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Soy processing expansion creates excitement

LEAD Comment: Producers looks at the positive effect two new processing plants could have in Nebraska.

June 8, 2022

3 Min Read
Soybeans being harvested
BEAN BOOM: Two new soy processing plants proposed in David City and Norfolk, Neb., will have a positive effect on those communities and producers in the region, LEAD Class 38 alum Shane Greving says.Curt Arens

The recently announced plans to build soybean crush facilities in Norfolk and David City will bring great benefits to the local communities and Nebraska. It’s great to see industry stakeholders wanting to invest in soybean crush facilities.

Not only will the new crush facilities benefit the local soybean farmers in the area, but they also will create direct jobs in the local community and additional indirect jobs.

The new facilities will provide an added local and state tax base. They also will be a source of feed for area livestock and poultry producers, which will be a great benefit to those producers — as well as the crush plants.

Booming demand

The demand for soybean meal and soybean oil continues to rise, both domestically and globally. Nebraska is positioned to be a leader in supplying the needs of the increased soybean product demand.

Nebraska’s access to rail, to deliver product to the West Coast to the export terminals in the Pacific Northwest, as well as the quality soybeans we produce, gives the state an edge for soy processing.

Production of renewable diesel and sustainable aviation fuel has increased tremendously to meet California’s Low Carbon Fuel Standard, and others. With this growth comes the demand for soybeans — and vegetable oils along with animal fats that are a preferred feedstock to produce biodiesel and renewable diesel.

Studies show biodiesel and renewable diesel greenhouse gas emissions are, on average, 80% below petroleum diesel, according to Clean Fuels Alliance America. Many companies have decarbonization goals to lower their carbon footprint.

The demand for soybean oil will continue to grow for this market. Nebraska soy crushing facilities have an opportunity to transform our homegrown commodity into a valuable product the market is seeking.

As a soybean grower from central Nebraska near Chapman, I see the big picture for our soybean industry. I’m very excited for soybean crush expansion. We will have the meal locally for our animal ag industries, as well as meal available for the growing export markets.

The access to soybean meal will certainly help recruit future expansion of our livestock industry, as well as the competition to help improve our basis.

Firsthand knowledge

Being a Nebraska LEAD 38 alum and Nebraska Soybean Association director, I have had the opportunity to participate in trade missions and international and industry tours. I have seen firsthand the demand for soybeans and their byproducts in export and domestic markets. Nebraska is well positioned to be the hub to meet these endless opportunities.

The LEAD program is a premier leadership program. It does a great job educating and honing the next leaders of the agriculture industry on key areas. I would highly recommend the LEAD program to anyone interested in advancing their knowledge of agriculture and shaping themselves for a leadership role.

NSA is a grassroots membership organization that helps guide agriculture policy at the state and national level. As a soybean producer and soybean association director, I would encourage all soybean producers to become NSA members.

Greving is a graduate of LEAD Class 38.

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