CONNECTING CORN AND THE

ith more than 290 million people living in the United States

much more than just the food we eat. Agriculture creates jobs and supports communities. It provides renewable resources that fuel our cars and improve our quality of life. Our reliance on agriculture connects us. Perhaps no other crop plays as important a role in fostering this connection as does corn. Well over half the items in your grocery cart can be tied to corn, from the grain fed to the dairy cow

being fed by fewer than 2 million farmers and ranchers, no other country produces and has access to a safer or more abundant food supply than the United States. We all have our own idea of who a farmer is and what he does. But do we really understand what impact the farmer and agriculture have on our everyday lives? It is

CONSUMER
that produces the milk and cheese to breads, snack foods, oils and other consumables and household products. The World of Corn 2004 explores the common ground that ties us together the connections between the producer and the consumer, the farmer and the land and the United States and other corn-producing countries around the world.
The USDA compared the average cost of a bag of groceries containing:

1 gallon of milk, 1 dozen eggs, a 5-pound bag of cheddar cheese, a 2-pound sirloin steak and a 2-pound bag of apples
United States Madrid, Spain

$18.79 $27.38 $23.19 $30.10 $27.38 $74.23

Rome, Italy Tokyo, Japan London, England Paris, France

2 - www.ncga.com

A Message from Dee Vaughan, Corn Grower and President, NCGA

The world around us is in a constant state of change and evolution. Agriculture, and specifically, the world of corn, is no different. Production practices have improved the efficiency of todays corn producers in the United States and abroad. And it seems everywhere we look, someone has discovered a new use for corn. While the livestock producer remains our industrys largest customer, there are thousands of products manufactured from corn from ethanol to industrial solvents to fluffy pillows and corn sweeteners. This is the world of corn. As president of the National Corn Growers Association, let me welcome you to the World of Corn 2004. This publication is our annual yearbook that showcases the progress and change within our industry. The NCGA represents the corn industry and the interests of more than 33,000 dues-paying corn growers from 48 states. We work on behalf of 25 state affiliate organizations and more than 300,000 farmers who contribute to corn checkoff programs in 20 states. Our mission is to build opportunity for corn growers with a focus on six key issues that offer producers the greatest potential for market growth and development: biotechnology, ethanol and co-products, trade, transportation, research and business development, and farm and rural development. And its not only corn growers who benefit from this focus. Our success in these areas creates new jobs throughout the U.S. economy, contributes to a cleaner environment and provides consumers with innovative products. While many of NCGAs initiatives are national in scope, we strive to build connections via grassroots communication. No one is better at sharing our story with industry, government and consumers than the farmers who plant the seeds. The continued growth of the U.S. corn industry depends on our ability to create meaningful connections with those who benefit both directly and indirectly from the world of corn.

A Message from Rick Tolman, CEO, NCGA

Welcome to the World of Corn 2004. Whether you are a producer, journalist, teacher, legislative decision-maker or staff member, we have strived to put together a publication that resonates with many different audiences. The world of corn is much more than corn plants blowing in the summer breeze or golden ears harvested in the fall. Agriculture continues to evolve. In 1935, a single producer grew enough food to feed 20 people. Today, one producer feeds 128 people. With new technology that improves production while protecting the land, fewer than 2 million farmers produce the worlds safest, environmentally sound and most abundant food supply. To continue to be successful, U.S. corn producers need to bridge the gap between producers and consumers. It all comes down to having a common ground on which to build connections. The World of Corn 2004 looks at how the corn industry affects each and every one of us. We may not all be corn growers but we are all consumers who want a safe, abundant food supply, clean air and preservation of natural resources.

The World of Corn is an annual NCGA publication that showcases production and consumption statistics for corn in the United States and around the world. NCGA extends special thanks to Monsanto Company for its sponsorship of The World of Corn 2004. This publication is also available on the web at www.ncga.com.

www.ncga.com - 3

IT STARTS WITH A SEED

Total Digestible Nutrients

(TDN)

2
3

90% 88% 78-80%

TDN Shelled Corn TDN Ear Corn
(Wet Weight)
3.8% Corn Oil

Cracked Corn

TDN

Components of Yellow Dent Corn

16% Water 19.2% Protein & Fiber 61% Starch

4
1 THE ENDOSPERM The endosperm comprises about 82 percent of the kernels dry weight and is the source of energy (starch) and protein for the germinating seed. There are two types of endosperm: soft and hard. In the hard endosperm, starch is packed tightly together. In the soft endosperm, the starch is loose. When yellow dent corn dries in the field before harvest, the moisture loss causes the soft endosperm to collapse and form a dent in the top of the kernel; thus the term dent corn. Starch is the most widely used part of the kernel and is found in thousands of products either as a starch or another component, such as chemicals, sweeteners and fuel.

One Bushel of Corn Provides

(One bushel = 56 lbs.)

or or

31.5 lbs. starch 33 lbs. sweetener 2.5 gal. fuel ethanol 13.5 lbs. gluten feed* 2.6 lbs. gluten meal** 1.5 lbs. corn oil
* Gluten feed is 20 percent protein ** Gluten meal is 60 percent protein

2 THE PERICARP The pericarp is the outer covering that protects the kernel. It resists water and water vapor and is undesirable to insects and microorganisms.

plus

3 THE GERM The germ is the only living part of the corn kernel. It contains the essential genetic information, enzymes, vitamins and minerals for the kernel to grow into a corn plant. About 25 percent of the germ is corn oil. The most valuable part of the corn kernel, corn oil, is high in linoleic fatty acid (polyunsaturated fats) and has a mild taste.

and

4 THE TIP CAP The tip cap is the only area of the kernel not covered by the pericarp. It is the attachment point of the kernel to the cob.

4 - www.ncga.com

GROWING A GLOBAL
The corn seed marks the beginning of one of the worlds most versatile crops. For centuries corn has been a staple of everyday life, serving as a source of food, energy and currency. From the early maize crops first cultivated by the Mayans and Incas to todays advanced hybrids resistant to pests and chemicals, corn remains firmly rooted at the heart of agriculture. Agriculture is the worlds largest industry. On a worldwide basis, more people are involved with agriculture than all other occupations combined. There may be only 2 million people actively involved in production agriculture in the United States, but according to the International Food Information Council, one out of every six jobs is tied to our industry. From producer to researcher, teacher to economist and mechanic to truck driver, agriculture supports every aspect of our economy.

www.ncga.com - 5

COMMODITY
Advances such as pest-resistant seeds, highly mechanized equipment, precision global positioning satellite technology, and grain storage and transportation systems that maintain the quality of the crop, enable U.S. farmers to produce more highquality crops on less ground. According to the USDA, there were more than 1.1 billion acres in production spread across 5.3 million farms in 1950. Today, 2 million farmers operate on 950 million acres. While the number of farms has declined over the years, the average size continues to grow. What does that mean to the consumer? Since the 1950s, crop yields have increased more than 55 percent. Meanwhile, the percentage of income Americans spend on food has declined. Americans spend less on food than people in any other country. Percentage of Income Spent on Food
10 14 21 48

United States
Source: International Food Information Council

Europe

Japan

China

In 2003, U.S. corn growers planted more than 78 million acres of corn, producing upwards of 10 billion bushels of grain. Corn is grown in all 50 states, yet 88 percent of U.S. production is centered in the Corn Belt Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin. Corn is a worldwide crop, grown

in countries as diverse as China, Brazil, Ukraine, South Africa, Thailand, Romania and Nigeria. The USDA estimates more than 70 percent of the worlds corn is grown in four regions the United States, China, Brazil and the European Union. Producing a Crop That Feeds and Fuels the World How many times a day does the average American consumer use

Corn Production in China

The most populous country in the world, China ranks second behind the United States in corn production, producing an estimated 4.7 billion bushels in 2003. It is the third-largest exporter of corn, behind the United States and Argentina. China exports primarily to other Asian countries, including South Korea, Malaysia and Indonesia. Nearly 15 percent of Chinas production comes from the Jilin Province. Chinas National Grain and Oils Information Center projects 20032004 corn consumption in China at 128.5 million tons. Feed use is the largest segment within China, accounting for 90 million tons. Another 14 million tons goes into industrial uses. Corn production in China differs dramatically from that of the United States. Most corn is grown in plots smaller than one-half hectare (or slightly more than one acre) and is very labor intensive.

Corn production (1000 metric tons) 1 - 499 500 - 5,000 5,000 - 14,000 Over 14,000

6 - www.ncga.com

Pillows and comforters are among the increasing number of consumer products made from corn fiber.

a product derived from corn? You may fill your car up with ethanolblended fuel. That soda at lunch sweetened with a corn sweetener. Maybe you have a pillow or comforter made from corn fiber. And the pot roast for dinner most likely corn-fed beef. For many, the first use of corn that comes to mind is a foodstuff cornflakes, chips and other products. In actuality, human consumption is just a small percentage of overall corn use. In the United States, 57 percent of the corn crop is fed to animals, helping livestock producers deliver affordable, high-quality meat products to consumers. The livestock industry is the corn producers leading customer. In 2003, beef cattle were fed more than 1.4 billion bushels of corn, while hogs consumed 1.1 billion bushels and poultry another 1.3 billion bushels. Regardless of market, producers around the world

continue to explore value-added opportunities for corn. One of the most successful efforts has been the growth of the ethanol market. Eleven percent of U.S. corn production goes into ethanol, while another 19 percent or 1.9 billion bushels is exported. The balance of the crop is used for food, seed and industrial uses. Thousands of products are derived from corn. The emerging bioproducts industry creates new uses for corn and its byproducts. Solvents, cleaners, deicers and plastics are just a handful of the hundreds of renewable, cornbased products we use every day. Organizations such as NCGA work with state corn organizations, universities and industry partners to find new uses for corn. Corn refining is a prime example of value-added agriculture. Refining separates corn into various components starch, oil, protein and fiber and converts it into higher-value products. More

than 1.4 billion bushels of corn are refined annually into a wide variety of food, industrial and feed products. Finding New Uses for Corn We all read labels for nutritional information, but have you ever wondered what plastic forks or deli trays are made from? Of the many new uses for corn, perhaps none has had such impact on the bioproducts industry as the development of polylactic acid, or PLA. A corn-derived polymer, PLA is used to create synthetic fibers and biodegradable plastics that offer

Corn-derived polylactic acid is used to create biodegradable plastic.

www.ncga.com - 7

Whats Corn Used For?

U.S. Corn Consumption Feed/Residual Export Ethanol High Fructose Corn Syrup (HFCS) Starch Sweeteners Cereal/Others Alcohol Seed 57% 19% 11% 5% 2.5% 2.2% 1.8% 1.3% 0.2%

consumers and industry a 100percent renewable alternative. PLA packaging is used every day in consumer goods such as floral wraps, food packaging for bakery and deli goods and serviceware such as dishes and cutlery. PLAs promise extends beyond plastics. It is also being used in a synthetic material that offers many traits of natural fibers. Man-made fibers from 100percent renewable resources are already available at home stores throughout the United States. They can be found in clothing, bedding and carpeting. Biotechnology Improves Production While Reducing Stress on the Environment New technology has allowed producers to take a more active role as stewards of the land.

Biotechnology offers farmers tools to protect their crops from disease, weeds and insects. Current biotechnology crop offerings have reduced the amount of pesticides used in U.S. production by 46 million pounds. As additional biotechnologyderived crops are introduced, more than 163 million pounds of pesticides could be eliminated from current cropping practices. Many of these crops also eliminate the need for tilling the soil, thereby preserving valuable topsoil and reducing runoff into rivers and streams. The world population is projected to top 8 billion by 2030, meaning farmers around the globe will need to produce enough food to feed an additional 2 billion people. The United Nations Population Fund estimates farmers will need to produce 75 percent more food per acre to meet the demand. Biotechnology brings with it the potential to increase crop yields, while lessening environmental and cultural impact on land in production. A 2002 study by the National Center for Food and Agricultural Policy found that six biotechnology crops grown in the United States soybeans, corn, cotton, papaya, squash and canola produced an additional 4 billion pounds of food and fiber

Preparing to plant no-till corn. Many biotechnology-derived crops eliminate the need for tillage.

on the same acreage as their traditional counterparts. Fueling the World with Ethanol Ethanol is an agriculture success story. Countries across the globe are investing in ethanol with Brazil leading the world in ethanol production and consumption. All automotive fuel sold in Brazil contains ethanol and more than 3.5 million cars run on 100 percent ethanol fuel. The balance of the automotive fleet uses a 24percent ethanol blend.

Corn Production in Brazil

Perhaps no country has more untapped resources than Brazil. The high plains, or cerrados, encompasses more than 207 million hectares, or 510 million acres. Less than one-fourth of the cerrados, approximately 50 million hectares, is in production. EMBRAPA, Brazils agricultural research organization, estimates that another 100 million hectares are suited to modern mechanized agriculture. Brazilian farmers use the latest in equipment, seed and crop protection technologies. The average farm in the Mato Grosso region is 1,000 hectares, or 2,470 acres.

Areas of Corn Production

The Processor Preferred logo, Monsanto imagine and the vine symbol are trademarks of Monsanto Technology, LLC. 2004 Monsanto Company.

Committed to Value
learn more at

Imagine helping farmers produce billions of gallons of ethanol from corn. Imagine crops reducing auto emissions and our need for oil. Imagine an economical, renewable energy source.

Imagine innovative agriculture that creates incredible things today.

10 - www.ncga.com

We all want to breathe clean air.

Because ethanol contains a higher percentage of oxygen than gasoline, it burns more completely, reducing emissions. Ethanol reduces: greenhouse gas emissions tailpipe carbon monoxide emissions exhaust volatile organic compound emissions particulate emissions

its byproduct, distillers dried grains with solubles, is a nutritious livestock feed. Ethanol-blended fuels account for 18 percent of all automotive fuels in the United States. Ethanol has a 113-octane rating, making it the highest-performing fuel on the market. And because ethanol-blended fuels dont leave gummy deposits, they keep automobile fuel systems clean and also help serve as gas-line antifreeze in winter. Ethanol Creates Business Opportunities for U.S. Corn Growers The United States stands on the brink of a Renewable Fuels Standard (RFS). The legislation currently in Congress would require the use of 5-billiongallons of renewable fuels by 2012. The RFS would utilize more than 2 billion bushels of the U.S. corn crop, a 1.3-billion-bushel increase over present production. Yet, even without an RFS, the ethanol market has the potential to expand by an additional 3 to 4 billion gallons due to the reformulated gasoline program passed by Congress in 1995. As investments in farmer-owned ethanol co-ops and higher grain prices generate new income, farmers could receive an extra $6.6 billion of net cash income over the next 15 years, helping to revitalize rural economies. Farmer-owned cooperatives are responsible for 50 percent of the new production capacity in the United States. The Renewable Fuels Association estimates ethanol provides more than 200,000 U.S. jobs annually. The RFS would create an additional 214,000 skilled jobs across the country.

WORLD
The world of corn is ever changing, with new uses and new markets that connect producers and consumers. Were connected through technology, the environment and a safe, abundant food supply. The charts and graphs on the following pages provide indepth information on corn production and consumption, as well as contact information for industry partners and affiliates who support the world of corn.

Since 1980, Sweden has cut its crude oil consumption in half as a result of ethanol production. India has begun several pilot projects to use a 5 percent ethanol blend in gasoline. In the United States, cornbased ethanol plays three major roles in our economy: it offers energy security by replacing $2 billion worth of imported fuel with a renewable, domestic fuel; it is good for the environment, reducing pollution and contributing to clearer air; and its good for the economy, creating new business opportunities for corn growers and communities. Ethanol production is energy efficient, too, because it has a positive net energy balance, meaning it takes less energy to produce ethanol than the product ultimately created. Additionally,

www.ncga.com - 11

CORN PRODUCTION
U.S. Corn at a Glance, 2003
Acres Planted

U.S. Corn Production by State, 2003

Acres Planted
(1000s)

78.7million 71.1million 10.1 billion bushels 142.2 bushels per acre $23.3 billion $2.30 per bushel
U.S. Select Crop Value, 2003
$23.3

Acres Harvested For Grain

(1000s)

Average Yield
(bushels/acre)

Total Production
(1000 bushels)

Acres Harvested

Production

Average Yield

Corn Crop Value

Average Price

Billions of Dollars

Oats Barley Sor- Wheat Soy- Corn ghum beans

Source: USDA, NASS, Crop Production, 2003 Summary, Jan 2004; USDA, ERS, Outlook Reports, Jan 2004

Alabama Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Total U.S.

220 47 365 520 1,080 30 170 75 340 190 11,200 5,600 12,400 2,900 1,170 520 28 480 20 2,300 7,200 550 2,900 65 8,100 4 15 80 130 1,000 740 1,450 3,300 230 51 1,450 2 240 4,400 710 1,830 55 96 470 130 48 3,750 85 78,736

190 22 350 170 890 162 39 285 50 11,050 5,390 12,000 2,500 1,080 500 410 2,090 6,650 530 2,800 17 7,700 61 48 440 680 1,170 3,070 190 30 890 215 3,850 630 1,650 13 330 70 27 2,850 50 71,139

122 190 140 160 135 123 82 129 140 164 146 157 120 137 134 123 126 146 135 108 140 146 113 180 121 106 112 156 125 170 115 105 111 131 118 155 115 195 115 129 129 142

23,180 4,180 49,000 27,200 120,150 19,926 3,198 36,765 7,000 1,812,200 786,940 1,884,000 300,000 147,960 67,000 50,430 263,340 970,900 71,550 302,400 2,380 1,124,200 6,893 8,640 53,240 72,080 131,040 478,920 23,750 5,100 102,350 22,575 427,350 82,530 194,700 2,015 37,950 13,650 3,105 367,650 6,450 10,113,887

$0.2

$0.8

$1.0

$7.8

$17.5

Source: USDA, NASS, Crop Production, 2003 Summary, January 2004

12 - www.ncga.com

U.S. All Crop Acres Harvested, 2003

Thousand Acres
Other 2% Oats 1% Sunflower 1% Rice 1% Barley 2% Corn (silage) 2% Sorghum (grain) 3%

U.S. Corn Acres Planted, 1933-2003

Thousand Acres

109,830

94,341

81,574

79,537

78,921

79,229

80,165

77,386

79,551

72,253

73,239

68,771

Soybeans 23%

Cotton 4% Wheat 17% Hay 21%

Corn (grain) 23%

33

43

53

63

73

83

60,207

93

94

95

71,479

96

97

98

99

00

01

75,752

02

79,054

Source: USDA, NASS, Corn total acreage, utilization, price and value of production 1933 to date

U.S. Corn Production, 1923-2003

Corn (grain) Corn (silage) Soybeans Hay Wheat Cotton Sorghum (grain) Sorghum (silage) Barley Rice 71,139 6,528 72,321 63,342 52,839 12,058 7,798 343 4,688 2,997 Oats Sunflower Sugar Beets Dry Edible Beans Peanuts Potatoes Canola Sugarcane Proso Millet Flaxseed Tobacco
10,102,735 9,758,685 9,915,051 9,293,435 9,206,832 9,430,612 9,506,840 01
138.2 01

23

33

43

53

63

73

83

93

94

95

96

97

98

99

00

02
02

Source: USDA, NASS, Crop Production, 2003 Summary, Jan 2004

Source: USDA, NASS, Corn total acreage, utilization, price and value of production 1923 to date

U.S. Corn Acres Harvested, 1923-2003

Thousand Acres
87,493 92,130

U.S. Average Corn Yields, 1923-2003

138.6 134.4 133.8 136.9 113.5 127.1 126.7

81,906

72,514

72,644

72,671

72,589

72,440

70,738

70,487

68,808

69,313

71,139

62,143

62,933

65,210

91.3

59,227

51,479

27.8

23

33

43

53

63

73

83

93

94

95

96

97

98

99

00

01

02

03

23

33

22.8

43

32.6

53

40.7

63

67.9

73

83

81.1

93

100.7

94

95

96

97

98

99

00

130.0

Source: USDA, NASS, Corn total acreage, utilization, price and value of production 1923 to date

Source: USDA, NASS, Corn total acreage, utilization, price and value of production 1923 to date

U.S. Corn Prices, 1953-2003

Dollars per Bushel
$3.24 $3.21 $2.71 $2.55 $2.50 $2.43

U.S. Corn Crop Value, 1953-2003

$24.12 $25.15
Billions of Dollars

$22.99

$22.35

$19.09

$14.46

$1.94

$1.48

$1.11

$4.29

**03

*02

53

63

73

83

93

94

95

96

97

98

99

00

01

$4.45

$13.55

$1.82

$1.85

$16.03

$2.00

$17.16

$18.34

$2.32

$2.26

$2.30

$19.01

$20.90
*02

* Estimates for marketing year ending Aug 31, 2003 ** Source: USDA/Natl Agricultural Statistics Service, 2003 Crop Production Annual Summary, Jan 14, 2004 Projections for marketing year ending Aug 31, 2004

* Estimates for marketing year ending Aug 31, 2003 ** Source: USDA/Natl Agricultural Statistics Service, 2003 Crop Production Annual Summary, Jan 14, 2004 Projections for marketing year ending Aug 31, 2004

**03

53

63

73

83

93

94

95

96

97

98

99

00

01

$23.64

03

142.2

Bushels per Acre

03

1,347 1,312 1,250 1,068 997 620 583 416

5,670,712

2,429,551

Total

308,877

2,104,725

2,668,490

2,881,801

4,019,238

4,174,251

6,336,470

7,373,876

9,007,659

10,113,887

2,224 2,197 1,348

Rye Dry Edible Peas Lentils Safflower Mustard Seed Sweet Potatoes Peppermint Oil Hops Other

339 329 237 212 107 92 78 29 39

Thousand Bushels

03

78,736

www.ncga.com - 13

World Corn Exports, 2003-04*

Others 3% Hungary 1% S. Africa 1% Ukraine 2%

Percentage of Biotech Acreage, 2001-03

Stacked Traits All Biotech Hybrids Thousand Acres
Bt 25% Herb. Tolerant 11%

State IL IN IA KS MI MN MO NE OH SD WI Others US

01 02 03 01 02 03 01 02 03 01 02 03 12 6 25 26 8 25 23 24 7 30 11 11 18 18 7 31 25 12 29 27 34 6 33 15 14 22 23 3 3 4 8 6 6 7 33 6 7 8 25 11 15 17 18 7 8 14 31 7 11 15 32 8 6 9 36 8 9 11 6 4 3 3 34 14 23 24 21 6 9 9 17 8 12 17 25 7 9 11 1 1 1 16 22 28 - - 1 12 13 16 1 3 4 32 41 45 1 2 5 38 43 47 2 2 3 17 22 35 4 4 7 36 44 53 1 2 1 32 34 42 2 4 5 34 46 52 - - 11 9 9 3 10 17 47 66 75 1 2 2 18 26 32 1 2 2 20 27 36 1 2 4 26 34 40

Brazil 7%

U.S. 64% China 10%

Argentina 12%

Source: USDA, NASS, Acreage Report June 30, 2003

Million Bushels United States Argentina China Brazil Ukraine South Africa

1,968 354 315 217 59 39

Hungary Canada Thailand EU Others Total

20 12 6 4 56 3,050

Biotech Share of U.S. Corn Acres Planted, 2003

Herbicide Tolerant

Bt

*October through September Marketing Year Source: USDA/Foreign Agriculture Service, Grain: World Markets and Trade, Jan 15, 2004

World Corn Production, 2003-04*

Ukraine 1% S. Africa 1% Canada 2% India 2% Argentina 2% Mexico 3% EU 5% Others 16%

Non-Biotech 60%

Non-Biotech 47,242 Bt 19,684 Herbicide Tolerant 8,661 Stacked Traits 3,149 Total 78,736

Stacked Traits 4%

Source: USDA, NASS, Acreage Report June 30, 2003

U.S. Corn Exports, 1983-2003

U.S. 42%
Million Bushels 2,028 2,177 2,228 1,981 1,937 1,941

1,886

1,797

1,905

Brazil 7% China 19%

* Estimates based on USDA, FAS Attachee reports Source: USDA/Foreign Agriculture Service, Grain: World Markets and Trade, Jan 12, 2004

* Estimates for crop year ending August 31, 2004 Source: USDA, NASS, 2003 Crop Production Annual Summary, Jan 14, 2004

*2003

1983

1988

1993

1994

1995

1996

1997

1998

1999

2000

2002

2001

Million Bushels United States China Brazil EU Mexico India

10,114 4,488 1,575 1,201 748 551

Argentina Canada South Africa Ukraine Others Total

492 378 315 256 3,784 23,902

1,328

1,504

1,592

1,975

14 - www.ncga.com

CORN CONSUMPTION
U.S. Corn Usage by Segment, 2003*
Million Bushels Feed/Residual Export Food, Seed, Industrial Ethanol HFCS Starch Sweeteners Cereal/Other Alcohol Seed Total Use 5,775 1,975 1,120 535 260 225 188 132 20 10,230
HFCS 5% Other 8% Ethanol 11% Export 19%

Starch Usage, 1983-2003

251 223 223 226 219 229 234 240 248 246 01
541
01

83

160

Feed/Residual 57%

88

93

94

95

96

97

98

99

00

02
02

256
532

*Marketing Year ending Aug 31, 04 - Source: USDA, ERS, Feed Outlook, Jan 04

Source: USDA, ERS, Feed Outlook, Jan '04 *Marketing Year ending Aug 31, '04

2,046

Million Bushels
1,782 1,822 1,913 1,967 1,704 1,692 1,609 1,612

2,346

2,480

Food, Seed and Industrial (FSI) Usage, 1983-2003

High-Fructose Corn Syrup (HFCS) Usage, 1983-2003

Million Bushels

537

1,298

930

83

265

88

361

93

444

94

465

95

482

96

504

97

532

98

531

99

540

00

*03

*Marketing Year ending Aug 31, 04 - Source: USDA, ERS, Feed Outlook, Jan 04

Source: USDA, ERS, Feed Outlook, Jan '04 *Marketing Year ending Aug 31, '04

1,899

U.S. Corn Ending Stocks, 1933-2003

1,787 1,718 Million Bushels 1,537 1,558

Sweetener Usage, 1983-2003

Million Bushels

246

1,596

223

231

237

245

219

222

221

1,308

1,087

920

484

723

850

274

231

426

883

981

83

167

88

182

93

94

95

96

97

98

99

00

01

217

02

225

*03

33

43

53

63

73

83

93

94

95

96

97

98

99

00

01

02

*Estimates for marketing year ending Aug 31, 04 - Source: USDA/NASS, 2003 Crop Production Annual Summary, Jan 14, 2004

Source: USDA, ERS, Feed Outlook, Jan '04 *Marketing Year ending Aug 31, '04

*03

225

*03

83

88

93

94

95

96

97

98

99

00

01

02

535

*03

260

Million Bushels

www.ncga.com - 15

Million Bushels

533

458

83

160

88

287

93

94

95

396

96

429

97

481

98

526

99

566

00

628

01

706 02 *03

Source: USDA, ERS, Feed Outlook, Jan '04 *Marketing Year ending Aug 31, '04

U.S. Ethanol Fuel Production Facilities, 2003

Company (Capacity million gal/yr) Abengoa Bioenergy Corp (85) Location Feedstock corn/milo corn/milo corn/milo corn corn corn corn corn corn corn corn corn corn corn corn corn corn corn/barley corn corn corn corn corn corn corn corn corn seed corn corn corn corn corn corn corn corn seed corn corn corn cheese whey corn corn corn/beverage waste corn corn corn Company (Capacity million gal/yr) Heartland Grain Fuels, LP* (22) Location Feedstock

York, NE Colwich, KS Portales, NM Ace Ethanol, LLC (15) Stanley, WI Adkins Energy, LLC* (40) Lena, IL A.E. Staley (65) Loudon, TN AGP* (52) Hastings, NE Agra Resources Co-op (Exol)* (38) Albert Lea, MN Agri-Energy, LLC* (21) Luverne, MN Alchem Ltd. LLLP (10.5) Grafton, ND Al-Corn Clean Fuel* (30) Claremont, MN Archer Daniels Midland (1,070) Decatur, IL Cedar Rapids, IA Clinton, IA Columbus, NE Marshall, MN Peoria, IL Walhalla, ND Aventine Renewable Energy, Inc (135) Pekin, IL Aurora, NE Badger State Ethanol, LLC* (48) Monroe, WI Big River Resources, LLC* (40)^ W. Burlington, IA Broin Enterprises, Inc. (9) Scotland, SD Cargill, Inc. (118) Blair, NE Eddyville, IA Central Illinois Energy Co-op* (30)^ Canton, IL Central MN Ethanol Co-op* (20) Little Falls, MN Central Wisconsin Alcohol (4) Plover, WI Chief Ethanol (62) Hastings, NE Chippewa Valley Ethanol Co.* (42) Benson, MN Commonwealth Agri-Energy, LLC* (20)^ Hopkinsville, KY Cornhusker Energy Lexington, LLC* (42)^ Lexington, NE Corn Plus, LLP* (44) Winnebago, MN Dakota Ethanol, LLC* (48) Wentworth, SD DENCO, LLC* (21.5) Morris, MN ESE Alcohol Inc. (1.5) Leoti, KS Ethanol2000, LLP* (30) Bingham Lake, MN Glacial Lakes Energy, LLC* (48) Watertown, SD Golden Cheese Co. of Calif.* (5) Corona, CA Golden Grain Energy, LLC* (40)^ Mason City, IA Golden Triangle Energy, LLC* (20) Craig, MO Gopher State Ethanol (15) St. Paul, MN Grain Processing Corp. (10) Great Plains Ethanol, LLC* (42) Heartland Corn Products* (36) Muscatine, IA Chancellor, SD Winthrop, MN

Aberdeen, SD Huron, SD Husker Ag, LLC* (23) Plainview, NE Iowa Ethanol, LLC* (45)^ Hanlontown, IA James Valley Ethanol, LLC (45) Groton, SD J.R. Simplot (4) Caldwell, ID KAAPA Ethanol, LLC* (40) Minden, NE Land OLakes* (2.6) Melrose, MN Lincolnland Agri-Energy, LLC* (40)^ Palestine, IL Little Sioux Corn Processors, LLC* (46) Marcus, IA Merrick/Coors (1.5) Golden, CO Michigan Ethanol, LLC (45) Caro, MI MGP Ingredients, Inc. (78) Pekin, IL

corn corn corn corn corn potato waste corn cheese whey corn corn waste beer corn corn/wheat starch Atchison, KS corn/wheat starch Mid-Missouri Energy, Inc.* (40)^ Malta Bend, MO corn Midwest Grain Processors* (45) Lakota, IA corn Midwest Renewables (40)^ Iowa Falls, IA corn Miller Brewing Co. (0.7) Olympia, WA brewery waste Minnesota Energy* (18) Buffalo Lake, MN corn New Energy Corp. (95) South Bend, IN corn N.E. Missouri Grain, LLC* (40) Macon, MO corn Northern Lights Ethanol, LLC* (45) Big Stone City, SD corn Otter Creek Ethanol, LLC* (45)^ Ashton, IA corn Parallel Products (8) Louisville, KY beverage waste R. Cucamonga, CA beverage waste Permeate Refining (1.5) Hopkinton, IA sugars/starches Pine Lake Corn Processors, LLC* (20)^ Steamboat Rock, IA corn Platte Valley Fuel Ethanol, LLC (40)^ Central City, NE corn Pro-Corn, LLC* (40) Preston, MN corn Quad-County Corn Processors* (23) Galva, IA corn Reeve Agri-Energy (12) Garden City, KS corn/milo Siouxland Energy & Livestock Co-op* (18) Sioux Center, IA corn Sioux River Ethanol, LLC* (45)^ Hudson, SD corn Tall Corn Ethanol, LLC* (45) Coon Rapids, IA corn Trenton Agri Products, LLC (30)^ Trenton, NE corn Tri-State Ethanol, LLC* (18) Rosholt, SD corn United WI Grain Producers, LLC* (40)^ Friesland, WI corn/milo U.S. Energy Partners, LLC (40) Russell, KS milo/wheat starch Utica Energy, LLC (24) Oshkosh, WI corn VeraSun Energy Corp. (100) Aurora, SD corn Western Plains Energy, LLC* (30) Oakley, KS corn Wyoming Ethanol (5) Torrington, WY corn *farmer-owned ^under construction

996

1,120

U.S. Ethanol Fuel Plants, 2003

Ethanol Usage, 1983-2003

16 - www.ncga.com

Top World Corn Importers, 2003-2004*

Million Bushels Japan South Korea Mexico Egypt Taiwan EU Malaysia Canada Colombia Iran Other Total 650 374 256 197 189 157 98 78 78 67 906 3,050
EU 5% Taiwan 7% Egypt 6% Mexico S. Korea 8% 12% Japan 21%

U.S. Meat Exports by Animal Group, 1991-2003

Thousand Metric Tons 3200 2800 2400 2000 1600 1200 800 400 0

Iran 2% Colombia 3% Canada 3% Malaysia 3%

Others 30%

Poultry

Beef

Pork

*Marketing Year ending 8-31-04 - Source: ProExporter Network (PRX)

*October through September marketing year Source: USDA/Foreign Agriculture Service, Grain: World Markets and Trade, January 15, 2004

U.S. Corn Fed by Animal Group, 1991-2003

Million Bushels 1600 1400 1200 1000 800 600 400 200 0
Beef

Million Bushels Total = 25,273

8,255

World Corn Consumption, 2003-2004*

5,560

5,082

*Marketing Year ending 8-31-03 - Source: ProExporter Network (PRX)

1,012

1,465

1,496

U.S. Corn Usage by Segment, 1990-2003

China Others U.S.

343

429

453

528

650

Canada

Japan

S. Africa

Mexico

Brazil

Egypt

India

EU

Million Bushels 6000 5000 4000 3000 2000

Feed & Residual Exports

*October through September marketing year Source: USDA/Foreign Agriculture Service, Grain: World Markets and Trade, January 15, 2004

Leading U.S. Corn Export Markets

Million Bushels 2000-'01 Japan Mexico Taiwan Egypt Canada Colombia Venezuela Algeria Dominican Rep Turkey Other 566.7 233.9 190.2 163.5 106.2 63.6 50.7 47.4 38.4 29.4 451.0 2001-'02 597.3 187.1 196.8 186.1 103.3 68.7 16.1 59.1 42.4 30.5 402.5 2002-03 599.5 198.2 170.4 112.2 113.9 63.6 23.8 36.5 38.9 38.3 177.3

1000 0

*Mktg Year ending 8-31-04 - Source: USDA, ERS, Feed Outlook Jan 2004

U.S. Corn Fed by Region, 1991-2003

Million Bushels* 3200 2800 2400 2000 1600 91 92 93 94 95 96 97 98 99 00 01 02 **03
* Based on PRX calculations of feed usage with residual usage removed ** Marketing Year ending 8-31-04 - Source: ProExporter Network (PRX)

Source: USDA, FAS; U.S. Export Sales, Marketing Year Summary

90 91 92 93 94 95 96 97 98 99 00 01 02 *03
Non-Corn Belt

91 92 93 94 95 96 97 98 99 00 01 02 *03
Food, Seed & Industrial
Corn Belt

91 92 93 94 95 96 97 98 99 00 01 02 *03
Poultry
Hogs
Dairy
Other

Organizations that Support the Corn Industry

NCGA National Corn Growers Assn, 632 Cepi Dr, Chesterfield, MO 63005, P: 636-733-9004, F: 636-733-9005, corninfo@ncga.com, www.ncga.com, Mimi Ricketts, Dir of Mktg Communications, x 112 NCGA Washington, DC Office, 122 C St NW #510, Washington, DC 20001-2109, P: 202-628-7001, F: 202-628-1933, Jon Doggett, VP, Public Policy Commodity Classic, P: 636-677-4157, Peggy Findley, Commodity Classic Show Director, srsi@swbell.net CORN PROCESSING Corn Refiners Assn, 1701 Pennsylvania Av NW #950, Washington, DC 20006, P: 202-331-1634, F: 202-331-2054, details@corn.org, Bob Adams, Dir. Public Affairs North American Millers Assn, 600 Maryland Av SW #305W, Washington, DC 20024, P: 202-4842200, F: 202-488-7416, generalinfo@namamillers. org, www.namamillers.org, Betsy Faga, Pres CORN INPUT American Seed Trade Assn, 225 Reinekers Lane #650, Alexandria, VA 22314, P: 703-837-8140, F: 703-837-9365, www.amseed.com, Leslie Cahill, Comm Mgr Croplife America, 1156 15th St NW, #400, Washington, DC 20005, P: 202-296-1585, F: 202-463-0474, www.croplifeamerica.org, Karen Reardon, Dir of Comm The Fertilizer Inst, Union Center Plaza, 820 First Street NE #430, Washington, DC 20002, P: 202962-0490, F: 202-962-0577, kmathers@tfi.org, Kathy Mathers, VP, Public Affairs EXPORTS U.S. Grains Council, 1400 K Street NW #1200, Washington, DC 20005, P: 202-789-0789, F: 202898-0522, grains@grains.org, Cheri Johnson, Communications Mgr, www.grains.org FOOD AND SNACK CORN Florida Sweet Corn Exchange, Box 140155, Orlando, FL 32814, P: 407-894-1351, F: 407-894-7840, www.ffva.com, mike1@ffva.com, Mike Bess, Mktg Mgr Popcorn Inst, 401 N. Michigan Av, Chicago, IL 60611-4267, P: 312-644-6610, F: 312-321-5150, genny_bertalmio@sba.com, www.popcorn.org, Genny Bertalmio, Marketing Mgr Snack Food Assn, 1711 King Street #1, Alexandria, VA 22314, P: 703-836-4500, ext. 204, F: 703-836-8262, sfa@sfa.org, www.sfa.org, awilkes@sfa.org, Ann Wilkes, VP, Comm Cereal Quality Lab, Texas A&M, Soil & Crop Science Dept, 2474 TAMUS, College Stn, TX 77843-2474, P: 979-845-2925, F: 979-845-0456, lrooney@tamu.edu, Lloyd Rooney, Prof of Food Sci & Tech CORN FUTURES Chicago Board of Trade, Communications Department, 141 W Jackson Blvd, Chicago, IL 60604, P: 312-435-3620, F: 312-341-3306, David Prosperi, Sr VP, Communications RENEWABLE FUELS Renewable Fuels Assn, One Massachusetts Av NW #820, Washington, DC 20001, P: 202-2893835, F: 202-289-7519, mshaw@ethanolfra.org, www.ethanolrfa.org, Monte Shaw, Dir of Comm LIVESTOCK AND FEED American Feed Industry Assn, 1501 Wilson Blvd #1100, Arlington, VA 22209, P: 703-524-0810, F: 703-524-1921, afia@afia.org, rrunyon@afia.org, www.afia.org, Rex Runyon, VP, Comm & PR Natl Cattlemans Beef Assn, 9110 E. Nichols Ave., Centennial, CO 80112, P: 303-694-0305, F: 303-694-2851, wbarnhart@beef.org, www.beef.org, Walt Barnhart, Dir. Trade Media Natl Grain & Feed Assn, 1250 I St NW, #1003, Washington, DC 20005, P: 202-289-0873, F: 202289-5388, ngfa@ngfa.org, www.ngfa.org, Randy Gordon, VP of Comm & Govt Relations Natl Pork Board, 1776 NW 114th St, Clive, IA 50325, P: 515-223-2600, F: 515-223-2646, cindy.cunningham@porkboard.org, www.porkboard.org, Cindy Cunningham, Asst VP Comm US Poultry & Egg Assn, 1530 Cooledge Rd, Tucker, GA 30084-7303, P: 770-493-9401, F: 770-493-9257, ssmall@poultryegg.org, www.poultryegg.org, Sylvia A. Small, VP of Comm Natl Pork Producers Council, 122 C Street NW #875, Washington, DC 20001, P: 202-347-3600, F: 202-347-5265, flynnk@nppc.org, www.nppc.org, Kara Flynn, Dir of Comm STATE ASSOCIATIONS AND CHECKOFFS Colorado Corn Growers Assn, Colorado Corn Admin Committee, 127 22nd St, Greeley, CO 80631, P: 970-351-8201, F: 970-351-8203, info@coloradocorn.com, www.coloradocorn.com, John Cevette, Exec Dir, jcevette@coloradocorn.com Georgia Corn Growers Assn, Box 1290, Tifton, GA 31793, P: 229-386-3430, F: 229-386-7308, deweylee@uga.edu, Dewey Lee, State Exec Coord, ccinc@alltel.net Georgia Ag Commodity Commission for Corn, 328 Agricultural Bldg, Capitol Sq, Atlanta, GA 30334, P: 404-656-3678, F: 404-656-9380, www.agr.state.ga.us Illinois Corn Growers Assn, Box 1623, Bloomington, IL 61702-1623, P: 309-557-3257, F: 309-827-0916 Illinois Corn Mktg Board, Box 487, Bloomington, IL 61702-0487, P: 309-827-0912, F: 309-827-0916, ilcorn@ilcorn.org, www.ilcorn.org, Rodney Weinzierl, Exec Dir Indiana Corn Growers Assn, Indiana Corn Marketing Council, 225 S East St #737, Indianapolis, IN 46202, P: 317-692-7151, F: 317-692-7148, incorngrowers@hotmail.com, www.incorn.org, Dennis Whitsitt, ICGA Pres; Dean Eppley, ICMC Chair Iowa Corn Growers Assn, Iowa Corn Promotion Board, 5505 NW 88th St #100, Johnston, IA 501312948, P: 515-225-9242, Automated Syst: 515-225-9371, F: 515-225-0781, corninfo@iowacorn.org, www.iowacorn.org, Craig Floss, CEO, cfloss@iowacorn.org Kansas Corn Growers Assn, Kansas Corn Commission, Box 446, 109 Fourth St, Garnett, KS 66032, P: 785-448-6922, F: 785-448-6932, www.ksgrains.com/corn, Jere White, Exec Dir, jwhite@ksgrains.com Kentucky Corn Growers Assn, Kentucky Corn Promo Council, Box 90, Eastwood, KY 40018, P: 502-243-4150, F: 502-243-4149, info@kycorn.org, www.kycorn.org, Todd Barlow, Exec Dir, toddbarlow@compuserve.com Louisiana Soybean & Grain Research & Promo Board, Box 95004, Baton Rouge, LA 70895-9004, P: 225-922-6200, F: 225-922-6229, Kyle McCann, State Checkoff Mgr, kylem@lfbf.org Maryland Grain Producers Assn, Maryland Grain Producers Utilization Board, 53 Slama Rd, Edgewater, MD 21037 P: 410-9565771, F: 410-956-0161, lynnehoot@aol.com, www.marylandgrain.com, Lynne Hoot, Exec Dir Michigan Corn Growers Assn, Corn Mktg Prog of Michigan, 12800 Escanaba Dr., #B, Lansing, MI 48820, P: 517-668-2676, F: 517-668-2670, corninfo@micorn.org, jpollok@micorn.org, www.micorn.org, Jody Pollok, Exec Dir Minnesota Corn Growers Assn, Minnesota Corn Research and Promo Council, 738 1st Av E, Shakopee, MN 55379, P: 952-233-0333, F: 952-233-0420, info@mncorn.org, www.mncorn.org, Bruce Stockman, Exec Dir, stockman@mncorn.org Mississippi Corn Growers Assn, Box 9555, Mississippi State, MS 39762, P: 662-325-2311, F: 662-325-8742, Dr. Erick J. Larson, Sec-Treasurer, elarson@pss.msstate.edu Missouri Corn Growers Assn, Missouri Corn Merchandising Council, 3118 Emerald Ln, Jefferson City, MO 65109, P: 573-893-4181, F: 573-893-4612, mcga@mocorn.org, www.mocorn.org, Gary Marshall, CEO, gmarshall@mocorn.org Nebraska Corn Growers Assn, 1327 H St, #305, Lincoln, NE 68508, P: 402-438-6459, F: 402-438-7241, necga1@cs.com, www.necga.org, Scott Merritt, Exec Dir, scottmerritt65@aol.com Nebraska Corn Development, Utilization & Mktg Board, 301 Centennial Mall S, 4th Fl, Lincoln, NE 68509-5107, P: 402-471-2676 F: 402-471-3345, www.nebraskacorn.org, Don Hutchens, Exec Dir, d.hutchens@necorn.state.ne.us New York Corn Growers Assn, 2269 DeWindt Rd, Newark, NY 14513, P: 315-331-7791, F: 315-331-1294, ny.corn@starband.net, www.nycorn.org, Ann M. Peck, Exec Sec, Corn Growers Assn of North Carolina, Inc, 7520102 Leadmine Rd, Raleigh, NC 27615, P: 919-884-7116, F: 919-881-9522, jwoodhouse@ earthlink.net, Joyce Woodhouse, Exec Sec North Dakota Corn Growers Assn, North Dakota Corn Utilization Council, 1325 23rd St S, Fargo, ND 58103, P: 701-239-7259, F: 701-298-7810, ndcorn@state.nd.us, www.ndcorn.com, Jocie Iszler, Exec Dir, jiszler@state.nd.us Ohio Corn Growers Assn, Ohio Corn Mktg Prog, 1100 E Center St, Marion, OH 43302, P: 740-383-2676, F: 740-387-0144, ohiocorn@on-ramp.net, www.ohiocorn.org, dsickman@on-ramp.net, Dwayne Sickman, Exec Dir (OCGA); Michael Wagner, Exec Dir (OCMP) ohiocorn2@hotmail.com Oklahoma Corn Growers Assn, 6205 Park Ln, Guymon, OK 73942, P: 580-338-1568, F: 580-338-1568, Raylon Earls, Acting Pres Pennsylvania Corn Growers Assn, Box 304, State College, PA 16804, P: 814-863-1018, F: 814-863-7043, info@pacorngrowers.org, Greg Roth, Exec Sec, Debra Antos, Sec, mxa208@psu.edu South Carolina Corn and Soybean Assn, Box 11035, Columbia, SC 29211, P: 803-252-7128, F: 803-252-7799, leigh@associationsplus.com, Leigh Faircloth, Exec Dir South Dakota Corn Growers Assn, 3801 S Western #100, Sioux Falls, SD 57105, P: 605-334-0100, F: 605-334-0505, lisal@sdcorn.org, www.sdcorn.org, Lisa Richardson, Exec Dir Tennessee Corn Growers Assn, 510 W Black Ln, Obion, TN 38240-3804, P: 731-536-6226, polkg@privacyconnect.net, www.tncorn.org, Polk Glover, Sec Corn Producers Assn of Texas, Texas Corn Producers Board, 4205 N Interstate 27, Lubbock, TX 79403, P: 806-763-2676, F: 806-762-2674, www.texascorn.org, tcpb@texascorn.org, David Gibson, Exec VP, dgibson@texascorn.org Virginia Corn Growers Assn, Box 603 (7610 Davis Pond Rd), West Point, VA 23181, P: 804-843-4456, F: 804-843-3629, Ellen Davis, Exec Dir, eded@inna.net, www.vacorn.org Virginia Corn Board, Virg Dept of Ag and Consumer Services, 1100 Bank St, Rm 1005, Richmond, VA 23219, P: 804-371-6157, F: 804-371-7786, Phil Hickman, Prog Dir, phickman@vdacs.state.va.us Wisconsin Corn Growers Assn, Wisconsin Corn Promo Board, W1360 Hwy 106, Palmyra, WI 53156, P: 262-495-2232, F: 262-495-3178, wicorn@idcnet.com, www.wicorn.org, Robert Oleson, Exec Dir

Connected by a Common Cause

State Checkoffs State Associations Both

More than 33,000 members strong, the National Corn Growers Association (NCGA) is the largest national nonprofit organization representing the interests of U.S. corn growers. With the help of growers nationwide, the NCGA is defining the future of corn through research, market development, policy, production and education.There is still much to do and a place for you. Be a part of the excitement and take ownership in the future of corn by joining one of the 25 state corn organizations today.

Visit www.ncga.com for the latest news and statistics on the corn industry. National Headquarters 632 Cepi Dr Chesterfield, MO 63005 636-733-9004 Washington, DC Office 122 C St NW, #510 Washington, DC 20001 202-628-7001 The World of Corn 2004 National Corn Growers Association