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PRESENTATION

PRESENTATION. NATIONAL ECONOMIC GARDENING & RURAL ENTREPRENEURIAL GATHERING. BY DAVID KOLSRUD EXPERIENCED DEVELOPER/CONSULTANT/FARMER. PRIMING THE PUMP. IN RURAL AMERICA. The Kolsrud Farm. BUSINESS INVOLVEMENT. Manager CORN-er Stone Farmers Co-op

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PRESENTATION

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

  2. PRIMING THE PUMP IN RURAL AMERICA

  3. The Kolsrud Farm

  4. 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

  5. HARD WORK=SUCCESS

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

  7. Need to Specialize

  8. Bigger is Better

  9. Better Marketing

  10. Low Cost Producer

  11. Embracing New Technology

  12. RAT RACE

  13. Creative Thinking

  14. Need to be Active Politically

  15. FARMER OWNED FURTHER PROCESSING

  16. ETHANOL PLANTS IN MINNESOTA

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

  18. AGRI-Energy Ethanol

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

  20. 1 Bushel Corn Equals 2.6 Gal. Ethanol 17# DDGS x $1.20x3.5¢/lb. $3.12 59.5¢ $3.12 0.60 $3.72

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

  22. $12,720,000 Additional Cash x 13 Plants $165,360,000 Additional Cash (most of which is spent in Minnesota)

  23. HIGHER CORN PRICES

  24. LOWER CORN PRICES

  25. HIGHER GAS PRICES

  26. LOWER GAS PRICES

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

  28. WIND ENERGY IS UNIQUE

  29. CONTROL MARKETS FEASIBILITY

  30. & Minus equals

  31. EQUALS

  32. LOCATION STRUCTURE GOVERNANCE

  33. EQUITY RAISED % FINANCING TAX ISSUES DISTRIBUTIONS

  34. TOWER ENVY GOOD OR BAD

  35. EMOTION VS ECONOMICS

  36. WHAT ARE THE CHARACTERISTICS OF A SUCCESSFUL PROJECT?

  37. VISION COOPERATIVE COMMITMENT

  38. CONTRIBUTE TO VS PROFIT FROM

  39. FOCUS ON THE GOAL

  40. 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

  41. CAUTION Don’t let the grants/incentives become the project

  42. SUMMARY OF 30 STEPS “CONCEPTION TO COMPLETION”

  43. RELATIONSHIP OF OWNER/LENDER

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