presentation by david kolsrud experienced developer/consultant/farmer national economic gardening...
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PRESENTATION
BY
DAVID KOLSRUD
EXPERIENCED DEVELOPER/CONSULTANT/FARMER
NATIONAL ECONOMIC
GARDENING & RURAL
ENTREPRENEURIAL
GATHERING
PRIMING THE PUMP
IN RURAL AMERICA
The Kolsrud Farm
BUSINESS INVOLVEMENT Manager CORN-er Stone Farmers Co-op
Board Member Badger State Ethanol
Board Member Husker Ag Ethanol
Board Member MinWind
Chairman Valley Springs Farmers Co-op
Founding Board Member MNSP
Coordinated Mid Missouri Ethanol Co-op
Partnering with Mid Atlantic Bio-Diesel
Consulting with numerous other projects
Don’t put all your eggs in one basket
Need to Specialize
Bigger is Better
Better Marketing
Low Cost Producer
Embracing New Technology
RAT RACE
Creative Thinking
Need to be Active Politically
ETHANOL PLANTS
IN
MINNESOTA
Minnesota Model
2 Key Components
1. Markets
Oxygenated Fuel Statute
2. Producer Incentive
20 cents a gallon up to 15 million gallon a year for 10 years
AGRI-Energy Ethanol
Corn Production
Rock County Minnesota
Average Production (95-99) 16,540,760
Feed Usage (5,510,000)
11,030,760
1 Bushel Corn Equals
2.6 Gal. Ethanol 17# DDGS
x $1.20 x3.5¢/lb.
$3.12 59.5¢
$3.12
0.60
$3.72
EXPORT vs EXPORT + PROCESSING
11,030,760 5,030,760 6,000,000
x $1.60 x $1.60 x $3.72
$17,649,216 $8,049,216 $22,320,000
$30,369,216
(17,649,216)
$12,720,000 Additional Cash
$12,720,000 Additional Cash
x 13 Plants
$165,360,000 Additional Cash
(most of which is spent in Minnesota)
HIGHER
CORN PRICES
LOWER
CORN PRICES
HIGHER
GAS PRICES
LOWER
GAS PRICES
ETHANOL BUSINESS CHANGES
COOPERATIVES
LLC’S
PRIVATE PLACEMENT
IPO’S
Minus equals&
EQUITY RAISED %
FINANCING
TAX ISSUES
DISTRIBUTIONS
GOOD
OR
BAD
VS
WHAT ARE THE CHARACTERISTICS
OF A
SUCCESSFUL
PROJECT?
GOALS•1. Local Ownership
•2. Maximize Profitability
•3. Create Economic Development in Rural Areas
•4. Provide Quality Jobs
•5. Research & Utilize available programs & incentives
•6. Be politically active to achieve our goals
•7. Develop a “cookie cutter” model
•8. Maintain Cooperative Principles
Don’t let the
grants/incentives
become the project
“CONCEPTION TO COMPLETION”
SUMMARYMYTH --- Farmers Don’t Have The Money
30 Farmers at $6,500 (cash) each could own a
1.8 Million Dollar Project
HOW?
1. Get Good Advice—Consultants
2. Cooperate
3. Utilize or Create Programs to your benefit
4. Network with other groups
5. Believe in Yourself (nobody’s going to do it for you)
David KolsrudFOR FARMERS,LLC
E-mail:
David@for-farmers.com
Cell Phone:
(507) 920-5348
Website: www.for-farmers.com
(under construction now)
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