Pride Ag Resources 1st Quarter Newsletter

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MANAGER’S DESK

Jerald Kemmerer-CEO/GM Pride Ag Resources I hope that you and your family are enjoying 2023 so far. The team of employees are looking forward to this new year being a great opportunity to work with our customers again.

The beginning of each calendar year is an opportunity of resolution to ensure that we bring balance to our lives with positive influences that override the negative ones.

We are focused as a team on the positives of what lies ahead for this coming year and how we can better serve you the customer. We hope that mother nature provides a little more moisture than last year.

Weather continues to be the main topic at this time. With a decrease of 10 inches of moisture in 2022 from normal

FIRST QUARTER 2023

precipitation, it has had a major impact in our business. This year we experienced smaller harvest receipts in all three commodities and less acres for application acres due to the lack of moisture. Even though we know this is out of our control, we are trying to focus on the things we can manage. The team of employees has done a great job this year focused on the controllable expenses, such as running with fewer employees, keeping up with maintenance on facilities, and not making unnecessary purchase of supplies.

In December we held our second Farmers Summit meeting at the EXPO convention center.

The line of speakers was as good as you will see at any farm show in the Midwest. Gregg Doud from Aimpoint was back talking about foreign trade and government affairs, a

continuation from his speech he gave at our annual meeting. We also had Josh Linville from Stone X to talk about fertilizer supply.

Kyle Maple from Winfield United discussed chemical prices. Joe Barker from CHS Hedging reviewed risk management and Jeff Hutton did a presentation on weather. The Farmers Summit meeting is something we want to continue every year to help provide good intellect information to better inform you to make sound decisions for your farm. Our goal is to help you be successful so your cooperative can be.

The past year we have lost some great employees to retirement. One of the great things about working in a cooperative is the cooperative retirement. It allows employees that have several years of dedicated service to retire

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

comfortably.

Like a lot of businesses, we will continue to see those retirements happen.

But it is exciting to see some of the new faces within our cooperative stepping up through promotions and external talent that we have recruited. No matter where they came from, the new talent is doing a great job of picking up the level of customer service and productivity where our experience retired at. I can only imagine how much better they can grow in their positions by gaining more experience over time.I hope you have a great spring with more needed moisture. Thank you for your business, as it is always appreciated and never taken for granted!

Safety Division

Corey Ratzlaff Safety Director DISTRACTED DRIVING 2.0 Distracted driving is any activity that could divert a person’s attention away from the primary task of driving. All distractions endanger driver, passenger, and bystander safety.

Driving distractions include texting, using a cell phone or smartphone, eating and drinking, talking to passengers, grooming, reading (including maps), using a navigation

system, watching a video, and adjusting a radio or i-pad.

Federal Highway Administration now says that distracted driving accounts for 25-60% of all automobile accidents.

Some alarming statistics I got off the web include the following: In 2020 alone 3,142 were killed and 429,000 injured in distracted driving crashes. Fifty eight percent of all drivers 15 to 19 years old involved in fatal crashes were reported as distracted at the time of the crash. This age group (15-19 yrs.) has the largest proportion of drivers who were distracted at the time of the crashes.

Drivers in their twenties are 23% of drivers in all fatal crashes, but are 27% of the distracted drivers and 38% of the distracted drivers who were using cell phones in fatal crashes.

At any daylight moment across the United States, approximately 660,000 drivers are using cell phones or manipulating electronic devices while driving, a number that has held steady since 2010. A 2020 distracted driving survey reported that drivers do all sorts of dangerous things behind the wheel including brushing teeth and changing clothes.

The survey also found that one third of drivers admitted to texting while driving, and three fourths saying they’ve seen others do it.

Five seconds is the average time your eyes are off the road while texting. When traveling at 55 miles per hour, that is enough time to cover the length of a football field blindfolded.

There are three types of driving distractions, visual, manual, and cognitive. Visual distractions

are those that cause you to take your eyes off the road for any amount of time. Examples of visual distractions include using a cell phone or a smartphone, looking at a billboard, looking at an electronic navigation device, watching a video, and reading. Manual distractions are those that cause you to use your body for tasks other than to drive and otherwise control the car. Examples of manual distractions are adjusting your seat, adjusting the radio, I-pad, eating and drinking, using a cell phone or a smartphone, and grooming.

Cognitive distractions are those that cause you to take your mind off of driving and controlling the vehicle. Examples of cognitive distractions include talking to passengers, using an electronic navigation device, and reading, using a cell phone or a smartphone, and watching a video. These are just some of the distractions, and there are many more.

You probably noticed that some distractions are more than one type of distraction, such as the use of a phone, which is a visual distraction, a manual distraction and a cognitive distraction. Is it any wonder that using a phone while operating a motor vehicle is such a dangerous activity?It is obvious to most of us as to why visual and manual distractions are dangerous, but cognitive distractions can be just as dangerous. Studies have shown that using a hands free device to talk on a cell phone is no safer than holding the cell phone while driving.

The reason for this is that the brain quickly moves between tasks, but it cannot do two things at 2

the same time. If you do not believe this, try to read a book and talk on the phone at the same time, and driving is a lot more important and dangerous than reading a book.

The activity in the area of the brain that processes moving images decreases by up to one third when listening to talking on a phone. Drivers looking out the windshield can miss seeing up to half of what is around them when talking on any kind of a cell phone. “What about voiceto-text?” you may ask. Studies have shown that using voice-totext is more distracting than typing texts by hand.

A hands-free device can keep you distracted for at least 27 seconds after you use it.

Distracted driving and handsfree driving are the same things.

Distracted driving comes in many forms and often leads to nothing good. Do not become a statistic in this epidemicpractice being a safe driver for you and everyone else on the road. Set the example so we can keep Kansas safe.

ACE HARDWARE

and hoodies have been moving well this winter with our cold snap earlier. We also had a run on space heaters, heat bulbs, heat tape and insulation. We had a few unfortunate folks who needed pressure switches and water lines. Ice melt has been selling well with the snow and ice (thank goodness for the moisture!).

We still have a great selection of gloves, shovels and Milwaukee apparel to get you through winter.

February 2nd is Groundhog Day! Which means we are roughly six weeks away from warmer days and barbecue season. We have an excellent line of Traeger grills for sale as well as pellets, sauces, and other needed BBQ supplies.

Check out the Blackstone griddles when you stop in. They would be an excellent gift for the grill master in your family!

As always, thanks for making Ace the place to get your emergency as well as your holiday and tool buying done!

GRAIN DIVISION

markets were down due to the lack of any interest because everyone was in the holiday mode and not doing anything.

Since November 1st, wheat is down $1.65, corn is down .50 cents, milo is down .60 cents, and soybeans are up .60 cents.

There is still decent demand for corn and soybeans, but wheat and milo, the demand is short.

The flat price of U.S. wheat is still too high compared to the world markets, which in turn we miss selling wheat. The milo demand is just as bad, without China buying milo, we have to rely on the ethanol plants to buy milo, and now they are slow playing the market. Corn is being supplied with a fair amount of rail corn coming in from the corn belt and has kept the basis on hold for the time being. The only good news is with soybeans, the demand has continued to stay strong. With the smaller crop, good demand with exports, and domestic demand has kept the market on an upward trend.

Date

Wheat Corn Milo Soybean

12/16/22 11/18/22 10/14/22 09/06/22

8.19 9.04 9.22 8.47

7.88 8.08 8.30 7.76

7.08 14.64 7.38 14.03 7.60 13.39 7.01 13.04

Last Year –Jan. 2022 AVG. 7.61 6.41 6.23 13.25

Dave McCollum, ACE Regional Manager

Ace has been selling some cold weather gear and supplies.

Heated Milwaukee jackets, vests

Mike Schmidt Grain Division/ Operations Manager

Now that the holidays are over, it is time to get the grain markets back to work. It seems like the last month and a half, the 3

For the good news, we did receive some very good moisture with the latest snow, and there is more forecasted in the near future. This was not a drought changer, but it sure was great! Keep the moisture prayers coming; I think it is starting to work. If there is anything we can do to help with your marketing needs feel free to call and if we do not have the answer, we will find one for you. Again thanks for making Pride Ag Resources your business of choice.

Agronomy Division

Tim Spector Agronomy Division Manager

NH3: As we enter spring the suppliers are signaling a flat market on NH3 with early contract offerings. Throughout the U.S. farming has halted due to weather and bearish markets.

Throughout the Hi Plains we have experienced above average drought conditions. We were blessed with a good snow across

the area in January and weather forecast now have moisture. If your planning on utilizing NH3 this spring get with your Agronomy Business Manager or location manager to lock in your needs.

Urea: Today Urea is the best option for your Nitrogen needs based on price per LB. of nitrogen. At this current writing, NH3 and Urea are virtually the same price per lb. of N. Koch is sold out through March , therefore most dealers will have to venture to Inola, Oklahoma to secure tons or Borger Tx ( limited production). Your cooperatives investment in the Ensign Dry Fertilizer facility (SWCN) is able to receive rail from New Orleans, Donaldsonville, La and Galveston Tx. Our facility has ample material to take care of our customer needs.

UAN: CF Industries the largest UAN producer in the United States figured out late that the market switched nitrogen needs from UAN to Urea. Thus, they were forced to reduce the value of the UAN to be positioned to compete. Since June they ignored the U.S. needs and focused on global customers.

Market is volatile , UAN can swing at any given time once farming starts.

Phosphates: This market has softened and should soften more depending on the global needs.

We are monitoring the phos along with all nutrients on a daily basis, it will be interesting to see where phosphates settle.

We have inventory on hand to work with for your needs.

In summary, high prices take care of high prices, low prices take care of low prices.

Inactivity throughout the US and around the globe has pushed pricing down vs. 2022 spring values. Dealers across the US

are working off low inventory levels and not willing to purchase until the farmers are willing to purchase. Given the dynamics everyone will be running to suppliers to cover needs and that will be an issue given the limited supply points, unless you’re able to receive rail delivered. Pride Ag Resources can receive up to 65 cars of fertilizer at any given time.

Crop Protection – Volatile market, tight supplies, under attack by the EPA. Supply – 2023 will be the year of allocations Key Active Ingredients (AI) across the board are in place today the bullet list is limited but paints a picture. Indications are each basic (BASF, Bayer, Corteva, Syngenta and Distribution) with the allocations have a goal of being low in inventory going into the summer of 2023 hoping for lower production cost for 2024.

•Atrazine – technical material is limited in the US, China is not exporting therefore it will be in tight supply at higher cost.

Basics are reserving atrazine for finished products i.e.

Lumax, Lexar, Fultime, Degree Xtra etc.

Cover your needs prior to season ( PAR has filled our bulk) Dicamba- Pricing Softening •Phenoxies ( 2,4-d) – Pricing Softening •Glyphosates- Pricing Softening •Fungicides – allocations for 2023 •Insecticides – look for allocations on key products 4

Note: Use caution when choosing a generic platform for HIF needs. In my experience, there are 4 levels of generics and even though a product might have the same percentage AI, what the label does not show is the inert ingredients and that is where the topline separates from the bottoms line. Mixing issues, stability in the tank, crop damage and layers of sludge in the shuttle or jugs. Pride Ag Resources offers top Brand products along with topline generics that are formulate with quality inert ingredients.

Wheat Program

Advantage RX Advanced Acre warrantied crop prescriptions allow you to reach for yield while covering your investment risk.

Corn Program

Advantage RX Advanced Acre crop prescriptions are data based cropping plans that we stand behind with our money!

Advantage RX – Taranis New for 2023 “ Six Flights vs 5 Flights”

1.Our submillimeter image resolution is so clear you can distinguish between different insect damages, lesions, different nutrient deficiencies, weed species and more.

2.Full-service delivery means no flying, uploading, data stitching or hardware failures.

3.Delivery and data at scale means no matter how many acres, no matter where you are, we execute seamlessly to provide effortless and valuable insights.

4.Your Pride Ag Resources Agronomy Business Manager can assist you how to benefit from this tool in the management of your operation.

FEED DIVISION

Nutritional management is important to the reproductive success of your heifers.

A heifer that calves on time in her first and second calving season is more likely to keep a 365 day calving interval throughout her reproductive life.

Typically, virgin heifers are bred at 14-15 months of age to achieve their first calving date at or around 24 months of age.

Proper nutritional management from birth to first calving should be considered thoughtfully.

While the dam (mother) of the heifer calf picks up much of the nutritional “slack” before weaning, nutritional management from the time of weaning through first breed up is entirely dependent on the producer’s competence as a manager.

Heifer developmental goals

Sexual maturity (the start of cycling) of heifers is related to interactions between age, weight, and breed type.

Obviously, reaching sexual maturity is required to achieve a successful virgin heifer breeding program. The heifers should weigh 65-70 percent of mature body weight when you begin your artificial insemination program. Specifically, British cattle should weigh at least 65 percent of mature body weight, and Brahman cross cattle should weigh at least 70 percent of mature body weight. What constitutes mature body weight?

This is the weight of cows of the same genotype at 5 years of age in a body condition score of 5.

Usually, the weight of your cows at weaning is useful in this determination. Below is an evaluation of developmental goals.

Assumptions: 1.Angus breed type 2.Mature body weight of 1300 lb 3.Average calving date is March 1st 4.Weaning date is October 1 5.Average weaning weight is 550 lb Developmental Goals: 1.Should weigh 845 lb on May 15 (start of breeding season) 2.Should gain 295 lb in 227 days 3.Should have an ADG of 1.3 lb Do not push heifers too hard.

During the first three to 12 months of age, heifers are developing mammary glands in the udder which closely influences future milking ability.

If you push heifers to gain more than 2 lb/hd/day during this time period, fat deposition in the udder may occur, negatively affecting the future milk production of that female.

How do you start heifers correctly? Sound Nutrition!

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No best intentions, no great genetic base, no world-renown vaccination program, and no high-powered antibiotic can overcome the negative effects of poor nutrition. However, all of these important aspects of weaning healthy, highperforming calves can be enhanced when provided alongside a sound starting nutrition program. Why are healthy cattle more profitable?

Primarily because they grow!

Why do healthy cattle grow?

Primarily because they eat!

Think about this for a minute…if cattle don’t eat they get sick and sick cattle don’t eat. Cattle must begin eating quickly after weaning to be profitable shortterm and long-term.

Furthermore, what the cattle eat is of great importance.

The creep ration is not the starting ration for your calves.

Traditional creep rations don’t have the roughage level starting rations have. Traditional creep rations are designed to be supplements to milk and grass if consumed at an optimal level (1% of BW). The grass in the calf’s diet provides the much needed roughage for adequate rumen health and optimal performance. With creep feed, calves hit the feed bunk hard up front and then don’t come back the next day…their intake is “yo-yoing”. Because there is insufficient roughage in the creep ration, the calves experience acidosis and don’t feel like eating again until their rumen pH increases.

Purina has a time-tested, traditional starting cattle feed in Precon® Complete. Precon® Complete adheres to the “rules of thumb” for a well-balanced starting ration and, better yet, newly weaned calves will “flat out” eat it. Usually, feeding Precon® Complete for 7-14 days is sufficient on ranch-raised

cattle.

Because Precon® Complete is so palatable, heavier cattle that have been creep fed (cattle that know how to eat) usually should not remain on Precon® Complete longer than 7-10 days. Feed efficiency may begin to decrease and some bloating may occur.

In this case, Accuration® Starter should be considered.

Accuration® Starter utilizes patented intake modifiers to change eating behavior, such that starting cattle eat smaller meals more often throughout the day.

How do you grow heifers effectively?

After getting off to a good start, recall your previously determined developmental goals? Then, use a nutritional program that achieves those goals economically. The most economical gain is put on with your greatest resource…your forage base. During the spring and early summer, pasture forage can sustain the 1.2-1.5 lb ADG typically needed for successful heifer development.

Unfortunately, the forage conditions can change dramatically with changes in temperature, rainfall, and season.

You need a low cost supplementation program when forage quality declines to the point that your developmental goals are not being met. With the rising costs of fuel, labor, and time, a self-fed supplemental program seems desirable.

However, if the self-fed supplement consumption does not fluctuate with changes in forage quality, it is not working correctly.

Accuration® supplements allow for self-feeding of a highenergy supplement without overor under-consumption to achieve your developmental goals.

Additionally, Accuration® supplement consumption occurs

in multiple/smaller meals throughout the day to maintain rumen pH above 6.0 which maintains forage use at an optimal level. After all, you need to use as much of your forage base as possible to achieve your developmental goals. General intake guidelines with Accuration® supplements to achieve 1.2-1.5 lb of ADG are as follows: 1.Supplement is not needed for high-quality forages, however, mineral should be provided.

2.0.5-1.0% of body weight on transitional stage grasses 3.1.0-1.25% of body weight on dormant stage grasses Remember, determine the development goals, start the heifers off right, and then grow the heifers economically with as much of your forage as possible while maintaining development goals.

Don’t forget about your firstcalf heifers It is best to have your firstcalf heifers in a body condition score of 6 at calving. At least, have them in a body condition score of 5 at calving and moving on an upward plane of nutrition as you move into the breeding season. Why is body condition so important to monitor at calving and through the breeding season? The best way to answer this question is to investigate the relationship between body condition score and production parameters like pregnancy/weaning rate.

Reductions in these two production parameters cause more economic loss to the replacement heifer enterprise compared with all others. To understand the relationship between body condition score and pregnancy/weaning rate, one must understand how nutrients consumed by the cow are partitioned immediately postpartum. Short et al. (1990) 6

indicates that nutrients are partitioned in the following order: 1.Basal metabolism 2.Activity 3.Growth 4.Basic energy reserves 5.Established pregnancy maintenance 6.Lactation 7.Additional energy reserves 8.Estrus cycles and pregnancy initiation The cow’s ability to cycle is of relatively low priority. The cow must be in good condition or gaining condition to begin cycling and then be bred on time.

AV Energy Chris Klein I hope everyone had a great holiday season and a wonderful start to the New Year!

Fuel Contracting Traci, Jordan and myself have been very busy talking to customers about fuel contracts, and have already had a lot of customers lock in their fuel for the summer. For those of you that have been waiting, I would recommend that you at least lock in a quarter to half of your gallons soon. The market trends have been on the incline, and a lot of people are predicting higher prices this summer. As always give Traci, Jordan or myself a call, we would be glad to talk to you about your fuel needs.

Propane Generators Are you constantly losing power at your house of farm? Every time the wind blows are you holding your breath and praying that you don’t lose power? Well why don’t you look into

installing a propane generator to protect your farm and home.

Propane generators are very reliable and needs very little maintenance to operate. Below you will find some helpful information from www.propane.com about propane generators.

capacities, so there's one to fit the needs of your family. How long can you depend on your standby generator? A 7kW standby generator drawing from a 250-gallon propane tank can provide enough electricity to power your home for up to five days.

The U.S. Department of Energy recorded more than 3,600 major power interruptions nationwide in 2014. They also note that the frequency of outages is increasing every year. With a propane standby generator, your family can spend the next power outage playing games, reading, and relaxing while the neighbors search for candles and flashlights. Give your family greater comfort, security, and safety with a propane standby generator.

If you would like to learn more about propane generators please give AV Energy a call. AV Energy works with several contractors throughout the area and we would be glad to get you a quote for a generator and propane tank.

Thanks, and have a great day!

Instant Power, Every Time When you see storm clouds looming on the horizon, you don't want to wonder if your backup generator will start or not. That's why propane is the perfect standby generator fuel.

Unlike gasoline or diesel, propane won't degrade over time, so when the power goes out, your generator will start automatically, every time.

You May Not Even Know It’s Working It usually takes less than 10 seconds after a primary power interruption for your propane standby generator to kick in.

Plus, most units produce as little as 60 decibels of noise — comparable to a normal conversation — so you may not even realize the rest of the neighborhood has lost power.

The Size and Capacity You Need Propane standby generators are available in a wide variety of

BOARD OF DIRECTORS Tony Bleumer..........................Chairman Toby Whipple………........Vice-Chairman Clint Hamilton......... Secretary-Treasurer Butch Irsik ..................................Director Brian Pinkney .............................Director Jacob Tarman ............................Director Weston Vogel.............................Director Levi Salmans.…........Associate Director Jerald Kemmerer………………CEO/GM Kirstie Harrington….....Newsletter Editor

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Pride Ag Resources First Quarter 2023 Published quarterly by the Pride Ag Resources 908 W. Frontview, Dodge City, KS 67801 (620) 225-4193

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