Pride Ag Resources 4th Quarter Newsletter

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MANAGER’S DESK

Jerald KemmererCEO/GM Pride Ag Resources

Fall Harvest for 2022 is almost in the books, for the most part. It has been one of the quicker harvests due to the lack of moisture received at the end of summer/first of fall. In some areas, yields were slightly better than expected, but for the most part yields were substantially lower. Obviously, the dryland took the blunt of the poor yields.

First of all, thanks for your harvest bushels. The employees worked hard to keep things running as smoothly as possible to take care of your harvest needs. If you need help with market strategies for your grain, call in and talk to the grain department. With historical grain basis plus better than normal grain futures, it’s not too difficult of a decision to make.

This coming December 6th, we have our second Farmers Summit Meeting. If you would like to

FOURTH QUARTER 2022

attend, please contact one of the agronomy sales team members to get on the list. We have a great line up of speakers including my friend Gregg Doud, who spoke at our annual meeting this past May. As a former U.S. Ambassador, his knowledge of what’s going on around the globe is always interesting.

I am looking forward to all the speakers we have set up for that meeting.

In October, we celebrated National Coop Month with the theme of: “Co-ops Build Economic Power”.

We did several midday lunches spread out amongst our trade territory.

It was good to see several of you and discuss your harvest and the markets. If you were able to attend, thanks for participating.

The team of employees did a great job of setting it up and providing a great meal.

As this year seems to be going by very quickly, we look forward to the next year with the anticipation of more moisture and better opportunities for you as a producer. There are several current influencers in todays’ markets with higher grain prices, land values, Russian invasion, and an increase in technology that is wreaking havoc on the markets.

Obviously, we are also dealing with higher input cost but fluctuation on both sides of the markets can lead to great opportunities if a person is prepared.

The team of employees work hard every day to bring you value to help your farm be successful. If you’re not successful, neither is your cooperative. That’s why the team takes pride in helping to provide all the marketing

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

opportunities and services to make you profitable. Thanks for your business. We really appreciate it.

Safety Division

Corey Ratzlaff Safety Director Preventing Slips, Trips and Falls The bad news is that slips, trips and falls constitute the majority of general industry accidents and account for 15% of all accidental deaths.

In 2020, 42,000 people died from falls at home and at work.

Slips, trips and falls are second only to automobile accidents as a cause of fatalities in the workplace. Slip, trip and fall hazards are especially prevalent in agricultural related fields, as agriculture ranks in the top six of all industries for fall fatalities. Half of all fatalities from falls occur from ladders, roofs or scaffolding. The good news is that slips, trips and falls are generally preventable with a little effort.

Good housekeeping is one of the easiest ways to reduce the risk of slips, trips and falls, hereafter referred to as falls.

Keep your work area clean, not only for your own safety, but for the safety of those working around you.

Clean up any spilled liquids. Remember that

loose cords, fugitive debris and protruding objects create trip hazards.

Ladders are valuable tools that we use every day. Inspect every ladder before you use it, and make sure that it is rated for the total weight that will be supported on the ladder.

Ladders should have slip resistant feet, placed on a secure footing or lashed in place.

Ladders should have no missing or broken rungs, and rungs should be free from wet or slippery substances.

Make certain to face the ladder and maintain a three point contact when climbing up or down.

When using a ladder to access a roof or other elevated surface, the ladder should extend at least three feet above the landing.

For every four feet an extension ladder goes up, the base should be moved out one foot from the plumb point. Never place a ladder against a window.

Ladders should not be placed in front of doors that open toward the ladder unless the door is locked open or closed. Only one person should be allowed on a ladder. Do not overextend or overreach when you are on a ladder. The top two steps of a step ladder should never be used to stand on. Never use a ladder as scaffolding.

Never place or store items on stairs. Be sure that the walking surface of the stairs is made of skid resistant material. When using stairs be certain that your shoes are dry and free of slippery material. Stairs should be equipped with a hand railing.

Whenever wet or slippery conditions are present, one of the best ways to protect against falls is by wearing a good pair of shoes with non-skid soles.

When selecting these shoes, find a pair with a good fit that are comfortable for walking. Be sure that the soles are made of

soft rubber so that they grip slippery surfaces better. If your shoe laces or pants legs touch the ground, they are a trip hazard.

With winter coming up we have the added hazard of ice or snow covered walking and climbing surfaces. The best way to reduce the hazard is to remove the ice or snow. Snow is usually easier to remove immediately after it has fallen.

Rock salt, dry fertilizer or commercial ice melt can be used to melt ice and prevent ice from reforming.

Where ice is a constant problem, draining or redirecting the flow of water can be a proactive approach to winter slip hazards. Hand rails, especially on stairs, greatly reduce the chance of a fall.

Placing a sign warning of potentially slick conditions may help, but, by far, the best approach is to eliminate the icy or snowy conditions altogether.

Remember that good housekeeping, a little planning and paying attention to detail will help prevent a slip, trip or fall that may injure you or a loved one.

ACE HARDWARE

Jack Lane, ACE Manager Ace has a new line of Milwaukee apparel ranging from heated jackets, hoodies and tuff shell coats and even 2

heated gloves. We also carry a wide range of non-heated apparel from vests, jackets, hoodies and even stocking hats.

The Ace division has a wide variety of power tool gifts from Milwaukee, Dewalt and Craftsman. We have a good selection of different accessories that make great stocking stuffers. We have all your cold weather needs from space heaters both propane and electric, to heat tapes, pipe insulation, stock tank heaters and heated buckets to name a few. We still have a decent inventory of heating pellets but the will go quickly and won’t be available again until spring with most pellets being sent to the north east. My advice is don’t wait too long and stop by your local Ace for all your winter and holiday needs. Thanks for your business and have a great and safe holiday season.

GRAIN DIVISION

Mike Schmidt Grain Division/ Operations Manager Fall harvest has not come to a close yet, but is getting pretty close to being complete.

With the lack of rain and the feedlots pushing to get all they could, your coop still received about 70% of last year’s receipts on corn and soybeans. We’re not sure if we will be able to get to 50% of last year’s receipts on milo. All the employees at Pride

Ag Resources would like to say thank you again for your patronage and hope we can always be your elevator of choice in the future.

With less bushels produced, at least the price has been better to make up for some of that loss. Comparing this year’s prices to last year’s prices, wheat is $1.95 a bushel higher, corn is $2.45 a bushel higher, milo is $1.90 a bushel higher, and soybeans are $2.50 a bushel higher compared to last year. Some of this difference is the futures prices but some of it is due to a much higher basis this year. I do believe we will see the basis stay pretty steady to maybe a little better for the next 4 to 6 months, but the futures prices will change with each time that Putin changes his mind on what he is going to do with Ukraine. Is he going to allow exports out into the black sea? Or will he say no shipments into the black sea?

Will he bomb ships trying to load out of Ukraine or will he let them ship out of their ports?

All of these things are having huge effects on the grain markets every day.

With the holidays coming up, we all would like to wish everyone the happiest of holidays and hope everyone is able to spend time with family and friends. As you drive to all the events going on please be safe and watch out for the other drivers out there. Again all the employees at Pride Ag Resources would like to thank you for your business and wish all a very happy holidays!!!!

Date 7/19/22 8/16/22 9/13/22 10/17/22

Wheat 8.24 8.27 9.04 9.22

Last Year –Nov. 2021 AVG. 8.00

Corn 7.77 7.21 8.08 8.24

Milo 6.07 6.11 7.33 7.54

Soybean 14.27 14.11 13.89 13.40

6.01 5.86 11.86

AGRONOMY

Tim Spector Agronomy Manager

NH3: This market has been firm for the past 3 months. European production has been idle with Dutch NG trading at an high of $105 MMBTU in mid-Sept up until mid-Oct. the first week of November the natural gas price fell to upper $30’s , however still an unprofitable level for production. Look for urea to remain firm through the first quarter of 2023.

Urea: Geopolitical events around the globe plus very high -energy cost plus the mighty Mississippi River at record lows we have a volatile market. In 2022, the US production 3

exported more tons of Urea than we imported for the first time in many decades. Barges are unable to traverse the river and in most instances, barges are limited to 30% capacity. How does the river closures and limitation affect the farmers in Southwest Kansas? 75% of the fertilizer (Urea, Map) are delivered via terminals on the river at Inola, Ok of which is fed by the Mississippi river.

Koch production in Enid does supply some of the market, but they rail material all over the mid-west and beyond. Supply will be an issue by Feb 2023, Pride Ag Resources is fortunate with our investment in the Dry fertilizer facility in Ensign. The facility allows us to ship unit trains thereby bypassing the need for Inola. We receive product directly from manufacturing /vessels via New Orleans, Donaldsonville and Galveston. The urea market will continue to be volatile and I recommend you take layers up until planting to mitigate risk.

The Urea market can swing $25-100 up and down on any given day, any change in geopolitical event and further river restrictions.

UAN: CF Industries the largest UAN producer in the United States pulled their pricing in June 2022 and as of this writing they are still out of the market.

Why? Urea , they have record exports at record international values. The US and Ukraine are the largest users of UAN vs. a world where Urea is the number one choice of Nitrogen. In the production cycle Nh3 is first the Urea is derived from Nh3, UAN is derived from Urea and with Ukraine tons limited due-to the war. The price per pound of Nitrogen is a premium to Urea of which you expect but the gap is too wide in my opinion.

Therefore, one of two things has to happen Urea increases in value or UAN decreases. At this time there is no indication of weakness in UAN. Phosphates: Globally the markets are down with the anticipation of lower spring 2023 values. Today, the United States is a premium to globe of which is counter to our historical position of being a discount to the globe. We are monitoring the situation, Mosaic, Simplot, Nutrien and others are hedging that the farmers have cut phos needs 3 years in a row and will be forced to apply in 2023. Our suppliers still believe this market has weakness going forward into 2023.

In summary, if the forward grain prices are attractive and you are able to contract those bushels then take a look at contracting the inputs today to lock in your production margins. Keep an eye on the events taking place in Russia, if the conflict escalates this will disrupt supply of NPK and that is not a good thing. The CF and Koch’s of the world are only looking at their respective bottom lines. In response, we have created the Advantage GFI program for our members to contract grain as payment for 2023 fertilizer inputs. Your Pride Agronomy Business Manager to learn the details about using less bushels to purchase inputs.

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- Technical Material shortage •Phenoxies ( 2,4-d) – tight supply •Fungicides allocations for 2023 •Insecticides-look for allocations on key products 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.

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Seed – Thank you for your continued support as we continue to grow our seed business. Croplan Genetics announced yesterday that they now have Milo seed in the portfolio for 2022 crop year. We are analyzing the varieties that will fit our area and they will have Imiflex hybrids in the lineup. Our front line supply partners are NK Seeds, Brevant Seeds, Croplan Seeds, LG Seeds and Sorghum partners. We have a robust offering of proven genetics to fit your farming needs.

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

Advantage RX – Taranis New for 2023 “ Six Flights vs 5 Flights” THE TARANIS DIFFERENCE:

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.

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

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AV Energy

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Chris Klein AV Energy Manager Well, another farming season is locked up for another year and I would like to thank each and every one of you for choosing AV Energy for your fuel, oil and propane needs.

The cold season is upon us and I would like to give you some tips on keeping your fuel system up and running even on the coldest of days.

Before cold weather strikes, take steps to ensure problemfree engine performance and protect your valuable diesel equipment. With proper tank maintenance and fuel handling, you can avoid most common cold-weather problems.

In cold winters, ice formations in fuels containing water create severe fuel line and filter plugging problems.

It’s important to regularly remove water from storage tanks and filter bowls, and to follow these guidelines: • Tilt tanks to direct water and debris away from the outlet • Drain and remove all contaminants every three months • Install proper filtration systems on bulk tanks

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Replace fuel filters according to manufacturer recommendations; if filters have a drain valve, periodically drain water that may accumulate from condensation Clean pump screens regularly Request periodic fuel sampling for quality assurance purposes Clean tanks annually

Another major reason for winter problems is that tanks are not properly blended down. When blending down a tank, it’s imperative that you know how much fuel is left in the tank and calculate the treat rate accordingly. If you have 700 gallons of #2 diesel remaining in the tank, and need to create a 50-50 blend of #1 and #2, ordering 700 gallons of a 50-50 blend (a common mistake) would create flow problems – because it would result in a blend of 1050 gallons (71%) of #2 and 350 gallons (29%) of #1.

Proper use of cold flow improvers can extend the operability of fuels without the use of #1 fuel. They serve two functions: 1) changing the wax structure of diesel fuel so it can pass through filters more readily, and 2) keeping wax crystals dispersed longer when fuels are stored below the “cloud point” (temperature at which paraffin in fuel begins to form cloudy wax crystals and reduce flow). When blending fuels, biofuels and additives, the components must all be at least 10 degrees above their cloud point – otherwise the additives will not blend in and therefore

may clog filters. (Cenex – Best Practices for Handling Winter Fuels) Thank you and I hope everyone has a safe and happy holiday season!

Chris Klein

Pride Ag Employee Spotlight

Name: Molly Gleason Resides: Wright, Kansas Location: Main Office Position: Human Resource Manager Molly has been employed with Pride Ag for over 3 months.

Molly is married to Dooly since February 2022 in which he owns a construction company serving SW Kansas area. Molly has 4 children, 2 boys Brennan and Gannon and 2 girls Brooklyn and Elliana.

Molly grew up in Dodge City, and her hobbies are spending time outdoors, running, and spending time with her children.

She has also played bass guitar for 16 years at church and with various area groups.

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golfing with his sons and taking walks with his wife and daughter.

Name: Casey Blackburn Resides: Dodge City, Ks Location: Dodge City/Ensign Position: Agronomy Business Manager Casey has been employed with Pride Ag 2 months Casey is married to Jamie and has a son Hunter and daughters Delaney and Sterling.

Casey grew up in Arlington Kansas.

His hobbies are watching sports and spending time with his family.

Name: Corey Ratzlaff Resides: Spearville, Ks Location: Dodge City Position: Safety Director Corey has been employed with Pride Ag for 1 year.

Corey is married to Rebecca and they have a son Ashton, and daughters Chesna, Reneau, and Kendal.

Cory grew up in Fairview Oklahoma.

Corey’s hobbies are romantic evening walks with his wife and their two Doberman’s, hunting and fishing when time allows and working in his yard and garden.

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 Collins …….......Newsletter Editor

Name: John Wahl Resides: Montezuma, Kansas Location: Montezuma Branch Position: Branch Manager John has been employed with Pride Ag for just over 6 months.

John is married to Jill, and they have 2 boys Cameron and Gavin, and a daughter Rory John grew up in Wamego Kansas, and his hobbies are spending time with his family, 7

Pride Ag Resources 4th Quarter 2022 Published quarterly by the Pride Ag Resources 908 W. Frontview, Dodge City, KS 67801 (620) 225-4193

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