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Aug. 29, 2016 Iowa Soybean Weekly reports: It's a done deal. The Wright County Board of Supervisors on Monday unanimously approved a development agreement with Prestage Farms of Iowa and an urban renewal plan that all but assures the company will build a $240 million pork processing plant 5 miles south of Eagle Grove. Iowa Soybean Association (ISA) leaders say the plant is a boon for farmers and the region. "This is the kind of bread-and-butter economic development that has defined Iowa's leadership in food production for generations," said ISA President Wayne Fredericks of Osage. "The project will offer good paying jobs to hard-working Iowans, create new demand for Iowa-grown-and-Iowa raised pork and soybeans and boost economic development throughout north central Iowa and beyond." The agreements include 10-year property tax abatement not to exceed $8 million and infrastructure upgrades at the site. It's a small price to pay compared to the benefits, officials say. Prestage's annual property tax bill is currently estimated at nearly $2.7 million. The initial economic impact is estimated at $450 million annually, which includes hog purchases, payroll and other local spending. Applause and cheers rang out after the third and final vote on the measures from the standing room-only crowd of more than 100 people in the Wright County Courthouse court room in Clarion. "Yes, we got it!" one supporter shouted, pumping his fist in the air. It's that kind of enthusiasm that shows Ron Prestage, DVM, and his family that Wright County is the right place for their first pork processing plant. More than 50 people spoke during the 2-hour public hearing on the project and more than 15 letters were read. About 75 percent of the comments were in favor of the project. "We're just tickled to death with the outcome," Prestage said. "I would have been shocked if the outcome was different. We talked to the business community, co-ops and residents - we shook a lot of hands to make sure the support was there." Moving forward Now that major economic and zoning obstacles have been cleared - the Iowa Economic Development Authority board approved $11.5 million in state incentives last week - company officials say planning can commence in earnest. Construction is slated to start early next year. The hope is to be operational by late 2018, Prestage said. "We still have a lot of work to do," he continued. "We want to prove we will deliver on what we promised the people of Wright County." That includes employing 922 people initially in a state-of-the-art facility paying good wages and benefits - $15.75 per hour, on average, with the lowest paid workers earning more than $37,000 annually based on a 50-hour work week with overtime. It also means being a good corporate citizen and environmentally friendly. The plant will initially process 10,000 pigs a day - 60 percent owned by Prestage and 40 percent from independent farmers. Gene Gourley, who raises pigs and grain near Webster City with three brothers, said having a nearby processor is a dream come true. "We're selling to two different companies now. Just having a third source offers opportunities for better prices and promotes competition," said Gourley, whose family sells about 100,000 hogs a year. "What isn't mentioned is the 60 percent of Prestage hogs that will be processed here were previously on the open market, so those spaces will open up and those processors will have to bid to get hogs to fill the void," he added. "So it's actually adding 100 percent more capacity on the daily kill to the industry." What's good for pork producers is good for grain farmers and the state. Iowa pigs are the No. 1 consumer of the state's soybeans. Demand and prices go hand-in-hand. ISA research shows, based on a five-year average, nearly 2.7 million tons of soybean meal made from more than 121 million bushels of soybeans (26 percent of total production) is fed to nearly 40 million head of hogs annually in the state. According to the Iowa Pork Producers Association, hogs processed at the plant will consume 240,000 tons of soybean meal annually from 10 million bushels of soybeans. A letter of support from former ISA president and director Dean Coleman of Humboldt said he's helped promote U.S. and Iowa soybean worldwide. But the best market is at home. "Very few whole beans leave this area because of the proximity to the AGP processing plant in Eagle Grove. I have a number of livestock facilities in my neighborhood that are miniature grain processing plants that convert my grain to the pork chops and bacon you purchase in your local grocery story," Coleman wrote. Big picture Several Wright County farmers and business owners thanked Prestage for eventually lowering their tax bill. ISA member Grant Woodley welcomes that as well. But the rural Clarion farmer's main motivation for supporting the facility is it gives his young children a better chance to grow up in a thriving community and become the fifth generation to farm. He and his family returned home 1 1/2 years ago to farm with his parents after being gone for 18 years. They're building two 2,400-head hog buildings, which made it possible. "I'm tremendously thankful, hopeful and excited for future opportunities," Woodley said. Those who spoke against the project - many sporting Iowa Citizens for Community Improvement shirts, a Des Moines-based advocacy group opposed to modern agriculture -accused the supervisors of not doing their homework. They claim the plant will foul the air, water, bring flies, strain local social services and spur new construction of hog buildings, making farmers nothing more than "pig janitors." Supervisor Stan Watne told the crowd he spent the summer researching the project and company, and he's confident the company will keep their promises. "Today (Monday) is the day we turned the county around," Watne said, referring to a trend of shrinking population and school enrollment. "Finally our tax base is growing meaning people pay less. We have a very hopeful, optimistic future." Tweet |
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