SOUTH DAKOTA SOYBEAN PROCESSORS LLC
For the period ended Jun 30, 2026. Filed Aug 12, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 12, 2026
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-14.
0001163609-26-000017
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-12.
0001163609-26-000023
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 41 previous paragraphs and 49 current paragraphs.
21 unchanged; 16 reworded; 10 added; 3 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 3 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
For the six months ended June 30, 2026, we reported net income of $19.4 million, compared to net income of $3.4 million for the same period in 2025. The improvement was primarily driven by stroner processing margins, supported by higher soybean prices. Demand for soybean oil - a key feedstock for renewable fuels - strengthened following the implementation of the updated Renewable Volume Obligations (RVOs) under the Federal Renewable Fuel Standard (RFS), which included reinstated program mandates and increased volume requirements.
Current report
Offsetting these gains, our results were affected by losses at our subsidiary, High Plains Processing, which owns and operates our new facility in Mitchell, South Dakota. Although our subsidiary continued to generate a net loss for the period, favorable market conditions and expanding processing margins partially mitigated its impact on net income. In addition, net income was offset in part by non-cash mark-to-market losses on open derivative positions driven by rising board crush values. However, the derivative, which hedge crush margins, reflect favorable forward-margin opportunities rather than adverse changes in our business economics. We view these mark-to-market adjustments as temporary timing differences and expect them to be economically neutral over the life of the related positions.
Current report
Looking ahead, we expect a constructive processing margin environment through the remainder of 2026 and into 2027 resulting from sustained renewable fuel demand and favorable impact of the current RVOs. However, several operational and macroeconomic factors may impact near-term performance, including tight soybean supplies for the balance of the 2025–2026 crop year along with uncertainties surrounding the size and quality of the upcoming 2026 harvest. In addition, elevated crush processing rates across the industry may create challenges in marketing soybean meal, and ongoing geopolitical instability and macroeconomic energy price volatility will continue to increase forecasting uncertainty.
Current report
Gross Profit/Loss – For the three months ended June 30, 2026, our gross profit increased significantly by $36.1 million, compared to the same period in 2025. This sharp growth was attributed mainly to increased demand for soybean oil following the implementation of the updated RVOs and increased soybean production following commencement of operations at our Mitchell facility.
Current report
Other Non-Operating Income – Other non-operating income (expense), including patronage dividend income, decreased $0.2 million during the three months ended June 30, 2026, compared to the same period in 2025. The decline was primarily the result of a decrease of $87,000 in interest income earned on investment proceeds held by our subsidiaries in connection with the equity financing of the Mitchell facility.
Current report
Comparison of the Six Months Ended June 30, 2026 and 2025
Current report
Revenue – Revenue for the six months ended June 30, 2026, increased by $323.9 million, or 141.7%, compared to the same period in 2025. This significant growth was primarily driven by a 113.9% increase in soybean processing volumes and a 27.7% rise in the average price of soybean oil. The increase in processing volumes was directly attributed to the commencement of operations at our Mitchell facility, which has effectively doubled our total processing capacity. The rise in the average sales price of soybean oil was due to the implementation of the updated RVOs under the RFS, which included reinstated program mandates and increased volume requirements.
Current report
Gross Profit/Loss – For the six months ended June 30, 2026, gross profit increased significantly by $24.7 million, compared to the same period in 2025. This sharp growth was attributed mainly to increased demand for soybean oil following the implementation of the updated RVOs and increased soybean production following the commencement of operations at our Mitchell facility.
Current report
Net Income/Loss – During the six-month period ended June 30, 2026, we generated a net profit of $19.5 million compared to a net income of $3.4 million for the same period in 2025. The $16.1 million increase was primarily attributable to increases in gross profit and other non-operating income, partially offset by increases in operating and interest expenses.
Current report
Comparison of the Six Months Ended June 30, 2026 and 2025
Removed paragraphs (3)
Previous report
During the three months ended March 31, 2026, we recognized a net loss of $4.3 million, compared with net income of $4.4 million for the same period in 2025. The decrease was is primarily attributable to temporary regulatory delays affecting the renewable fuels market and non-cash, mark-to-market accounting adjustments.The primary driver of the quarterly loss was softened demand for soybean oil, which was mainly delayed implementation of the Renewable Fuel Standard (RFS) and the associated Renewable Volume Obligations (RVOs). The lack of timely regulatory clarity temporarily reduced demand from the biofuel sector, compressing oil values and operational margins. In addition, we recorded non-cash, mark-to market losses as a result of rising board crush values. While these monthly adjustments negatively impacted reported earnings this quarter, they reflect favorable forward main opportunities. Notable, we view these as timing differences that are expected to be economically neutral over the life of the underlying positions. Our performance was additionally impacted by order subsidiary, High Plains Processing, Mitchell, South Dakota, which experienced losses, as it was impacted by similar market pressures including soft oil demand and unfavorable timing of margin recognition as well as startup inefficiencies.
Previous report
We anticipate a strong recovery in financial performance for the remainder of 2026. The EPA’s recent release of record-level RVOs is expected to drive substantial demand for soybean oil, specifically within the renewable diesel sector. Soybean meal demand is also expected to remain strong, supported by robust domestic and export markets. Finally, as current forward margin positions mature, we expect to capture margins previously deferred by mark-to-market accounting.
Previous report
Gross Profit/Loss – Gross profit decreased by $11.4 million, or 193.7%, for the three months ended March 31, 2026, compared to the same period in 2025. The decrease was primarily driven by mark-to-market losses and initial operation costs associated with our Mitchell facility. The mark-to-market adjustments were attributed to unrealized, non-cash losses resulting from rising board crush values. These monthly accounting adjustments, reflect forward margin opportunities that require the deferral of profit recognition into future periods. Results were further impacted by losses at our Mitchell facility, where initial operations experienced ramp-up inefficiencies, lower utilization rates and higher pressures, all while being subject to broader market pressures including softened demand for oil.
Reworded paragraphs (16)
Previous wording
The information in this quarterly report on Form 10-Q for the three-month period ended March 31, 2026, (including reports filed with the Securities and Exchange Commission (the “SEC” or “Commission”), contains “forward-looking statements” that deal with future results, expectations, plans and performance, and should be read in conjunction with the financial statements and Annual Report on Form 10-K for the year ended December 31, 2025. Forward-looking statements may include statements which use words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “predict,” “hope,” “will,” “should,” “could,” “may,” “future,” “potential,” or the negatives of these words, and all similar expressions. Forward-looking statements involve numerous assumptions, risks and uncertainties. Actual results or actual business or other conditions may differ materially from those contemplated by any forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements are identified in our Form 10-K for the year ended December 31, 2025.
Current wording
The information in this quarterly report on Form 10-Q for the six-month period ended June 30, 2026, (including reports filed with the Securities and Exchange Commission (the “SEC” or “Commission”), contains “forward-looking statements” that deal with future results, expectations, plans and performance, and should be read in conjunction with the financial statements and Annual Report on Form 10-K for the year ended December 31, 2025. Forward-looking statements may include statements which use words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “predict,” “hope,” “will,” “should,” “could,” “may,” “future,” “potential,” or the negatives of these words, and all similar expressions. Forward-looking statements involve numerous assumptions, risks and uncertainties. Actual results or actual business or other conditions may differ materially from those contemplated by any forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements are identified in our Form 10-K for the year ended December 31, 2025.
Previous wording
Revenue – Revenue increased by $107.6 million, or 91.3%, for the three months ended March 31, 2026, compared to the same period in 2025. This significant growth was primarily driven by a 91.2% increase in soybean processing volumes, partially offset by a moderate decline in average selling prices for soybean products. The volume increase was directly attributable to the commencement of operations at our Mitchell facility, which began operations in the fourth quarter of 2025. The completion of this facility effectively doubled our total processing capacity, representing a material shift in operational scale. The increase in volume was slightly offset by a 2.9% decrease in average soybean meal prices compared to the first quarter of 2025. This pricing pressure resulted from expanded industry-wide crushing capacity across the U.S. that entered the market in 2024 and 2025.
Current wording
Revenue – Revenue for the three months ended June 30, 2026, increased by $216.3 million, or 195.5%, compared to the same period in 2025. This significant growth was primarily driven by a 125.3% increase in soybean processing volumes and a 35.0% rise in the average price of soybean oil. The increase in processing volumes was directly attributed to the commencement of operations at our Mitchell facility, which began in the fourth quarter of 2025 and effectively doubled our total processing capacity. The rise in the average sales price of soybean oil was due to the implementation of the updated RVOs under the RFS, which included reinstated program mandates and increased volume requirements.
Previous wording
Operating Expenses – Administrative expenses, including all selling, general, and administrative expenses, increased by $0.6 million for the three months ended March 31, 2026, compared to the same period in 2025. The increase was primarily due to higher payroll, professional, and related costs associated with the start-up of the Mitchell facility.
Current wording
Operating Expenses – Administrative expenses, including all selling, general, and administrative expenses, increased by $0.6 million, or 33.0%, for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily due to higher payroll, professional, and related costs associated with the start-up of the Mitchell facility.
Previous wording
Interest Expense – Interest expense increased by $4,995,000, or 434.0%, during the three months ended March 31, 2026, compared to the same period in 2025. The increase in interest expense was principally due to an increase in borrowings under our credit facilities. Additionally, approximately $0.0 million in interest costs related to the construction of our Mitchell facility were capitalized during the three months ended March 31, 2026, compared to $1.1 million in the same period of 2025.
Current wording
Interest Expense – Interest expense increased by $5.3 million, or 434.5%, during the three months ended June 30, 2026, compared to the same period in 2025. The increase in interest expense was principally due to an increase in borrowings under our credit facilities. Additionally, there were $0 in interest costs capitalized related to the construction of our Mitchell facility during the three months ended June 30, 2026, compared to $2.3 million in the same period of 2025.
Previous wording
Net Income/Loss – During the three-month period ended March 31, 2026, we generated a net loss of $4.3 million compared to a net income of $4.4 million for the same period in 2025. The $8.7 million decrease was primarily attributable to a decrease in gross margins.
Current wording
Net Income/Loss – During the three-month period ended June 30, 2026, we generated a net profit of $23.7 million compared to a net loss of $1.0 million for the same period in 2025. The $24.7 million increase was primarily attributable to an increase in gross margins.
Previous wording
Other Non-Operating Income – Other non-operating income (expense), including patronage dividend income, increased $0.9 million during the three months ended March 31, 2026, compared to the same period in 2025. This increase was primarily driven by a $1.0 million rise in patronage dividend income from prior investments in cooperatives during the year ended December 31, 2025, compared to the year ended December 31, 2024.
Current wording
Other Non-Operating Income – Other non-operating income (expense), including patronage dividend income, increased $0.8 million during the six months ended June 30, 2026, compared to the same period in 2025. This increase was primarily driven by a $1.0 million increase in patronage dividend income from prior investments in cooperatives during the year ended December 31, 2025, compared to the year ended December 31, 2024.
Previous wording
Our primary sources of liquidity are cash generated from operations and borrowings from our two revolving lines of credit, which are discussed in the section titled “Indebtedness.” As of March 31, 2026, we had working capital, defined as current assets less current liabilities, of approximately $46.8 million, compared to $36.9 million on March 31, 2025. Working capital decreased primarily due to expenditures related to the construction and development of our Mitchell facility, of which we have a controlling ownership interest through our subsidiaries.
Current wording
Our primary sources of liquidity are cash generated from operations and borrowings from our two revolving lines of credit, which are discussed in the section titled “Indebtedness.” As of June 30, 2026, we had working capital, defined as current assets less current liabilities, of approximately $78.8 million, compared to $38.1 million on June 30, 2025. Working capital increased primarily due to higher net income and long-term borrowings, partially offset by capital expenditures related to the construction and development of our Mitchell facility, in which we have a controlling ownership interest.
Previous wording
The $42.8 million increase in cash flows used for operating activities between periods was largely due to a $76.0 million change in current operating assets and liabilities, offset by a $43.5 million change in net loss recognized on derivative instruments.
Current wording
The $12.9 million increase in cash flows used for operating activities between periods was largely due to a $72.6 million change in current operating assets and liabilities, offset by a $34.3 million change in net loss recognized on derivative instruments and a $14.0 million increase in net income.
Previous wording
The $45.8 million increase in cash flows used for investing activities between periods was due to a $45.9 million decrease in expenditures for purchases of various property and equipment used for the construction and development of our Mitchell facility, which was completed during the fourth quarter of 2025.
Current wording
The $105.5 million decrease in cash flows used for investing activities between periods was due to a $105.3 million decrease in expenditures for purchases of various property and equipment used for the construction and development of our Mitchell facility, which was completed during the fourth quarter of 2025.
Previous wording
The $28.2 million increase in cash flows provided by financing activities between periods was principally due to a $26.9 million increase in net proceeds from seasonal borrowings with our lender.
Current wording
The $62.4 million decrease in cash flows provided by financing activities between periods was principally due to a $73.6 million decrease in borrowings.
Previous wording
We hold various credit facilities with CoBank, our primary lender, to meet the short and long-term needs of our operations. The first credit line is a revolving long-term loan. Under this loan, we may borrow funds, as needed, up to the credit line maximum, or $65.0 million, and then pay down the principal whenever excess cash is available. Repaid amounts may be borrowed up to the available credit line. The available credit line decreases by $3.25 million every six months until the credit line’s maturity on March 20, 2030, at which time a balloon payment for the remaining balance is due. We pay a 0.40% annual commitment fee on any funds not borrowed. The principal balance outstanding on the revolving term loan was $55.3 million and $19.7 million as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, there were no additional funds available for borrowing under this loan.
Current wording
We hold various credit facilities with CoBank, our primary lender, to meet the short and long-term needs of our operations. The first credit line is a revolving long-term loan. Under this loan, we may borrow funds, as needed, up to the credit line maximum, or $65.0 million, and then pay down the principal whenever excess cash is available. Repaid amounts may be borrowed up to the available credit line. The available credit line decreases by $3.25 million every six months until the credit line’s maturity on March 20, 2030, at which time a balloon payment for the remaining balance is due. We pay a 0.40% annual commitment fee on any funds not borrowed. The principal balance outstanding on the revolving term loan was $50.8 million and $19.7 million as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026, there were $4.5 million in additional funds available for borrowing under this loan.
Previous wording
The second credit line is a revolving working capital (seasonal) loan. The primary purpose of this loan is to finance our operating needs. We may borrow up to $30.0 million until the loan's maturity on December 1, 2026. We pay a 0.20% annual commitment fee on any funds not borrowed; however, we have the option to reduce the credit line during any given commitment period listed in the credit agreement to avoid the commitment fee. The principal balance outstanding on this note was $17.8 million and $0 as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, an additional $12.2 million was available for borrowing under this loan.
Current wording
The second credit line is a revolving working capital (seasonal) loan. The primary purpose of this loan is to finance our operating needs. We may borrow up to $45.0 million until the loan's maturity on December 1, 2026. We pay a 0.20% annual commitment fee on any funds not borrowed; however, we have the option to reduce the credit line during any given commitment period listed in the credit agreement to avoid the commitment fee. There was no balance outstanding on this note as of June 30, 2026 and December 31, 2025. As of June 30, 2026, an additional $45.0 million was available for borrowing under this loan.
Previous wording
The third line of credit is a delayed-draw term loan. Under this loan, our subsidiary may borrow funds, as needed, up to $254.0 million until March 31, 2026. Principal payments of $4.5 million are made quarterly beginning six months after the Mitchell facility's completion date. The quarterly principal payments will increase by $1.0 million on the anniversary date and continue until the maturity date of December 31, 2029. Our subsidiary pays a 0.50% annual commitment fee on any funds not borrowed. The principal balance outstanding on this note was $254.0 million and $221.5 million as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, there were no additional funds available for borrowing under this loan.
Current wording
The third line of credit is a term loan. Under this loan, our subsidiary may borrow funds, as needed, up to $254.0 million until March 31, 2026. Principal payments of $4.5 million are made quarterly beginning six months after the Mitchell facility's completion date. The quarterly principal payments will increase by $1.0 million on the anniversary date and continue until the maturity date of December 31, 2029. Our subsidiary pays a 0.50% annual commitment fee on any funds not borrowed. The principal balance outstanding on this note was $254.0 million and $221.5 million as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026, there were no additional funds available for borrowing under this loan.
Previous wording
The last credit line is a revolving working capital (seasonal) loan. The primary purpose of this loan is to finance the operating needs of our Mitchell facility. Beginning July 1, 2025, our subsidiary may borrow up to $85.0 million until the loan's maturity on September 1, 2026. A 0.20% annual commitment fee is charged on any funds not borrowed; however, we may reduce the credit line during any given commitment period listed in the credit agreement to avoid the commitment fee. The principal balance outstanding on this credit line was $43.9 million and $27,372,787 as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, an additional $41.1 million was available for borrowing under this loan.
Current wording
The last credit line is a revolving working capital (seasonal) loan. The primary purpose of this loan is to finance the operating needs of our Mitchell facility. Since July 1, 2025, our subsidiary may borrow up to $85.0 million until the loan's maturity on September 1, 2026. A 0.20% annual commitment fee is charged on any funds not borrowed; however, we may reduce the credit line during any given commitment period listed in the credit agreement to avoid the commitment fee. The principal balance outstanding on this credit line was $26.0 million and $27.4 million as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026, an additional $59.0 million was available for borrowing under this loan.
Previous wording
The revolving, seasonal, and delayed-draw term loans with CoBank are set up with a variable rate option. The variable rate is set daily by CoBank. We also have a fixed-rate option on all five loans, allowing us to lock in rates for any period between one day and the entire commitment period. The annual interest rate on the loans was between 5.88% and 6.78% as of March 31, 2026.
Current wording
The revolving, seasonal, and term loans with CoBank are set up with a variable rate option. The variable rate is set daily by CoBank. We also have a fixed-rate option on all five loans, allowing us to lock in rates for any period between one day and the entire commitment period. The annual interest rate on the loans was between 5.87% and 7.07% as of June 30, 2026.
Previous wording
In 2025, the State of South Dakota Department of Transportation agreed to loan the Davison Regional Railroad Authority $18.3 million for purposes of making improvements to the railway infrastructure at our Mitchell facility. In consideration of this secured loan, we agreed to provide a guarantee to the State of South Dakota Department of Transportation for the full amount of the loan, plus interest. This guarantee was converted into a direct obligation of ours in May 2025, when we received the loan proceeds and assumed responsibility for paying the annual principal and interest payments. The note bears interest at a fixed rate of 2% per annum. Beginning in October 2026, we will make annual principal and interest payments of $1.43 million. These payments will continue through maturity on October 1, 2032, at which time a final balloon payment will be due for the remaining unpaid principal and any accrued interest.
Current wording
In 2025, the State of South Dakota Department of Transportation agreed to loan the Davison Regional Railroad Authority $18.3 million for purposes of making improvements to the railway infrastructure at our Mitchell facility. In consideration of this secured loan, we agreed to provide a guarantee to the State of South Dakota Department of Transportation for the full amount of the loan, plus interest. This guarantee was converted into a direct obligation of ours in May 2025, when we received the loan proceeds and assumed responsibility for paying the annual principal and interest payments. The note bears interest at a fixed rate of 2% per annum. Beginning in October 2026, we will make annual principal and interest payments of $1.43 million, and these payments will continue through maturity on October 1, 2032, at which time a final balloon payment will be due for the remaining unpaid principal and any accrued interest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Operating Expenses – Administrative expenses, including all selling, general, and administrative expenses, increased by $1.1 million, or 33.2%, for the six months ended June 30, 2026, compared to the same period in 2025. The increase was primarily due to higher payroll, professional, and related costs associated with the start-up of the Mitchell facility.
Current report — wording carried from elsewhere
Interest Expense – Interest expense increased by $10.3 million, or 434.3%, during the six months ended June 30, 2026, compared to the same period in 2025. The increase in interest expense was principally due to an increase in borrowings under our credit facilities. We also had $0 in interest costs capitalized related to the construction of our Mitchell facility during the six months ended June 30, 2026, compared to $3.4 million in the same period of 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Comparison of the Three Months Ended March 31, 2026 and 2025