Farmers have long been known for their ingenuity in making use out of what others throw away, but distillers grain, an agricultural waste stream with great potential as a livestock feed has stymied even their efforts. This by-product of ethanol and grain production has a high protein content. However, loose, dried distillers grain falls apart too easily in transportation and blows away on the range. Compressed feed cubes require a large percentage of artificial binders/filler. Therefore, these traditional products are less efficient at delivering nutrition.
Platte Valley Distillers (PVD) has a license to utilize a patented process for the production of feed cubes and pellets from distillers grain that stays compact with no binders/fillers, transports well, and has a shelf life of up to three years. This product not only removes distillers grain from the waste stream, but provides farmers and ranchers with a high-quality feed. In addition to manufacturing feed cubes and pellets directly, PVD will heavily focus on expanding the adoption of the technology at other licensed facilities though the manufacture and refurbishment of production equipment.
Thanks to the flexible and affordable private capital provided through the New Market Tax Credit (NMTC) Program through CEI Capital Management LLC (CCML), PVD will be able to begin operations in Lexington, Nebraska, adding 12-14 full-time equivalent (FTE) jobs with strong benefits. PVD plans to work with a local workforce development organization to recruit employees. PVD will also support the next generation of ag-tech workers through the creation of a $50,000 scholarship fund, which will be available to students who commit to work as an employee for one year after the completion of their degree.
PVD’s business is not only a boon to the farmers and ranchers who will able to purchase their product, but also to the surrounding community of Lexington, where it will increase jobs, serve as signal of stability in the community, and provide opportunities for future growth and expansion, especially in the agricultural technology sector.
CCML allocated $20 million in NMTC capacity to help finance the project. U.S. Bancorp Community Development Corporation provided the NMTC equity, while Lincoln Savings Bank provided the debt financing for the transaction which closed August 10, 2016.
* Unless otherwise noted, all jobs data contained herein is taken directly from the Transactional Level Reports submitted by CCML to the US Treasury’s CDFI Fund. All jobs data is reported by the project Borrower and is not independently verified by CCML.
CCML FINANCING: $20,000,000
FINANCING PROGRAM: Federal New Markets Tax Credit
TAX CREDIT INVESTOR(S): U.S. Bancorp Community Development Corporation