Thursday, November 29, 2001

Minnesota Soybean processors expect to reach goal this week

Bob Kirchner can see the light at the end of the tunnel, and it's glowing with the golden hue of soybeans.

The Minnesota Soybean Processors cooperative needs farmers to invest just $200,000 more to build a soybean crushing plant near Brewster.

"It's been coming in at a rate of a quarter-million dollars a day," Kirchner, the co-op's chairman, said Wednesday. "If we can maintain that for a few more days, we'll be there."

The co-op needs $18.7 million in farmer equity to construct an 80,000-bushel-a-day plant. Kirchner said he's confident the final amount will be between $21 million and $25 million.

"That'll easily do a 100,000- bushel-a-day plant," he said. "We'll be well capitalized."

Groundbreaking is tentatively set for June 1, 2002.

Because the winter storm forced MnSP to postpone equity drive meetings on Monday and Tuesday, the co-op has delayed raising the share price from $2.25 per bushel to $2.40 per bushel. Producers now have until Dec. 7 to buy the minimum of 2,500 shares at $2.25 per bushel.

"It's not a large increase, but at least it's an incentive for people to join now," Kirchner said.

Membership currently stands at 1,440, and Kirchner predicted it will hit 1,500 farmer-members before the co-op is closed. The last of the equity drive meetings will be Tuesday in Flandreau, S.D., and Madison, S.D.

"As far as scheduled meetings, this is it," Kirchner said. "If someone wants us to come in and do a presentation, we'll do that."

Any equity raised over the $18.7 million mark will be spent on building a bigger plant and eventually a biodiesel refinery. Plans for the refinery have been submitted to the Minnesota Pollution Control Agency for permitting, Kirchner said, adding that the project hinges on the Legislature passing a biodiesel mandate bill during the upcoming session.

Meanwhile, South Dakota Soybean Processors continues to work on a $2.3 million soybean oil storage facility at the MnSP site just north of Brewster. Ownership of the storage tanks will transfer to MnSP when the Brewster plant is complete, and SDSP will receive MnSP stock in return, Kirchner said. The Volga, S.D.-based co-op already has an agreement to provide construction management, marketing and operational management for the Brewster plant.

As a co-op, SDSP will eventually own 10 percent of the Brewster plant but will have only one member vote, Kirchner said. Members of SDSP who are also MnSP members will get votes in both co-ops.

"It's really one big family of farmers, but we do have our separate legal entities," he said.

"We have a terrific amount of cross-membership," he added. "It's not a 'them and us.' It's working together."

Kirchner said farmers who want to join MnSP should act quickly. The co-op has plans to process identity preserved soybeans - those with specific traits - and MnSP members will be first in line to grow and supply the value-added crops.

"For that reason alone, they should give it a very close look," he said.

Following are the remaining MnSP equity drive meeting times and locations:

TODAY: 2 p.m., Pizza Ranch, Brandon, S.D.; 7 p.m., Pizza Ranch, Luverne, and Runals Hall basement, Edgerton.

FRIDAY: 2 p.m., Super 8, Sheldon, Iowa, and VFW, Fairmont; 7 p.m., All American Elevator, Stewartville, and Jackpot Junction Grand Eagle I room, Morton.

SATURDAY: 2 p.m., SDSP meeting room, Volga, S.D.

MONDAY: 2 p.m., PJ's Lounge, Bingham Lake; 7 p.m., Community Center, Reading.

TUESDAY: 2 p.m., F&M Café, Madison, S.D.; 7 p.m., Community Center, Flandreau, S.D.



©Worthington Daily Globe 2001