Corporate Farming Notes
Indiana county slated for mega hog expansion; South Dakota industrial dairies financed through bizarre immigration arrangement
In December, the 12-member Planning Commission of Randolph County, Indiana, voted unanimously to endorse an ordinance that would create a so-called “agricultural district” across 75 percent of Randolph County specifically for the construction of industrial livestock operations.
Over 50 opponents filled the meeting room to comment on the proposed ordinance, and at least another 50 were forced to stand in the hallway because the room was too crowded for them to enter.
The Commission voted against allowing public comment at this meeting. Commission member Todd Schroeder declared that he had heard enough from the public and joined the vote against public comment.
The proposed ordinance would turn 220,000 acres of the nearly 290,000 acres in the county into an industrial park for confined animal feeding operations by creating an intensive agricultural district.
In 2006 Randolph County’s hog population grew by over 126,000 hogs. Last year nearly 38,000 more hogs were added. Maxwell Foods of Goldsboro, North Carolina, has been expanding into the region because of excess pork production in North Carolina.
As was first reported in the Argus Leader of Sioux Falls, South Dakota has witnessed a recent spate of construction of industrial dairies that are financed through a truly bizarre type of capital formation. In the case of Drumgoon Dairy near Lake Norden, South Dakota, which was featured in the Argus Leader report, Rodney Elliot of Northern Ireland was able to construct a 1,700 cow dairy by accessing $2 million from four South Korean investors.
In exchange for their $500,000 investment, each of the South Korean investors gains the right to permanent residency in the United States for themselves and their families. South Dakota has led the pack in taking advantage of the revised U.S. Citizenship and Immigration Services EB-5 program, which provides 10,000 visas annually for foreign investors, with 5,000 reserved for those who invest at least $500,000 in rural areas to create at least five jobs.
Our research has found nine such mega-dairy projects in planning, construction, or operational stages in South Dakota. Most appear to be of similar project size, scope, and cost to Drumgoon Dairy (1,700 cows and $6.8 million estimated project cost), but three South Dakota projects with price tags in excess of $35 million are “in progress,” and several even larger projects are said to be “under development.”
Contact: John Crabtree, johnc@cfra.org or 402.687.2103 x 1010 with questions and comments.
In December, the 12-member Planning Commission of Randolph County, Indiana, voted unanimously to endorse an ordinance that would create a so-called “agricultural district” across 75 percent of Randolph County specifically for the construction of industrial livestock operations.
Over 50 opponents filled the meeting room to comment on the proposed ordinance, and at least another 50 were forced to stand in the hallway because the room was too crowded for them to enter.
The Commission voted against allowing public comment at this meeting. Commission member Todd Schroeder declared that he had heard enough from the public and joined the vote against public comment.
The proposed ordinance would turn 220,000 acres of the nearly 290,000 acres in the county into an industrial park for confined animal feeding operations by creating an intensive agricultural district.
In 2006 Randolph County’s hog population grew by over 126,000 hogs. Last year nearly 38,000 more hogs were added. Maxwell Foods of Goldsboro, North Carolina, has been expanding into the region because of excess pork production in North Carolina.
As was first reported in the Argus Leader of Sioux Falls, South Dakota has witnessed a recent spate of construction of industrial dairies that are financed through a truly bizarre type of capital formation. In the case of Drumgoon Dairy near Lake Norden, South Dakota, which was featured in the Argus Leader report, Rodney Elliot of Northern Ireland was able to construct a 1,700 cow dairy by accessing $2 million from four South Korean investors.
In exchange for their $500,000 investment, each of the South Korean investors gains the right to permanent residency in the United States for themselves and their families. South Dakota has led the pack in taking advantage of the revised U.S. Citizenship and Immigration Services EB-5 program, which provides 10,000 visas annually for foreign investors, with 5,000 reserved for those who invest at least $500,000 in rural areas to create at least five jobs.
Our research has found nine such mega-dairy projects in planning, construction, or operational stages in South Dakota. Most appear to be of similar project size, scope, and cost to Drumgoon Dairy (1,700 cows and $6.8 million estimated project cost), but three South Dakota projects with price tags in excess of $35 million are “in progress,” and several even larger projects are said to be “under development.”
Contact: John Crabtree, johnc@cfra.org or 402.687.2103 x 1010 with questions and comments.
