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Published June 17, 2010, 10:05 AM

S.D. Wheat Growers get loan for project

PIERRE — The South Dakota Wheat Growers cooperative wants to build a new grain storage and loading facility near Roscoe as part of a broader $70 million expansion plan throughout its network of facilities. A key piece of the financing plan for the Roscoe unit moved into place Wednesday.

By: Bob Mercer, Republic Capitol Bureau

PIERRE — The South Dakota Wheat Growers cooperative wants to build a new grain storage and loading facility near Roscoe as part of a broader $70 million expansion plan throughout its network of facilities.

A key piece of the financing plan for the Roscoe unit moved into place Wednesday.

The State Railroad Board agreed to loan $3 million at 2 percent interest for 10 years to the Aberdeen Brown County (ABC) Regional Railroad Authority. The authority, in turn, will loan the money to Wheat Growers.

The money will be used to help pay for construction of 12,770 feet of looped loading track that will link to the Burlington Northern Santa Fe railroad line running past the site.

Wheat Growers vice president for grain Roger Krueger said the expansion will allow 110-car unit trains to be loaded at Roscoe. He said there has been rapid growth in grain production in Edmunds County and neighboring counties in the Dakotas.

“This is just trying to keep up the infrastructure to match the production increase,” Krueger said. Some grain is being trucked from that fivecounty area as far east as Aberdeen and Mellette, he said.

The state board’s vote was 7-0 in favor of the loan. “I don’t remember seeing one (an application) that’s that thorough and covers it that well,” board member Chet Groseclose of Sioux Falls said.

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