1. Crop Outlook Chad Hart Center for Agricultural and Rural Development Iowa State University E-mail: chart@iastate.edu July 17, 2008 Iowa Independent Bankers Convention Okoboji, Iowa

2. Historical Corn Prices Source: CBOT

3. Historical Soybean Prices Source: CBOT

4. Factors to Follow  Crop progress  Macroeconomic conditions  Energy prices/Biofuel development  Export picture/Dollar movements  Livestock adjustments  South American policies and acreage response

5. Crop Progress Source: USDA, Crop Progress report, July 2008

6. U.S. Corn Supply and Use Source: USDA, WASDE report, July 2008

7. U.S. Soybean Supply and Use Source: USDA, WASDE report, July 2008

8. Corn Futures Prices Source: CBOT, 7/15/2008

9. Soybean Futures Prices Source: CBOT, 7/15/2008

10. South American Corn Area Source: USDA

11. South American Soybean Area Source: USDA

12. Exchange Rate Ratios Since 2007 Source: USDA, ERS

13. Exchange Rate Futures Ratios Source: CME, 7/15/2008

14. Historical Crude Oil Prices Source: U.S. Department of Energy, Energy Information Administration

15. Crude Oil Futures Prices Source: NYMEX, 7/15/2008

16. Liquid Fuel Usage Source: U.S. Dept. of Energy, Energy Information Administration 200420102015202020252030 (Million Barrels Oil Equivalent per Day)(Percent of 2004 Value) United States20.7103%109%115%121%129% Canada2.3100% 104% Mexico2.0110%115%130%135%145% Europe15.699% 100%101% Japan5.496% China6.4147%164%186%213%245% India2.5108%128%144%160%176% Africa2.8118%139%154%164%175% Central and South America5.4120%137%152%167%180% World82.5110%118%126%134%143%

17. Renewable Fuels Standard Source: Renewable Fuels Association

18. Ethanol Production Source: Renewable Fuels Association

19. Historical Ethanol Gross Margins

20. Projected Ethanol Gross Margins

21. Ethanol vs. Gasoline Source: CBOT and NYMEX, 7/15/2008

22. Biodiesel Sales Source: National Biodiesel Board

23. Iowa Price Ratios Since 2007 Source: U.S. Department of Agriculture, Agricultural Marketing Service

24. Iowa Price Ratios for 2008 Source: U.S. Department of Agriculture, Agricultural Marketing Service

25. Soybean Oil Futures Source: CBOT, 7/15/2008

26. Ending Thoughts  Macroeconomic conditions and energy prices are key factors for US agriculture  Tight stock situation combined with crop/weather concerns makes for an active market  Watch demand as livestock and biofuel producers react to price movements  Export outlook tied to dollar movements and South American policy shifts

27. Thanks for your time! Any questions?