TOM HAREN CEO AGPROFESSIONALS Thomas M. Haren, CEO July 18, 2019 - PowerPoint PPT Presentation

PANELISTS TOM HAREN CEO AGPROFESSIONALS

Thomas M. Haren, CEO July 18, 2019

Who We Are… •Agricultural development company •Specializing in animal agriculture •Providing: •Planning •Engineering •Real estate & site selection services •Consulting for over 20 years

Current State of the Industry •Ag Land Conversion Continues •Consolidation •Age •Costs

Ag Land Conversion Changes in Land in Farms (Acres) Land in Farms Land in Farms Net Change Rank State Percent Change 2012 to 2017 2012 2017 2012 to 2017 1 Nevada 5,913,761 6,128,153 214,392 3.63% 2 Georgia 9,620,836 9,953,730 332,894 3.46% 3 Delaware 508,652 525,324 16,672 3.28% 4 New Jersey 715,057 734,084 19,027 2.66% 5 Florida 9,548,342 9,731,731 183,389 1.92% 6 Alaska 833,861 849,753 15,892 1.91% 7 Indiana 14,720,396 14,969,996 249,600 1.70% 8 West Virginia 3,606,674 3,662,178 55,504 1.54% 9 Louisiana 7,900,864 7,997,511 96,647 1.22% 10 Arkansas 13,810,786 13,888,929 78,143 0.57% 11 Hawaii 1,129,317 1,135,352 6,035 0.53% 12 Illinois 26,937,721 27,006,288 68,567 0.25% 13 North Dakota 39,262,613 39,341,591 78,978 0.20% 14 North Carolina 8,414,756 8,430,522 15,766 0.19% 15 Tennessee 10,867,812 10,874,238 6,426 0.06% 16 Ohio 13,960,604 13,965,295 4,691 0.03% 17 South Dakota 43,257,079 43,243,742 -13,337 -0.03% 18 Iowa 30,622,731 30,563,878 -58,853 -0.19% 19 Colorado 31,886,676 31,820,957 -65,719 -0.21% 20 Washington 14,748,107 14,679,857 -68,250 -0.46% 21 Arizona 26,249,195 26,125,819 -123,376 -0.47% 22 Idaho 11,760,109 11,691,912 -68,197 -0.58% 23 Oklahoma 34,356,110 34,156,290 -199,820 -0.58% 24 Kentucky 13,049,347 12,961,784 -87,563 -0.67% 25 Nebraska 45,331,783 44,986,821 -344,962 -0.76%

Consolidation

Dairy Farms 1000 Consolidation

Average Age Increase 59 2017

Water – Can We Afford It? $ Share Price $ CU / AF •CBT $ 50,000 $70,000 •WSSC $1,250,000 $25,000

More Pressure... Source Price •Larimer & Weld $ 50,000 •Windsor Res. $260,000 •FRICO Barr $ 35,000 •FRICO Milton $ 30,000 • New Dairies - $2-3 million water investment • $15,000 - $30,000 water bills

Percent of US Population in Ag 1900-2017 1900 2017

Colorado Growth Projections

Reallocation - How Much Is Too Much? How much transfer of water rights from agriculture to municipal uses will the region accept? • Influence • Resources • $$$ • Votes • All of it, if necessary?

Options? •Buy-n-Dry •Interruptible Supply Contracts •Efficiency •Water Banks •Recycling •Alternative Transfer •Storage Methods (ATM’s) •NISP •Efficiency Credit •Underground Trading w o H ? s n o i t p o y l n o e h t e s e h t e ? r e A b e w n a c e v i t a e r c

How Creative Can We Be…? Environmental Impact Reduction Due To Improved Productivity 21,000 186 lb 18,000 15,000 25.6m 12,000 cows 9,000 6,000 3,000 117 lb 0 1944 1951 1958 1965 1972 1979 1986 1993 2000 2007 9.2m cows U.S. produces 59% more milk using 64% fewer cows 1944 2007 Source: Capper et al. (2009) “The environmental impact of dairy production: 1944 compared with 2007“ J. Anim. Sci.

Wastewater Treatment •$2 - $3m for water •$4 - $5m for water treatment •Lagoons will go away •Drinking or discharge quality

Equipment Technology

DAF

Digesters

Energy Control • Control energy costs • Self – sufficiency • Environmental PR • Public perception • Revenue stream

Avg/Day ❖ Increased egg production versus standard industry light ❖ 20% decrease in energy costs

Feeding Technology

Fodder System

Where’s The Water?

It Can Be Done…

Take Aways •Efficiency •Technology •Cooperation •How creative can we be…? •Agriculture does not have to be the ONLY answer

Thank you! Thomas M. Haren, CEO 3050 67 th Avenue Greeley, CO 80634 (970) 535-9318 www.agpros.com