Business Description

economic conditions impacting the availability and price of soybeans and natural gas; • General economic conditions, including any future economic downturn, the impact of inflation or tariffs, disruptions in financial credit and other disruptions resulting from geopolitical events such as the Russian invasion of Ukraine, the conflict in the Middle East, and trade tensions between the U.S. and China; • The impact of global and regional economic, agricultural, financial and commodities market, political, social and health conditions; • Fluctuations in U.S. oil consumption and petroleum prices; • Changes in perception of food quality and safety; • Damage to or loss of our facilities due to casualty, weather, mechanical failure or any extended or extraordinary maintenance or inspection that may be required; • Changes in business strategy, capital improvements or development plans; • Changes in the availability of credit and interest rates; • Future levels of indebtedness and capital spending, particularly on new projects; • The availability of additional capital to support capital improvements, development and projects; and • Other factors discussed under the item below entitled “Risk Factors.” In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements contained in this Annual Report on Form 10-K. Additional risks that we may currently deem immaterial or that are not presently known to us could also cause the forward-looking events discussed in this Annual Report on Form 10-K not to occur. Except as otherwise required by federal securities law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this Annual Report on Form 10-K. 3 PART I Item 1. Business. Overview South Dakota Soybean Processors, LLC (“we,” “us,” “our” or the “Company”) is the owner and operator of three processing facilities and two oil refineries in the state of South Dakota. Our principal place of business is in Volga, South Dakota, where we operate a soybean processing plant and refinery and maintain administrative offices. We also own and operate a small oilseed processing plant near Miller, South Dakota. In addition, we own a controlling interest in and manage High Plains Processing, LLC, a large oilseed processing plant and refinery located two miles south of Mitchell, South Dakota. Construction of the Mitchell facility was completed and start-up operations commenced in October 2025, the addition of which will nearly double our total production capacity. We are owned by approximately 2,240 members, many of whom are agricultural producers residing in South Dakota and neighboring states. Our members deliver and sell soybeans to our facilities for processing and production of our end products. All our assets and operations are domiciled in South Dakota, where all of our products are produced. Our core business consists of processing locally grown soybeans into two main products, soybean meal and hulls, as well as soybean oil and related oil byproducts. We market and sell soybean meal and hulls primarily to resellers, feed mills, and livestock producers as livestock feed. We market and sell multiple grades of soybean oil, in either crude or refined formats, to food, biodiesel and chemical industries. Under certain market conditions, we may register and deliver warehouse receipts for crude oil under specific terms and conditions of a Chicago Board of Trade (CBOT) soybean oil futures contract. We also market and sell contracting services for the construction and management of oilseed processing facilities. We strive to maintain a competitive position in the marketplace by producing high quality products, operating highly efficient operations, and adding value to our core products to capture larger margins. We continue to research ways to improve overall efficiency by analyzing new methods of vertical integration, adding value to our products through additional processing investment, and studying applications of our products in the food and energy industries. Although a primary objective is to maximize cash distributions to our members from profits generated by operations, we recognize the need to maintain our financial strength through continued investment in, and capital improvements to, our business and facilities.…