Projected Long Term Growth in Net Farm Income

2

Average Annual Net Farm Income 1980 - 2020

($ in billions)

Source: USDA, expressed in nominal dollars

$29.1B

$48.1B

$61.1B

$83.6B

$20

$40

$60

$80

$100

' 80 - ' 89 ' 90 - ' 99 ' 00 - ' 09 ' 10 - ' 20

Long Term Growth Drivers– Income Growth in Developing Countries– Increasing Demand for Biofuels– Technological Advances – Genetics, Crop Production, GPS

Increasing Demand from Developing Countries

3

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

2011 Ethanol Production Capacity in ND

Increasing Demand for Biofuels

– Ethanol Production Drives Demand for Corn Production– US Ethanol Production to Grow From 13.5B Gal to 15B Gal by 2015

Source: Nebraska Energy Office (NEO)

1995 2007 20110

50

100

150

200

250

300

350

400

450

Mill

ions

of G

allo

ns

ND Corn Production 1995-2010

Technological Advances

Source: USDA, NASS

Technological Advances Allow Increased Acres and Yield

1995 2000 2005 20100

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

2000000

0

50

100

150

200

250

300

Acres Yield

Tota

l Yie

ld

in M

illio

ns o

f Bus

hels

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

Since 2000 AG Revenue & Inputs have Increased Over 200%

Ag Economic Impact in ND

– Fuel Provider– Fertilizer Supplier– Seed Dealer

– Chemical Vendor– Vehicle & Equipment Dealer– Employees

AG Inputs

2000 2005 20100.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

ND Ag Revenue ND Ag Inputs

Bill

ions

of D

olla

rs

Source: USDA, NASS