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Tom Lilja

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Tom Lilja

  1. 1. Blender Pumps – A Game Changer for our Economy <br />Tom Lilja<br />tom@ndcorn.org<br />August 17, 2011<br />
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  3. 3. Recent ND Production<br />
  4. 4. MoreCornPerAcre<br />
  5. 5. U.S. Corn Prices<br />
  6. 6. Corn Market Prices<br />1946 - $1.53/bu<br />2000 - $1.85/bu<br />2010 - $3.83/bu<br />Source: USDA<br />
  7. 7. Supply Side Economics ??<br /> 90 bushels / acre – mid 1990’s<br />132 bushels / acre – 2010<br />42 extra bushels across 2.5 million acres<br />105 million more bushels <br />
  8. 8. Or Bonanza ??<br />105 million more bushels<br />$3.83 National Average Price (USDA)<br />$402 million more to economy <br /> (before multiplier effects)<br />$2.47 Billion (2004-2008) CAPTS, NDSU<br />
  9. 9. Corn’sImpacts,1987-2007<br />SoilLoss<br />Soillossper<br />bushel,abovea<br />tolerablelevel<br />LandUse<br />Amountofland<br />toproduceone<br />bushelofcorn<br />Irrigation<br />Irrigationwater<br />useperbushel<br />Energy<br />Energyusedto<br />produceone<br />bushel<br />Climate<br />Emissionsper<br />bushel<br />37%69%27%37%30%<br />
  10. 10. PesticideUseTrends<br />Increasingadoptionofhybridswithinsect-resistantand<br />herbicide-toleranttraitshavegreatlyreducedtheneedfor<br />syntheticapplicationsofherbicidesandinsecticides.<br />InsecticidePoundsPerAcre<br />HerbicidePoundsPerAcre<br />0.35<br />0.3<br />0.25<br />0.2<br />0.15<br />0.1<br />0.05<br />0<br />3.5<br />3<br />2.5<br />2<br />1.5<br />1<br />0.5<br />0<br />2000<br />1995<br />1990<br />2005<br />1990<br />1992<br />1994<br />1996<br />1998<br />2000<br />2002<br />2005<br />Source:USDA<br />
  11. 11. COMMERCIALNITROGENAPPLIEDPERBUSHELOFCORNPRODUCED<br />PoundsperBushel<br />1.80<br />1.60<br />1980-2006ACTUAL&TRENDTO2030<br />Actual<br />Trend<br />1.40<br />1.20<br />1.00<br />0.80<br />0.60<br />CornGrowersBecome<br />MoreEfficientWithNitrogen<br />0.40<br />0.20<br />0.00<br />2030<br />1980198519901995<br />2010<br />2005<br />2025<br />2000<br />2020<br />2015<br />Source:Blue,Johnson&Associates,Inc.<br />Source:Blue,Johnson&Assoc.Inc.<br />
  12. 12. North Dakota Yield Variability 28% 1975-1995<br />
  13. 13. North Dakota Yield Stability 15% 1997-2010<br />
  14. 14. YieldEnhancement<br />DroughtTolerance<br />
  15. 15. Blender Pumps<br />Distribution Problem – Grand Forks <br /> 40,000 / 3,000 FFV / NO ethanol pumps<br />Energy Independence “Brazilian Model”<br />Partnership of western oil fields and<br /> eastern corn fields<br />4 to 20% Volume<br />
  16. 16. Blender Pumps<br />Typical Price $25,000 per pump<br />Distributors Discount $9,000<br />State Grant $5,000<br />Corn Growers Grant $2,500<br />Tax Credits (Fed) $4,00030% to 50%<br /> $4,500<br />
  17. 17. Blender PumpsBlender Pumps<br />

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