ARCHER Daniels Midland Co. (ADM) and Central Valley Ag Cooperative (CVA) announced last week the formation of 81-20 Grain Terminal LLC, a joint venture to construct a 5 million bu. shuttle-loader grain elevator near Randolph, Neb.
The elevator will originate corn and soybeans from regional farmers, primarily for transportation by 110-car BNSF shuttle trains to export markets via the U.S. Gulf Coast, Pacific Northwest and Southwest.
ADM and CVA will each own 50% of the grain facility, which will feature two receiving pits and one rail receiving pit that are each capable of dumping 20,000 bu. of grain per hour.
The facility will be located at the intersection of U.S. Highway 20 and U.S. Highway 81, three miles west of Randolph, and is expected to begin operating by the fall of 2014.
"We look forward to working with CVA and producers in the area to make the most of their farming operations," said Joe Taets, president of ADM Agricultural Services. "The new elevator — along with our global transportation fleet and network of customers — will provide additional marketing opportunities for regional producers, which can help add value to their crops."
Production of corn and soybeans has increased dramatically since 2000 in Pierce County — in which the elevator will be located — and surrounding Cedar, Knox and Wayne counties. The facility's location at the intersection of two major highways will provide the area's producers with convenient access, the announcement said.
"Enhancing the ability of member-owners to link to greater global marketing and transportation opportunities is what makes this joint venture so exciting," Doug Derscheid, president and chief executive officer of CVA, said.