Ethanol Adding Value to Iowas Economy

1
Ethanol Adding Value to Iowas Economy

• Lucy Norton
• Director of Marketing
• Iowa Corn Promotion Board

2
What Is Value-Added?

• Processing commodities into higher value products
• Seeking regional and national markets
• Economic Viability
• Function of Need

3
Ethanol

• Iowa 2nd largest ethanol-producing state
• 6 existing plants
• 510 million gallons
• 200 million bushels (approximately)

4
Ethanol Production

• Archer Daniels Midland Clinton Cedar Rapids
• Cargill Eddyville
• Sunrise Energy Blairstown
• Tall Corn Ethanol Coon Rapids
• Siouxland Energy Livestock Sioux Center
• Quad County Corn Processors Galva

5
Proposed Iowa Ethanol Plants

• Little Sioux Corn Processors, Marcus (2/2003)
• Midwest Grain Processors, Lakota (11/2002)
• Pike Lake Corn Processors LLC, Steamboat Rock
• Amaizing Energy LLC, Denison
• Northeast Iowa Ethanol, Earlville
• Golden Grain Energy, LLC

6
Ethanol

• 13,250 jobs, with 2,550 directly related to
  ethanol production
• 3 billion in economic activity
• 780 million to Iowas corn crop

7
New Iowa Ethanol Plants

• 4,000 farmer investors
• 71 million equity
• 400 million gallons / 160 million bushels
• Capital investment of 228 million
• 150 jobs

8
Iowa Renewable Fuels Association

• Farmer-owned ethanol plants
• Supporting the production marketing of ethanol
  and co-products.
• Legislation, Education/Marketing, Research,
  Communications, and Membership Development

9
Economic Impacts 10 Million Gallon Ethanol Plant

• Total Sales 21,207,527
• Labor Income 1,443,707
• Value-Added 4,247,528
• Jobs 49
• Source Iowa State University

10
Economic Impacts18 Million Gallon Ethanol Plant

• Total Sales 38,256,138
• Labor Income 2,370,257
• Value-Added 6,742,110
• Jobs 83
• Source Iowa State University

11
Economic Impacts40 Million Gallon Ethanol Plant

• Total Sales 86,312,316
• Labor Income 5,772,984
• Value-Added 15,964,866
• Jobs 200
• Source Iowa State University

12
Iowa Ethanol Market

• 510 million gallons 5.1 billion gallons of
  blended fuel
• 1.5 billion gallon fuel market in Iowa
• 54 market share
• 82 million gallons of ethanol blended in Iowa
• 80 of Iowas ethanol production is exported

13
U.S. Ethanol Industry

• 66 plants
• 11 plants under construction
• Record 2 billion gallons production 2002
• 2.7 billion gallons capacity by year end

14
Renewable Fuel Standard

• 4 total fuel market renewable by 2016
• 8.8 billion gallons of ethanol
• 2.5 billion bushels for ethanol
• Displace 300 million barrels of imported oil
• 6.6 billion additional net income for farmers
• Livestock benefit ethanol co-products for
  feeding

15
Renewable Fuels Standard

• Biodiesel would account for 15 of total
  renewable fuel used
• Soybean and corn prices would rise
• Soy oil prices would rise
• 300,000 new jobs
• 71 billion additional income for Iowans over 15
  years

16
MTBE Bans

• 14 states, including Iowa
• California proposed ban
• 985 million gallons of ethanol
• 400 million bushels of corn
• Northeast states considering bans

17
Overview

• Ethanol demand 2 billion bushels
• Renewable Fuels Standard
• Iowa ethanol production 500 million gallons
• DDG for feed rations

18
Keys To Success

• State-of-the Art Technology
• Top Management Team
• Marketing Plant Ethanol, Distillers Grains,
  Condensed Distillers Solubles
• State Support and Active Involvement