Fourth quarter 2015

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MANAGER’S DESK

Jerald Kemmerer-CEO/GM Pride Ag Resources Fall harvest is starting to wind down as corn is almost complete and the milo harvest is slowing down to a point where some of the milo will need a freeze to get it to dry down. Our corn harvest has been good and milo has been great with the outstanding yields producers have been receiving.

The team of employees did a great job of moving wheat since July with the anticipation of large milo harvest, however, I think even our expectations were under estimated from the results we are seeing.

The game plan to move a lot of wheat before and during harvest to keep from putting so much grain on the ground has worked fairly well. If some of the unit trains had arrived sooner it would have been even better. Even with the best of maintenance programs we can never anticipate when a major problem will occur at one of our elevators during harvest. It is a lot like when your combine breaks down unexpectedly. Thanks for your harvest bushels, the employees are working hard to

FOURTH QUARTER 2015

keep things running as smoothly as possible.

In conjunction with the CHS Annual Meeting coming up on December 2nd through 4th, a specially selected group of top young producers will participate in the CHS New Leader Institute.

Over the course of three intensive days, participants will examine indepth issues and challenges facing cooperatives in agriculture and rural America as well as learning ways they can build their leadership skills to benefit their cooperatives and communities.

Sessions feature top-notch, professional speakers and agribusiness experts. If you have interest to attend please let me know.

Lyons ACE Hardware held their open house on September 24th through the 26th which was well attended by the surrounding communities. Matt Stafford, store manager and several employees throughout the company have the store running smoothly and business exceeds expectations as the communities in that area

appreciate the goods and service the store provides. If you are in the Lyons, KS area stop in and check out the store. It is located on the west end of town.

This year we are trying something different, in the past our own local artist, Skyler Hayes, who is our safety director, has painted or drawn a picture for our yearly calendar. This year we asked local high schools students to draw or paint a picture that represented SW Kansas, the cooperative and agriculture. Over 50 pictures were submitted and a team of employees viewed the pictures and made nominations for the top three pictures. The top one chosen will be the picture for our 2016 calendar and several others will be rewarded for their pictures. The judges had a difficult time with all the talented young people’s entries.

Thanks to all the art students in the surrounding high schools who participated in our yearly calendar contest.

I hope your yields were better than you expected with the great summer we had. The market is

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

still trying to analyze if exports to China will be the market place for this year’s milo. Wheat is in the ground and the timely moisture we just received will help the before it goes into dormancy this winter greatly.

We appreciate the opportunity to help you with all your production agricultural needs.

We appreciate your business!

Safety Division

Skyler Hayes Safety Director

ANHYDROUS AMMONIA SAFETY With the winding down of fall harvest, farmers will no doubt be making plans for the upcoming growing season.

One of the aspects of those plans will be the application of fertilizers on the fields for the new crop to be planted this coming spring.

Anhydrous ammonia is the most economical form of nitrogen available to the farmer. More tons of anhydrous ammonia fertilizer will be applied to fields in our trade territory than any other fertilizer, liquid or dry.

Anhydrous ammonia (also referred to as anhydrous, ammonia or NH3) has several properties that workers handling must be aware of. The term anhydrous means literally “without water�. Because of that, it seeks out water. That is a good thing if you want to trap the ammonia as you inject it into the ground when applying it to a field.

That is not a good thing if you get ammonia in your eyes, in your lungs or on your skin and it seeks

the water in your body, which is made up of approximately 70% water.

Also, ammonia has a boiling point of -28 degrees Fahrenheit, which means that it comes out of a pressurized tank at that temperature. It can freeze dry your skin. Ammonia is not a poison, but is corrosive to human tissue.

Severe burns from ammonia, after they heal, leave scars identical to the scars left by scalding water.

Anhydrous ammonia can be stored, transferred, transported and applied safely, but certain precautions must be taken to ensure that safety. Following are just a few of the precautions that all who work with anhydrous ammonia should take to keep from harming themselves, their coworkers and the environment.

Always wear proper personal protective equipment (PPE). At a minimum your PPE will consist of goggles and gloves. The goggles must be non-vented or rear-vented.

This type of goggle will help to prevent the ammonia from entering your eyes. Workers have been blinded permanently when they got ammonia in their eyes, because they did not wear goggles approved for ammonia. Gloves should be gauntlet-type gloves made of PVC, neoprene or some other substance which is impervious to ammonia. This will help to keep you from burning your skin when hooking and unhooking the hoses from the nurse tanks to your implements.

If you or a coworker is injured by ammonia, first aid must be performed immediately. The three most common types of injury from ammonia are skin exposure, eye exposure and inhalation.

If ammonia gets on the skin, rinse the skin with water for a minimum of 15 minutes. If ammonia gets in the eyes, hold the eyes open and rinse with water for a minimum of 15 minutes.

If ammonia is inhaled, get the victim to fresh air.

If any type of exposure to ammonia is severe, get the victim to a medical facility immediately.

Since water is the only first aid for ammonia on the skin or in the eyes, make certain that there is a supply of water any time ammonia

is to be handled. That is why there is a stock tank of water at each of our bulk storage facilities and why there is a carboy of water on each of our nurse tanks. If you are applying ammonia in the winter, when the water in the carboy may be frozen, you will want to carry at least five gallons of water in the cab of the tractor.

In most ammonia systems, the weakest link is the hose. The hose should have stamped on it that it is approved for anhydrous ammonia, and there should be a remove by date stamped on the hose. Many farmers install breakaway fittings, so that if the nurse tank comes uncoupled from the implement, the breakaway will activate and the loss of a tank of ammonia into the environment will not occur.

This has been a very basic lesson on anhydrous ammonia safety. If you have questions on the safe handling of anhydrous ammonia, please contact me. I will answer any questions you may have. I will be glad to teach about the safe handling of anhydrous ammonia to any who may handle it on your farming operation.

ACE HARDWARE

Jack Lane, Ace Manager Your Ace stores have been busy getting ready for winter and the holiday season. As we move into colder weather your Ace stores have a good supply of products that include heat tapes weather stripping pipe insulation and stock tank heaters just to name a few items. We also carry a strong inventory of Pennington premium 2

oak heating pellets available at all our Ace locations.

We would like to remind everyone not to forget their feathered friends. Ace carries a full line of bird foods and birdbath heaters.

Ace also carries a line for all your Holliday decorating needs. Be sure and watch for ads that will include products for all your gift giving needs as well as our Black Friday items that will be featured on a multi-day sale. All the Ace managers and employees would like to wish everyone a Happy Thanksgiving and a safe Holliday season.

GRAIN DIVISION

Mike Schmidt

Grain Manager

As of the time of writing this article, we here at Pride Ag Resources are starting to see this fall harvest starting to slow down.

Other than a few circles to finish up we will be done with corn and beans and about 70% complete with milo. Everyone at Pride Ag would like to thank each and every one of you for your patronage this year. We worked very hard to get the grain moved ahead of harvest this year anticipating a very big milo crop and we were right, very, very big. Other than one train that was late and caused a few delays at the elevators, we were able to keep the doors open and the trucks moving along. We did pile milo on the ground at a few locations;

Jetmore, Kingsdown, Ford, Ensign, and Kalvesta. Looking around the country I feel good about only having the small amount on the ground that we do.

I would also like to thank all the Pride Ag employees for the hard work they did in getting wheat moved out and shipped on trains ahead of harvest in order to give us the room that we needed.

And for the hard work they did to get the trucks dumped and back to the fields in a timely manner.

There were a few days that were a little busy and unloading was slow at the elevator, however, if we would have gotten the last train in October that we had ordered it really wouldn’t have been that bad.

Again thank you all very much.

As far as the market goes, it does not look very good for the near future. With the big harvest, there has been corn and milo offered out at very cheap prices to make room and that has really dropped the basis. I believe this is causing a domino effect; cheaper prices now will lead to cheaper prices later, or until the demand picks up and there is no evidence of that for the next few months.

With China not sure on what or how much of milo they will be buying, it’s hard for demand to increase.

I believe our entire trade area has received good rains this fall, and the wheat has gotten off to a very good start going into the winter. With a few timely rains this spring we could be looking at a very good wheat harvest in 2016.

That coupled with the amount of wheat from this year and the carryover from the previous year, wheat might have a hard time rallying very high next year. Keep an eye on the new crop bids and get some priced before June or July gets here.

Again everyone here at Pride Ag Resources says thank you for your business and if there is anything we can do for you in the future, please let us know and we will do our very best.

Date

Wheat Corn Milo Soybean

07/6/15

5.53

4.30

4.18

9.47

08/4/15

4.40

3.76

3.65

8.87

08/18/15

4.31

3.73

3.52

8.39

09/21/15

4.31

3.90

3.43

7.83

3.52

9.42

Last Year –Nov., 2014 AVG.

5.57

3.83

FEED DIVISION Using Feed-Grade Antibiotics for Livestock: Changes are Coming Russ Daly, SDSU Extension Veterinarian, South Dakota State Public Health Veterinarian Recently, livestock producers and veterinarians have been hearing about changes coming in the way antibiotics are used in food animals. In midDecember, the Food and Drug Administration (FDA) published a final "guidance for industry" that starts the clock running on some of these changes. Initially, it’s the animal health companies that will be adjusting their practices -adjustments that will eventually make their way down to the people who prescribe and use the drugs: veterinarians and livestock producers.

The role of livestock antibiotics in contributing to resistant bacterial infections in humans is complex and has been long-debated.

Producer associations have seen the writing on the wall for a couple of years now that these changes were coming. But what do they actually mean for producers?

What will change: •The labeled uses of "medically important" antibiotics for growth promotion and improvements in feed efficiency will go away. The FDA is asking drug manufacturers to voluntarily take these uses off their products’ labels. Because extra-label use of feed grade antibiotics is illegal, these uses will no longer be legal as well. The companies have until mid-March 3

to tell the FDA what products they plan to do this with. After that, they have three years to make the label changes, so livestock producers currently using antibiotics for growth promotion will have time to adjust, depending on how quickly the companies switch over.

•The list of what FDA considers "medically important" antibiotics is pretty long. It contains older drugs like tetracyclines and penicillin along with classes of drugs that are more critical to human medicine, such as cephalosporins and fluoroquinolones. When it comes to growth-promoting antibiotics that fall into this category, it’s drugs like tetracyclines, tylosin, and neomycin that will be affected.

•These "medically important" products will shift from over-thecounter to "Veterinary Feed Directive" (VFD) classification – possibly with new label indications for treatment, control, or prevention. The VFD is not a new classification; it’s currently being used for newer feed-grade drugs like Pulmotil® in pigs and cattle and Nuflor® in pigs and fish.

•This means that before a producer can obtain (for example) CTC (chlortetracycline) crumbles for his calves or pigs, he will have to obtain a VFD form filled out by his veterinarian. The form will specify the farm and animals to be treated, the duration of treatment, and which drug is to be used. The feed mill or distributor would need to have a properly completed VFD before they could supply the feed.

•The VFD won’t be able to come from just any veterinarian. A veterinarian would only be able to issue a VFD for use in animals "under his or her supervision or oversight in the course of his or her professional practice, and in compliance with all applicable veterinary licensing and practice requirements." Right now VFD’s have to be issued in the midst of a valid veterinary-client-patient relationship (VCPR) that’s spelled out by federal regulation. The new changes add some flexibility in that this relationship will be deemed appropriate by state and professional entities, such as the Board of Veterinary Examiners in

South Dakota. This flexibility means that far-flung cattle enterprises may not need to be treated the same as an intensely managed hog operation, in regards to veterinary oversight. But it still means that a veterinarian needs to be involved – one that knows the operation and its needs well.

•The VFD forms will be easier to manage. Everyone’s recordkeeping requirement will be cut from 2 years to 1 year. The forms will be able to be transmitted and stored electronically. And thankfully for this veterinarian, they will no longer have to include an estimate of how much of the medication the animals will consume in the given time frame (this was hard to accurately guess a lot of times).

The form will need to simply specify the inclusion rate of the drug, the number of animals to be fed, and the duration of the feeding.

What won’t change: •The ability to use feed-grade antibiotics to treat, control, or prevent bacterial diseases. The term "prevention" is used in the situation where there is a very high risk of illness if you don’t administer the antibiotic. However, producers will need to obtain a VFD for these products as explained above.

•How one uses and obtains non-"medically important" feed grade products. Examples of these include ionophores like Rumensin®, Bovatec®, most coccidiosis medications, and certain growth-promoting medications like bacitracin (BMD®). Since they’re not used very often if at all in human medicine, there will be no changes in their use.

•Uses of water and injectable antibiotics – yet. There are proposals out there that would move water medications to "prescription" status like many injectable antibiotics.

•Extra label uses of feed-grade medications. Any use of feed grade medications not in accordance with their label is illegal now, and it will remain so.

•The ability of current distributors and feed mills to supply these products. Yes, there will be more

paperwork related to more VFD forms, but these new proposals do not limit these businesses in what they can carry or manufacture.

•The need for veterinarians to be involved in decisions about feedgrade antibiotics. There is no better source of information about the proper uses of these products in livestock populations than the herd veterinarian. A close relationship with a veterinarian means that producers may avoid wasting time and money on ineffective uses of these products. Better yet, it may result in practical advice on how to prevent illnesses that would necessitate the uses of these products.

Antibiotic resistance is a complex and sometimes contentious topic among animal and human health professionals.

The complexity of the issue means that a "silver bullet" solution is not going to present itself any time soon. All of us involved in using these products—in animals and people alike—play a role in ensuring that they continue to work for the sake of our animals and our family members.

Understanding these proposed changes and proactively deciding how they will work into your operation is a great first step that we can all take.

AGRONOMY

Jasyn Garman Logistical/Chemical Warehouse Manger Hello I would like to introduce myself, my name is Jasyn Garman, I joined the Pride Ag team September 1, 2015, as the new logistical/chemical warehouse 4

manager at the warehouse in Ensign. I came to Pride Ag from North Central Kansas, and recently moved to Dodge City to be closer to my 5 year old son Matthew. I have with over 10 years of chemical application and dispatching experience. I am excited to step into this new position and manage a newly built state of the art facility.

Since joining Pride Ag, I have had the pleasure of adding another staff member to our Ensign team.

Quint Ingram is our new office clerk, Quint will have administrative duties in addition to helping in the Repack area. Along with Harold Bogner our general delivery driver we look forward to serving your chemical needs. Feel free to stop by any time you are in the area to check out the facility and see what options we can provide you for weed, insect and disease control from the product lines we offer.

This past month we have being working on organizing the warehouse, prepping shuttles for shipping, and restocking new inventory to be ready for the upcoming season. Our goal is to make our process more friendly and efficient, making your customer experience a pleasant one. For any questions you might have, please call on, your Pride Ag agronomy rep, or location manager to get the information you need regarding your chemical, fertilizer or seed needs. We’ve been very blessed with timely rains as the bushels are exceptional this fall harvest in addition to the 2016 wheat crop being provided with a good dose of moisture for a strong start.

We wish you all a happy and safe remainder of the fall harvest season. Thank you for your business and we would appreciate the opportunity to serve you in the future.

AV Energy

Chris Klein

The Propane Foundation of Kansas Safe Appliance Installation Rebate Program If you are building a new home that is going to use propane or you are replacing an old propane appliance in your home, let AV Energy help you save some money.

Eligibility: A. Dealers Only propane dealers who are licensed by the Kansas State Fire Marshal Office are eligible to participate. The program is not available to the public except through a qualified propane dealer.

The dealer is responsible for documenting that an eligible installation has been performed, that all eligible appliances are new and have been identified and that a safety inspection and system testing has been completed.

B. Applicant The applicant is described as a consumer (owner of the residence or business where the appliance is installed), a Kansas licensed General Contractor or a Kansas licensed HVAC Contractor.

Applicants must receive a rebate through a participating propane dealer and must agree to the regulations and conditions on the application form. The application must be signed.

C. Eligible Installation of Furnaces or Boiler for Central Heating System

The program authorizes a $300.00 rebate for the safe installation of a new authorized propane fueled, ducted, central heating system in a new, residential or commercial building or to replace any existing ducted, central heating system in residential or commercial building.

The above referenced system must be the primary source of heat in a primary residence. The safe installation must take place on real property located in Kansas served by the participating dealer. The eligible applicant must be in good standing with the participating dealer.

D. Eligible Installation of Approved Water Heaters The program authorizes a $300.00 rebate for the safe installation of a propane-fueled tankless water heater and $200.00 for a conventional tank water heater in a new residential or commercial building or to replace any existing water heater in a residential commercial building. The safe installation must take place on real property located in Kansas.

Approved water heaters are defined as propane-dedicated fueled water heater, either a storage tank type not less than thirty (30) gallons water capacity or a tank-less water heater rated at not less than 30,000 btu/hour input. The eligible applicant must be in good standing with the participating dealer.

E. Installation of Vented or Unvented heaters, gas logs or LP dual fuel central heating system The program authorizes a $100 rebate for the safe installation of a new, authorized propane vented or unvented heater or LP dual fuel central heating system in a new, residential or commercial building or to replace any existing appliance or system in a residential or commercial building. The safe installation must take place on real property located in Kansas or within the trade territory normally served by the participating dealer.

The eligible applicant must be in good standing with the participating dealer.

F. Eligible Installation of Cook Tops/Ranges 5

The program authorizes a $100.00 rebate for the safe installation of a new gas cook top/range in a new, residential or commercial building or to replace any existing appliance in a residential or commercial building. The safe installation must take place on real property located in Kansas normally served by the participating dealer. The eligible applicant must be in good standing with the participating dealer.

G. Eligible Installation of Clothes Dryers The program authorizes a $100.00 rebate for the safe installation of a new clothes dryer in a new, residential or commercial building or to replace any existing appliance in a residential or commercial building. The safe installation must take place on real property located in Kansas normally served by the participating dealer. The eligible applicant must be in good standing with the participating dealer.

H. Eligible Installation of 5KW or Larger Generator The program authorizes a $100.00 rebate for the safe installation of a new 5 KW or larger propanefueled generator in a residential or commercial building. The safe installation must take place on real property located in Kansas normally served by the participating dealer. The eligible applicant must be in good standing with the participating dealer.

I. Rebate No more than four (4) safe installation rebates will be paid per residence or business (profit or non-profit). The Foundation may limit the total number of rebates paid to an applicant. Additionally, no propane dealer may request more than 20 rebates per retail location. Rebates which violate these restrictions could be denied.

The Foundation reserves the right to change the terms and conditions at any time to safeguard original intent of the safe appliance installation rebate program.

J. Appeals The Propane Foundation of Kansas will approve each application

individually. Data missing on an application may disqualify the application. False or misleading information may disqualify an applicant or suspend a propane dealer from the program. Within thirty (30) days after The Propane Foundation suspends or declares an applicant or propane dealer ineligible, they may appeal the action by submitting the appeal in writing to The Propane Foundation of Kansas, 540 NW Broad, Topeka, Kansas 66608.

Actions taken by the Foundation with respect to such appeals will be final.

K. Verification A safety inspection, conducted by or on behalf of the participating dealer, must be conducted prior to the submission of any rebate application. An appropriate safety inspection consists of an on-site inspection, including any necessary leak tests, of an operating eligible installation by a propane dealer or a propane dealer’s designated agent, for the purpose of verifying that the propane gas system, including all equipment is or was installed in compliance with NFPA 54 and is in safe operating condition. Only new appliances are eligible for rebates and a copy of a paid invoice must accompany the application. Foundation employees may choose to spot check random installations for quality control of program. The rebate application form must be signed by an employee or authorized representative of the propane dealer. Signing this form certifies that the required inspections or tests were successfully performed.

L. Applications To apply for any rebate, the application must be made on the form provided by The Foundation.

All requested information must be provided along with the necessary documentation. To start the rebate program, applicant needs to contact an authorized propane dealer to obtain a rebate application. The dealer may offer his company’s services or recommend a service provider to replace any gas appliance or make suggestions for purchases and

installations. Purchase location preferences are up to the applicant.

M. Rebate Payment The applicant must obtain an installation document and safety inspection detailing each installation to accompany the application. The dealer must mail the installation document and safety inspection to The Propane Foundation of Kansas, 540 NW Broad, Topeka, Kansas 66608 within thirty (30) days of the date of the inspection.

Allow 6-8 weeks for receipt of the rebate check.

If you would like to apply for the rebate or would like more information please give me a call @ 620-225-4994.

AV Energy, LLC O. (800)752-1580 O. (620)225-4994

IT Department

Richard Broz rbroz@prideag.com Pride Ag Resources IT Manager

I would like to invite you to browse our re-designed website www.prideag.com. This site is updated daily with local and national news. We try to inform you what is happening at our local branch locations.

The website will provide you information on our departments, coop news, and employment opportunities. Use it to look at 6

your local Grain and Overnight cash bids. (These prices reflect a 10 minute delay).

Our feature this month will be Patron Access.

Features: • Access your accounts 24/7, with the ability to view multiple accounts.

• Summary and detail information and the ability to print copies of A/R tickets.

• Grain tickets available when Pride Ag Resources YOU have time (after daily 4th Quarter 2015 Updates are complete).

Published quarterly by theyour account • Ability to pay online.

Pride Ag Resources

PRSRT STD U.S. POSTAGE

PAID DODGE CITY, KS PERMIT #399

710 West Trail, Dodge City, KS 67801

We have (620) 225-4193

now published our “NEW” Pride Ag Ace Hardware web page, which can be found at www.prideagace.com.

Along with our Ace website we have created a Pride Ag Resources Ace Facebook page which can be found at https://www.facebook.com/Pride agace. The Facebook page is updated daily with Hot Buys of the month along with any special sales or new items that we have added. Our face book page is for all our Ace stores, Dodge City, Great Bend, Lyon’s, Meade and Maize. If you have not yet “Liked” our Face book page, I would recommend you do it soon, before the holidays to receive information about any special buys or hot sale.

BOARD OF DIRECTORS Scott Mac Nair...........................Chairman Jeff Reinert……………......Vice-Chairman Clint Hamilton............Secretary-Treasurer Jeremy Derstein...........................Director Butch Irski....................................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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