Transcript Document

Projected Long Term Growth in Net Farm Income
Average Annual Net Farm Income 1980 - 2020
($ in billions)
$100
$83.6B
$80
$61.1B
$60
$48.1B
$40
$29.1B
$20
' 80 - ' 89
' 90 - ' 99
' 00 - ' 09
' 10 - ' 20
Source: USDA, expressed in nominal dollars
Long Term Growth Drivers
– Income Growth in Developing Countries
– Increasing Demand for Biofuels
– Technological Advances – Genetics, Crop Production, GPS
2
Increasing Demand from Developing Countries
Household Disposable Income Over U.S. $10,000
Source: Euro monitor, Morgan Stanley Research
– Increasing Household Incomes in Developing Markets Drive
Demand for Protein and Grains
– 4 of the Top 5 US Soybean Acreage Counties are in ND
– Cass County #1 / Richland County #2
3
Increasing Demand for Biofuels
2011 Ethanol Production Capacity in ND
450
Millions of Gallons
400
350
300
250
200
150
100
50
0
1995
2007
2011
Source: Nebraska Energy Office (NEO)
– Ethanol Production Drives Demand for Corn Production
– US Ethanol Production to Grow From 13.5B Gal to 15B Gal by 2015
Technological Advances
ND Corn Production 1995-2010
Acres in Thousands
1800
1600
300
Acres
Yield
250
1400
200
1200
1000
150
800
100
600
400
50
Total Yield
in Millions of Bushels
2000
200
0
0
1995
2000
2005
2010
Source: USDA, NASS
Technological Advances Allow Increased Acres and
Yield
Ave Corn Yield Increased from 79 bu per acre in 1995 to 132 bu per acre in
2010 due to Technological Advances in Seed Genetics and Production Methods
Ag Economic Impact in ND
Since 2000 AG Revenue & Inputs
have Increased Over 200%
9.00
Billions of Dollars
8.00
7.00
ND Ag Revenue
ND Ag Inputs
6.00
5.00
4.00
3.00
2.00
1.00
0.00
2000
Source: USDA, NASS
– Fuel Provider
– Fertilizer Supplier
– Seed Dealer
2005
2010
AG Inputs
– Chemical Vendor
– Vehicle & Equipment Dealer
– Employees