The Southern Minnesota Beet Sugar Cooperative (“SMBSC”) is a major agricultural employer owned by 474 sugar beet growers operating in 17 counties in the Western and Southern parts of the state. The coop employs 470 full-time workers at its processing plant and 375 seasonal workers, while also indirectly supporting 1,750 farmworkers throughout the region. SMBSC shareholders plant approximately 120,000 acres of sugar beets annually.

SMBSC is investing in two sites: a new pulp press facility at its processing plant in Renville, Minn., and expanded acreage at a storage/pile site in nearby Clara City West, both approximately 110 miles west of Minneapolis. The goal is to improve the quality and capacity of SMBSC sugar production and enhance the value for SMBSC’s farmer-shareholders, while also driving economic growth in the surrounding communities, where incomes are well below the state average. The investments will help SMBSC to sustain itself as one of the nation’s lowest-cost sugar producers.

New Markets Tax Credit (“NMTC”) financing helped this important agricultural effort move forward. Broadstreet committed $4 million in NMTC allocation from its parent, the Local Initiatives Support Corporation (“LISC”), as well as $13.2 million in equity from the Morgan Stanley Rural NMTC Fund, which Broadstreet manages.

There are several other New Markets allocatees that are part of this transaction, underlining the value of the federal NMTC program to groups like SMBSC. Without NMTCs, the cooperative would need to reduce grower income and delay, reduce, or forego future facility upgrades needed to stay competitive. NMTCs are financing added capacity and efficiencies for the organization that will help growers break even in bad years and increase profitability in good ones—which has a positive ripple effect throughout local economies.