Soy processing plant wins $4.1 million in Iowa tax credits
A $243.4 million processing plant in northeast Iowa that’s expected to crush nearly 40 million bushels of soybeans annually won $4.1 million in state tax credits Friday.
The Iowa Economic Development Authority board approved the funding for Shell Rock Soy Processing, with $2.25 million of the credits based on the size of the investment and the remainder as a sales tax refund on equipment purchases.
The board also approved incentives for two other projects. CJ Bio America near Fort Dodge will receive $675,600 in tax credits for a $20.5 million expansion and Sadler Power Train in Cedar Rapids will receive $31,500 in tax credits for a $2.1 million expansion. The projects each will create four new jobs.
The soy processing plant, which sits northwest of Shell Rock, is expected to create 51 jobs. The plant will produce an estimated 462 million pounds a year of crude soybean oil that will be sold to refiners across the United States to process for use by food processors and the biodiesel makers.
The plant will generate another 847,000 tons of soybean meal and 77,000 tons of pelleted soybean hulls that contain highly digestible fiber. Both are used in livestock feed. About 75 percent of the products will be sold outside of Iowa, the state said. The project, sitting on 48 acres, is expected to be completed in late 2022.
Mid-Iowa Cooperative, based in Conrad with 1,400 members, is the primary investor in the the Shell Rock project. Some Mid-Iowa Co-op locations were hit hard in last August’s derecho, requiring the business to rebuild some massive grain bins.
CJ Bio America makes 150,000 metric tons of amino acids annually, used in swine and poultry feed. Sadler Power Train distributes truck parts to customers in Iowa, Illinois and Wisconsin, along with rebuilding driveshafts, transmissions and other parts.