Ness

Minnesota Ethanol Industry : 

Minnesota Ethanol Industry Representative Bob Ness Chairman, Agriculture & Rural Development Finance Committee

Minnesota’s Production : 

Minnesota’s Production 1st in turkey production and processing 1st in oats, sugar beets, and green peas for processing 2nd in spring wheat, canola, wild rice, and sweet corn processing 3rd in hogs 3rd in soybeans, flaxseed 4th in edible beans, hay, and corn production Ranking within the US

Minnesota’s Production : 

Minnesota’s Production 5th in dairy cows, and milk production 5th in sunflowers, and barley 7th in potatoes, and red meat production 9th in egg production 10th in poultry 7th in overall cash-receipts Ranking within the US

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Ethanol Plants

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U.S. Ethanol Industry Growth

Minnesota’s Ethanol Industry: 

Minnesota’s Ethanol Industry 14 Ethanol Plants 1 Dairy Whey Plant 1 Corn Wet Mill 12 Corn Dry Mill Plants Utilizes 160 Million Bushels of Corn / Year 20% of the state’s (800 mm bu) average corn crop

Minnesota’s Ethanol Industry: 

Minnesota’s Ethanol Industry 300 Million Gallons of Ethanol Production 640,000 Tons DDG (dry mills) 350,000 Tons Gluten (wet mill)

Dry-Milling Average : 

Dry-Milling Average Ethanol 2.8 gallons DDGS 18 lbs Yield Per Bushel

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Feeding Livestock DDGs

Tons of Regional DDG Production Projected: Year 2000 -vs- 2002: 

Tons of Regional DDG Production Projected: Year 2000 -vs- 2002 State 2000 2002 Minnesota 640,000 1,050,000 Iowa 70,000 630,000 S. Dakota 90,000 520,000 TOTAL 920,000 2,200,000

DDG in Context: 

DDG in Context US Primary Feed Market 119 million tons Commercial feed sales Total Distillers Grain is 3-4 million tons 3% of “Primary Feed Market” DDG Competes with Corn and Oil Seed Meal

Increasing Demand for Alternative Fuels : 

Increasing Demand for Alternative Fuels U S Crude Oil Production vs Imports Production Imports Source: Energy Information Administration

Summary:: 

Summary: Growth in Ethanol Industry Will Continue 14 Plants over 300 Million Gallons in Minnesota Minnesota Plants are Developing Side-Streams Other States Following “MN Model” Farmer Owned New Generation Cooperatives Rural Economic Development is Critical State & Federal Tax Incentives Clean Water and Clean Air Act Value-Added Crop and Livestock Alternatives

What About Bio-diesel?: 

What About Bio-diesel? MN 2001 Legislature Bio-diesel Bill 16 million gallons of plant oil or animal fat at a 2% blend 2% of State Diesel Fuel to be Bio-diesel 3% of state soybean crop 7.4 mm Bu or (100,000 tons of meal) 5% of State Diesel by 2005 7% of state soybean crop 15 mm Bu. or (200,000 tons of meal)?

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Come visit us in Minnesota!