Full Breakdown
Smithfield Foods' Relocation: Implications for Sioux Falls and Beyond
2/26/2026, 10:42:56 AM
Announcement of the Move
On February 16, 2026, South Dakota Governor Larry Rhoden, Sioux Falls Mayor Paul TenHaken, and Smithfield Foods CEO Shane Smith announced the relocation of Smithfield's pork processing facility from its historic downtown site to a new industrial park in northwestern Sioux Falls. This move, supported by a $50 million donation from billionaire Denny Sanford, involves a $1.3 billion investment in a new facility that will occupy 200 acres, significantly larger than the current 120-acre site. The existing plant, operational since 1909, employs approximately 3,200 people and is one of the largest meatpacking plants in the United States, processing 20,000 hogs daily.
Environmental Considerations
The relocation raises environmental concerns, particularly regarding air and water quality. The current facility, located near the Big Sioux River, has faced compliance issues with the Clean Water Act and Clean Air Act, resulting in fines for wastewater treatment failures and ammonia release violations. However, Smithfield has reported improvements in its environmental practices, including a 47% reduction in nitrate discharge following a $45 million investment in wastewater treatment. The new site is expected to utilize advanced air-scrubbing technology, reducing odors associated with the plant. Despite these advancements, Travis Entenman, executive director of Friends of the Big Sioux River, cautioned that the move alone will not resolve broader river quality issues, which are significantly impacted by agricultural runoff upstream.
Economic Impact
Smithfield's operations are crucial to the regional economy, supporting over 500 independent farmers in South Dakota, Minnesota, and Iowa. The company contributes approximately $200 million in wages annually and generated $4.4 million in taxes in 2024. Mayor TenHaken emphasized the economic significance of Smithfield's decision to remain in Sioux Falls, noting that a move out of state could have resulted in a multi-billion dollar loss for South Dakota. The new facility is expected to enhance the local agricultural economy by supporting hog producers and related sectors.
Redevelopment of the Current Site
The vacated downtown site will undergo redevelopment, effectively doubling the current downtown area. The Sioux Falls Development Foundation plans to acquire the land using Sanford's donation. This redevelopment process is anticipated to take several decades, with potential improvements in public access to the river for recreational activities.
Official Statements & Responses
Mayor TenHaken remarked, “I don’t want to just take for granted that it was assumed that Smithfield would stay here, because it wasn’t.” Smithfield representative Emma Davis stated, “The vast majority of hogs we process in Sioux Falls are from independent hog producers in South Dakota, Minnesota, and Iowa.”
Criticism & Opposition
While the move is generally viewed positively, some environmental advocates express skepticism about its potential impact on river quality. Entenman noted, “This won’t solve all of our river issues in terms of quality. I always hammer on that there’s upstream and downstream things we need to be doing to really have a large scale impact.”
What's Next
The city of Sioux Falls is set to discuss a $90 million tax increment financing district to support the new campus, with formal proposals expected to be presented to the city planning commission on March 4, 2026.
