Ethanol in theEthanol in theSorghum BeltSorghum Belt

Greg ShelorGreg ShelorFarmer from Minneola, KansasFarmer from Minneola, Kansas

President, Kansas Grain Sorghum President, Kansas Grain Sorghum Producers AssociationProducers Association

President, National Sorghum ProducersPresident, National Sorghum Producers

Sorghum and Ethanol—Sorghum and Ethanol—A Natural FitA Natural Fit In Kansas more ethanol is made In Kansas more ethanol is made

from grain sorghum than from from grain sorghum than from corn.corn.

Why?Why? Economics. Sorghum price is often Economics. Sorghum price is often

more competitive than corn. more competitive than corn. Ethanol Yield—Sorghum and corn Ethanol Yield—Sorghum and corn

are interchangeable in the ethanol are interchangeable in the ethanol making processmaking process

Our #1 Customer—Our #1 Customer—

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

Where Is the Sorghum Where Is the Sorghum Belt?Belt?

The Sorghum Belt includes the The Sorghum Belt includes the top sorghum producing states:top sorghum producing states:#1 Kansas— #1 Kansas— nearly 50% of U.S. nearly 50% of U.S.

sorghum was produced in Kansas in sorghum was produced in Kansas in 20052005

#2 Texas#2 Texas

#3 Nebraska#3 Nebraska

#4 Oklahoma#4 Oklahoma

Why the Sorghum Why the Sorghum Belt?Belt?

We are seeing good expansion We are seeing good expansion of the ethanol industry in the of the ethanol industry in the sorghum belt.sorghum belt.

Sorghum is grown in areas of Sorghum is grown in areas of livestock productionlivestock production

Livestock feeders use sorghum, Livestock feeders use sorghum, but also value distillers grains, but also value distillers grains, the coproduct of ethanol the coproduct of ethanol productionproduction

Why Ethanol Is Important Why Ethanol Is Important to Sorghum Growersto Sorghum Growers

Producers often struggle to get Producers often struggle to get fair price for sorghumfair price for sorghum

Ethanol plants provide a strong Ethanol plants provide a strong market for sorghum, boosting market for sorghum, boosting priceprice

In areas near ethanol plants, In areas near ethanol plants, sorghum often is priced higher sorghum often is priced higher than sorghum in non-ethanol than sorghum in non-ethanol areas.areas.

What Ethanol Means to My What Ethanol Means to My FarmFarm

In 2005, I marketed all of my sorghum In 2005, I marketed all of my sorghum production to a local hog farm for use production to a local hog farm for use in their feed ration. in their feed ration.

At least three At least three newnew ethanol plants are ethanol plants are coming to southwest Kansas, creating coming to southwest Kansas, creating new markets for sorghum.new markets for sorghum.

Current SW Kansas ethanol Current SW Kansas ethanol production is production is 26 million gallons26 million gallons per year using 9 per year using 9 million bushels of grain.million bushels of grain.

The three new plants will increase The three new plants will increase production to about production to about 300 million 300 million gallonsgallons per year using 107 million per year using 107 million bushels of grain.bushels of grain.

In My BackyardIn My Backyard Liberal Liberal 110 mgy Ethanol Plant—110 mgy Ethanol Plant—

6161 miles from my farm miles from my farm Proposed Dodge City Proposed Dodge City 110 mgy ethanol 110 mgy ethanol

plant—plant— 21 21 miles from my farmmiles from my farm

Garden City Garden City 55 mgy Ethanol Plant in55 mgy Ethanol Plant in construction—construction— 73 73 miles from my farmmiles from my farm

Pratt Pratt 50 mgy Ethanol Plant in50 mgy Ethanol Plant in construction—construction— 70 70 miles from my farmmiles from my farm

Soon approximately Soon approximately 325 million gallons325 million gallons of of ethanol may be produced within 75 miles of ethanol may be produced within 75 miles of my farmmy farm

Sorghum prices in areas with ethanol Sorghum prices in areas with ethanol production are significantly higher than areas production are significantly higher than areas without ethanol production.without ethanol production.

More than 85% of More than 85% of Kansas sorghum Kansas sorghum production is in a production is in a county within 50 county within 50 miles of either an miles of either an

existing or existing or proposed ethanol proposed ethanol

plant.plant.

Texas, Oklahoma & New Texas, Oklahoma & New MexicoMexico

Sorghum Bushels grown Sorghum Bushels grown within 50 miles of a Plantwithin 50 miles of a PlantKansas LocationKansas Location BushelsBushelsGarden CityGarden City 43 million bu.43 million bu.GarnettGarnett 8 million bu. 8 million bu.RussellRussell 50 million bu.50 million bu.CampusCampus 30 million bu30 million buAtchisonAtchison 3 million bu. 3 million bu.LeotiLeoti 29 million bu.29 million bu.PhillipsburgPhillipsburg 43 million bu.43 million bu.ColwichColwich 39 million bu.39 million bu.LiberalLiberal 38 million bu.38 million bu.Pratt*Pratt* 30 million bu.30 million bu.Lyons*Lyons* 54 million bu.54 million bu.Sorghum BeltSorghum BeltAll Ethanol PlantsAll Ethanol Plants 239 million bushels239 million bushels

Sorghum—It’s not just Sorghum—It’s not just graingrain

Sorghum fits into all three schemes for Sorghum fits into all three schemes for production of biofuels: grain, sugar-production of biofuels: grain, sugar-based, and biomass feed stocks.based, and biomass feed stocks.

Grain sorghumGrain sorghum is routinely used as a is routinely used as a grain feedstock in the U.S.grain feedstock in the U.S.

Sweet sorghumSweet sorghum is used widely as a is used widely as a sugar feedstock in India and China for sugar feedstock in India and China for ethanol productionethanol production

Sorghum SilageSorghum Silage provides high tonnage provides high tonnage biomass and presents a great biomass and presents a great opportunity for cellolosic ethanol opportunity for cellolosic ethanol productionproduction

Sweet SorghumSweet Sorghum Most Americans know of sweet Most Americans know of sweet

sorghum used to make syrup or sorghum used to make syrup or molasses. molasses.

India and China produce ethanol India and China produce ethanol from sweet sorghum. from sweet sorghum.

DOE is supporting aDOE is supporting asweet sorghum pilot study in sweet sorghum pilot study in Florida to explore the potential Florida to explore the potential of sweet sorghums as a of sweet sorghums as a feedstock for ethanol productionfeedstock for ethanol production

Research data from India indicates Research data from India indicates production of ethanol from production of ethanol from sugarcane and sweet sorghums are sugarcane and sweet sorghums are very similar.very similar.

Forage SorghumForage Sorghum Forage sorghums can play a Forage sorghums can play a

significant role in cellulosic and significant role in cellulosic and lignocellulosic ethanol productionlignocellulosic ethanol production

Forage sorghum can Forage sorghum can provide high tonnage provide high tonnage biomass for cellulosic biomass for cellulosic ethanol productionethanol production

Abengoa BioEnergy is Abengoa BioEnergy is proposing a cellulosicproposing a cellulosicethanol pilot ethanol pilot plant in Kansasplant in Kansas

Sorghum Market Sorghum Market SegmentsSegments 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 Sorghum’s newest market is the rapidly expanding ethanol industryrapidly expanding ethanol industry

—we’ve seen a —we’ve seen a 57 percent57 percent increase in that market over the last increase in that market over the last

2 years. 2 years.

Questions on Sorghum Questions on Sorghum and Ethanol?and Ethanol?

Visit our KGSPA and NSP websites:Visit our KGSPA and NSP websites:KGSPA and Kansas Ethanol KGSPA and Kansas Ethanol

Information websites:Information websites:www.ksgrains.comwww.ksgrains.com

National Sorghum Producers National Sorghum Producers website:website:

www.sorghumgrowers.comwww.sorghumgrowers.com

Thank You!Thank You!

Greg ShelorGreg Shelor

11421 Yucca Road11421 Yucca Road

Minneola, KS 67865Minneola, KS 67865

E-mail: E-mail: gregory@rurallink.netgregory@rurallink.net