2. PRESENTATION BY DAVID KOLSRUD EXPERIENCED DEVELOPER/CONSULTANT/FARMER NATIONAL ECONOMIC GARDENING & RURAL ENTREPRENEURIAL GATHERING

3. PRIMING THE PUMP IN RURAL AMERICA

4. The Kolsrud Farm

5. BUSINESS INVOLVEMENT Manager CORN-er Stone Farmers Co-op Board Member Badger State Ethanol Board Member Husker Ag Ethanol Board Member MinWind Chairman Valley Springs Farmers Co-op Founding Board Member MNSP Coordinated Mid Missouri Ethanol Co-op Partnering with Mid Atlantic Bio-Diesel Consulting with numerous other projects

7. Don’t put all your eggs in one basket

8. Need to Specialize

9. Bigger is Better

11. Better Marketing

12. Low Cost Producer

13. Embracing New Technology

14. RAT RACE

16. Creative Thinking

17. Need to be Active Politically

20. ETHANOL PLANTS IN MINNESOTA

21. Minnesota Model 2 Key Components 1. Markets Oxygenated Fuel Statute 2. Producer Incentive 20 cents a gallon up to 15 million gallon a year for 10 years

22. AGRI-Energy Ethanol

23. Corn Production Rock County Minnesota Average Production (95-99) 16,540,760 Feed Usage (5,510,000) 11,030,760

24. 1 Bushel Corn Equals 2.6 Gal. Ethanol 17# DDGS x $1.20 x3.5¢/lb. $3.12 59.5¢ $3.12 0.60 $3.72

25. EXPORT vs EXPORT + PROCESSING 11,030,760 5,030,760 6,000,000 x $1.60 x $1.60 x $3.72 $17,649,216 $8,049,216 $22,320,000 $30,369,216 (17,649,216) $12,720,000 Additional Cash

26. x 13 Plants $165,360,000 Additional Cash (most of which is spent in Minnesota)

27. HIGHER CORN PRICES

28. LOWER CORN PRICES

29. HIGHER GAS PRICES

30. LOWER GAS PRICES

31. ETHANOL BUSINESS CHANGES COOPERATIVES LLC’S PRIVATE PLACEMENT IPO’S

34. Minusequals &

37. EQUITY RAISED % FINANCING TAX ISSUES DISTRIBUTIONS

38. GOOD OR BAD

39. VS

40. WHAT ARE THE CHARACTERISTICS OF A SUCCESSFUL PROJECT?

44. GOALS 1. Local Ownership 2. Maximize Profitability 3. Create Economic Development in Rural Areas 4. Provide Quality Jobs 5. Research & Utilize available programs & incentives 6. Be politically active to achieve our goals 7. Develop a “cookie cutter” model 8. Maintain Cooperative Principles

45. Don’t let the grants/incentives become the project

46. “CONCEPTION TO COMPLETION”

54. SUMMARY MYTH --- Farmers Don’t Have The Money 30 Farmers at $6,500 (cash) each could own a 1.8 Million Dollar Project HOW? 1.Get Good Advice—Consultants 2.Cooperate 3.Utilize or Create Programs to your benefit 4.Network with other groups 5. Believe in Yourself (nobody’s going to do it for you)

57. David Kolsrud FOR FARMERS,LLC E-mail: David@for-farmers.com Cell Phone: (507) 920-5348 Website: www.for-farmers.com (under construction now)