Kirchner: Soybean plant equity drive starts strong

After the first week of its equity drive, Minnesota Soybean Processors is "off to a good start" in raising money for a soybean processing plant, the co-op chairman said Monday.

Area farmers committed a total of $1.5 million at 10 meetings conducted last week by MnSP. The co-op needs a minimum of $18.7 million to build an 80,000-bushel-a-day plant, or $31 million for a 120,000-bushel crush.

"So I think we're off to a good start," MnSP chairman Bob Kirchner said.

Many people who were exposed to the project for the first time were reluctant to fork out money, Kirchner said. The co-op is asking producers to purchase a voting share for $250 and invest a minimum 2,500 bushels of soybeans at $2 a bushel.

Ten percent of the equity must be paid up front. The other three payments of 30 percent will be due in July 2001, fall 2001 and March 2002.

MnSP plans to tone down the equity drive during the upcoming harvest season, although the board of directors will be available for small group meetings, Kirchner said.

MnSP's partner in the project is South Dakota Soybean Processors. Producers who join MnSP will be able to deliver soybeans to the MnSP plant in Brewster or to SDSP's plant in Volga, S.D. The co-ops will also use an "agency" delivery system, which gives producers the option of having their soybeans picked up and delivered to one of the plants.

"We think we have a friendly delivery option and a friendly payment schedule," Kirchner said. "It makes it easy for a farmer to be a member and participate."

MnSP's cooperative status requires that 50 percent of the plant be funded with farmer equity. The co-op membership can be closed at $18.7 million, with the board of directors making the final decision.