Press Room > 2004 :

Value Added Ag Subfund Celebrates 5 Year Anniversary

RELEASE DATE: Thursday, July1, 2004

For More Information Contact: Mary Lehecka Nelson, 773-3301

Pierre, SD – Five years after the Value-Added Subfund was initiated to encourage more agricultural development in South Dakota, Gov. Mike Rounds has marked the program a great success.

“There is no question in my mind that this program has had a positive impact on South Dakota’s economy,” said Gov. Rounds. “Since its 1999 start, more than $2.5 million has been approved for 44 projects, and as a direct result of the program, six companies have already started their businesses in our state,” he said.

These companies include:

• Dakota Lamb, Hurley;

• Dakota Premium Hay, LLC, Meckling;

• Dakota Natural Meats, Winfred;

• Dakota Layers, LLC, Flandreau;

• TJ Enterprises, Brookings; and,

• South Dakota Ag Producer Ventures Dairy Site Development, LLC, Canton.

“Value-added ag is going to remain a priority in South Dakota,” said Rounds. “Last year, we committed more than $1 million to marketing and feasibility studies. This year, we’ve approved nearly $250,000 during our first two quarters.”

In addition to the six new companies, the governor said that there are 12 projects in the business development stage and seven projects working on feasibility studies. “Building our value-added ag base is clearly a long-term commitment. These are traditionally capital intensive projects that require additional time to raise the capital, build the facility and become operational,” he said.

The governor also said that agricultural companies are tapping into other state financing programs as well. “In the last five years, finance programs available through the Governor’s Office of Economic Development have committed more than $28 million to ag projects,” he said. “Our goal is to make South Dakota a leader in value-added ag, as well as continue to diversify our economy.”

Subfund projects include: food product manufacturing and marketing, specialty grain marketing, beef, turkey, lamb, elk and buffalo processing, wine making, forage processing, soy diesel production, dairy site marketing, wood products manufacturing, livestock identification and biomedical technologies utilizing livestock and crops.