Utilizing a $17 million New Markets Tax Credit allocation from Dakotas America LLC, the South Dakota Wheat Growers Association (SDWGA) is completing three projects to upgrade agricultural businesses in North and South Dakota locations and bring jobs and economic strength to those areas.

"Projects like this one are the reason Dakotas America exists," said Beth Davis, managing director of Dakotas America. "By using New Markets Tax Credits, we can bring a new economic vision to distressed and rural areas of our two states."

The New Markets Tax Credit (NMTC) program, established by Congress in December 2000, gives individual and corporate taxpayers the opportunity to receive a credit against income taxes by investing in qualified investment entities. For more information on the NMTC program and its application in your area, go to www.dakotasamerica.com.

The Wheat Growers Association is upgrading and modernizing the grain facilities in Berlin, ND, with a new dryer, legs and conveying equipment to improve efficiency and service. SDWGA also built a new 19,000-ton fertilizer plant at Oakes, ND. This location will provide modernized facilities for both the members of Berlin Farmers and Norway Spur Farmers.

The plan also included construction of a new 20,000-ton dry fertilizer plant at McLaughlin, SD. SDWGA has already added rail shuttle load-out capability and larger amounts of storage to the McLaughlin facility, with Dakotas America LLC providing an allocation to help finance that expansion. As a result of the expansion, the McLaughlin location has exhibited a dramatic turnaround. Nearly half of the members served from the McLaughlin location reside in North Dakota, with fertilizer now being delivered as far north as Bismarck.

Construction of the two fertilizer facilities and rehab of the Berlin elevator created as many as 50 jobs for 3 to 6 months for contractors, welders, millwrights, electricians and other construction workers. SD Wheat Growers has created 12 new jobs at the 3 locations, including warehouse workers, agronomists and equipment operators. These positions will create jobs for trucking firms, service repair and added retail, with a potential of 548 direct and indirect jobs.

The two proposed fertilizer plants are projected to produce total sales of about $20 million per year. The Berlin Elevator, with upgrades, is projected to originate 2.8 million bushels of grain annually at a forecast price level of $17 million to $18 million annually. Total economic output from the 3 projects is expected to reach $170 million, with farmer benefits of $1.3 million.

"These projects significantly impact the economies of our partner communities," said Dale Locken, Chief Executive Officer of the SD Wheat Growers. "Thanks to the infusion of capital implemented by Dakotas America, we were able to maximize the efficiency and the impact of our expansions in these markets to better serve our farmer/owners in their operations."

South Dakota Wheat Growers Association is a farmer-cooperative serving both South and North Dakota. It is owned by 16,000 members across the two states and provides grain marketing and agronomy products/services to approximately 3,600 active producers. An Impact Study of this project was conducted by Baker Tilly, the full report of which is available on the Dakotas America website at www.dakotasamerica.com/dakotas5.

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