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A new $94-million oat processing facility is being built just outside Winnipeg thanks to tax incentives from the province.

President of Paterson Globalfoods, Andrew Paterson announced the construction of the mill, to be known as O Foods Ltd., which will begin this winter in the RM of Rosser.

When completed, the mill will process up to 250,000 metric tonnes of oats, which will provide producers with another outlet for their crops.

Premier Brian Pallister spoke at the announcement and said that the province is supporting the company’s move through tax-increment financing, a funding method that uses future tax revenue to stimulate development. He added that investment into an agricultural project like this is also an investment in the province.

“When Manitoba has a good farm year, then Manitoba has a good year,” said Pallister. “What’s good for the farmer is good for the province of Manitoba.”

Paterson said that the company approached the province about the tax agreement to try and keep it in the province instead of building it at the company’s other plant in North Dakota.

Premier Pallister said the new oat processing plant would create 70 jobs and would mean that people wouldn’t need to leave to find work.