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have demonstrated the ability to ramp production levels up and down in response to extensive market demand changes and to minimize the deleverage effect when volume decreases. 

The production of liquid biofuels plays a part in our sales mix as irrigated corn, sugar cane and soybean crops are used to produce ethanol and biodiesel. The U.S. Energy Information Administration projects ethanol production to remain essentially unchanged from 2014 to 2015 while biodiesel production is forecast to increase by 3.6 percent. 

Despite potential disruptions in Russia and Ukraine and continued political instability in the Middle East, we continue to generate revenue in those regions and see opportunities for future growth. We see potential for continuing growth in other international irrigation markets, as well. To further solidify our global supply capability we began construction on a new plant in Turkey, which is expected to be 

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operational in February 2015. In addition, we acquired our previously- leased facility in Brazil, with the intent to continue expansion of our international footprint and global, vertical integration of manufacturing processes. 

For the long term, the macro drivers of demand for our products will remain positive. Global population growth and the need for food, the conservation and ef fi cient use of water, protection of the environment and the adoption of biofuels will all continue to be issues of global importance. 

In particular, population growth is the fundamental driver for the global agricultural market. The United Nations projects that the world’s population will grow from 7.2 billion in 2014 to approximately 9.6 billion by 2050. To adequately feed that increased population, the U.N. Food and Agriculture Organization (FAO) projects that food production will have to increase by 60 percent. With fi xed quantities of land and water, the 

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only way this can be accomplished is to achieve higher crop yields and more ef fi cient use of water. 

Worldwide, only 20 percent of cultivated land is irrigated, yet irrigated land produces 40 percent of the world’s food supply. By far, the world’s most common irrigation method is fl ood or gravity irrigation that consumes twice as much water as an ef fi cient mechanical system. Converting to an ef fi cient pivot irrigation system or retro fi tting a high pressure system to low pressure can conserve precious water, boost agricultural production, and reduce energy used in pump systems. Outside of North America, mechanized irrigation still has very low market penetration, creating excellent long- term opportunities. 

Lindsay’s irrigation business is engaged in meeting a basic human need. By continuing to expand our capabilities, our ef fi ciency, our global footprint and our capacity in the international markets, we will remain at the forefront of this essential industry. 

## THE LINDSAY ADVANTAGE 

Lindsay’s rugged equipment, integrated technologies, and plug-and-play add-ons form the best line of irrigation solutions from a single, reliable source. 

