pro-cessors (MnSP) and South Dakota Soybean Processors (SDSP). "Everyone involved in the equity drive over the past year should feel a great sense of accomplishment, and members who invested will reap the rewards in future patronage income," she predicted.

Directors' boards of the two co-operatives have an agreement where SDSP provides assistance on the equity drive, and will perform all construction management for the new plant, which will be located in Nobles County along the Union Pacific rail line. Construction has already begun on an SDSP oil storage facility adjacent to the Brewster plant.

"We are very pleased with the support we have received from producers throughout the equity drive," said Bob Kirchner of Brewster, MnSP President. "Over 2,170 Minnesota, Iowa and South Dakota producers have banded together in an effort to capture a greater share of the food dollar', I thank MnSP's members for their support and encourage other producers who have not yet joined MnSP to 'Take Stock In Your Future' by joining our efforts."

SDSP President Paul Casper of Lake Preston, S.D., expressed "elation" and "pride" over the Minnesota group's accomplishment of exceeding their goal.