SD NEWS WATCH
De SMET, S.D. – A rural South Dakota county known mainly as the former home of beloved author Laura Ingalls Wilder is on the precipice of rapid growth as two record-setting agricultural processing plants are proposed for the area.
If the planned projects – the state's largest individual dairy farm with up to 25,000 cows and a nearly $1 billion biofuels plant – both come to fruition, Kingsbury County in east-central South Dakota could see a sudden surge in its population, economy and tax base.
So far, local officials and the state of South Dakota are rolling out the welcome mat for the two projects. They see an opportunity to create hundreds of jobs that would attract new residents, new spin-off businesses and new amenities to the rural county of fewer than 6,000 people over 832 square miles. JoeJensen,zoningdirector for Kingsbury County, said the two agriculture plants and a large hog farrowing facility that recently began operation in the area could bring economic opportunity to Kingsbury County and the cities of Lake Preston, Arlington and De Smet, the county seat.
'It will be a huge shot in the arm for our county,' Jensen said.
Projects would generate new jobs in Kingsbury County
State records show that the proposed $190 million dairy, planned for a site 10 miles southwest of De Smet near the tiny town of Manchester, would create about 100 new full-time jobs.
The proposed Gevo Net-Zero 1 biofuels plant, eyed for a site two miles east of Lake Preston, would create 1,500 construction jobs and 460 permanent positions, including 90 in Lake Preston, along with generating up to $250 million in annual economic activity, according to the company's website. Project leaders said it would be the largest single development project in South Dakota history.
Jensen said he expects that if both projects become operational, the county would see a jump of at least $500 million and up to $1 billion in its tax base, which could lead to development of new schools, better roads and overall improved infrastructure.
Nicknamed the 'Little Town on the Prairie,' De Smet offers covered wagon rides, building tours, a discovery center and an annual pageant dedicated to the memory of the author of 'Little House on the Prairie' and other notable books.
'Absolutely, it will look and feel differently here,' Jensen said. 'But the population is extremely sparse where these projects will be located, so you can still go visit Laura Ingalls all you want and you won't see or smell any of it.'
State of South Dakota providing millions in support
The South Dakota Governor's Office of Economic Development has provided major financing help to the two projects through its Livestock Nutrient Management Bond program, state records show. In May 2023, the South Dakota Economic Development Finance Authority within GOED approved a $187 million bond to Gevo Net-Zero 1 for waste management at its proposed plant. That project, according to the company, would process locally grown corn into jet fuel on a 240--acre swath of farmland north of U.S. 14 a couple miles east of Lake Preston in central Kingsbury County.
In April, the same board approved a $55 million bond to Minnesota-based agricultural firm Riverview LLP. The production agriculture company would use the bond funds to build infrastructure needed to handle animal wastes at the proposed dairy that would be built on the site of an existing cattle feedlot south of U.S. 14 about 10 miles west of De Smet.
Officials with Riverview LLP, the company in Morris, Minnesota, that recently bought land from Noem's brothers for a separate South Dakota dairy project, did not respond to numerous phone messages left by News Watch.
Gevo, based in Englewood, Colorado, has raised some uncertainty about whether the Lake Preston facility is viable. And despite a formal groundbreaking ceremony at the site in 2022, no construction has begun.
Officials with Gevo did not return an email from News Watch seeking comment. But recent reports have indicated that officials with the biofuels plant want construction of a carbondioxide pipeline through eastern South Dakota before building. Gevo officials also said recently, however, that the project could be buoyed by new biofuels tax credits being offered by the federal government.
Region welcoming to new residents
Kingsbury County, and De Smet in particular, are prime locations for new industry in part because the area has long taken a progressive, welcoming approach to new businesses and new residents, said Jamie Lancaster, economic development director for the De Smet Development Corp.
Lancaster noted that city leaders have a history of encouraging development of light industry and new businesses, including creation of an industrial park in the 1960s, before it was common in small towns. That park has led to job creation by a wide range of businesses that include a window and door manufacturer, a seed company, a sign firm, a medicaldevicemanufacturer and a company that makes plastic parts used to build casino gaming machines used around the world.
Residents of De Smet also looked to the future in 2022 when they handily voted to approve bonding for a $9 million elementary school now under construction.
Lancaster said the region is also well equipped to handle the health care needs of new and existing residents, with an Avera Health hospital and a Horizon Health Care clinic that includes dental services, both located in De Smet.
Lancaster said he expects that some parts of De Smet and Kingsbury County will surely look different. But he said the new growth won't overwhelm the community or reduce the rural charm. 'I don’t see a drastic change, and of course, Laura (Ingalls Wilder) will always be a big part of our community,' he said.
This story was produced by South Dakota News Watch, a nonpartisan, nonprofit news organization. Read more indepth stories at sdnewswatch. org and sign up for an email every few days to get stories as soon as they're published. Contact Bart Pfankuch at bart.pfankuch@sdnewswatch. org.