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History

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Plains Oilseed Products, LLC

In western Oklahoma producers have been searching for alternative and value-added crop opportunities as an option for improving profits and expanding the utilization of natural resources, specifically their land.

With continuing low prices and subsequent depressed profits for soybeans, canola, sunflowers cotton, peanuts, and guar gum Oklahoma family farmers have undertaken this oilseed initiative. Believing that through cooperative action they can improve farm income to oilseed producers by; double cropping, product diversification, crushing their oilseeds, refining the crude oil, packaging the refined oil and marketing it directly to the consumer.

In 2003 seed producers from western Oklahoma and technical advisors formed a steering committee and created Oklahoma Farmers and Ranchers Energy Enterprise LLC (“OKFREE”). OKFREE was formed to determine the feasibility of owning and operating a seed crushing and further processing facility in western Oklahoma.

Oklahoma Farmers Union was instrumental in assisting with the formation of the steering committee, funded the writing of the USDA grant application and continues to provide support by providing for office space, meeting facilities and materials to move this project forward.



Since 2003, OKFREE received a $235,000 United States Department of Agriculture, Value Added Market Development grant. The U.S.D.A. funding enabled OKFREE to complete a detailed oilseed feasibility study and business plan. Oklahoma State University was selected as the contractor to provide these services. Drs. Phil Kenkel and Rodney Holcomb at Oklahoma State University have extensively examined the feasibility of manufacturing and marketing oils and meals from the proposed facility, with significant input on product characteristics and processing options provided by Dr. Nurhan Dunford.

The initial steering committee and numerous advisors have devoted a considerable amount of time and resources towards this project. These individuals have donated their time to visit other crushing facilities, to research raw material supply, study time path adoptions of canola, to identify markets for oil and meals, to study technology and equipment available and to establish the appropriate business structure.

OKFREE & POP’s advisory board includes: Mr. Mason Mungle, Government Relations Oklahoma Farmers Union, Mr. Gary Bledsoe, Oklahoma Department of Ag, Mr. Jason Harvey, Oklahoma Department of Ag, Dr. Phil Kenkel, Professor-Fitzwater Endowed Coop Chair, Oklahoma State University, Mr. Michael Marlow, Trait and Seed Representative, Monsanto Co, Mr. Leon Cooprider, Coop Manager, Mr. Bill Kosanke, Ag Producer, Mr. Donnie Sodders, Ag Producer, Mr. Bob Barnett, Banker and Ag Producer, Mr. David Nowlin, Extension Educator, Oklahoma State University, Mr. Jim Billington, Ag Producer, Mr. Troy Everett, Wheeler Bros. and Mr. Mike Kubicek, Executive Secretary, Oklahoma Peanut Comm.

This initial group of forward thinking Oklahoma producers formed OKFREE with the objective of creating a producer-owned oilseed processing enterprise. After significant due diligence review of the business plan documents and discussions regarding the business structure for the processing entity, Plains Oilseed Producers, LLC (“POP”) was formed on January 3, 2007. POP, an Oklahoma limited liability company plans to construct, own and operate a state-of-the-art oilseed processing plant in western Oklahoma.


POP is currently working with the Oklahoma Department of Commerce to research and solicit requests for proposals from potential communities, to determine the Plant’s location. The responses to the solicitation will be considered during POP’s meeting in April. After review of the proposals, the Managers will begin meeting and negotiating with communities. The Oklahoma Department of Commerce also provided a detailed State incentive analysis for the project.


POP has also received assistance from Dr. Marvin Hankins, Director of the Southwestern Oklahoma State University Center for Economic & Business Development in the development of an Economic Impact Analysis. This independent research document provides data that measures the economic impacts of the POP facility to western Oklahoma.

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During January 2007, POP submitted an application to the Oklahoma Department of Agriculture, Food & Forestry Market Development Services for an Agriculture Enhancement & Diversification Cooperative Marketing Loan. This application was approved and POP will utilize these funds to continue the project development and marketing activities.

The proposed venture will strive to not only capture value, but to also create value, by adding profits in both ways to our agricultural production; and producers can affect the potential for risk and reward. POP’s Managers are confident that the proposed venture is one that not only can be driven by customer needs and perceptions but also one that will be strongly supported by local, state and federal clean air and sustainable energy initiatives.
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