Agtegra gets USDA Rural Development grant to expand fertilizer storage and production facilities in Ipswich, McLaughlin and Kimball | DRGNews

Nov 01, 2024

OCTOBER 31, 2024:

An Aberdeen, South Dakota, based agriculture cooperative has received a $3-million ($3,044,434) grant from the U.S. Department of Agriculture to help offset the cost of expanding its fertilizer production capabilities.

Agtegra Cooperative CEO Jason Klootwyk says the expansion will benefit their more than 7000 farmer and rancher owners across South Dakota and North Dakota.

USDA Rural Development State Director Nikki Gronli says the Fertilizer Production Expansion Program dollars enable Agtegra to increase the manufacturing and processing of fertilizer and nutrient alternatives for local farmers.

Klootwyk says Agtegra is matching the grant dollars to make a $6 million investment at their South Dakota locations in Ipswich, McLaughlin and Kimball.

Klootwyk says nearly a dozen groups supported their efforts to get this USDA Rural Development grant.

Klootwyk says the projects will more than double their fertilizer production, creating improved access to a major input cost for many farmers and ranchers. He says Agtegra plans to break ground for the expansions in the spring and have the projects finished before the end of 2025.

In total, this week’s USDA Rural Development announcement (Oct. 30, 2024) included more than $120-million in grants to fund six fertilizer production projects. Other states where grants were awarded are Arkansas, California, Illinois, Washington and Wisconsin.

WRITTEN VERSION BELOW:

The United States Department of Agriculture awarded (Oct. 30, 2024) Agtegra Cooperative a $3 million grant through the Fertilizer Production Expansion Program (FPEP). The grant enables awardees to increase or expand the manufacturing and processing of local fertilizer and nutrient alternatives for farmers.

Through this matching grant, Agtegra will be investing a total of $6 million in expanding its Prescription Agronomics business division. Prescription Agronomics consists of a starter fertilizer manufacturing facility located in Ipswich, South Dakota. This expansion will double the plant’s manufacturing capacity by expanding production and storage space, including the addition of a new container packaging line and additional warehouse storage. The funds will also be used to add one 500,000-gallon liquid fertilizer storage tank at each of Agtegra’s Kimball and McLaughlin agronomy facilities.

“Prescription Agronomics is an integral part of Agtegra Cooperative’s fertilizer business and the Ipswich community,” said Agtegra CEO Jason Klootwyk. “We look forward to starting construction on our Prescription Agronomics expansion project in 2025. Agtegra appreciates the financial support from USDA for this fertilizer expansion project, as well as all of the support from our strategic partners that assisted and supported Agtegra’s application for this grant.”

Agtegra partnered with the South Dakota Value Added Agricultural Development Center to apply for the FPEP grant and received letters of support from the Ipswich Development Corporation, South Dakota Department of Agriculture and Natural Resources, South Dakota Agri-Business Association, South Dakota Association of Cooperatives, South Dakota Corn Utilization Council, South Dakota Soybean Checkoff, South Dakota Soybean Association

“The Ipswich Development Corporation is supportive of this project that will further Ipswich’s economic development,” said Ipswich Development Corporation President Scott Kilber. “We’re excited for the opportunity to expand this business in our rural community.”

OCTOBER 30, 2024:

A South Dakota agriculture cooperative has received a $3-million ($3,044,434) grant from the U.S. Department of Agriculture to help offset the cost of expanding its fertilizer production capabilities.

In Ipswich, Agtegra Cooperative will be constructing a 21,000 square foot fertilizer manufacturing building and installing two storage tanks with a combined capacity of 950,000 gallons. Some of the USDA Rural Development grant funds will also be used to install a 500,000-gallon storage tank at Agtegra’s facilities in McLaughlin and Kimball.

When operational, the cooperative’s fertilizer production will double, going from 26-thousand tons (26,175) to 53-thousand tons (53,270) per year. Agtegra is a 100-year-old, producer owned cooperative operating 70 locations throughout South and North Dakota.

In total, this week’s announcement (Oct. 30, 2024) included more than $120-million in grants to fund six fertilizer production projects. Other states where grants were awarded are Arkansas, California, Illinois, Washington and Wisconsin.