SIOUX FALLS, SD (KELO-AM) A new dairy being constructed in Lincoln County is bringing a significant economic boost to our region and local agricultural producers. The new $35 million Dakota Plains Dairy is projecting 35 new jobs paying between $35,000 and $100,000 annually, in addition to the capital investment in the operation and an annual economic impact of $14,042 per cow. With a total herd size projected at 4,250, that’s a total annual economic impact estimated at $59.86 million, with $8-10 million in annual spending on feed and other products to support the dairy. Those numbers explain why South Dakota has been working hard to attract dairies to our state.
Governor Daugaard and South Dakota’s Department of Agriculture have been working hard to promote growth of the dairy industry in South Dakota both locally and nationally. Our state has what dairymen are looking for—locally grown feed stocks, ample fresh water, a fair permitting process, and strong demand for milk up and down the I-29 corridor from growing cheese factories. “We are fortunate in South Dakota to already have the demand for the milk,” said South Dakota Director of Ag Development Paul Kostboth. “We have the opportunity based on that demand to double the state’s dairy herd of 98,000 cows just to meet current processing capacity, not to mention ongoing growth well in to the future.” In addition to the locally-sourced silage, haylage, corn and supplements being purchased by Dakota Plains Dairy, local ag producers will have access to organic nutrients from the operation, resulting in significant savings over commercial fertilizer. “It is not uncommon for local farmers’ demand for the nutrients generated from a facility such as this, to far exceed the supply.” Kostboth said. “The farmers understand that these organic nutrients not only promote long term soil health but also provide significant savings per acre.” Lincoln County is a natural fit for the new large-scale dairy, according to LCEDA Executive Director Nick Fosheim. The county partnered with the Department of Ag in a site analysis which helps identify sites conducive to potential ag related development opportunities, including operations such as Dakota Plains Dairy.“Lincoln County wanted to be a leader in preparing the way for value-added ag development,” Fosheim said. “By identifying sites with proximity to paved roads and existing infrastructure, the county has shown itself to be proactive and a good steward of resources.”