SOUTH DAKOTA SOYBEAN PROCESSORS LLC Annual Report - How They Did This Year

This guide explains how South Dakota Soybean Processors (SDSP) performed this past year. Think of this as a "cheat sheet" to help you decide if this company fits your investment goals.

1. What does this company do?

SDSP is a limited liability company based in Volga, South Dakota. They operate two plants: the original Volga facility and a new one in Mitchell. They buy raw soybeans from local farmers and turn them into soybean meal for livestock feed and soybean oil for food and renewable fuel. Because they are a smaller company, they have fewer reporting requirements than massive public corporations.

2. Major Growth: The Mitchell Facility

The company recently finished its new "switch-processing" plant in Mitchell. This $86.4 million project used cash reserves and $55 million in loans. The plant is now fully operational and nearly doubles the company's production capacity. SDSP can now process 70 million bushels of soybeans annually.

The results are already showing. In 2025, the company processed 40.8 million bushels, up from 33.3 million in 2024. This 22.5% increase shows the company is successfully growing its operations.

3. How they make money and what they pay you

SDSP acts as a middleman that adds value to raw crops. Their profit depends on the "crush margin"—the difference between the cost of raw soybeans and the market price of the oil and meal they produce.

Because they are a limited liability company, they don't pay corporate income tax. Instead, they pass profits directly to members via K-1 tax forms. Cash payments to members dropped from $39.5 million in 2024 to $7.6 million in 2025. The Board of Directors made this choice to save cash for Mitchell’s final construction costs and to meet loan requirements.

4. Financial Health: The Bottom Line

In 2025, the company earned a profit of $17.7 million, down from $20.3 million in 2024. Even though they processed more soybeans, their profit fell because the margin per bushel shrank. The average margin dropped from $1.42 per bushel in 2024 to $1.18 in 2025. This happened because soybean oil prices fell by 12% and the new Mitchell plant had $4.2 million in one-time startup and training costs.

5. Future outlook and risks

The company is now moving from building to operating. Their main goal is to make the Mitchell plant as efficient as possible.

• The Good News: They expect better margins in 2026 as the Mitchell plant hits full speed. If the government keeps or increases requirements for renewable diesel, demand for soybean oil could jump, which would boost profits.
• The Risks: They face tough competition from global processors and potential trade changes that could hurt soybean meal exports. Also, you cannot sell your units instantly like you can with stocks on the NYSE. You must use a matching service to find a buyer, and the company limits transfers to 5% of total units per year to protect their tax status.

Investor Takeaway: When deciding whether to invest, weigh the company's increased production capacity against the current volatility in crush margins. Since this is a private LLC, ensure you are comfortable with the limited liquidity of your units and the fact that cash distributions can fluctuate significantly based on the company's capital expenditure needs.