First Quarter 2016

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MANAGER’S DESK

Jerald Kemmerer-CEO/GM Pride Ag Resources

I hope that you had a great time with your family during the holidays and that everyone is enjoying 2016. It has been an interesting winter so far, with good moisture, but not as cold as normal. With a late fall harvest it is pretty much completed. We had an all-time record milo production blowing away the previous record by millions of bushels received with a good corn production as well. The grain team and employees did a great job with such a large harvest and only had to put less than 10% of the milo on the ground.

The strategy was to make enough room for faster dumping and to limit your trips to the auger to dump on ground piles.

The fewer amounts of bushels of grain on the ground has also paid dividends in having a

FIRST QUARTER 2016

quality product to maintain and sale. At this time, almost all of the piles of milo have been picked up. This would have been completed had it not been for the moisture receive this winter, but that is a good problem to have going into the spring planting.

The fall weather has had some impact on our agronomy department with applying Anhydrous Ammonia and getting some of the dry fertilizer down. We made a shift in our team of employees by utilizing their ability to haul grain to help meet all the trains we are loading out of Ensign. There has been a very substantial cost savings to the coop with the team’s ability to haul using our own equipment during this time period. Contact the agronomy department for your chemical and fertilizer needs for this spring with all the programs

they have going on now.

Pride Ag Resources Augusta Green turf fertilizer department has been expanded as they have switched over to Ice melt production during the winter months.

Look for Ryan Bourne; sales manager’s article in this addition of the newsletter.

Inventory of different ice melt is now available at our locations and hardware stores. Production of all of your lawn/turf fertilizer needs is under way for winterspring application.

We appreciate your business and our team of employees takes pride in helping you with all your production agriculture needs. I hope you have a great spring and we do appreciate your business!

Jerald Kemmerer-CEO/GM

Inside This Issue 2 Safety – Ace Hardware 3 Ace Hardware - Grain 4 Feed - Agronomy 5 Augusta Green Turf 6 AV Energy 7 Board of Directors

Safety Division

Skyler Hayes Safety Director

SUN EXPOSURE AND SKIN CANCER One of the most iconic examples of the American farmer is that of a man whose face, arms and hands are deeply tanned. In fact, we’ve all heard of a “farmer’s tan”, and many of us feel that a tan reflects good health and vitality. I know of no farmers who use tanning beds, so I think that we can assume that the tan comes from countless hours of time spent in the sun. There can, however, be a down side to all of these hours spent in the sun, and that is the risk of skin cancer and premature aging of the skin. Some of the consequences of exposure to the sun, which is the source of the ultraviolet (UV) radiation that gives us the tan and does the damage to our skin, include pre-cancerous (actinic keratosis) and cancerous (basal cell carcinoma, squamous cell carcinoma and melanoma) skin lesions, benign tumors, fine and coarse wrinkles, freckles, discolored areas of the skin (called mottled pigmentation), sallowness (a yellow discoloration of the skin), telangiectasias (the dilation of small blood vessels under the skin) and elastosis (the destruction of the elastic and collagen tissue which can cause lines, wrinkles and sagging skin).

Skin cancer is the most prevalent form of all cancers in the United States, and the number of cases continues to rise. It is the uncontrolled growth of abnormal skin cells.

This rapid growth results in tumors, which are either

benign (noncancerous) or malignant (cancerous). There are three main types of skin cancer: basal cell carcinoma, squamous cell carcinoma and melanoma. Basal cell and squamous cell cancers are less serious types and make up 95% of all skin cancers. Also referred to as non-melanoma skin cancers, they are highly curable when treated early. Melanoma, made up of abnormal skin pigment cells called melanocytes, is the most serious form of skin cancer and causes 75% of all skin cancer deaths. Left untreated, it can spread to other organs and is difficult to control.

Although sun exposure is not the only risk factor for skin cancer, it has the strongest correlation. There is a definite causal relationship between UV exposure and the development of skin cancer, although the relationship depends on the type of exposure, the kind of skin cancer, and the person’s skin type. Anyone can get skin cancer, although some people are at a greater risk than others. People with lighter skin color, light hair and light eyes are more at risk, because they have less melanin in their skin to protect them. People who have long-term unprotected sun exposure are at an increased risk.

Basal cell carcinoma and squamous cell carcinoma are directly correlated with sun accumulation over many years. As you might expect, the face, ears, hands, arms, etc. are the most common areas for these cancers.

Melanoma, on the other hand, is believed to be the result of brief, intense exposure, such as a blistering sunburn, rather than years of tanning. There are other risk factors associated with melanoma, such as a family history and having a large number of sizable moles on the body.

It is important to remember that, although areas of the body that are exposed to the sun have a greater likelihood of developing skin cancers, any part of the body can have a skin cancer of any type develop.

Sun protection remains a crucial component to preventing skin

cancer. Sunscreens that block UV rays are helpful. The higher the SPF of the sunscreen, the greater the protection from damaging UV radiation will be. Sun protective clothes such as long sleeve shirts, long trousers, gloves and a broad brimmed hat will also help protect you from UV radiation. Although damage from the sun is cumulative and irreversible, it is never too late to start protecting yourself.

Certainly, prevention is the best course, but for those of us with years of exposure and overexposure to the sun, there are things we can do. Skin self-exams are important in detecting new, suspicious lesions. Report to your doctor any unusual growth, change in a wart or a mole, sore that will not heal, or anything else on your skin that looks suspicious. If your doctor does diagnose a skin cancer, remember that skin cancer is a very curable form of cancer, especially if it is diagnosed and treated early.

For those of us with actinic keratosis there are creams available that are applied to the skin over the course of several weeks that are, essentially, a form of chemotherapy that kill the precancerous lesions on the skin.

ACE HARDWARE

Jack Lane, Ace Manager All your Ace locations now rent Hilti tools. The tools that are available for rent are a Breaker TE 3000-AVR which is a medium to heavy demolition from concrete driveways, patios, sidewalks to slabs and foundations up to 12 inches thick. This tool will break up to 6 tons of concrete in one hour.

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The gas concrete saw is also available. It can be used for wet or dry cutting of cement asphalt, brick, and concrete block. It will also cut reinforced concrete up to 4-7/8” deep. The electric diamond cutter concrete saw is available that is virtually dust free when used with the dust control vacuum. We also rent a 16 inch gas concrete saw used for wet or dry cutting of concrete 5-7/8 thick. The diamond coring system is available. It can be used as a hand-held unit or a rig mounted unit and can be used wet or dry. The rig mounted is capable of coring holes up to 6 inches in diameter into reinforced concrete.

We have a powder actuated tool for rent that is a versatile tool for fastening formwork and kicker boards and a whole bunch of other materials. Last but not least is the diamond coring tool a DD 200 it can be used with a vacuum base or an anchor base for coring holes for service entries and many other uses.

It can be used to core drill in ceilings walls and floors without vibration. The tilting stand allows you to drill holes on a slant up to 45 degrees and still core a plumb hole.

Come by any of the Ace locations and check out the new Hilti line of tools for rent. As we move closer to spring your Ace locations also rent lawn equipment that includes an over seeder, power rakes, and core aerators. Ace is your place for your rental needs. All our locations would like to thank you for your business.

GRAIN DIVISION

Gary Friesen Grain Merchandiser

As you all know, fall harvest took a long time to complete but by now everything has been cut. We’ve all had some time to take a breather and reflect about this crop year’s results. For the most part yields were good which has led to nearly every country elevator in the area having a pile of milo on the ground.

Your company was no exception.

Pride Ag Resources, however, was able to limit ground piles to only a few locations because we had shipped a good deal of wheat out of the facilities to make room for fall harvest. This planning was very beneficial as we have been able to ship unit trains from our Ensign location that met the quality specifications that milo exporters needed. Unfortunately some of the milo that was or is stored on the ground in western Kansas this year has suffered quality problems which has made it unsuitable for export. The impact of a big fall harvest has certainly had an impact on corn and milo prices. There has been export demand for milo this year but not at the level we saw last year. This lessening export demand along with the need to get grain piles picked up have virtually flooded the feed grain market with stocks. As a result, basis for both corn and milo have been weak since harvest time and it appears it will continue to stay weak for the foreseeable future. We believe that export demand for milo will be steady but will not be as robust as it was last year. Milo is being used aggressively by feeders and alcohol plants this winter, but given this year’s feed grain production it will take a while to use up.

The outlook for grain prices since harvest has not been bright.

The world economy continues to be weak which has created a perception of lower demand for grains.

The Chinese economy, while still growing has slowed and grain exports to China have followed suit. Last year, Chinese demand for grain sorghum drove milo basis to levels that exceeded corn basis levels. Unfortunately export demand for milo has slowed and milo basis has slipped

accordingly.

The dollar also remains high compared to other world currencies which has put a damper on both grain prices and grain exports. So far the South American corn and soybean crops seen to be progressing nicely and their production prospects look good. With carry outs projected to be high this year, the grain markets have not had any kind of news that would take prices higher so both corn and wheat prices have stayed in narrow trading ranges. As we prepare for the upcoming crop year the market will be watching weather conditions but already there is a sentiment that moisture conditions, especially in the U.S. wheat belt, are favorable for production which has provided a bearish tone to the markets.

Because grain prices have gone lower the need to maximize your grain production has increased.

Good fertility programs can help with that aspect of your operation and Pride Ag Resources Crop Production Department can help you find solutions for all your production needs. But along with maximizing your production, making sure your marketing plan is sound will help you get the most out of your production. Your Pride Ag Resources Grain Department can help you with your grain marketing needs. CHS Hedging has their Compass Foundation contract that allows you to price your production each day at or above a price level that you select.

This contract is like a minimum price contract which guarantees your floor price. Your investment in the contract, or your premium cost, lets you capitalize on rallies that may occur after your pricing decision is made. This contract, along with a number of other CHS Compass contracts, which are offered through CHS Hedging are available in the Dodge City office.

We hope you will check to see if the contracts can work for your marketing plan this year. If you have any questions about these contracts please let us know.

We have kept busy since harvest ended picking up grain piles and 3

moving and shipping grain. We are glad that your harvest was productive and that we were given the opportunity to help you with your harvest needs. We are already looking forward to spring time and the prospects of helping you with all your grain handling and marketing needs in the coming year. As always we appreciate your business and look forward to helping you in the months ahead.

FEED DIVISION

Calvin Carey Feed Sales Specialist Whether you calve in late winter, early spring or late fall make sure you are not caught off guard. Know where all the supplies and equipment is and that it is in good working condition. We won’t list all the supplies you need. You may have your own list of ear tags, markers, taggers, calf puller, and your calving book are just a few.

Get everything organized and ready to roll.

You may want to take look at your forage inventory. Whether you are feeding cows with low body condition, first calf heifer or mature cows make sure you have been feeding mineral and protein.

We have Wheat Pasture Pro for calves and cows on wheat pasture.

This will provide all the magnesium, trace minerals and vitamins needed when grazing on wheat pasture. If your cows are on milo or corn stalks or grass pasture we would recommend RL Pro Phos 8 mineral. Pro Phos 8 will help with calving and improve breeding after calving. We have RL Pro Phos 6 Mag mineral that is formulated to match mineral levels of lush pastures. The 10% magnesium is

formulated to help avoid grass tetany caused by low magnesium / high potassium forages or grass pastures. Cows and calves should be fed Pro Phos 6 Mag at least 2 weeks prior to and 4 weeks after turning cattle out to graze. If your forage quality is poor and has less than 6 – 7% crude protein and lower than 50% TDN these deficiencies will limit the amount of forages that your cows and calves can eat. Because both consumption and nutrient content of poor quality forages are low, supplemental needs are high. The amount a cow can eat in a day ranges from as low as 1.5% of body weight for low quality forage to near 3% for high quality forage. The average amount is 2 – 2.5% body weight. Body condition also affects supplemental requirements.

Meeting these requirements for low body condition can be expensive.

Moderate body condition can reduce the amount of supplement needed. Fleshy cows will need little supplementation. There are ways to keep from losing body condition when feeding low quality forages.

You can feed 20% cubes from Pride Ag or the labor saving protein tubs. We have Purina 25% all natural tub or the economical Purina 30-13 protein tubs (225# or 250# tubs). Consumption on these tubs is from ½ to 1 pound / head / day. Producers say consumption is closer to 6/10th of a pound / head / day unless the requirements for the cow are not met by forage quality.

Higher milking cows can consume forage but not enough to meet requirements. When forage quality is inadequate, higher milking cows will need to be supplemented as much as a 50% increase in protein, energy, mineral and vitamins to meet a high producing cow’s requirements. Pride Ag’s 20 – 0 cubes or 30-13 protein tubs will help you meet these requirements.

Young heifers and light cows are still growing and require extra nutrients. Since their body size is smaller than mature cows they cannot take in the needed nutrients.

For these reasons, heifers and young cows will require higher

quality diets than mature cows and often more and different supplements. We have creep feed and creep feeders for calves on cows with poor milk production and body condition. This should help increase rate of gain on calves and help cows breed back better.

We have a full line of mineral and protein supplements, give us a call to go over your calving season needs.

Date

Wheat Corn Milo Soybean

07/6/15 08/4/15 08/18/15

5.53 4.40 4.31

4.30 4.18 9.47 3.76 3.65 8.87 3.73 3.52 8.39

09/21/15 4.31 3.90 3.43 7.83 Last Year –Nov., 2014 AVG. 5.57 3.83 3.52 9.42

AGRONOMY

Lawrence Baxa Agronomy Manager As I sit here and began writing this quarters newsletter article I am reminded of a few things. Winter is almost over and soon it will be time to get busy, we have had some very beneficial moisture this fall and, we are set up to have excellent crop potential for the 2016 wheat as it comes out of dormancy, With that being said we have been busy running dry fertilizer on your wheat acres getting nitrogen and sulfur on to get the crop off to a good start when it comes out of winter dormancy, as we get farther into spring and we look at chemical applications for mustard and summer annual weed control, make sure you consult your pride ag 4

agronomy staff member for what our latest weed control options are.

Whether you are applying herbicides and insecticides, or have us apply the product with one of our sprayers. As we have done in the past we will be offering deferred wheat top-dress program for putting on product now and have it not come due till July.

Looking ahead it will also be early season alfalfa treatment time.

A spring application of phosphate and potash and sulfur before the hay greens up is a excellent program to get your alfalfa production season off to a good start to maximize first cutting tons which it typically the best. There are many decisions that hit us early in the spring. Some of the other agronomic practices we are looking to get on are an early application of kochia programs for sumerfallow.

We are looking at dicamba and Atrazine early followed by pre emerge application of a grass and broadleaf mix for your corn and milo acres to get the most out of your chemical dollar. Not wanting to leave anything out let’s turn to summer fallow acres. An early application will be key to keeping tough to manage kochia and pigweeds in check. Both of those weeds have a long season in which they germinate so timing will be important. Scout early and keep vigilant on weed growth will be and issue. It will be important to manage dollars in this time of volatile input costs and grain prices.

Finally we will also be offering our usual seed lines through our brands that we carry. This will include a full line of forages and grazers for your haying and grazing situations. Also we are right around the corner from planting spring oats we will be looking at having oats in the warehouse in Dodge City for seeding needs. Lastly we will be handling the Alta and Sorghum partners brand for you milo seed needs. Give us a call for the option that will best suit your region and soil conditions.

As with any PrideAg program, or agronomy questions if they s should arise don’t hesitate to call, your PrideAg rep or myself in Dodge City. The 2016 growing season is fast approaching and with it all the planting and spraying and harvesting that goes with it. We at Pride Ag resources wish our customers the best and we APPREICIATE your business.

We want to wish all our produces good luck on the 2016 season and we want to thank all those customers and friends, who took time to attend our winter meetings at the Ensign chemical warehouse and Ingalls south locations. We want to be your stop for chemical and fertilizer needs.

Let us know how your Co-op can be of service to you. And Thanks for your business.

Pride Ag Resources- “Augusta Green” Turf Shed

Sales Ryan Bourne rbourne@prideag.com The Turf team is looking forward to a great 2016. We are pleased to announce that we continue to add new items that are produced and packaged through our Turf Shed plant. Our “Augusta Green” lineup will have a full Step program for 2016. The brochures will be at all locations for you to take home and keep for reminders.

We built the program around a holiday schedule so it’s easy to remember and or that’s usually when we get most things around the house accomplished.

Coming up in a few months it will be that time of the year to apply your Pre-Emergent combo product, we will offer the 18-2-8

with Dimension (Dithiopyr) herbicide. I really like this one as it’s the most versatile products to keep crabgrass away, and it’s the only one if you happen to miss the timing of the “Tax Day” or “Easter” date, it will have some post emergent activity to young emerged crabgrass plants when applied at a later date.

Weather in Kansas is hard to judge and with the other herbicides, you have to get the product down in an unpredictable time of the year (Feb-March).

There are also Positives and Negatives about the other products on the market, ultimately knowing what weed you are fighting and the soil, turf, and environmental conditions weigh heavy on our decision. Any way you look at it “Preventing” weeds are more cost effective than “Curative” applications.

New this winter we have added a few Ice Melt blends that are packaged here at the plant.

They will be available through all the retail and branch locations as well as Bulk delivery. We offer a variety of 18 lb. bags, 50 lb. bags, 2000 lb. Totes. The ice melt industry is an interesting market as many products are on the market, however understanding them and their capabilities is something that many people do not have time to digest. If you would like more information, contact a retail or branch manager regarding this as I have spent some time diagnosing the industry and have provided them with a lengthy review on pdf.

Our Blends have been used effectively in a Colorado Market to success, so I am confident these products will achieve the results you are after for the remaining of the winter season.

The “ROYAL BLUE MELTER” is a true 3-way product.

It contains 84% Sodium Chloride, 8% Magnesium Chloride, and 8% Calcium Chloride and has a Nonstaining light blue color added for easy indication when applying and is perfect for fast effective melting as the products work well together.

It can be used for high traffic 5

surfaces, driveways, sidewalks and steps. It has melting capabilities from 20 deg. to -20 degrees. The “GREEN MELTER” is a combo product with 97% Sodium Chloride and 3% Calcium Carbonate, it is dyed a light green for easy indication, this product is great for large applications and has an antislip material added in.

This product has melting capabilities from 20 deg. to -15 degrees.

The take home message I received after reviewing many products and ideas… Know what products are in the bag, some will not list out ingredients as a Trade secret, creating an unknown product in an unregulated industry.

The cost directly reflects what’s in the bag, and the biggest message is knowing the application rates as too much is never a good thing with ice melt. Most ice melts are safe to use, however over applied rates and unknown products are the most destructive to surfaces. Certain products work great together and understanding those materials and their refreeze potentials can get you exactly what you are looking for in an ice melter!

For more information or questions, please don’t hesitate to email me.

Proven in the lab and in the field

Fuel injector deposits

Today’s diesel engines use highpressure, common-rail (HPCR) direct-injection technology for significantly greater efficiency than conventional diesel engines. The high temperature and pressure these engines operate at can literally cook typical #2 diesel, resulting in fouled fuel that can damage engine parts.

Internal diesel injector components within HPCR engines are much smaller, lighter and more intricate than direct-injection diesel engines manufactured prior to 2007. With injection that occurs multiple times per combustion cycle at engine pressures up to 35,000 PSI, even the smallest deposit can cause issues within the tight tolerances of the injector (typically 1–3 microns).

When using typical #2 diesel fuel, conventional deposits occur in the injector nozzle tip and internal diesel injector deposits (IDID) form deep inside the injector components.

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Injector nozzles spray microscopic fuel droplets and become clogged by the smallest deposits. Even a stain or varnish clog can lead to decreased power and fuel efficiency. Minimizing all deposits is critical with high-pressure injection engine technologies. IDID can form suddenly deep inside the injectors and significantly reduce power and fuel economy, and in some cases, cause injector failure.

Fuel filter plugging

BOOSTS LUBRICITY by 10 to 15 percent EXTENDS LIFE of injectors and injector pumps PROVIDES QUICKER, MORE EFFICIENT STARTS with a higher cetane number (typically 48) REDUCES COSTS

MAINTENANCE

CLEANS UP AND PREVENTS INJECTOR FOULING in 2007 and newer engines Chris Klein AV Energy, LLC O. (800)752-1580 O. (620)225-4994

In addition to forming deposits in the fuel injection system, another known issue that affects highpressure injection (HPI) systems is premature fuel filter plugging. Fuel filters power will result. Meeting the challenge capture unwanted contaminants from the fuel that left unchecked, can cause serious damage. As the flow of the fuel through the fuel filter becomes restricted or plugged, a loss of 6

Meeting the challenge Ruby Fieldmaster addresses the needs of new diesel engine technology with its proprietary additive package, including an injection stabilizer that meets the Tier IV Final EPA emission standards in 2014. Testing confirms that the upgraded injection stabilizer successfully removes and prevents IDID, including carbonaceous, soap/metal carboxylates, and lacquer-type deposits.

Optimal performance and fuel efficiency No other premium diesel fuel contains a more complete, balanced additive package that helps avoid the hassle associated with using aftermarket products to top treat fuel. Cenex® Premium Diesel Fuels are “smart-injected” at the terminal to ensure stringent quality specifications are met.

AV Energy offers Ruby Fieldmaster at several of Pride Ag’s cardtroll locations (Beeler, Ingalls, Montezuma, and Kalvesta). We also deliver Fieldmaster all over our service territory with our bulk delivery trucks. Please, give Mike Reinert or myself a call if you would want to learn more about the benefits of Ruby Fieldmaster.

Thanks, and remember AV Energy for any of your refined fuel, propane, and oil needs!

BOARD OF DIRECTORS Scott Mac Nair ........................ Chairman Jeff Reinert…………….....Vice-Chairman Clint Hamilton ......... Secretary-Treasurer Jeremy Derstein ........................ Director Butch Irsik ................................. Director Tony Bleumer ............................ Director Toby Whipple ............................ Director Jeff Breuer….….........Associate Director Jacob Tarman…..…..Associate Director Jerald Kemmerer………………CEO/GM Debby Kennedy….......Newsletter Editor

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Pride Ag Resources

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Pride Ag Resources

PAID

1st Quarter 2016

710 West Trail, Dodge City, KS 67801

DODGE CITY, KS PERMIT #399

(620) 225-4193

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