1. Ethanol in the Sorghum Belt Greg Shelor Farmer from Minneola, Kansas President, Kansas Grain Sorghum Producers Association President, National Sorghum Producers

2. Sorghum and Ethanol— A Natural Fit In Kansas more ethanol is made from grain sorghum than from corn. In Kansas more ethanol is made from grain sorghum than from corn. Why? Why? Economics. Sorghum price is often more competitive than corn. Economics. Sorghum price is often more competitive than corn. Ethanol Yield—Sorghum and corn are interchangeable in the ethanol making process Ethanol Yield—Sorghum and corn are interchangeable in the ethanol making process

3. Our #1 Customer— Most of our grain sorghum crop is fed to cattle. 1/3 of grain used in ethanol production comes out as wet or dry distillers grains, a high nutrient cattle feed Most of our grain sorghum crop is fed to cattle. 1/3 of grain used in ethanol production comes out as wet or dry distillers grains, a high nutrient cattle feed

4. Where Is the Sorghum Belt? The Sorghum Belt includes the top sorghum producing states: The Sorghum Belt includes the top sorghum producing states: #1 Kansas— nearly 50% of U.S. sorghum was produced in Kansas in 2005 #2 Texas #3 Nebraska #4 Oklahoma

5. Why the Sorghum Belt? We are seeing good expansion of the ethanol industry in the sorghum belt. We are seeing good expansion of the ethanol industry in the sorghum belt. Sorghum is grown in areas of livestock production Sorghum is grown in areas of livestock production Livestock feeders use sorghum, but also value distillers grains, the coproduct of ethanol production Livestock feeders use sorghum, but also value distillers grains, the coproduct of ethanol production

6. Why Ethanol Is Important to Sorghum Growers Producers often struggle to get fair price for sorghum Producers often struggle to get fair price for sorghum Ethanol plants provide a strong market for sorghum, boosting price Ethanol plants provide a strong market for sorghum, boosting price In areas near ethanol plants, sorghum often is priced higher than sorghum in non-ethanol areas. In areas near ethanol plants, sorghum often is priced higher than sorghum in non-ethanol areas.

7. What Ethanol Means to My Farm In 2005, I marketed all of my sorghum production to a local hog farm for use in their feed ration. In 2005, I marketed all of my sorghum production to a local hog farm for use in their feed ration. At least three new ethanol plants are coming to southwest Kansas, creating new markets for sorghum. At least three new ethanol plants are coming to southwest Kansas, creating new markets for sorghum. Current SW Kansas ethanol production is 26 million gallons per year using 9 million bushels of grain. Current SW Kansas ethanol production is 26 million gallons per year using 9 million bushels of grain. The three new plants will increase production to about 300 million gallons per year using 107 million bushels of grain. The three new plants will increase production to about 300 million gallons per year using 107 million bushels of grain.

8. In My Backyard Liberal 110 mgy Ethanol Plant— 61 miles from my farm Liberal 110 mgy Ethanol Plant— 61 miles from my farm Proposed Dodge City 110 mgy ethanol plant— 21 miles from my farm Proposed Dodge City 110 mgy ethanol plant— 21 miles from my farm Garden City 55 mgy Ethanol Plant in construction— 73 miles from my farm Garden City 55 mgy Ethanol Plant in construction— 73 miles from my farm Pratt 50 mgy Ethanol Plant in construction— 70 miles from my farm Pratt 50 mgy Ethanol Plant in construction— 70 miles from my farm Soon approximately 325 million gallons of ethanol may be produced within 75 miles of my farm Soon approximately 325 million gallons of ethanol may be produced within 75 miles of my farm Sorghum prices in areas with ethanol production are significantly higher than areas without ethanol production. Sorghum prices in areas with ethanol production are significantly higher than areas without ethanol production.

9. More than 85% of Kansas sorghum production is in a county within 50 miles of either an existing or proposed ethanol plant.

10. Texas, Oklahoma & New Mexico

11. Sorghum Bushels grown within 50 miles of a Plant Kansas LocationBushels Garden City43 million bu. Garnett 8 million bu. Russell50 million bu. Campus30 million bu Atchison 3 million bu. Leoti29 million bu. Phillipsburg43 million bu. Colwich39 million bu. Liberal38 million bu. Pratt*30 million bu. Lyons*54 million bu. Sorghum Belt All Ethanol Plants239 million bushels

12. Sorghum—It’s not just grain Sorghum fits into all three schemes for production of biofuels: grain, sugar-based, and biomass feed stocks. Sorghum fits into all three schemes for production of biofuels: grain, sugar-based, and biomass feed stocks. Grain sorghum is routinely used as a grain feedstock in the U.S. Grain sorghum is routinely used as a grain feedstock in the U.S. Sweet sorghum is used widely as a sugar feedstock in India and China for ethanol production Sweet sorghum is used widely as a sugar feedstock in India and China for ethanol production Sorghum Silage provides high tonnage biomass and presents a great opportunity for cellolosic ethanol production Sorghum Silage provides high tonnage biomass and presents a great opportunity for cellolosic ethanol production

13. Sweet Sorghum Most Americans know of sweet sorghum used to make syrup or molasses. Most Americans know of sweet sorghum used to make syrup or molasses. India and China produce ethanol from sweet sorghum. India and China produce ethanol from sweet sorghum. DOE is supporting a sweet sorghum pilot study in Florida to explore the potential of sweet sorghums as a feedstock for ethanol production DOE is supporting a sweet sorghum pilot study in Florida to explore the potential of sweet sorghums as a feedstock for ethanol production Research data from India indicates production of ethanol from sugarcane and sweet sorghums are very similar. Research data from India indicates production of ethanol from sugarcane and sweet sorghums are very similar.

14. Forage Sorghum Forage sorghums can play a significant role in cellulosic and lignocellulosic ethanol production Forage sorghums can play a significant role in cellulosic and lignocellulosic ethanol production Forage sorghum can provide high tonnage biomass for cellulosic ethanol production Forage sorghum can provide high tonnage biomass for cellulosic ethanol production Abengoa BioEnergy is proposing a cellulosic ethanol pilot plant in Kansas Abengoa BioEnergy is proposing a cellulosic ethanol pilot plant in Kansas

15. Sorghum Market Segments Exports: 45% Exports: 45% Domestic Livestock Feed: 36% Domestic Livestock Feed: 36% Ethanol Production: 15% Ethanol Production: 15% Industrial Uses: 3% Industrial Uses: 3% Food Uses: 1% Food Uses: 1% Sorghum’s newest market is the rapidly expanding ethanol industry—we’ve seen a 57 percent increase in that market over the last 2 years. Sorghum’s newest market is the rapidly expanding ethanol industry—we’ve seen a 57 percent increase in that market over the last 2 years.

16. Questions on Sorghum and Ethanol? Visit our KGSPA and NSP websites: KGSPA and Kansas Ethanol Information websites: www.ksgrains.com National Sorghum Producers website: www.sorghumgrowers.com

17. Thank You! Greg Shelor 11421 Yucca Road Minneola, KS 67865 E-mail: gregory@rurallink.net gregory@rurallink.net