1. Department of Economics Biofuel Markets and Mandates MID-CO Winter Conference 2009 Ames, Iowa January 29, 2009 Chad Hart Assistant Professor/Grain Markets Specialist chart@iastate.edu 515-294-9911

2. Department of Economics Crude Oil Prices Source: Energy Information Administration

3. Department of Economics Ethanol Production Jan. – Oct. 2008 Sources: Renewable Fuels Association, Energy Information Administration

4. Department of Economics Biodiesel Production Jan. – Sept. 2008 Sources: National Biodiesel Board, Energy Information Administration

5. Department of Economics Ethanol Margins Source: ISU, CARD

6. Department of Economics Projected Ethanol Margins Source: ISU, CARD

7. Department of Economics Biodiesel Margins Source: ISU, CARD

8. Department of Economics Projected Biodiesel Margins Source: ISU, CARD

9. Department of Economics Projected Crude Oil Prices Source: NYMEX

10. Department of Economics Government Policies for Biofuels Ethanol  Ad valorem tariff of 2.5%  Import duty of $0.54 per gallon  Volumetric Ethanol Excise Tax Credit (VEETC)  $0.45 per gallon starting in 2009 Biodiesel  Biodiesel Mixture Excise Tax Credit  $1.00/0.50 per gallon Cellulosic  Cellulosic Biofuel Producer Tax Credit  $1.01 per gallon

11. Department of Economics Renewable Fuels Standard (RFS) 60% GHG Emission Reduction 50% GHG Emission Reduction 20% GHG Emission Reduction If construction started after Dec. 2007

12. Department of Economics Renewable Fuels Standard (RFS) Crop Year Billion Bushels 20083.57 20094.11 20104.43

13. Department of Economics U.S. Blended Motor Gasoline Consumption Source: Energy Information Administration

14. Department of Economics Fuel Prices Source: Nebraska Energy Office Rack prices in Omaha

15. Department of Economics Fuel Futures Prices Sources: NYMEX and CBOT

16. Department of Economics Thank you for your time! Any questions? My web site: http://www.econ.iastate.edu/faculty/hart/ Ag Decision Maker: http://www.extension.iastate.edu/agdm/