Feb. 16, 2026
Smithfield Foods Inc. is moving from its historic location to build a $1.3 billion plant in northwest Sioux Falls. This new facility will cover 200 acres.
CEO Shane Smith explained, “We reached a point where we had to choose between renovating our 100-year-old building or starting fresh. It was clear that building anew was the best option.” He expressed excitement about the investment in the future of the company.
At the same time, philanthropist Denny Sanford is donating $50 million to help the old site transition to community ownership. Mayor Paul TenHaken noted that this will allow for significant redevelopment in downtown Sioux Falls.
Smithfield’s existing plant has been a fixture along the Big Sioux River since 1909, acquired by the company in 1995. Today, it processes about 20,000 hogs daily, employing around 2,200 people.
The new plant is expected to be the most advanced in the nation. It will boast over 1.4 million square feet of production space and utilize cutting-edge automation technology. This investment is contingent on securing various permits and final designs. The groundbreaking is planned for 2027, with operations potentially beginning in late 2028.
Governor Larry Rhoden called this investment the largest in South Dakota’s history. He expressed astonishment at how both Smithfield and the South Dakota State Penitentiary are moving forward with relocation plans, marking a transformative time for the state.
The area Smithfield is vacating is significant, potentially allowing for nearly double the current size of downtown Sioux Falls. This location will now be referred to as The Sanford District, honoring Sanford’s generous donation.
Local reactions reflect a mix of excitement and hope for future growth. Many view this project as a “once-in-a-generation” opportunity. It symbolizes a new chapter for both the company and the city, with potential benefits for local businesses and the community as a whole.
For more on the economic impact of Smithfield’s investment, you can read an analysis from the U.S. Department of Agriculture, which highlights the importance of agricultural investments in local economies.
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City of Sioux Falls,Smithfield Foods
