Public-Private Partnership Brings Soybean Crushing Facility Closer to Becoming Reality

The future of the biodiesel industry in Wisconsin took a step forward with the announcement of a public-private partnership to develop and construct a soybean crushing facility adjacent to North Prairie Productions’ biodiesel facility, currently under construction in Evansville.

Landmark Services Cooperative is working with State Senator Jon Erpenbach and Representative Brett Davis in support of the Governor’s renewable energy package and the inclusion of a grant and incentive program for the distribution and production of biodiesel in the state budget, including $4 million toward the development of a soybean crushing facility. Landmark has committed to matching any investment made by the state toward a soybean crushing facility in Evansville, up to $4 million.

“Wisconsin has always been a leader in agriculture and alternative energy. Making this biodiesel product plant a reality is not only good for Evansville, but for all Wisconsin. This is truly an example of community and industry working together for the local economy and state innovation; I am confident things will move ahead in the Legislature,” Sen. Jon Erpenbach said.

“Having a soybean crush facility in south-central Wisconsin would be a significant boost for our area farmers and our agriculture economy as a whole,” Rep. Brett Davis said. “This incentive for our rural economy will continue to be one of my top priorities as our state budget process continues. All the numbers indicate Wisconsin is a ripe soybean market. But, this is about more than just refining soybean oil and producing biodiesel. Building a crush facility will spur the continued economic growth of our state and further bolster Wisconsin’s longstanding agricultural tradition of excellence and innovation.”

In addition, Sandy Decker, mayor of Evansville, indicated that based on the expected tax increment created by the soybean crushing plant, Evansville could provide more than $2 million in tax incremental financing, potentially bringing the initial investment in the project to $10 million.

The announcement of the proposed plant and partnership was announced at a Capitol news conference. In addition to Landmark representatives, Sen. Erpenbach, Rep. Davis and Mayor Decker, leaders in the state’s biodiesel and soybean industry were in attendance. John Sheehy, Chairman of the Board of Directors of North Prairie productions, was on hand in support of the project as was Bob Karls, Executive Director of the Wisconsin Soybean Association and the Wisconsin Soybean Marketing Board.

It is estimated the proposed soybean crushing plant could produce 45 million gallons of oil annually. Locating a crushing plant adjacent to a biodiesel facility not only reduces transportation costs for farmers and agribusinesses, but strengthens Wisconsin’s place in the growing biodiesel industry.

Landmark Services Cooperative is the largest agricultural supply cooperative in Wisconsin, with more than 15,000 members and annual sales of more than $225 million.

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