1. Blender Pumps – A Game Changer for our Economy Tom Lilja tom@ndcorn.org August 17, 2011

3. Recent ND Production

4. MoreCornPerAcre

5. U.S. Corn Prices

6. Corn Market Prices 1946 - $1.53/bu 2000 - $1.85/bu 2010 - $3.83/bu Source: USDA

7. Supply Side Economics ?? 90 bushels / acre – mid 1990’s 132 bushels / acre – 2010 42 extra bushels across 2.5 million acres 105 million more bushels

8. Or Bonanza ?? 105 million more bushels $3.83 National Average Price (USDA) $402 million more to economy (before multiplier effects) $2.47 Billion (2004-2008) CAPTS, NDSU

9. Corn’sImpacts,1987-2007 SoilLoss Soillossper bushel,abovea tolerablelevel LandUse Amountofland toproduceone bushelofcorn Irrigation Irrigationwater useperbushel Energy Energyusedto produceone bushel Climate Emissionsper bushel 37%69%27%37%30%

10. PesticideUseTrends Increasingadoptionofhybridswithinsect-resistantand herbicide-toleranttraitshavegreatlyreducedtheneedfor syntheticapplicationsofherbicidesandinsecticides. InsecticidePoundsPerAcre HerbicidePoundsPerAcre 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 3.5 3 2.5 2 1.5 1 0.5 0 2000 1995 1990 2005 1990 1992 1994 1996 1998 2000 2002 2005 Source:USDA

11. COMMERCIALNITROGENAPPLIEDPERBUSHELOFCORNPRODUCED PoundsperBushel 1.80 1.60 1980-2006ACTUAL&TRENDTO2030 Actual Trend 1.40 1.20 1.00 0.80 0.60 CornGrowersBecome MoreEfficientWithNitrogen 0.40 0.20 0.00 2030 1980198519901995 2010 2005 2025 2000 2020 2015 Source:Blue,Johnson&Associates,Inc. Source:Blue,Johnson&Assoc.Inc.

12. North Dakota Yield Variability 28% 1975-1995

13. North Dakota Yield Stability 15% 1997-2010

14. YieldEnhancement DroughtTolerance

15. Blender Pumps Distribution Problem – Grand Forks 40,000 / 3,000 FFV / NO ethanol pumps Energy Independence “Brazilian Model” Partnership of western oil fields and eastern corn fields 4 to 20% Volume

16. Blender Pumps Typical Price $25,000 per pump Distributors Discount $9,000 State Grant $5,000 Corn Growers Grant $2,500 Tax Credits (Fed) $4,00030% to 50% $4,500

17. Blender PumpsBlender Pumps