The J.R. Simplot Co. plans to build a more than $4 million rail transfer station for feed grain west of Mountain Home as part of a major expansion of the Simplot Livestock feedlot north of Grand View.
Simplot intends to expand its feedlot from the current capacity of 110,000 head of cattle to 150,000 this year, said Tom Basabe, president of Simplot Agricultural Group.
The company expects a strong cattle market in the future, he said, and the commodity-based, low-margin feedlot business is “all volume and economics of scale.”
The rail transfer facility near Mountain Home will increase how much grain Simplot can bring in and will give the company a price break on transportation charges from Union Pacific Railroad, Simplot officials said.
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