November 2, 2010

Nebraska to expand facilities for grain storage and loading

Under a USDA funding scheme, Nebraska will receive a US$10 million loan to expand a grain train loading facility as well as construct grain storage facilities northwest of Alliance.

The USDA Rural Development loan funding comes from the American Recovery and Reinvestment Act of 2009.

"This Recovery Act loan will help Nebraska farmers have access to a broader market for their grain," said Nebraska's Senator Ben Nelson. "The expansion of the train loading facility is an investment that will help support Nebraska agriculture jobs and provide a foundation for economic growth in the rural panhandle of our state."

Recovery funds will support a US$10 million USDA Rural Development guaranteed loan to West Plains Company to expand its grain handling and storage capabilities. The funds will be used to build a 120-car grain train loading facility, which will allow the company to ship 10 million bushels of wheat and three million bushels of corn annually.

Additionally, storage units will be added to the site. Also, there will be a special blending facility that will be used to blend wheat for specific protein levels, which allows the West Plains Company to customise their wheat for the specific needs of the customer.

West Plains Company is an employee-owned business that markets, distributes, and stores wheat, corn, and other grains and has been in continuous operation since 1962. It operates grain handling facilities in rural Nebraska, Colorado, Kansas, South Dakota and Wyoming, with most of its elevators concentrated in Western Nebraska.

According to USDA, West Plains currently captures five million bushels of wheat in the area while there is approximately 31 million bushels of wheat available within economic reach of their facility. By expanding their operations, West Plains will be able to handle more of the area's wheat.