Co-op assists with million-dollar loan for local project
12 Jul 2022
South Central Energy, Agriculture, economic development
One of Great River Energy’s member-owner cooperatives was recently granted a major loan that will benefit a local business expansion project.
South Central Electric is passing on its zero-interest $1 million USDA Rural Economic Development Loan (REDL) to Crystal Valley Cooperative, a leading farm supply and grain marketing cooperative, for its new feed mill in Trimont, Minnesota.
According to Crystal Valley, its feed division has experienced steady growth in volume over the last decade, which began to challenge the production capacity of its current four mills located in southern Minnesota.
The new mill features a 9-ton mixer with approximately 2,000 tons of ingredient storage. Its production capacity is more than 500,000 tons per year.
The USDA REDL program provides funding for rural projects through local utilities. Great River Energy Economic Development Lead Erin Sparks assisted South Central in the loan process in which submitted applications are scored and reviewed by the USDA for possible approval.
“Economic development is important to the future of our communities,” said South Central Electric Board President Ron Jorgenson. “We’re glad we could assist Crystal Valley with its project. The new feed mill will create jobs and increase local use of corn in the Trimont area.”
The team behind the Crystal Valley Cooperative loan included (from left): Brad Asendorf, South Central Electric board secretary; Ron Jorgenson, South Central Electric board president; Ron Horman, South Central Electric general manager; Roger Kienholz, Crystal Valley CEO; and Bob Raue, Crystal Valley vice president-feed.