1. Barley Update

2. Barley Supply & Demand Table U.S. Barley 2010/2011(Est.)2011/2012(Feb)2011/2012(Mar) Planted A. 2.87 Mill. A.2.56 Mill. A. Harvested A. 2.47 Mill. A.2.24 Mill. A. Yield/Harvest A. 73.1 bu.69.6 bu. Begin Stocks 115.50 Mill. Bu.89.40 Mill. Bu. Production 180.30 Mill. Bu.155.80 Mill. Bu. Imports 9.50 Mill. Bu.10.00 Mill. Bu. Total Supply 305.30 Mill. Bu.255.20 Mill. Bu. Food, Alcohol, Ind. 153.70 Mill. Bu. Seed 4.80 Mill. Bu.6.30 Mill. Bu. Feed & Residual 49.80 Mill. Bu.40.00 Mill. Bu. Exports 7.60 Mill. Bu.10.00 Mill. Bu. Total Use 215.90 Mill. Bu.210.00 Mill. Bu. Ending Stocks 89.40 Mill. Bu.45.20 Mill. Bu. USDA – WASDE – March 9, 2012

3. Barley Supply & Demand Table U.S. Barley 2010/2011(Est.)2011/2012(Feb)2011/2012(Mar) Planted A. 2.87 Mill. A.2.56 Mill. A. Harvested A. 2.47 Mill. A.2.24 Mill. A. Yield/Harvest A. 73.1 bu.69.6 bu. Begin Stocks 115.50 Mill. Bu.89.40 Mill. Bu. Production 180.30 Mill. Bu. 155.80 Mill. Bu. Imports 9.50 Mill. Bu.10.00 Mill. Bu. Total Supply 305.30 Mill. Bu.255.20 Mill. Bu. Food, Alcohol, Ind. 153.70 Mill. Bu. Seed 4.80 Mill. Bu.6.30 Mill. Bu. Feed & Residual 49.80 Mill. Bu.40.00 Mill. Bu. Exports 7.60 Mill. Bu.10.00 Mill. Bu. Total Use 215.90 Mill. Bu.210.00 Mill. Bu. Ending Stocks 89.40 Mill. Bu.45.20 Mill. Bu. USDA – WASDE – March 9, 2012 Total Production is down 13.6% from 2010. This is the lowest level since 1936.

4. U.S. Barley Acres Harvested for Grain (million acres) USDA Feed Grains Data Base 1942 = 16.96 Mil. A. 2011 = 2.24 Mil. A.

5. Production in Major Barley States (bushels) USDA Feed Grains Data Base

6. All Barley – Total Prod. & Use (Billion Bushels) USDA – WASDE – Mar. 9, 2012 & USDA Feed Grains Database

7. All Barley – Total Prod. & Use (Billion Bushels) USDA – WASDE – Mar. 9, 2012 & USDA Feed Grains Database Lowest Stocks-to-Use ratio since 1975/76 (21.5 %)

8. Barley Supply & Demand Table U.S. Barley 2010/2011(Est.)2011/2012(Feb)2011/2012(Mar) Planted A. 2.87 Mill. A.2.56 Mill. A. Harvested A. 2.47 Mill. A.2.24 Mill. A. Yield/Harvest A. 73.1 bu.69.6 bu. Begin Stocks 115.50 Mill. Bu.89.40 Mill. Bu. Production 180.30 Mill. Bu.155.80 Mill. Bu. Imports 9.50 Mill. Bu.10.00 Mill. Bu. Total Supply 305.30 Mill. Bu.255.20 Mill. Bu. Food, Alcohol, Ind. 153.70 Mill. Bu. Seed 4.80 Mill. Bu.6.30 Mill. Bu. Feed & Residual 49.80 Mill. Bu.40.00 Mill. Bu. Exports 7.60 Mill. Bu.10.00 Mill. Bu. Total Use 215.90 Mill. Bu.210.00 Mill. Bu. Ending Stocks 89.40 Mill. Bu.45.20 Mill. Bu. USDA – WASDE – March 9, 2012

9. Total Use – U.S. Barley (million bushels) USDA – WASDE – Mar. 9, 2010 & USDA Feed Grains Database

10. Barley Supply & Demand Table U.S. Barley 2010/2011(Est.)2011/2012(Feb)2011/2012(Mar) Planted A. 2.87 Mill. A.2.56 Mill. A. Harvested A. 2.47 Mill. A.2.24 Mill. A. Yield/Harvest A. 73.1 bu.69.6 bu. Begin Stocks 115.50 Mill. Bu.89.40 Mill. Bu. Production 180.30 Mill. Bu.155.80 Mill. Bu. Imports 9.50 Mill. Bu.10.00 Mill. Bu. Total Supply 305.30 Mill. Bu.255.20 Mill. Bu. Food, Alcohol, Ind. 153.70 Mill. Bu. Seed 4.80 Mill. Bu.6.30 Mill. Bu. Feed & Residual 49.80 Mill. Bu.40.00 Mill. Bu. Exports 7.60 Mill. Bu.10.00 Mill. Bu. Total Use 215.90 Mill. Bu.210.00 Mill. Bu. Ending Stocks 89.40 Mill. Bu.45.20 Mill. Bu. USDA – WASDE – March 9, 2012 Food, Alcohol, and Ind. accounts for 73% of Total Use.

11. Barley “Market Movers” 2012 malt barley contracts were offered early and are essentially full. 2012 production and quality will be critical. – Value of 2011 malt barley stocks – Value of 2012 contract over-run 2012 Canadian barley acres are projected to increase 22.1%, but approximately 65% is used for feed and 18% exported. Quality is always the key.

12. Longer Term Market Issues Move to “Dual Market” system in Canada. – Impact on total North American barley acres – Impact on U.S. feed barley markets – Impact on U.S. malt barley markets Growth in demand for malt barley in Mexico, Central America, and China. – High and mid-level malt barley quality – Can North Dakota compete in world malt barley market?