Dreamland Industries

Welcome

Creating Rural Prosperity

“Creating Rural Prosperity”

Dreamland Industries was formed for the purpose of helping create rural

prosperity in the farming and ranching communities of America and the

world. Our mission is to develop and bring to market innovative crops and

techniques to rural communities.

Dreamland’s Purpose

Dreamland History• Dreamland was started in the summer of

’08 and has completed the second harvest and crush of safflower from the rolling, south, and high plains.

• Dreamland is owned by a limited partnership out of Abilene, TX.

Why We’re Here Today

• Looking to contract acreage for 2011• Introduce and re-introduce Safflower• Introduce and re-introduce Dreamland as

not a perfect company but an honest one.• Share an opportunity that we believe will

have a long-term positive impact on the farming operations in this region.

Why You Are Here

• Looking for a viable rotation crop to add to your operation.

• Want to learn more about Dreamland and Safflower

• Want to find another way to add value and cash flow to your operation.

• Looking for a free lunch!

History of Safflower• Its an Old World crop

• Seeds found in Egyptian tombs over 4000 years old

• Grown commercially in California, Montana, and the Dakotas since 1949

• Currently produced in N.D., S.D., Idaho, Utah, Montana, Colorado, California and now (because of growers like you) Texas, Oklahoma, Kansas, and New Mexico.

Crop Sustainability

• Crop SUSTAINABILITY is the key to being able to offer consistently profitable prices to our growers. The proven ability to produce this crop is established in a broad region now and well on the way to being an insurable crop in many counties in the region.

SAFFLOWERPRODUCTION COUNTIES IN 2009/2010

Types of Safflower• Spring Safflower – Is primarily what

Dreamland is contracting.• Oleic – The type we are contracting for

oil production• Linoleic – Grown for bird seed and

wildlife feed.

Dreamland Safflower ‘09• Safflower was grown in 2009 with planting

dates ranging from March 15 to June 30. • Due to distance between acreage many

different cultural issues were faced.– The worst drought in 60 yrs in parts of the south

(No rain from September ’07 thru March ’08)– Extreme rainfall in 2009 in mid to late summer in

other areas– Yields ranged from failure to over 2,400 lbs per

acre in the first two years of production

Dreamland Safflower ‘10• Safflower was grown in 2010 with planting

dates ranging from January 15 to June 1. • Earlier plant dates are critical to maximum

yields.– Maximizes early moisture– Early freezes did not affect yields– 2010 average yields are overall much better than

2009– 2009/2010 Yields ranged from failure to over 2,400

lbs per acre

Why Safflower

• Produces a high quality vegetable oil (both oleic and linoleic)

• Has a 5’ to 15’ taproot to reach water/nutrients and aid in soil conditioning

• Soil conditioning has proven very valuable for our 2009 growers.

• Uses conventional planting and harvesting equipment

Why Safflower?• Relatively short growing period – 120 to 150

days• Withstands many climate and weather issues

– Hail– Drought (If initial moisture is available)– Wind

• Minimal herbicides needed• Very pest resistant• Very resistant to animal pressure• Tends to tolerate salty soils better than most

crops

Why Safflower?• Adds a new crop season – CASHFLOW at

needed times (July & August)!!• Uses conventional equipment• Beneficial for crop following Safflower• Make most of low-output wells• Consistency of yields needs to be

established like it is in other areas.• Low inputs• Extensive research by TTU, TAMU, OSU,

KSU, NDSU, NMSU.AND THE BEST OF THE BEST…• MINIMAL WATER REQUIRED at peak times

(Watering should take place before planting)

WATER CONCERNS• Conservation Districts are getting more

restrictive on water usage because of declining water tables

• Fuel and electricity costs for pumping continue to rise – filling of the soil profile in off peak season lowers these costs

• Yields on safflower decline with increased water input

• Minimal water needs for safflower will give the aquifer time to recover

Planting dates• Safflower will emerge at a 40 degree

soil temperature and will tolerate a freeze in the rosette stage to 18 degrees; 25 degrees after rosette. Recommended plant dates for the bulk of our growing area is from February 1 to March 15 for spring Safflower.

Moisture• As with most crops, a good soil moisture

profile is necessary to produce a good crop. This is ESSENTIAL for safflower.

• We will provide consultation for irrigated growers to minimize watering.

• Works well in areas where there is limited water for later planted crops. (Half circles)

How to plant• Safflower uses conventional equipment

such as a drill, air seeder, planter, etc.• Can be drilled in or bedded.• Safflower does not like sitting in water, so

beds can be beneficial, though not necessary, in helping to avoid this.

• Most planters and drills have a safflower setting, but if not, we will provide consultation on the setting for your equipment.

Bedded safflower at about 8 weeks

Seeding• We recommend between 25 and 30 lbs of

viable seed per acre for conventional seed ($0.65/lb est. for 2011)

• Heavy residue will need higher end rates• 18 to 25 lbs of viable seed per acre for hybrid

($1.00/lb est for 2011)• Seeds should be planted at ½ to 1” deep.• All seed must be purchased from Dreamland.• 2010 taught us that our 2010 planting rates

were too light

Depth of Planting Study (4 year avg)Williston, ND

Planting Depth

1 inch 2 inch 3 inch

Yield % Plt* Yield % Plt* Yield % Plt*

Lbs/a Lbs/A Lbs/A

1356 74 1192 48 949 32

*Plt—Emerged Plants Relaltive to Planted Seed

Fertilization• A number of factors influence fertilizer

recommendations for safflower. These include yield expectations, available soil moisture, previous cropping and fertilization practices, and planting date.

• N is 100 lb/acre for irrigated, and 50 lb/acre for dry-farmed.

• We recommend using 1.5 to 3 gal/acre of Liquid Soil with ½ to 1/3 of the recommended N to aid in maintaining & restoring healthy soil structure as opposed to N only. Our studies show an equal to greater impact when the two are combined. (See attachment)

• Knowing you soil condition will optimize requirements

Fertilization

• Yields may be reduced by an excessive N supply leading to exhaustion of soil moisture by vegetative safflower.

• Similarly, yields of dry-farmed safflower, even in fallow systems, will be reduced if the fertilization rate produces excessive vegetative growth that exhausts soil moisture prior to seed maturation.

• More fertilizer details are in your handout.• Fertilizer is critical to maximizing yields.

Weed Control

• The most effective weed control is achieved by practicing a sound crop rotation, which reduces weed numbers and minimizes the accumulation of weed seed in the soil.

• Planting date also is critical in weed control.

• Current labeled herbicides are in your handouts

• It is necessary to harvest in a timely manner to avoid having to burn down prior to harvest.

Herbicide Control

Preplant - Eptam, Trifluralin, Sonolan, Metolochlor, Prowl

Pre-emergence - Glyphosate

Grass control - Poast, Assure II, Select Max

Preharvest Burndown - Glyphosate

Insect Management• Many species of insects can be found in

safflower fields but they rarely affect yield. Planting safflower at a locally optimum time from the perspective of crop development and water use will usually allow the crop to develop vigorously enough to tolerate most insect damage.

• A detailed insect and mite pests of safflower table is included in your handouts.

Safflower Diseases

• Safflower grows best with low humidity conditions. Crop rotation, careful irrigation practices, and planting treated and disease free seed are important methods for controlling losses from disease.

• Moisture or high humidity prior to after first bloom can cause leaf spot (alterneria). If this is anticipated it must be sprayed with a fungicide such as Headline or Quadris at the very first bloom.

• Alternaria can affect yield production significantly if not treated timely.

• A detailed description of possible diseases is in your handouts.

Safflower Alternaria Blight

Effect of Quadris application on Alternaria Blight

Crop Development• Early plant dates allow longer time in

the rosette stage causing better and deeper root development which gives greater vegetative growth giving better pod and seed development.

• Flowering dates are remarkably consistent. Individual seeds are physiologically mature in about 25 days after flowering. (Later plantings had earlier flowering dates – photo period sensitive)

Safflower Harvest

Harvesting

• Moisture content should be 8% or less• Will likely harvest in mid-July to late

August• Begins when leaves become dry and

brown, with a little green on late heads• It is imperative to harvest when ready to

reduce need to spray weeds prior to harvest.

• Conventional grain combines work well

Transportation

• In 2009 we had 9 elevator locations• In 2010 we are hauling directly from the

field.• Growers must have sufficient holding

capacity to load a truck when it arrives in the field…approximately 1,500 bu or 50,000 lbs.

• This saves the grower hauling costs.

Insurance• Should be covered with NAP to meet 2008

Farm program guidelines• RMA Request for Actuarial Change

information is in process to give to your agent (1 to 3 month process)

• Usually a 3 year average is required to obtain regular multi-peril insurance. Obviously these statistics are being gathered, but more time is needed.

• SUSTAINABILITY

What About?• Pricing – As our mission statement

suggests, we are eager to put more money in the local grower’s pocket, however, our markets are just now beginning to be established.

• Our long term goal is to have a local refinery & markets so that we can help the growers realize the same pricing as in California which is currently around $0.16/lb.

• With new markets established in our area, pricing will be positively impacted.

• Sustainability is the key to good long-term pricing.

YIELD INFORMATION

DreamlanD InDustrIes, Inc.

2011 Expected Yields• Dry land – 500 to 1500 lbs • Irrigated – 750 to 3000 lbs

• Proving the SUSTAINABILITY to end users is critical to price increasing and stabilization and insuring the longevity of the crop.

• See attachment for KSU yield information

0

5

10

15

20

25

30

Low $/ac High $/ac

Planting Seed Costs $/ac

Wheat Sorghum Sunflower Safflower

Gross $, Yield, Pricing

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$0.05 $0.07 $0.09 $0.11 $0.13Price/lb

500 1000 1500 2000 2500 3000

Wheat $/bu $3.00 $4.20 $5.40 $6.60 $7.80

Sorghum/Corn $/bu $2.80 $3.90 $5.04 $6.16 $7.28

YIELD - lbs/ac-

CROP OF THE FUTURE• Other crops seeing wild fluctuations in

pricing• Our price is up 30% from 2009 and are

fixed price contracts• Our seed prices are still going down• Vegetable Oil use is up• Trans Fat free oil being mandated• More high quality oil needed will

necessitate better markets and higher prices…especially in this area.

World Per Capita Vegetable Oil Use

Palm, soybean, rapeseed and canola, and sunflowerseed

kg

Crude Vegetable Oil Prices

Source: FAPRI and USDA

¢/lb $/gal

Contract Details• Typical dockage for trash• Dockage for moisture content above 8%• Grower responsible for no more than 50

miles hauling without additional compensation (Hauling directly from field)

Contract Details•Contracts available today at 2011 pricing with the clause that any increase in price of future contracts will be retroactive the those signed today.

Q&A