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Ethanol in the Sorghum Belt

Ethanol in the Sorghum Belt. Greg Shelor Farmer from Minneola, Kansas President, Kansas Grain Sorghum Producers Association President, National Sorghum Producers. Sorghum and Ethanol— A Natural Fit. In Kansas more ethanol is made from grain sorghum than from corn. Why?

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Ethanol in the Sorghum Belt

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  1. Ethanol in theSorghum 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. • Why? • Economics. Sorghum price is often more competitive than corn. • 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

  4. Where Is the Sorghum Belt? • 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. • Sorghum is grown in areas of livestock 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 • 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.

  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. • 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. • 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 • Proposed Dodge City 110 mgy ethanol plant—21 miles from my farm • Garden City 55 mgy Ethanol Plant inconstruction—73 miles from my farm • Pratt 50 mgy Ethanol Plant inconstruction—70 miles from 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.

  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 Location Bushels Garden City 43 million bu. Garnett 8 million bu. Russell 50 million bu. Campus 30 million bu Atchison 3 million bu. Leoti 29 million bu. Phillipsburg 43 million bu. Colwich 39 million bu. Liberal 38 million bu. Pratt* 30 million bu. Lyons* 54 million bu. Sorghum Belt All Ethanol Plants 239 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. • 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 • 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. • India and China produce ethanol from sweet sorghum. • DOE is supporting asweet 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.

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

  15. Sorghum Market Segments • Exports: 45% • Domestic Livestock Feed: 36% • Ethanol Production: 15% • Industrial Uses: 3% • 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.

  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

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