1. Future Of Agricultural Machinery in the United States UNACOMA General Assembly 21 June 2007 Charlie O’Brien Vice President – Agricultural Services

2. Agriculture Equipment Industry  60,000 employed in equipment mfg.  $20.1 billion in revenue Total economic impact: 250,000 jobs250,000 jobs $82.0 billion in revenue$82.0 billion in revenue Source: U.S. Agriculture Equipment: Powering Jobs and Dollars, Global Insight, March 2007

3. Current Trends Influencing Agricultural Machinery Business

4. Number of Farms in US US relies on approximately 100,000 larger farms for most of its food and fiber production

5. Agricultural Trends  Less than 2% of the U.S. population today works in agriculture.  It is estimated that at the turn of the 20 th century, one farmer in the U.S. could feed 25 people, where today, that ratio is 1:130 (in a modern grain farm, a single farmer can produce cereal to feed over a thousand people).  With continuing advances in agricultural machinery, the role of the farmer will become increasingly specialized and rare.  Automation continues to be critical

6. Farm Equipment Continues to Increase In Size and Technical Utilization

7. Biggest Agricultural Influence - 2007 Energy Needs

8. 9.5 Million Bls per day -2025

9. U.S. Flex Fuel Vehicles Could Exceed 22 Million by 2015 (1) Currently 6.0 million flex fuel vehicles (FFVs; assumed growth of 1.4 million in 2007, 1.6 million in 2008, 1.8 million in 2009 and 2.0 million per year after 2010 (2010 and beyond data according to public statements made by Ford, GM and Chrysler). (2) Calculated assuming 600 gallons of E85 used each year per FFV. (Source: EIA projects 500 gallons of gasoline per year per vehicle assumes 20% mileage loss compared to conventional). Source: Renewable Fuel Association

10. By 2025, America’s farms, forests and ranches can annually produce:  86 billion gallons of ethanol  1.1 billion gallons of biodiesel  932 billion kwh of electricity  15.45 quads of energy from biomass

11. Source: USDA

12. 2007 Corn Outlook  Corn 87 Million acres will be planted in 2007  Highest planted acres of corn since 1946  Production expected to fall short of demand pulling stocks of corn lower 8.7 million acres 8.7 million acres Prices expected at $3.60/bushel up $.40 Prices expected at $3.60/bushel up $.40 2.15 billion bushels used for ethanol production in 06 compared to 3.2 billion in 07, a 50% increase Compared to 2006 Corn Facts

15. AE Scenario Ethanol Production

17. New Machinery Challenges  Greater corn yields  More biomass  New Crop types

18. Equipment and Biofuels  Planting  Tillage/Chemical Application  Harvesting

19. Equipment and Biofuels  Hay/Forage Harvesting  Forestry

20. Meeting the Challenge Research, Research, Research “One Pass” over the field will be critical because of energy expense

21. The Future  New Machinery Types meeting ethanol demand.  Biodiesel and alternative fuels  Further Commercialization of GPS  ISOBUS  Further efficiency gains

22. Thank You