Pride Ag Resources 1st quarter Newsletter

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MANAGER’S DESK

Jerald Kemmerer-CEO/GM I hope your New year is off to a good start. The markets have made some dramatic moves while seeing historical price levels that haven’t been seen for a long time. With the grain price levels that we have seen so far, make sure you have your marketing strategies in place for your old crop and new crop bushels.

Contract the Grain team to help you with contracts and marketing needs.

With the new administration in place in D.C., it will be interesting to see what changes will be made versus the previous administration and how it will impact all markets.

Covid19 continues to make impact on our daily lives.

Hopefully the vaccinations will help open up our country again

FIRST QUARTER 2021

and slow down the spread that is causing difficulties.

At this time, we have a tentative date set for this year’s annual meeting. The auditors will be in the first of April to work on closing out the year end so we are looking at Friday May 7th. Of course there are a lot of factors that come into play to make the Annual Meeting happen. We will be looking at the state and county Covid19 guidelines and what other mandates may be in place.

The main concern is the safety of our members and employees.

Therefore, we may need to modify our annual meeting from historical meetings in the past to secure your safety.

More information will come out as we get closer to the date and will continue to monitor the

Covid19 impact.

With fall harvest bushels turned and put away, we focus on shipping out trains and trucks to destination grain markets. Several trains have been loaded so far and several are scheduled for each month leading up to wheat harvest.

The team of employees did a great job of getting the milo off the ground quickly as the weather allowed.

The agronomy team has been busy getting nitrogen applied with windy days causing some difficulties. They are getting NH3 tanks in place for your needs. The sales staff has been helpful in working with growers on setting up game plans for their crop protection needs for this springs’ growing season.

Inside This Issue 2 Safety 3 Ace Hardware - Grain 4 Agronomy 5 Feed Division 6 Pride Turf - AV Energy 7 Employee Spot Light–Board of Directors

The feed department has been busy with their normal winter time feed production.

They have included liquid feed in their offerings to meet your cattle production needs. At the current time they have over 1,000 head cattle on this new feed. Call the feed department to get more information about the service. Check how efficient the quality of the feed is and the equipment that is needed to provide liquid feed.

The mineral and tub program that we offered this fall was a success as it has increased in volume over the last few years.

The warehouse team and rest of the staff have done a good job keeping product supplied all over Western Kansas.

As we wind down the fiscal year it has been a successful one so far. We can’t wait to close it out so we can share it with you. The success cannot happen without your patronage to Pride Ag Resources.

The team of employees have worked hard in showing you the value your cooperative provides every day and the customer service that they bring with it. Its that time of the year we need to slow down just a little to say “thank you for your business”, as we gear up to see what challenges this coming year brings all of us!

Safety Division

Skyler Hayes Interim Safety Director.

DICAMBA AND PARAQUAT HERBICIDES With increased resistance of weeds to traditionally used herbicides such as glyphosate, the use of other herbicides such as paraquat and dicamba has increased. While the increased use of these herbicides has helped producers better manage weeds in their fields, there have been incidences of misuse.

This has prompted the government to put more restrictions on the use of these herbicides.

Paraquat is a non-selective contact herbicide that works well in controlling weeds.

However, paraquat is extremely poisonous to humans, and there have been numerous deaths from paraquat poisoning in the United States through the years.

The greatest danger is to those who apply paraquat, but there are instances of death to others, including children. There is no proven antidote or cure for paraquat poisoning. Although there are treatments that may increase the likelihood of

survival, these treatments are not always effective and the patient may die, even though he receives medical treatment.

Any person using a product containing paraquat dichloride, such as Gramoxone, Firestorm, Helmquat and Parazone must receive training every three years. This includes anyone applying, mixing or loading paraquat. In Kansas this means that anyone applying, mixing or loading paraquat must have a commercial applicator's certificate in sub-category 1A or private applicator's license and receive the paraquat training, which can be found at http://usparaquattraining.com.

The labels on many dicamba-containing herbicides were changed a few years ago to allow their use on growing crops, since the continued use of glyphosate herbicides had lost much effectiveness due to resistance by weeds. Three new formulations were approved in 2017 for use over some growing crops, since the new formulations would supposedly not drift as much as the older dicamba formulations. This use during the growing season brought about many cases of dicamba damaging crops that were not genetically altered to resist dicamba, as the new formulations were more volatile than thought.

Because of the damaging non-target person using the Engenia, XtendiMax

danger of crops, any herbicides or Tavium 2

with Vaporgrip over-the-top to soybeans or cotton is required to have additional labelrequired dicamba training annually.

Training is available online: http://www.engeniastewardship.com http://www.xtendimaxapplicationrequir ements.com http://www.syngenta-us.com

The new labels state that these formulations are for retail sale to and use only by certified applicators. If you have been applying under someone else's license in the past you will need to get your own license if you are applying these products.

ACE HARDWARE

inventory in the Milwaukee line. It is pretty impressive to see. The supply chain for tool ordering and repair is slowly recuperating from the covid pandemic with product getting easier to get.

I would like to congratulate the Lyons team for receiving the Pinnacle. This is an award that Ace Corporation gives for criteria met in different phases of operations. Lyons Ace is one of only two Ace stores in Kansas to receive this award.

They have done a super job at your Ace location in Lyons. If you are ever in the neighborhood stop in and see Matt and the gang.

All your Ace locations are busy getting ready for year-end inventory audits. It is a time consuming endeavor that everyone loves. The Ace locations would like to thank everyone for their support and business this last crazy and trying year.

GRAIN DIVISION

Jack Lane, ACE Manager Since the acquisition of Craftsman tools by Black and Decker I feel the quality has declined and will probably continue to do so. Craftsman is now in all the box stores. With that being said we have shifted our hand tool suppliers to Milwaukee, Crescent and some items still Ace branded. Pete has been working on getting that department reset. Stop by and take a look at the depth of

Gary Friesen Grain Division There is the story about a man riding a horse that is galloping very fast. Another man, standing alongside the road, yells at him, “Where are you going?” The man on the

horse yells back, “I don’t know.

Ask the horse.”

Date Wheat Corn Milo 10/6/20 5.04 3.93 4.60 11/5/20 5.33 4.32 5.39 11/23/20 5.21 4.50 5.57 12/18/20 5.39 4.61 5.68 Last Year – Nov. 2019 AVG. 3.78 3.64 3.09

Soybean 9.54 10.24 11.12 11.40 7.87

The grain markets have been like a galloping race horse over the last several months. It seems the only thing to do is just hang on and enjoy the ride. Going back to mid-August grain prices seemed sluggish with prospects for a good fall harvest weighing on the market. Pride Ag posted cash prices in Dodge City of $3.95/bu. for wheat, $3.40 /bu. for corn, $3.45/bu. for milo and $8.09/bu. for beans on August 14, 2020. By that time, milo basis had already begun its move up as export demand was increasing. New crop values at that time were $3.38/bu. for corn, $3.58/bu. for milo and $7.89/bu. for soybeans. The grain markets turned sharply higher thereafter as export business became extremely robust. Domestic demand for corn for ethanol, however continued to lag due to the ongoing effects of corona virus.

Announcements of feed grain sales to China were almost a daily occurrence as the Chinese booked huge sales of corn and soybeans. China’s preference for milo pushed basis levels on grain sorghum to record levels.

Only occasionally have we seen milo prices exceed corn prices but this run up in basis was unprecedented. I suspect will be remembered for a good long while. By year end Dodge City cash wheat was $5.74/bu., corn was $5.12/bu., milo was $6.14/bu. and soybeans were 3

$12.35/bu.

And the horse continued its run.

The January USDA’s Supply and Demand report, issued Jan. 12th, saw a reduction in yields on both corn and soybeans which reduced ending stocks for both as well. The reduction in corn yields was offset by lower exports and less corn used for alcohol. The wheat balance sheet was mostly unchanged however the report did show an increase in wheat used for feed.

The quarterly stocks report showed both corn and wheat stocks below trade estimates with soybeans slightly above the trade’s estimates.

The numbers on the supply and demand report were largely expected, however by the time the trading session ended that day, March wheat was up 25 cents, March corn was up 25 cents and March soybeans were up 45 cents.

Demand has been the key ingredient in price movement to the upside and I believe that demand continues to be the underlying feature of the market.

South American weather has been dry and estimates of South American corn and soybean production have been lowered. Conditions in the Black Sea area are reportedly dry and Russia has imposed an export tax on wheat as they have concerns that domestic supplies are reaching low levels. The dollar has traded lower lately compared to other currencies which has helped to make our prices more competitive in world markets.

In the recent past the grain markets have leaned to supply issues for direction but it now appears that demand issues will move to center stage. Demand from China, as they rebuild livestock herds is likely to

remain high for the foreseeable future.

While this feels like fundamental change in market structure, it would be unwise to think the sky is the limit. It also doesn’t feel like the sky will be falling any time soon.

There are good opportunities to forward contract your 2021 production be it wheat, corn, milo or beans. We would encourage you to look at the opportunities. I know forward contracting milo last year seemed less than satisfying as milo basis moved steadily higher but contracting a portion of your production at a price that is above your cost of production can give you piece of mind. It also protects you if prices suddenly move unexpectedly lower. Having an open order in place, especially as markets move quickly higher, can help you get bushels priced that might be missed otherwise.

We look forward to helping you market the remainder of last year’s production as well as assisting you with next years’.

Here’s hoping that the next time the horse we’re on gallops away, we’ve got him pointed in the direction that leads to our favored destination. Thanks for your business and best wishes for a good and prosperous New Year.

AGRONOMY

Tim Spector Agronomy Manager

Fertilizer– Since our last news article, all fertilizer products have taken a steep rise in cost. Urea is the one product that is directly affected by global markets on a daily basis. Most of the countries throughout the world utilize Urea as their primary nitrogen source. The market is in a bull run and will continue through the spring. UAN had been stable but with the recent rise in Urea coupled with the grain markets rising this product has moved up in value as well.

Phosphate supply in the US is at extremely low levels with some companies out of supply of 1152-00. If you recall, in August there was a ruling in favor of Mosaics’ case against antidumping into the U.S. As a result of the ruling imports ceased thereby putting pressure on the domestic producers to cover needs. Since August we have seen an increase in MAP (11-52-00) of nearly $300/Ton. Today suppliers are unwilling to take positions on MAP until the final board ruling on the tariff fees in the middle of March.

The situation today is that supply is limited on all Phosphate products including liquids and thus there is not enough supply in the U.S. to meet the farming needs for the Spring of 2021. Pride Ag Resources has been able to keep product positioned and will work to secure additional tons.

New Nh3 locations: Pride Ag Resources has brought on line two additional NH3 plants to service your needs. Dighton South plant and Jumbo plant south of Ensign.

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Crop Protection – Markets have shifted with the recent rise in grain and floods in China that affected the availability of technical materials used in the formulation of finished products.

Glyphosates for instance have risen $1.50 -$3.00 per a gallon due- to the limitation of technical materials.

I have also seen other Key AI’s increase in value in the past 2 weeks. Your team at Pride Ag Resources is working with our distribution partners to keep our customers competitive. The Agronomy team is always available to assist you in your 2021 crops’ herbicide programs.

In addition, we can assist in the interpretation of the various grower programs from the basic suppliers: Bayer, BASF, Syngenta, Corteva and FMC. S-metolchlor and metochlor products are used at the high labeled rates- S metolachlor delivers more effective metochlor.

A pint of metolchlor is 35% less effective than a pint of S Metolchlor.

Seed- The sales team is out with pricing and early order specials for NK, Brevant (Mycogen), Croplan and LG Seed. This year we have added the LG Sorghum Seed to the lineup. Contact your Sales Agronomist for your seed needs.

Finance – Your Pride Ag Resources Agronomist have information available to discuss input financing options for your seed, chemical, Application and fertilizer needs for the 2021

crop year. Currently we offer CFA and Secure Finance options with terms to February 2022. Your Pride Ag Resources agronomy team has information available if you have an interest.

FEED DIVISION The third trimester is arguably the most critical trimester to calf development – like the final leg of a race – and cows need to be primed to reach the finish line.

For many spring-calving herds, late-fall or early-winter marks the start of the third trimester and a significant upward shift in nutrient requirements. Coincidentally, it’s also when most available forage resources are lowest in quality.

This creates a significant gap between nutrient needs and nutrient delivery during what is arguably the most critical trimester in calf development.

Cow nutrition during these three months’ influences everything from how calving goes, calf vigor at birth, longterm calf performance and next season’s breeding success for the cow.

How cow nutrition impacts the calf Cows channel 30% of their energy to support fetal growth and development during the third trimester. The fetus needs more nutrients from its dam than the previous two trimesters to fuel the final calf development of its organs, skeleton, lungs and immune system.

If calf development requirements aren’t met inutero, it can result in: • Reduced birth weight and impaired growth • Lower likelihood for the calf to reach its genetic potential • Compromised immune system with a lifelong impact • Long-term negative effects on fertility • Setbacks to the dam’s reproductive efficiency The third trimester offers a unique opportunity to proactively invest in the future of your calf crop and replacement heifers.

Fetal nutrition studies in Oklahoma and Nebraska demonstrate that calves born to cows with adequate levels of protein and energy in the diet during the third trimester have improved average daily gain and overall health.1,2 The Nebraska study compared the reproductive performance of heifers born to supplemented and nonsupplemented cows while grazing corn stalks.

Supplemented cows produced heifers with higher overall breeding season pregnancy rates (93%) compared to heifers from non-supplemented cows (80%).3 The bottom line?

Whether the calf is destined for the feedlot or the cowherd, adequate cow nutrition is paramount for their future performance.

Meeting third trimester requirements Calving is the main athletic event a cow fuels her body for.

Prepare the cow and her growing fetus for a successful calving by focusing on the 5

essentials – protein, energy, minerals and vitamins. And don’t forget to factor in changing weather. The colder it gets, the more energy cows need to maintain core body temperature, diverting energy away from the growing calf.

Supplement your cowherd’s nutrition with Purina® Accuration® supplements, such as Accuration® Range Liquid or Accuration® Range supplements to deliver additional energy and protein in a palatable package.

Accuration® supplements are designed to complement your existing forage resources, so cows only consume supplement when they need it.

Year-round mineral supplementation is another great strategy to help meet third trimester requirements.

Constant access to a complete mineral program helps cows build up mineral and vitamin reserves. Cows can pull from those reserves during critical times, including the third trimester, to support nutrient needs without depleting their stores.

Pride Ag Resources“Pride Turf”

“Turf Talk”

Nathan Ratzlaff nratzlaff@prideag.com

As we will be moving from winter into spring, the time to apply a pre-emergent will be here before we know it. We have a couple different preemergent options that we can provide to our customers. Our “Preventer P” is an early application product with a lasting residual. A good time to apply this product is around the middle of March before any crabgrass starts to germinate.

Another option we have is our “Preventer D.” It is the ultimate crabgrass preventer; it has a later application window than Preventer P, as it should be applied around the middle of April.

This product will actually kill any immature crabgrass plants that may have germinate a little early. We also have our “All Season Crabgrass Control”. This is a similar product to our Preventer D but has a lower rate of control and it can be used as a split application or as one single application. The window for application is early to late spring.

I would also like to remind everyone about our ice melt that we carry. The “Green Melter” is great for use on driveways and sidewalks, as well as larger applications and has an anti-slip material added in. This product has melting capabilities from 20 degrees to 15 degrees. The Green Melter is offered in 18 lb. bags, 50 lb. bags and also in bulk 2,000 lb. totes. Make sure you get into one of our locations and stock up so you are prepared when winter weather hits.

If you ever have a question about your turf grass, weather it is about fertilizing or you are

having issues with pests or diseases, do not hesitate to ask.

I am always glad to help anyone with a turf grass problem. The third trimester serves as the final sprint to the finish line – a time to dial in cowherd nutrition and not hold back.

AV Energy Chris Klein AV Energy Manager I hope everyone had a great Christmas and are having a Happy New Year!

Fuel Contracting With the New Year comes the same old questions. Is it the right time to lock in my fuel for the summer? Well, I wish I could tell you now is the time, but actually October was one of our better months to lock in fuel. Since the election the fuel market has steadily increased and as of now I do not see any indicators that tell me the market will come back to where we saw it before the election.

Also, the new administration has already closed down the Keystone pipeline, which will also have a negative effect on our pricing. What I have been telling our customers is if you don’t have anything locked in, you need to do so soon.

Propane The propane market has seen a big spike since the election.

As I’m writing this article we have seen the propane market go up nearly 50 cents. Most of the increase is not due to cold weather but to exports to China and other countries. The good thing is that the high exports do not seem to be effecting our out month pricing as much. So, hopefully we can still get some good prices this summer when 6

we begin contracting for next winter.

Is it time to overhaul your oil?

We’re with you when it comes to reducing maintenance costs. That’s why we carry Cenex® premium lubricants, uniquely formulated to withstand the intense challenges of today’s high-tech engines.

With over 75 years of proven performance in the field, Cenex lubricants have definitely stood the test of time. They’ll keep your engines running smoothly and provide superior heavy-duty protection for over-worked equipment. Best of all, when you use Cenex lubricants and Cenex® Ruby Fieldmaster® premium diesel fuel together, you can enroll your equipment in the best warranty protection in all of agriculture – for up to 10 years or 10,000 hours. (Visit cenex.com for proof of many growers that have avoided the expense of major engine overhauls thanks to the Cenex® Total Protection Plan® warranty.)

For your convenience, we also offer bulk delivery of Cenex lubricants. Talk to us today to take advantage of timely delivery of high-performance lubricants and fuels.

Chris Klein

Pride Ag Employee Spot Light

Name: Nicholas LeBlanc Resides: Meade, Kansas Location: Montezuma Branch Position: Elevator Worker Nicholas has been employed with Pride Ag for over 6 Months.

Nicholas grew up in Winchendon MA, with his mother, step-father and brother.

Nicholas hobbies are fishing, disc golf and playing with his two dogs.

BOARD OF DIRECTORS Scott Mac Nair ........................ Chairman Tony Bleumer………..... . Vice-Chairman Clint Hamilton ......... Secretary-Treasurer Butch Irsik ................................. Director Toby Whipple ............................ Director Jacob Tarman ........................... Director Weston Vogel ............................ Director Brian Pinkney.…........Associate Director

Name: Rommi Loredo Resides: Satanta, Kansas Location: Montezuma Branch Position: Office Assistant Rommi has been employed with Pride Ag for over 6 Months.

Rommi, grew up in Satanta Ks, with his parents and sister.

Rommi’s hobbies are visiting museums, weight training, bowling, occasionally gambling, video games, and spending time with family and friends.

Phillip Woods …..…..Associate Director Jerald Kemmerer………………CEO/GM Debby Kennedy….......Newsletter Editor

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Pride Ag Resources 1st Quarter 2021 Published quarterly by the Pride Ag Resources 710 West Trail, Dodge City, KS 67801 (620) 225-4193

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