CHS to Build $700M Wis. Crush Plant

LINCOLN, Neb. (DTN) -- CHS Inc. plans to expand its current soybean crush capacity by 60% with the planned construction of a $700 million, 80-million-bushel processing plant in Evansville, Wisconsin, the company announced on Monday.

Construction on the plant is slated to begin in the "coming weeks," CHS said, with completion expected by fall of 2028.

The plant is expected to create about 80 jobs and produce about one billion pounds of oil and two million tons of meal annually, CHS said in a news release.

CHS currently operates crushing facilities in Fairmont and Mankato, Minnesota, with a capacity of about 119 million bushels, as well as a canola processing plant in Hallock, Minnesota.

"Evansville's proximity to soybean production, rail service and major transportation corridors makes it well positioned to support the movement of soybean meal and oil to domestic and global markets," the company said.

John Griffith, executive vice president of agriculture business and CHS Hedging, said the plant would help the company create "additional value for our owners and customers" by expanding market access, strengthening the CHS processing network and creating new soybean demand.

"Strong demand across food, feed and renewable fuel markets, coupled with policies that encourage domestic processing, manufacturing and energy production, reinforce the need for additional soybean processing capacity in the United States," he said in a statement.

"This facility positions CHS to support farmers and customers for years to come. CHS is committed to being a long-term partner in the communities where we operate. This investment supports rural economic development, creates jobs and strengthens the agricultural supply chain for producers, customers and communities across the region."

Wisconsin Soybean Association President Doug Rebout said soybean farmers in Wisconsin have needed an expanded market. CHS said in its news release that the plant will source a "significant" volume of its soybeans from Wisconsin farmers.

"Additional processing capacity gives growers another reliable market close to the farm and helps create long-term opportunities for Wisconsin soybeans in both meal and oil markets," Rebout said.

Devin Mogler, president and CEO of the National Oilseed Processors Association, said the plant is made possible by continued growth in Renewable Fuel Standard biofuels volumes.

"This investment is exactly what the Trump EPA's historic RVOs (renewable volume obligations) were designed to deliver," Mogler said.

"Our industry has expanded at a remarkable pace and we are on a path toward processing two out of every three rows of soybeans grown in the U.S. Strong biofuels policies support that growth by creating the signals needed to invest in American processing, add value in rural communities, strengthen markets for farmers and reduce our dependence on China."

Mogler said the CHS plans are about more than just a new processing plant.

"Instead of sending more of our whole soybeans overseas, we can process them here at home, support rural jobs, produce meal for American livestock producers, and provide soybean oil to a growing domestic biofuels market," he said.

"That is how we add more value to every bushel and keep more of that value in rural America."

Todd Neeley can be reached at todd.neeley@dtn.com

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