Corn Growers Making Headway in Alternative Energy

Ken McCauleyNational Corn Growers Association

PresidentOctober 2, 2006

Ken McCauley, NCGA PresidentFarms 3,500 acres corn & soybeans with his wife Mary and son Brad

Leadership positions:• NCGA Corn Board Member• NCGA Ethanol Committee vice chair • NCGA Research and Development Action Team• NCGA Finance Committee• Corn Board Liaison to the Biotechnology Working Group• Kansas Corn Commission

About NCGA

• Federation of grower associations and checkoff organizations in 26 states

• Membership of nearly 33,000 dues-paying farmers

• Represent nearly 300,000 farmers who contribute to state corn checkoff

NCGA’s Mission

“To Create and Increase Opportunities for Corn

Growers”

NCGA’s Key

Priorities Natural Gas

Research &

Development

Ethanol

Trade

Rural Development

Farm Policy

Transportation

Biotechnology

Key Issues

December 2002

In operation (66) 2.71 bgy

Under construction (11) .48 bgy

Ethanol Industry Production

• 316,000 barrels per day (b/d)

• 2006 production will likely exceed 5 billion gallons

AS OF: June 2006

In operation (102) 4.75 bgy

Construction (32) 2.03 bgy

Proposed (127) 8.21 bgy

Food and Fuel

How Much Ethanol Can Come From Corn?

• Increasing corn yields• Incremental acreage shifts• Demand for non-ethanol corn use is flat• DDGs will increasingly displace corn in feed

rations• Improved ethanol efficiency

Corn Growers are Producing Food AND Fuel

• Steadily increasing demand for corn is being met with a steadily increasing supply

• There is plenty of corn available for all uses• In addition to fuel, the ethanol process yields

high-quality livestock feed and food products

Corn Growers Are Producing Food and Fuel

• Corn demand for ethanol has little or no impact on food prices

• Larger supplies of corn will ensure continued availability of affordable corn

• Increased production will allow corn growers to satisfy both domestic and export demand

“15 x 15 x 15”

• 15 billion bushel corn crop

• 15 billion gallons of ethanol

• …by 2015

NCGA’s Vision

Ex: 80 m. ac.

188 bu./acre

~10% of gasoline mkt.

~5 billion bu. demand

9 Years for Infrastructure Development

Dozens of Yield-Acreage Combos

get us there

Summary: Lots of Things to Fear…..

Bird Flu Hits Trailer Park……

Running out of corn is not one of them……

Making a Difference!

Thank You!For more information visit

www.ncga.com