Raising American Standards

2006 World of Corn

www.ncga.com

Rick Tolman
Chief Executive Officer NCGA

Gerald Tumbleson
President NCGA

or hundreds of years, corn production has been a source of constant strength for Americaproviding a solid foundation for our nations sustenance, stability, security and success.

Today, the places where corn is grown are much more than farms. They are business enterprisesmanaged by entrepreneurs and innovators who are bringing economic vitality to rural areas and helping shape the future of our nation. In partnership with Americas livestock producers, corn growers provide our nation with nutritious food that is the safest, most abundant and most affordable in the world. Ethanol plants are creating corn-based fuel that increases our domestic energy supplyand loosens the economic stranglehold of our dangerous dependence on imported oil. Renewable corn is replacing scarce petroleum in plastics, chemicals and industrial applicationsfurther enhancing our environment, economy and energy security. Our talent at growing corn is matched only by our ability to do so on fewer acres with even greater environmental stewardship than just a few years ago. Whats truly amazing is that only two percent of Americans are involved in agriculture, but they contribute in some way, everyday, to 100 percent of the nations populationand the economic success of our entire nation. Corn is in the food on your plateand perhaps even in the plate itself. Corn is in the fuel tank of your vehicle and possibly in the comforter on your bed. Its in your soft drink. Its in your windshield wiper fluid. Corn is cleaning up the air. Its cleaning up the water. And someday, corn will be in hydrogen fuel cells and pharmaceuticals. Americas corn producers make a tremendous contribution to our nation that belies their relatively small numbers. Every time America raises its standards for the environment, energy security or economic development, Americas corn producers have delivered. Corn is not only synonymous with American agriculture, it is the very standard by which American agriculture is measured. And, to a great degree, our ability to grow and add value to corn is one reason the United States is the standard by which the world measures itself.

2006 World of Corn

NEW STANDARDS
More than 90 ethanol production facilities are now in operation across the United States, with at least 20 more expected to be in production by the end of 2006. By the end of 2006, U.S. ethanol production capacity will reach approximately 5 billion gallons annuallya 32% increase from just two years ago. A 40-million-gallon ethanol plant creates 42 jobs and $56 million in annual investment. One bushel of corn yields about 2.8 gallons of ethanol. By 2010, U.S. ethanol production could displace the equivalent of 31 1,000 barrels of imported crude oil per daymore than one large oil tanker per week.

www.ncga.com

Raising Economic Standards

Our balance of trade is made better by our ability to grow cornand add value to it right here at home.
very time we can createand add value toour own products, we help close the gap on the U.S. trade deficit.

Corn is doing its partand more. Cornfields are Americas equivalent of the Middle Easts oil fieldsa vast, renewable resource that is transforming the fundamental component in industrial products. Instead of hydrocarbons, were using carbohydrates. Ethanol plants are essentially green bio-factories transforming corn into clean-burning fuel and high-value livestock feed. Now were looking at the next stagethe new generation of co-products from corn and ethanol production such as nutraceuticals, enzymes and pharmaceuticals. These new enterprises will likely spring up where the raw material (corn) is readily available. That means even greater economic activity in rural Americaand the ability for corn producers to invest in value-added industries. That leads to less dependence on government support for agriculture.

With rising oil prices, we have seen a dramatic and accelerated shift toward corn-based plastics such as PLA (polylactic acid). Suddenly, these biodegradable plastics have become even more economically viable compared to petroleumbased versionsto the point at which Wal-Mart has started using PLA clamshell food containers, calling cards and gift cards. Due to strict environmental regulations, Japan is one of the largest global customers for PLA, which is manufactured only in the United States. Nations such as Brazil and Argentina are rapidly becoming major competitors in global commodity agriculture. If the United States is to maintain its leadership roleand the economic benefit that comes with itwe cannot be content with simply growing corn. We must continue to find new and innovative ways to transform it into value-added products that the world is willing to pay for.

2006 World of Corn

NEW STANDARDS
Biotech corn hybrids have enabled American corn producers to reduce the use of pesticides. In 2004, the use of biotech hybrids resulted in a 23.3 million pound reduction in the use of pesticide active ingredients. Thanks to increased efficiencies in both ethanol production and corn production, the net energy balance of ethanol production is now 1.67 to 1. In other words, ethanol production results in 67% more energy than it takes to grow the corn and produce the ethanol. 2005 marked the 10th anniversary of the introduction of the first biotech corn hybrids. In 2005, more than 52 percent of the nations corn acres were planted with biotech hybrids. Wal-Mart plans to use 1 14 million compostable PLA clamshell containers each yearresulting in a reduction of 800,000 gallons of oil and 1 million pounds of 1 greenhouse gas emissions. An Illinois company is developing rugs made from 100 percent PLA. Every 5 x 8 rug will displace one-third of a gallon of oil.

www.ncga.com

Raising Environmental Standards

Creating more value from less land requires even more care and stewardship.
he number of U.S. acres of corn production has dropped by 3 percent since 1980. Yet total annual corn production in the United States has increased by 66 percent in that time. Thats a credit to the resourcefulness of Americas corn producers. Advancements in biotechnology have helped increase corn yields while dramatically reducing the use of pesticides and chemicals. Biotechnology is an environmentally sound way to manage insect pressure on crops without upsetting the natural balance of the ecosystem. By employing scientifically sound practices, corn producers are ensuring that the world enjoys the benefits of the responsible application of biotechnology. American farmers have always been good stewards of the land, since their very livelihood depends on it. U.S. corn producers have integrated no-till practices and created tens of thousands of acres of buffer strips, thousands of miles of windbreaks and applied other conservation techniques to protect the quality of the land and water. Increased pressure on arable acres has raised the bar on stewardship even higherand American corn producers have proven up to the task.

In addition to energy security, one of the great benefits of corn-based ethanol is its powerful and positive effect on Americas air and water quality. Ethanol has helped several major American cities meet federal clean air standards, thanks to the reduction of toxic exhaust emissions and lower greenhouse gas levels. Adding ethanol to gasoline also dilutes the levels of toxic compounds found in gasoline. Additionally, ethanol disperses harmlessly in water, helping to lower the environmental impact of fuel spills. Fuels cells are the next wave of automotive technology. Fuel cells operate on hydrogen, which can be reformed or extracted from fuels such as ethanol. Because ethanol is renewable, is domestically produced and has a relatively simple molecular structure, it is poised to be the hydrogen source of choice for fuel cells.

2006 World of Corn

NEW STANDARDS
The majority of the corn raised by American producers is not grown for human consumption, but fed to livestock, processed into food ingredients or converted into ethanol, bioplastics and other products. In 2005, more than 225 new E85 fueling stations were established in the United States. In 2005, even more flexible fuel vehicle (FFV) models became available, including the Ford F150 pickup. The nations ethanol industry depends on a thriving livestock industry since distillers grains, a co-product of ethanol production, are fed to livestockand create a critical source of revenue for ethanol producers. About 54 percent of the nations corn harvest is used to feed livestock including beef, dairy, pork and poultry.

www.ncga.com

Raising Our Standard of Security

One of Americas greatest strengths is our ability to grow our own food.
eve all felt the pain of having other nations in control of our energy sources. Unreliable supply. High gas prices. Escalating utility costs. Imagine where wed be if we relied on other nations for our food supply in the same way. Thankfully, U.S. corn producers help their fellow Americans enjoy the most abundant, most reliable, most affordable and safest food supply in the world. In fact, the average Americans annual food bill represents only about 9.5 percent of household incomecompared to 53.1 percent in India, 25.7 percent in Italy, 19.1 percent in Japan and 11.5 percent in the United Kingdom. This means that, as a nation, we are able to commit fewer resources to obtaining foodand instead invest in technology, innovation and other advancements that keep America on the leading edge. As individuals, Americans can save more, invest more and enjoy a better standard of living. If America were ever to lose this advantage, we would find ourselves counting on other nations to ensure the safety and availability of our food supply.

Corn is also helping improve our energy security. The Renewable Fuels Standard (RFS) included in the 2005 Energy Bill calls for 7.5 billion gallons of renewable fuels such as ethanol to be in our nations fuel supply by 2012. This is fuel we make from renewable resources right here at home that increases the volume of our domestic fuel supply. And the money we spend on it stays here in America instead of going overseas. The pressure on world oil supplies will only increase as emerging nations such as China and India become major consumers of the worlds resources. The combination of diminishing oil supplies and increased demand means that America simply must continue developing its own sustainable supply of fuel.

U.S. corn producers have assumed the role of helping America wean itself from imported oiland have become a linchpin in our nations strategy to strengthen both our food and energy security.

2006 World of Corn

As you plan the next year, we are researching the next ten.

Monsanto is 100 percent dedicated to the next generation of innovation to delivering the technology that will help you more efciently grow crops as well as your bottom line. At Monsanto, we are entirely committed to agricultures future. And yours.

2006 Monsanto Company. (25181-7 NCGA corn)

Corn Kernel
A closer look at the composition of a kernel of corn.

The endosperm accounts for about 82 percent of the kernels dry weight and is the source of energy (starch) and protein for the germinating seed. Starch is the most widely used part of the kernel and is used as a starch in foodsor as the key component in fuel, sweeteners, bioplastics and other products.

The pericarp is the outer covering that protects the kernel and preserves the nutrient value inside. It resists water and water vaporand is undesirable to insects and microorganisms.

The germ is the only living part of the corn kernel. The germ contains the essential genetic information, enzymes, vitamins and minerals for the kernel to grow into a corn plant. About 25 percent of the germ is corn oilthe most valuable part of the kernel, which is high in polyunsaturated fats and has a mild taste.

The tip cap is the attachment point of the kernel to the cob, through which water and nutrients flowand is the only area of the kernel not covered by the pericarp.

1 1

www.ncga.com

World of Corn - Production

Important statistics regarding the production, processing and progress of corn.
*Charts may not equal 100% due to rounding.

One Bushel of Corn

(56 lbs.) Provides: 31.5 lbs. of starch
OR

U.S. Corn at a Glance, 2005

Acres Planted

U.S. Corn Production by State, 2005

Acres Average Total Acres Harvested Yield Production Planted for Grain
1000s 1000s Bushels/acre 1000 Bushels

81.8 million
Acres Harvested

State Alabama Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Total U.S.

33 lbs. of sweetener
OR

75.1 million
Production

2.8 gal. of fuel ethanol

OR

11.1 billion bushels

Average Yield

22.4 lbs. of PLA fiber/polymer

Plus
13.5 lbs. of gluten feed* 2.6 lbs. of gluten meal**
AND

147.9 bushels per acre

Corn Crop Value

$21.1 billion
Average Price

1.5 lbs. of corn oil

* Gluten feed is 20 percent protein ** Gluten meal is 60 percent protein

$1.90 per bushel

Components of Yellow Dent Corn

Wet Weight

U.S. Select Crop Value, 2005

$21.11

3.8% Corn Oil $16.82

15% Water 19.2% Protein & Fiber 61% Starch $7.09

Shelled Corn: 88% TDN Ear Corn: 78-80% TDN

Soybeans

Sorghum

Wheat

Barley

Corn

Cracked Corn: 90% TDN

Oats

$0.18

$0.52

$0.67

Total Digestible Nutrients (TDN)

220 50 240 540 1,100 28 160 65 270 235 12,100 5,900 12,800 3,650 1,250 340 26 470 20 2,250 7,300 380 3,100 65 8,500 5 15 80 140 990 750 1,410 3,450 290 53 1,350 2 300 4,450 650 2,050 55 95 490 150 45 3,800 80 81,759

200 22 230 110 950 154 28 230 60 11,950 5,770 12,500 3,450 1,180 330 400 2,020 6,850 365 2,970 17 8,250 62 55 460 700 1,200 3,250 250 25 960 285 3,950 595 1,850 12 360 80 28 2,900 49 75,107

119 195 131 172 148 143 94 129 170 143 154 173 135 132 136 135 143 174 129 111 148 154 122 175 124 120 129 143 115 160 122 116 119 130 114 163 118 205 109 148 140

23,800 4,290 30,130 18,920 140,600 22,022 2,632 29,670 10,200 1,708,850 888,580 2,162,500 465,750 155,760 44,880 54,000 288,860 1,191,900 47,085 329,670 2,516 1,270,500 7,564 9,625 57,040 84,000 154,800 464,750 28,750 4,000 117,120 33,060 470,050 77,350 210,900 1,956 42,480 16,400 3,052 429,200 6,860

Billions of Dollars (U.S.)

147.9 11,112,072

Source: USDA, NASS, Crop Production, 2005 Summary, Jan. 2006 USDA, ERS, Outlook Report, Jan. 2006

Source: USDA, NASS, Crop Production 2005 Summary, Jan. 12, 2006

2006 World of Corn

12

U.S. All Crop Acres Harvested, 2005

Thousand Acres

U.S. Average Corn Yields, 1935-2005

160.4 04 11,807 04 **05 $21.11 **05 $1.90 147.9 05 11,112 05

Bushels per Acre

Wheat 16.4%

Corn (grains) 24.5%

35

24.2

45

33.1

55

42.0

Other 4% Sunflower 1% Oats 1% Rice 1% Barley 1% Corn (silage) 2% Sorghum (grain) 2% Cotton 4%

136.9

134.4

133.8

138.2 01 9,503 01 $2.32

127.1

118.0

65

74.1

75

86.4

85

95

113.5

96

97

126.7

98

99

00

02 02 $2.42 03 $24.48 03 8,967

129.3

Soybeans 23.3% Hay 20.1%

Source: USDA, NASS, Crop Production 2005 Summary, Jan. 12, 2006.

U.S. Corn Production, 1935-2005

Corn (grain) 75,107 5,920 Corn (silage) Soybeans 71,361 Hay 61,649 Wheat 50,119 Cotton 13,703 Sorghum (grain) 5,736 Sorghum (silage) 311 Barley 3,269 Rice 3,364 Sunflower 2,610 Oats 1,823 Peanuts 1,629 Dry Edible Beans 1,563 Sugar Beets 1,239 Canola 1,114 Potatoes 1,085 Flaxseed 955 Sugar Cane 923 Dry Edible Peas 766 Proso Millet 515 Lentils 439 Tobacco Rye Safflower Sweet Potatoes Peppermint Oil Mustard Seed Hops Other Total 298 279 160 88 76 45 30 51

9,759

8,875

Million Bushels

306,227

Source: USDA, NASS, Crop Production, 2005 Summary, Jan. 12, 2006

35

2,001

45

2,577

55

2,873

65

4,103

75

5,841

85

95

7,400

96

9,233

97

9,207

98

99

9,431

00

9,915

Source: USDA, NASS, Corn total acreage, Crop Production 2005 Summary, Jan. 12, 2006.

U.S. Corn Acres Planted, 1935-2005

99,974 89,261 83,398 80,932 80,930 79,229 79,537 80,165 79,551 81,759 78,894 78,719 78,603

U.S. Corn Prices, 1955-2005

$3.24 $2.71

77,386

75,702

71,479

$2.54

65,171

Dollars per Bushel (U.S.)

$2.23

$2.43

$1.94

Thousand Acres

$1.35

55

65

$1.16

75

85

95

96

97

98

99

$1.82

00

$1.85

01

$1.97

02

Source: USDA, NASS, Crop Production 2005 Summary, Jan. 12, 2006.

Source: USDA, NASS, ERS, Feed Outlook, Jan. 2006 * Estimates for marketing year ending Aug. 31, 2005 ** Projections for marketing year ending Aug. 31, 2006

U.S. Corn Acres Harvested, 1935-2005

82,551 77,928 75,209 73,632 72,671 72,589 72,644 72,440 75,107 70,487 68,462 67,625 65,210 68,768 69,330 70,944

U.S. Corn Crop Value, 1955-2005

$24.20 $25.15 $24.32 *04

$22.35

55,392

$19.52

$18.92

Billions of Dollars (U.S.)

Thousand Acres

35

45

55

65

75

85

95

96

97

98

99

00

01

02

03

04

05

55

$3.85

65

$4.75

75

$14.82

85

95

96

97

98

99

$17.10

00

$18.50

01

$18.88

Source: USDA, NASS, Crop Production 2005 Summary, Jan. 12, 2006.

* Estimates for marketing year ending Aug. 31, 2005 ** Source: USDA, ERS, Feed Outlook, Jan. 2006 Projections for marketing year ending Aug. 31, 2006

13

www.ncga.com

02

$20.88

*04

35

45

55

65

75

85

95

96

97

98

99

00

01

02

03

04

05

$2.06

03

10,089

03

142.2

World Corn Production, 2005-06*

Others 15% South Africa 1% Romania 1% Canada 1% India 2% Argentina 2% Mexico 3% Brazil 6%
Million Bushels United States China EU Brazil Mexico Argentina India Canada Romania South Africa Others Total

U.S. 41%

EU 7%

China 20%

11,112 5,275 1,869 1,673 807 661 531 373 354 295 3,957 26,908

*Estimates based on USDA, FAS Attachee reports Source: USDA/Foreign Agriculture Service, Grain: World Markets and Trade, Jan. 13, 2006

World Corn Exports, 2005-06*

Others 3% Romania 1% Brazil 2% S. Africa 2% Ukraine 3% China 8%

Top World Corn Importers, 2005-06*

Canada 2% Colombia 3% Iran 3% Malaysia 3% EU 4% Taiwan 6% Egypt 7% Other 32%

Argentina 17%

U.S. 63%

Mexico 9%

South Korea 11%

Japan 22%

Million Bushels United States Argentina China Ukraine South Africa Brazil

1,870 492 236 91 59 59

Romania EU Paraguay Thailand Others Total

31 24 16 10 79 2,966

Million Bushels Japan South Korea Mexico Egypt Taiwan EU

650 331 264 209 181 118

Malaysia Iran Columbia Canada Others Total

98 91 87 59 939 2,966

*October Through September Marketing Year Source: USDA/Foreign Agriculture Service, Grain: World Markets and Trade, Jan. 13, 2006

*October through September marketing year Source: USDA/Foreign Agriculture Service, Grain: World Markets and Trade, Jan. 13, 2006

World Corn Consumption, 2005-2006*

Total = 26,988 5,275 8,960

Leading U.S. Corn Export Markets (Since 2002)

2002-03 Japan Mexico Taiwan Egypt Canada South Korea Colombia Syria Algeria Dominican Rep Other Total 566 206 160 106 154 11 63 20 35 37 224 1,582 2003-04 575 224 187 126 80 144 70 31 50 32 382 1,900 2004-05 610 231 171 152 93 83 80 51 40 39 264 1,814

Million Bushels

1,118

1,575

1,992

5,666

Egypt

India

China

Japan

Mexico

Brazil

Romania

Canada

U.S.

*October through September marketing year. Source: USDA/Foreign Agriculture Service, Grain: World Markets and Trade, January 2006

Others

Million Bushels

370

433

445

528

654

EU

2006 World of Corn

14

Corn Consumption
U.S. Corn Usage by Segment, 2005
HFCS 4.9% Other 8%
Million Bushels

Starch Usage, 1985-2005

278 222 04 285

251

248

219

Ethanol 14.6% Feed/Residual 55.5%

170

219

229

234

240

246

256

272

Export 17.1%

*Marketing Year Ending Aug. 31, 2006 Source: USDA, ERS, Feed Outlook, January 2006

Total Use

10,810

*Marketing year ending Aug 31, 06 Source: USDA, ERS, Feed Outlook, Jan 17, 2006

Million Bushels

Million Bushels Feed/Residual 6,000 Export 1,850 Food, Seed, Industrial Ethanol 1,575 HFCS 535 Starch 285 Sweeteners 220 Cereal/Other 190 Alcohol 135 Seed 20

Sweetener Usage, 1985-2005

237 246 245

228

222

219

218

169

200

217

219

Food, Seed & Industrial (FSI) Usage, 1985-2005

2,537 2,686 2,960

*Marketing Year Ending Aug. 31, 2006 Source: USDA, ERS, Feed Outlook, January 2006

2,340

1,782

1,846

1,913

1,957

2,046

U.S. Corn Usage by Segment, 1992-2005

Million Bushels

1,612

1,692

Million Bushels

1,153

1,425

7000 6000 5000 4000 3000 2000 1000 92 93 94 95 96 97 98 99 00 01 02 03

04 1,814
Exports Food, Seed & Industrial Feed & Residual

85

90

95

96

97

98

99

00

01

02

03

04

*Marketing year ending Aug. 31, 2006 Source: USDA, ERS, Feed Outlook, January 2006

*05

04
05 1,850

High-Fructose Corn Syrup Usage, 1985-2005

*Marketing Year Ending Aug. 31, 2006

Source: USDA, ERS, Feed Outlook, Jan. 2006

540

541

531

532

532

530

530

482

504

521

535

U.S. Corn Exports, 1990-2005

2,229 1,979

379

1,937

1,941

327

1,726

1,794

1,905

Million Bushels

*05

85

90

95

96

97

98

99

00

01

02

03

04

Million Bushels

90

95

96

97

1,503

98

99

00

01

02

1,588

*Marketing Year Ending Aug. 31, 2006 Source: USDA, ERS, Feed Outlook, January 2006

Source: USDA, ERS, Feed Outlook, Jan. 17, 2006

15

www.ncga.com

03

1,900

*05

*05

85

90

95

96

97

98

99

00

01

02

03

04

220

*05

85

90

95

96

97

98

99

00

01

02

03

U.S. Fuel Ethanol Production, 1985-2005

3,900

Corn Used for Ethanol Production, 1985-2005

1,168 1,323 04 1,575 *05

3,400

2,130

2,800

Millions of Gallons

1,630

1,770

1,400

1,300

1,400

1,470

Million Bushels

1,100

900

610

*05

85

90

95

96

97

98

99

00

01

02

03

04

85

271

90

349

95

396

96

429

97

481

98

526

99

566

00

628

01

706 02

996
*Marketing Year Ending Aug. 31, 2006 Source: USDA, ERS, Feed Outlook, January 2006

*Estimate for Calendar Year 2005 Source: Renewable Fuels Association

U.S.Ethanol Fuel Production Facilities, 2005

COMPANY [capacity - million gal/yr]
Abengoa Bioenergy Corp. [110]

LOCATION

FEEDSTOCK

COMPANY [capacity - million gal/yr]

Iowa Ethanol, LLC* [50] James Valley Ethanol, LLC [50] KAAPA Ethanol, LLC* [40] Land O' Lakes* [2.6] Lincolnland Agri-Energy, LLC* [40] Liquid Resources of Ohio [3] Little Sioux Corn Processors, LP* [52] Merrick/Coors [1.5] +1.5 MGP Ingredients, Inc. [78] Michigan Ethanol, LLC [50] Mid-Missouri Energy, Inc.* [40] Midwest Grain Processors* [50] +45 Midwest Renewable Energy, LLC [17.5] +4.5 Minnesota Energy* [18] New Energy Corp. [102] North Country Ethanol, LLC* [18] Northeast Missouri Grain, LLC* [45] Northern Lights Ethanol, LLC* [50] Northstar Ethanol, LLC [52] Otter Creek Ethanol, LLC* [55] Parallel Products [5.4] Permeate Refining [1.5] Phoenix Biofuels [25] Pine Lake Corn Processors,LLC* [20] Platte Valley Fuel Ethanol, LLC [40] Pro-Corn, LLC* [42] Quad-County Corn Processors* [27] Reeve Agri-Energy [12] Siouxland Energy & Livestock Coop* [25] Sioux River Ethanol, LLC* [55] Sterling Ethanol, LLC [42] Tall Corn Ethanol, LLC* [49] Tate & Lyle [67] Trenton Agri Products, LLC [35] +10 United WI Grain Producers, LLC* [49] U.S. Energy Partners, LLC [48] Utica Energy, LLC [48] VeraSun Energy Corporation [230] Voyager Ethanol, LLC* [52] Western Plains Energy, LLC* [45] Wind Gap Farms [0.4] Wyoming Ethanol [5] Xethanol BioFuels, LLC [5]

LOCATION

FEEDSTOCK

COMPANY [capacity - million gal/yr]

Bushmills Ethanol, Inc. [40] Central Indiana Ethanol [40] Cornhusker Energy Lexington, LLC [40] E3 Biofuels [24] Frontier Ethanol, LLC [60] Front Range Energy, LLC [40] Green Plains Renewable Energy [50] Hawkeye Renewables, LLC [100] Horizon Ethanol, LLC [60] Heron Lake BioEnergy, LLC [50] Illinois River Energy, LLC [50] Iroquois Bio-Energy Company, LLC [40] Lincolnway Energy, LLC [50] Mid America Agri Products/Wheatland [44] Midwest Grain Processors, LLC [57] Missouri Ethanol, LLC [45] Panhandle Energies of Dumas, LP [30] Prairie Ethanol, LLC [60] Prairie Horizon Agri-Energy, LLC [40] Red Trail Energy, LLC [50] Redfield Energy [50] Siouxland Ethanol [50] The Andersons [55] US BioEnergy Corp. [100] US BioEnergy Corp. [45] Val-E Ethanol, LLC [45] Western Wisconson Renewable Energy, LLC [40]

03

LOCATION

FEEDSTOCK

ACE Ethanol, LLC [39] Adkins Energy, LLC* [40] AGP* [52] Agra Resources Coop. d.b.a. EXOL* [40] +8 Agri-Energy, LLC* [21] Alchem Ltd. LLLP [10.5] Al-Corn Clean Fuel* [35] Amaizing Energy, LLC* [40] Archer Daniels Midland [1070]

Aventine Renewable Energy, Inc. [150] +57 Badger State Ethanol, LLC* [48] Big River Resources, LLC* [40] Broin Enterprises, Inc. [9] Bushmills Ethanol, Inc.* [40] Cargill, Inc. [120] Central MN Ethanol Coop* [21.5] Central Wisconsin Alcohol [4] Chief Ethanol [62] Chippewa Valley Ethanol Co.* [45] Commonwealth Agri-Energy, LLC* [24] +9 Corn, LP* [50] Corn Plus, LLP* [44] Dakota Ethanol, LLC* [50] DENCO, LLC* [21.5] East Kansas Agri-Energy, LLC* [35] ESE Alcohol Inc. [1.5] Ethanol2000, LLP* [32] Glacial Lakes Energy, LLC* [50] Golden Cheese Company of California* [5] Golden Grain Energy, LLC* [40] Golden Triangle Energy, LLC* [20] Grain Processing Corp. [20] Granite Falls Energy, LLC [45] Great Plains Ethanol, LLC* [50] +50 Hawkeye Renewables, LLC [50] Heartland Corn Products* [36] Heartland Grain Fuels, LP* [21] +18 Husker Ag, LLC* [26.5]
Source: Renewable Fuels Association, Jan. 2006

York, NE CM Colwich, KS CM Portales, NM CM Stanley, WI C Lena, IL C Hastings, NE C Albert Lea, MN C Luverne, MN C Grafton, ND C Claremont, MN C Denison, IA C Decatur, IL C Cedar Rapids, IA C Clinton, IA C Columbus, NE C Marshall, MN C Peoria, IL C Wallhalla, ND CB Pekin, IL C Aurora, NE C Monroe, WI C West Burlington, IA C Scotland, SD C Atwater, MN C Blair, NE C Eddyville, IA C Little Falls, MN C Plover, WI SC Hastings, NE C Benson, MN C Hopkinsville, KY C Goldfield, IA C Winnebago, MN C Wentworth, SD C Morris, MN C Garnett, KS C Leoti, KS SC Bingham Lake, MN C Watertown, SD C Corona, CA CW Mason City, IA C Craig, MO C Muscatine, IA C Granite Falls, MN C Chancellor, SD C Iowa Falls, IA C Winthrop, MN C Aberdeen, SD C Huron, SD C Plainview, NE C

Hanlontown, IA C Groton, SD C Minden, NE C Melrose, MN CW Palestine, IL C Medina, OH WB Marcus, IA C Golden, CO WB Pekin, IL CW Atchison, KS Caro, MI C Malta Bend, MO CW Lakota, IA C Sutherland, NE C Buffalo Lake, MN C South Bend, IN C Rosholt, SD C Macon, MO C Big Stone City, SD C Lake Crystal, MN C Ashton, IA C Louisville, KY WB R. Cucamonga, CA Hopkinton, IA SS Goshen, CA C Steamboat Rock, IA C Central City, NE C Preston, MN C Galva, IA C Garden City, KS CM Sioux Center, IA C Hudson, SD C Sterling, CO C Coon Rapids, IA C Loudon, TN C Trenton, NE C Friesland, WI C Russell, KS M Oshkosh, WI C Aurora, SD C Ft. Dodge, IA C Emmetsburg, IA C Campus, KS C Baconton, GA BW Torrington, WY C Blairstown, IA C

Atwater, MN C Marion, IN C Lexington, NE C Mead, NE C Gowrie, IA C Windsor, CO C Shenandoah, IA C Fairbank, IA C Jewell, IA C Heron Lake, MN C Rochelle, IL C Rensselaer, IN C Nevada, IA C Madrid, NE C Riga, MI C Laddonia, MO C Dumas, TX C/GS Loomis, SD C Phillipsburg, KS C Richardton, ND C Redfield, SD C Jackson, NE C Albion, MI C Albert City, IA C Lake Odessa, MI C Ord, NE C Boyceville, WI C

C CM CB C/GS SC M CW WB SS

= = = = = = = = =

Corn Corn/Milo Corn/Barley Corn/Grain Sorghum Seed Corn Milo Cheese Whey Waste Beverage Sugars & Starches

* Farmer Owned + Expansions (mmgy)

Under Construction Abengoa Bioenergy of Ravenna [88] Advanced Bioenergy [100]

Ravenna, NE Fairmont, NE

C C

2006 World of Corn

16

Biotech Share of U.S. Corn Acres Planted, 2005

Thousand Acres

Percentage of Biotech Acreage, 2003-05

Bt State IL IN IA KS MI MN MO NE OH SD WI Others U.S. 03 04 05 23 8 33 25 18 31 32 36 6 34 21 17 26 11 36 25 15 35 32 41 8 28 22 19 25 11 35 23 15 33 37 39 9 30 22 20 Herbicide Tolerant 03 04 05 4 7 8 17 14 15 9 11 3 24 9 17 5 8 10 24 14 17 13 13 4 30 14 21 6 11 14 30 20 22 12 18 7 31 18 25 Stacked Traits 03 04 05 1 2 5 1 2 4 4 8 11 5 5 10 3 4 5 7 11 11 1 4 6 5 6 12 1 2 17 21 22 2 2 6 2 6 7 4 6 9 All Biotech Hybrids 03 04 05 28 16 45 47 35 53 42 52 9 75 32 36 33 21 54 54 33 63 49 60 13 79 38 46 36 26 60 63 40 66 55 69 18 83 46 52

Bt 26% Non-Biotech 48%

Million Bushels

Herbicide Tolerant 17% Stacked Traits 9%

25 27 26

11 14 17

40 47 52

Source: USDA, NASS, Acreage Report, June 30, 2005

Non-Biotech Bt Herbicide Tolerant Stacked Traits Total

39,244 21,257 13,899 7,358 81,758

Source: USDA, NASS, Acreage Report, June 30, 2005

Organizations that Support the Corn Industry

NCGA National Corn Growers Association 632 Cepi Drive, Chesterfield, MO 63005 P: 636-733-9004 F: 636-733-9005 Mimi Ricketts, Director of Marketing Communications, Ext. 1 12 www.ncga.com NCGA Washington, DC Office 122 C St. NW, #510 Washington, DC 20001-2109 P: 202-628-7001 F: 202-628-1933 Jon Doggett, VP, Public Policy Commodity Classic P: 636-677-4157 E: srsi@swbell.net Peggy Findley Commodity Classic Show Director CORN PROCESSING Corn Refiners Association 1701 Pennsylvania Avenue NW, Ste. 950 Washington, DC 22203 P: 202-331-1634 F: 202-331-2054 E: info@corn.org Audrae Erickson, President North American Millers Association 600 Maryland Ave. SW, #450 East Washington, DC 20024 P: 202-484-2200 F: 202-488-7416 E: generalinfo@namamillers.org Betsy Faga, President www.namamillers.org CORN INPUT American Seed Trade Association 225 Reinekers Lane, Ste. #650 Alexandria, VA 22314 P: 703-837-8140 F: 703-837-9365 Leslie Cahill, Communications Manager www.amseed.com CropLife America 1 15th St. NW #400 156 Washington, DC 20005 P: 202-296-1585 F: 202-463-0474 Allan Noe, Dir. of Communications E: anoe@croplifeamerica.org www.croplifeamerica.org The Fertilizer Institute Union Center Plaza 820 First Street NE #430 Washington, DC 20002 P: 202-962-0490 F: 202-962-0577 Harriet Wegmeyer, Dir. of Communications E: hwegmeyer@tfi.org www.tfi.org EXPORTS U.S. Grains Council 1400 K Street, NW, #1200 Washington, DC 20005 P: 202-789-0789 F: 202-898-0522 E: grains@grains.org Cheri Johnson, Communications Manager www.grains.org FOOD AND SNACK CORN Florida Fruit & Vegetable Association P.O. Box 948153, Maitland, Florida 32794 P. 321-214-5200 F: 321-214-0210 E: information@ffva.com Danny Raulerson, Marketing Manager E: dannyraulerson@ffva.com Popcorn Board 401 N Michigan Ave, Chicago, IL 6061 1-4267 P: 312-644-6610 F: 312-321-5150 Genny Bertalmio, Marketing Manager E: gbertalmio@smithbucklin.com Snack Food Association 171 King Street, Ste. #1 1 Alexandria, VA 22314 P: 703-836-4500 (ext. 204) F: 703-836-8262 E: cclark@sfa.org Christopher Clark, VP of Operations www.sfa.org Cereal Quality Lab, Texas A & M Soil & Crop Science Department 2474 TAMUS, College Stn, TX 77843-2474 P: 979-845-2925 F: 979-845-0456 Lloyd Rooney, Prof of Food Sci & Tech E: lrooney@tamu.edu CORN FUTURES Chicago Board of Trade Communications Department 141 W. Jackson Blvd., Chicago, IL 60604 P: 312-435-3620 F: 312-341-3306 Marie Gemskie, Managing Dir. of Comm. E: Mgemskie1@cbot.com RENEWABLE FUELS Renewable Fuels Association One Massachusetts Ave, NW #820 Washington, DC 20001 P: 202-289-3835 F: 202-289-7519 Matt Hartwig, Dir. of Communications mhartwig@ethanolrfa.org www.ethanolrfa.org LIVESTOCK AND FEED American Feed Industry Association 1501 Wilson Blvd., #1 100 Arlington, VA 22209 P: 703-524-0810 F: 703-524-1921 Rex Runyon, VP of PR E: rrunyon@afia.org www.afia.org National Cattlemens Beef Association 91 E. Nichols Ave., Centennial, CO 801 10 12 P: 303-694-0305 F: 303-694-2851 Kendall Frazier, VP of Public Opinion www.beef.org National Grain & Feed Association 1250 Eye St. NW, #1003 Washington, DC 20005 P: 202-289-0873 F: 202-289-5388 Randy Gordon, VP of Communications & Government Relations www.ngfa.org National Pork Board 1776 NW 1 14th St., Clive, Iowa 50325 P: 515-223-2600 F: 515-223-2646 Jeff Hartz, Director, Marketing/Communications E: jhartz@pork.org www.pork.org US Poultry & Egg Association 1530 Cooledge Road Tucker, GA 30084-7303 P: 770-493-9401 F: 770-493-9257 Sylvia Small, VP of Communications E: ssmall@poultryegg.org www.poultryegg.org National Pork Producers Council 122 C Street NW, Suite #875 Washington, DC 20001 P: 202-347-3600 F: 202-347-5265 Dave Warner, Dir. of Communications E: warnerd@nppc.org www.nppc.org Alabama Soybean and Corn Association P.O. Box 1069 Madison AL 35758 256-325-3693 256-325-3369 (F) Mark Hall, Executive Director m53hall@yahoo.com Colorado Corn Growers Association Colorado Corn Administrative Committee 127 22nd Street Greeley CO 80631 (970) 351-8201 (970) 351-8203 (F) John Cevette, CEO jcevette@coloradocorn.com info@coloradocorn.com www.coloradocorn.com Georgia Corn Growers Association c/o Dewey Lee PO Box 1209 Tifton GA 31793 (229) 386-3006 (229) 386-7308 (F) Dewey Lee, State Executive Coordinator deweylee@uga.edu Georgia Agricultural Commodity Commission 328 Agricultural Building Capitol Square Atlanta GA 30334 (404) 656-3678 (404) 656-9380 (F) Illinois Corn Growers Association PO Box 1623 Bloomington IL 61702-1623 (309) 557-3257 (309) 827-0916 (F) Rodney Weinzierl, Executive Director weinzierl@ilcorn.org ilcorn@ilcorn.org www.ilcorn.org Illinois Corn Marketing Board PO Box 487 Bloomington IL 61702-0487 (309) 827-0912 (309) 827-0916 (F) Rodney Weinzierl, Executive Director weinzierl@ilcorn.org

17

www.ncga.com

U.S. Corn Fed by Animal Group, 1992-2005

Million Bushels

U.S. Meat Exports by Animal Group, 1992-2005

Thousand Metric Tons

2000 1500 1000 500 92 93 94 95 96 97 98

Pork Dairy Other Beef Poultry

3000 2500 2000 1500 1000 500 92 93 94 95 96 97 98 99 00

Pork Beef Poultry

01

02

03

04

*05

*Marketing Year Ending Aug. 31, 2006

Source: ProExporter Network (PRX)

*Marketing Year Ending Aug. 31, 2006

Source: ProExporter Network (PRX)

U.S. Corn Fed by Region, 1992-2005

Million Bushels*

U.S. Corn Ending Stocks, 1935-2005

4,040

3000
Non-Corn Belt

1,787

1,718

1,899

Million Bushels

1,165

842

400

1500 92 93 94 95 96 97 98 99 00 01 02 03 04 **05

172

172

426

883

958

2000

1,087

Corn Belt

1,308

1,596

2,114 02 03

*Based on PRX calculations of feed usage with residual usage removed. **Marketing Year Ending Aug. 31, 2006 Source: ProExporter Network (PRX)

* ProExporter Network estimates the equivalent of 158, 253, 329, and 342 million bushels of corn fed to livestock was displaced by DDG, in the 02-03, 03-04, 04-05, and 05-06 crop years, respectively.

*Estimates for crop year ending Aug. 31, 2006 Source: USDA/NASS

Indiana Corn Growers Association Indiana Corn Marketing Council 5757 W 74th St Indianapolis IN 46278 (800) 735-0195 (317) 347-3626 (F) Chris Novak, Executive Director cnovak@indianacorn.org www.incorn.org Iowa Corn Growers Association Iowa Corn Promotion Board 5505 NW 88th Street Suite 100 Johnston IA 50131-2948 (515) 225-9242 (515) 225-0781 (F) Craig Floss, Chief Executive Officer corninfo@iowacorn.org www.iowacorn.org Kansas Corn Growers Association Kansas Corn Commission PO Box 446 Garnett KS 66032 (785) 448-6922 (785) 448-6932 (F) Jere White, Executive Director jwhite@ksgrains.com www.ksgrains.com/corn Kentucky Corn Growers Association Kentucky Corn Promotion Council PO Box 90 Eastwood KY 40018 (502) 243-4150 (800) 326-0906 (502) 243-4149 (F) Todd Barlow, Executive Director barl6145@bellsouth.net info@kycorn.org www.kycorn.org Louisiana Soybean and Grain Research and Promotion Board PO Box 95004 Baton Rouge LA 70895-9004 (225) 922-6200 (225) 922-6229 (F) Kyle McCann, State Checkoff Manager kylem@lfbf.org Maryland Grain Producers Association Maryland Grain Producers Utilization Board 53 Slama Road Edgewater MD 21037 (410) 956-5771 (410) 956-0161 (F) Lynne Hoot, Executive Director lynnehoot@aol.com mgp@marylandgrain.com www.marylandgrain.com

Michigan Corn Growers Association Corn Marketing Program of Michigan 12800 Escanaba Drive Suite B DeWitt MI 48820 (517) 668-CORN (2676) (517) 668-2670 (F) Jody Pollok, Executive Director jpollok@micorn.org corninfo@micorn.org www.micorn.org Minnesota Corn Growers Association Minnesota Corn Research and Promotion Council 738 First Avenue East Shakopee MN 55379 (952) 233-0333 (952) 233-0420 (F) Bruce Stockman, Executive Director stockman@mncorn.org info@mncorn.org www.mncorn.org Mississippi Corn Growers Association PO Box 9555 Mississippi State MS 39762 (662) 325-231 (662) 325-8742 (F) Dr. Erick Larson elarson@pss.msstate.edu Missouri Corn Growers Association Missouri Corn Merchandising Council 31 Emerald Lane Jefferson City MO 65109 18 (573) 893-4181 (573) 893-4612 (F) Gary Marshall, CEO gmarshall@mocorn.org mcga@mocorn.org www.mocorn.org Nebraska Corn Growers Association 1327 H Street #305 Lincoln NE 68508 (402) 438-6459 (888) 267-6479 (402) 438-7241 (F) Scott Merritt, Executive Director scottmerritt65@aol.com necga1@cs.com www.necga.org Nebraska Corn Development, Utilization and Marketing Board PO Box 95107 Lincoln NE 68509-5107 (402) 471-2676 (800) 632-6761 (402) 471-3345 (F) Don Hutchens, Executive Director D.hutchens@necorn.state.ne.us www.nebraskacorn.org

New York Corn Growers Association 2269 DeWindt Road Newark NY 14513 (315) 331-7791 (315) 331-1294 (F) Ann Peck, Executive Secretary ny.corn@starband.net www.nycorn.org Corn Growers Association of North Carolina Inc 7520-102 Leadmine Road Raleigh NC 27615 (919) 844-71 (919) 844-7260 (F) 16 Joyce Woodhouse, Executive Secretary jwoodhouse@earthlink.net North Dakota Corn Growers Association North Dakota Corn Utilization Council 1325 23rd Street South Fargo ND 58103 (701) 239-7259 (701) 298-7810 (F) Jocie Iszler, Executive Director ndcorn@state.nd.us www.ndcorn.com Ohio Corn Growers Association Ohio Corn Marketing Program 1 East Center Street Marion OH 43302 100 (OCGA)(740) 383-2676 (OCMP) (740) 3820483 (740) 387-0144 (F) Dwayne Siekman, Executive Director dsiekman@ohiocorn.org www.ohiocorn.org Oklahoma Corn Growers Association c/o Raylon Earls 6205 Park Lane Guymon OK 73942 (580) 338-1568 (P) (F) Pennsylvania Corn Growers Association PO Box 304 State College PA 16804 (814) 863-1018 (814) 863-7043 (F) Greg Roth, Executive Secretary info@pacorngrowers.org www.pacorngrowers.org South Carolina Corn and Soybean Association PO Box 1 1280 Columbia SC 2921 1 (803) 734-1767 (803) 734 -9808 (F) Aaron Wood, Executive Director www.scsoybeans.org

South Dakota Corn Growers Association South Dakota Corn Utilization Council 3801 S Western Suite 100 Sioux Falls SD 57105 (605) 334-0100 (605) 334-0505 (F) Lisa Richardson, Executive Director lisal@sdcorn.org www.sdcorn.org Tennessee Corn Growers Association 510 West Black Lane Obion TN 38240-3804 (731) 536-6226 Polk Glover, Secretary/Treasurer polk@ken-tennwireless.com www.tncorn.org Corn Producers Association of Texas Texas Corn Producers Board 4205 N Interstate 27 Lubbock TX 79403 (806) 763-2676 (806) 762-2674 (F) David Gibson, Executive Vice President (CPAT) David Gibson, Executive Director (TCPB) dgibson@texascorn.org tcpb@texascorn.org www.texascorn.org Virginia Corn Growers Association PO Box 603 West Point VA 23181 (804) 843-4456 (804) 843-3629 Ellen Davis, Executive Director eded@inna.net www.vacorn.org Virginia Corn Board Virginia Department of Agriculture & Consumer Services 102 Governors Street, Room 319 Richmond VA 23219 (804) 371-6157 (804) 371-7786 (F) Phil Hickman, Program Director phickman@vdacs.state.va.us Wisconsin Corn Growers Association (WCGA) Wisconsin Corn Promotion Board (WCPB) W1360 Highway 106 Palmyra WI 53156 (262) 495-2232 (262) 495-3178 (F) Robert Oleson, Executive Director wicorn@idcnet.com

2006 World of Corn

18

*05

35

45

55

65

75

85

95

96

97

98

99

00

01

04

2,426

2500

*05

99

00

01

02

03

04

Helping the nations corn producers set new standards.

State Checkoffs State Associations Both

The National Corn Growers Association (NCGA) is the largest national nonprofit organization representing the interests of U.S. corn growers. Through the checkoff investments of corn producers nationwide and the commitment of dedicated grower leaders, NCGA is redefining the role of corn in the worlds future through research, market development, public policy, production and education. You can join nearly 33,000 corn growers involved in NCGA by connecting with one of the 26 state corn organizations across the nation. With your help, we can continue the remarkable achievements of Americas corn industryand reenergize the future for U.S. corn growers.

Visit www.ncga.com for more details and updates on the corn industry. National Headquarters 632 Cepi Drive Chesterfield, MO 63005 636.733.9004 Washington, DC Office 122 C St. NW, #510 Washington, DC 20001 202.628.7001

2006 National Corn Growers Association