eFarmer.us copyright eStudy.us 2008 Sunflower Production, Market, and Expected Return December 2008

eFarmer.us copyright eStudy.us 2008 eFarmer.us Overview The common sunflower, is native to North America and normally grows six to eight feet tall, and there are many variations of this flower around the world. It is an important source of food. Sunflower oil is a valued and healthy vegetable oil and sunflower seeds are enjoyed as a healthy, tasty snack and nutritious ingredient to many foods. The wild sunflower is native to North America but commercialization of the plant took place in Russia.

eFarmer.us copyright eStudy.us 2008 eFarmer.us Overview Sunflower Seeds Sunflower seeds are an American original. Called either confection or non-oil. Confection sunflower seeds are normally black with white stripes and approximately five eighths of an inch long. Sunflowers are not recommended for oil crop production in Kentucky.

eFarmer.us copyright eStudy.us 2008 eFarmer.us Market Opportunities Sunflower seeds are graded according to size and separated into groups. The largest size will go into the in-shell market. The medium-sized seeds are usually hulled for the kernel market. The smallest size will go into the bird and pet feeding market. Most sunflower grown in Kentucky is sold to the birdseed market.

eFarmer.us copyright eStudy.us 2008 eFarmer.us Market Opportunities Regional Birdseed Packager Local Retail Store Selling Packaged seed directly off the farm International market needs The United States is a major global supplier of confection sunflower. 1.European Market 2.Canada

eFarmer.us copyright eStudy.us 2008 KERNEL U.S. Confection Sunflower Exports Top Ten Markets from 2006/07 and Comparison to 2004/05, 2005/06 October 1 - September 30, Shipping Weight in Metric Tons Country2004/052005/062006/07 Country Share Current Year of U.S. Exports10/07 to 09/ /07* Germany9,0327,2379,60027%11,677 UK3,0547,8925,86217%7,796 Mexico1,7044,3942,5997%1,919 Canada1,7512,2051,8835%3,464 Denmark1,8371,8571,7625%2,558 France1, ,6755%1,754 Netherlands2,4283,2471,6595%4,043 Romania ,4984%1,551 Norway1,0091,4341,4534%3,230 Spain7121,4411,1473%2,175 Other3,9309,7516,12117%8,613 TOTAL27,54340,95035,259100%48,780

eFarmer.us copyright eStudy.us 2008 IN-SHELL U.S. Confection Sunflower Exports Top Ten Markets from 2006/07 and Comparison to 2004/05, 2005/06 October 1 - September 30, Shipping Weight in Metric Tons Country2004/052005/062006/07 Country ShareCurrent Year of U.S. Exports10/07 to 09/ /07* Spain24,99227,52031,91134%29,173 Turkey3,88113,10720,66022%18,179 Romania4,6637,1736,9827%10,466 Mexico2,3225,6516,6137%4,130 Arab EM02,0054,2615%2,404 Jordan1634,0953,9174%1,754 Syria01,5313,4074%39 Greece6441,3682,6843%2,183 Israel1, ,7322%1,798 Canada4,2951,4001,3901%400 Other5,1286,3299,90111%7,290 TOTAL47,70270,76693,458100%77,816

eFarmer.us copyright eStudy.us 2008 eFarmer.us Market Opportunity in Kentucky The Demand for sunflower seed for both bird seed and as a snack food is on the increase.

eFarmer.us copyright eStudy.us 2008 Confection Sunflower Seed Prices CurrentLast WeekLast Year As of 11/21/2008 (Dollars per 100 Lbs.) CHS, Inc. Grandin, ND. & Hazel, MN.

eFarmer.us copyright eStudy.us 2008 Confection Sunflower Kernel Nutrient Composition per 1 oz. (28.35 grams) Calories160Total Carbohydra te 5gVitamin E11.34mg Calories from Fat 129Dietary Fiber 4gThiamin (VB1) 0.65mg Total Fat14gSugars1gRiboflavin (VB2) 0.07mg Saturated Fat 2gProtein6gNiacin1.3mg Polyunsatur ated Fat 9gVitamin A<3 IUFolate64.5mg Monounsat urated Fat 3gVitamin C0.2mgMagnesium104mg Cholesterol0mgCalcium33mgZinc1.4 Sodium<2mgIron1.9mgCopper0.4mg

eFarmer.us copyright eStudy.us 2008 eFarmer.us Stages of Sunflower Development

eFarmer.us copyright eStudy.us 2008 eFarmer.us Production characteristics Sunflower can be grown either as a full-season crop or a double crop. From an economic standpoint, it is particularly attractive as a double crop. Sunflower can tolerate pH values from 5.7 to 8.0. Row crop production field is suitable for sunflower. Labor requirements Labor needs per acre are approximately 2 hours for production and 1 hour for harvest. Additional labor would be needed for any specialty production and/or marketing.

eFarmer.us copyright eStudy.us 2008 eFarmer.us Production characteristics--Field preparation Sunflower is more likely to be limited by nitrogen than any other nutrient. If nitrogen is limited, yields and oil percentage will be reduced. Amount of nitrogen fertilizer needed depends on soil type, organic matter and the preceding crop. Research suggests sunflower is more sensitive to phosphorous than potassium. A 2,000 pounds-per-acre sunflower crop would take up about 40 pounds of phosphorous per acre and 80 pounds of potassium per acre. Preserve soil moisture, since sunflower seeds require high moisture for good germination. If soil crusting limits seed emergence, a rotary hoe can be used to help loosen the crusted layer.

eFarmer.us copyright eStudy.us 2008 eFarmer.us Production characteristics - Planting For heavy soils, seeding depth should be 1 to 1.5 inches Seeding rate is especially important for sunflower 17,000 seeds per acre (roughly 4 pounds per acre) April or May plantings normally will be higher than June or July plantings Temperature Requirement Sunflower can germinate and emerge from soils as cool as 46 degrees Fahrenheit if the seed is of good quality. Mature sunflower also being able to withstand down to 25 degrees Fahrenheit. Mean daily temperatures for good growth are between 18 and 25°C. Row space: 20 to 30 inches

eFarmer.us copyright eStudy.us 2008 eFarmer.us Production Characteristics - Water Requirement Water Requirements The water requirements of sunflower vary from 600 to 1000 mm, depending on climate and length of total growing period. Percentage of total crop water use over the different growth periods Vegetative period 20% Flowering period 55% The yield formation and ripening periods 25%

eFarmer.us copyright eStudy.us 2008 eFarmer.us Production characteristics--Risk Control Weed Most sunflower varieties grow rapidly and can compete effectively with weeds once they are well established. Several herbicides are registered for sunflower, Including Eptam, Treflan, Sonalan, Poast, Assert and Prowl. Insects Insect pests that occasionally appear on sunflower plants include sunflower moth, maggot and beetle. Several insecticides are labeled for sunflower use, but such sprays should be used with caution during pollination with varieties that depend on insect pollinators

eFarmer.us copyright eStudy.us 2008 eFarmer.us Production characteristics—Risk Control Diseases - Diseases can be a serious problem in a sunflower field. Newer varieties have significantly improved resistance or tolerance, but once a disease occurs, little can be done for control. Blackbird Damage - Blackbird damage to ripening sunflower can be a serious problem with extensive yield losses. Half or more of the blackbird damage to ripening sunflower occurs in the first two weeks after petal drop. Cattail Management - Eliminating cattails is the single best weapon in reducing damage. Cannons -USDA does loan out cannons to scare blackbirds out of fields. Harassment - Blackbirds do not like to be harassed in the evening/night as they are settling into a wetland or tree grove. Desiccants - Glyphosate is labeled on sunflower as a late season weed control and works as a desiccant as well.

eFarmer.us copyright eStudy.us 2008 eFarmer.us Harvesting and storage Sunflower is ready to harvest when the back portion of the head turns brown. Efficient harvest requires a modified grain head on the combine. Seeds can be stored at up to 12 percent moisture for short periods, but should be dried to 9 percent moisture for long-term storage.

eFarmer.us copyright eStudy.us 2008 eFarmer.us Production Opportunity Cost Capital Requirements Land (One to Ten Acres of Land Equipment 1.Rotary Hoe 2.Combine 3.Cylinder Labor Requirement Land Opportunity

eFarmer.us copyright eStudy.us 2008 eFarmer.us Typical grain losses in sunflowers Pre-harvest loss 2.2% Header loss 5.3% Threshing loss 0.1% Cleaning loss 1.8% Total 9.4%

eFarmer.us copyright eStudy.us 2008 eFarmer.us Cost-Return Budget (double-crop) Estimated Returns per Acre Estimated Yield/Acre (lbs.) 1,400 Price (per pound) $0.080 LDP (per pound)* $0.035 Freight cost (per pound) $0.010 Net price (per pound) $0.105 Estimated Total Returns/Acre $147.00

eFarmer.us copyright eStudy.us 2008 eFarmer.us Cost-Return Budget (double-crop) Estimated Operating Costs/Acre Seed $15.00 Fertilizer $20.00 Crop Chemicals $6.00 Machinery fuel, oil, repair $15.00 Machinery hire and services $4.00 Labor $21.00 Misc. $5.00 Operating interest (9% for 6 months) $3.87 Total Operating Costs/Acre $89.87

eFarmer.us copyright eStudy.us 2008 eFarmer.us Cost-Return Budget (double-crop) Estimated Ownership Cost/Acre Machinery depreciation $29.00 Real estate taxes, depreciation, and interest (or rent) Total Ownership Costs/Acre $29.00 Estimated Total Costs/Acre $ Net Return over Operating and Machinery Costs, Excluding Land Charges (per acre) $ 28.13

eFarmer.us copyright eStudy.us 2008 Cost-Return Budget Direct Cost Seed$17.83 Fertilizer$26.58 Herbicide$10.03 Insecticide$15.45 Machinery Operating Costs$0.00 Irrigation Energy$33.03 Irrigation Repair$3.30 Sprinkler Lease$86.54 Crop Insurance$0.00 Custom Spray/Hire$0.00 Drying Expense$0.00 Crop Consulting$6.50 Miscellaneous Expenses$10.00 Interest Expense$8.91

eFarmer.us copyright eStudy.us 2008 Cost-Return Budget Total Direct Costs$ Fixed Costs Machinery Ownership Costs$77.93 Total Fixed Costs$77.93 Total Costs Excluding Land$ Breakeven Price to Cover All Costs Excluding Land$13.67 Machinery Ownership Costs are based on Kansas Custom Rates, including all machinery, labor, fuel, maintenance, insurance and any other costs associated with Custom Rate Operations. Both field related machinery labor and non machinery labor are included in these custom rate based cost estimates. Yield Per Acre: 21.7cwt/acre Recent Price: $25/100 lbs (21.7 cwt = 2430 lbs) Estimated Revenue: $608/acre Net Income: $275/acre

eFarmer.us copyright eStudy.us 2008 eFarmer.us Basic Summary Good Market Opportunity Easy to Plant in Kentucky 1.Suitable Climate 2.Easy Planting Skill 3.Low Cost Low Labor Requirement Short Return Period Low Risk

eFarmer.us copyright eStudy.us 2008 eFarmer.us References Plant htm#site htm#site High Plains Sunflowers Production Handbook Marketing Nutrition

eFarmer.us copyright eStudy.us 2008 eFarmer.us References Financial Highlights _crop_sunflower_budge.pdf _crop_sunflower_budge.pdf Others wer.stm wer.stm wer.stm