Pride Ag Resources 2nd Quarter Newsletter

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MANAGER’S DESK

Jerald KemmererCEO/GM Pride Ag Resources I hope you are having a good spring.

These are definitely challenging times with the drought we have just experienced and the current moisture precipitation indicated going forward.

The sad part is the forecast for the future doesn’t give us much hope at this summer.

We will continue to pray for rain to improve or save the wheat crop and to give us something to plant fall crops in.

The auditors have completed their duties of auditing your cooperative and we will share that

information with you on Thursday May 25th at the Dodge City Civic Center starting at 6 pm for dinner just like years in the past.

This will be the 108th year for Pride Ag Resources to celebrate. Our guest speaker for this years annual meeting is Nelson Neale who is the leader of Global Research for CHS. Nelson leads the CHS Cooperative team in looking at the insights and market intelligence that impacts us in agriculture and in the energy world.

I have had the pleasure of listening to Nelson several times and he will bring you a thoughtful insight on what is going on in the markets currently.

I hope you are able to attend to listen to a very insightful speaker.

Second Quarter 2023 As the Pride Ag Resources leadership team managed your cooperative over this last year and is forecasting a continuation of the drought this year, it definitely brings us challenges.

I believe the team of employees did well last year on what we could control. They are managing inventory and took pride in providing value to our customers. We will continue going forward to tackle these challenges almost the same way. It’s the lack of bushels and loss of application acres due to the drought that frustrates us even though we cannot control it.

That’s because the employees care about your farms and your cooperative.

The lack of moisture is

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

causing havoc for most of the state of Kansas in all phases of agriculture and other industries that are also impacted by it.

But managing through the lack of moisture without making changes and expecting better results is probably not the answer.

One has to be proactive in areas that are controllable to help eliminate additional losses while having the inventory you need to be successful at your farms.

I would have to assume several of you have seen on our website or on social media our announcement with Midland Marketing Coop from Hays, KS. We are looking at the opportunity of a couple Greenfield sites that will lie between their trade territory and Pride Ag Resources.

This strategic initiative is in line with our growth model by expanding to offset risk and to help compensate for lack of moisture impact to our cooperative.

As we continue looking at this opportunity additional information will be shared when it becomes available.

I hope you have a great summer and THANK YOU for your business.

It is always appreciated. Looking forward to seeing you at the 108th Annual Meeting on Thursday May 25th

Safety Division

Corey Ratzlaff Safety Director THUNDERSTORM SAFETY 2.0 As I write this article on April 11, 2023, it is 54 degrees with a forecasted high of 83. Spring has sprung, and with spring comes thunderstorm season in Kansas. Every state has some type of severe weather, and Kansas certainly has its share. In 2022, there were 974 weather- related deaths and 1667 weather related injuries in the United States.

Winter weather, heat, and floods were the main causes of these deaths. Dangers of thunderstorms include lightning, tornadoes, strong winds, hail and flash flooding. Flash flooding is responsible for more fatalities (more than 150 annually) than any other thunderstormassociated hazard. There are things you can do now in the way of preplanning to help you prepare for a thunderstorm.

To begin preparing, you should build an emergency kit. An emergency kit should contain water (one gallon per

person per day for three days), food (a three day supply), radio (battery or hand cranked), flashlights, first aid kit, local maps, manual can opener, wrench or pliers (for turning off utilities), whistle for alerting emergency responders, dust masks, plastic sheeting, duct tape, moist towelettes and garbage bags. Download your favorite weather app to keep you informed before, during, and after the storm. Make a family communications plan.

Know in advance where to go for shelter, how family members will contact one another and how you will get back together after the storm has passed.

Cancel or postpone outdoor activities if a thunderstorm is forecasted.

Use the 30/30 rule when it comes to lightning: Go indoors when seeing lightning if you cannot count to 30 before hearing thunder after.

Stay indoors for 30 minutes after hearing the last clap of thunder. Remove dead trees and branches that could fall and cause injury or damage during a severe thunderstorm. Secure objects outdoors that could blow away or cause damage. Go inside a house, building, or automobile (not a convertible). The steel frame of a vehicle provides some protection if you are not touching metal.

Shut windows or close window blinds, shades and curtains.

Unplug any electronic equipment well before the storm arrives.

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After the thunderstorm arrives, use your batteryoperated NOAA Weather Radio for updates from local officials. Make sure cell phones have a backup battery or a way to charge your cell phone to help keep you informed during the storms.

Avoid contact with corded phones and devices including those plugged in for recharging. Avoid contact with electrical equipment or cords.

Unplug appliances and other electrical items such as computers, and turn off air conditioners. Power surges from lightning can cause serious damage. Avoid contact with plumbing. Do not wash your hands, do not take a shower, do not wash dishes, and do not do laundry.

Plumbing and bathroom fixtures can conduct electricity.

Stay away from windows and doors, and stay off porches.

Do not lie on concrete floors, and do not lean against concrete walls.

Avoid natural lightning rods such as a tall, isolated tree in an open area. Avoid hilltops, open fields, the beach or a boat on the water. Take shelter in a sturdy building. Try to avoid isolated sheds or other small structures in open areas.

Avoid contact with anything metal such as tractors, farm equipment, motorcycles, golf carts, golf clubs, and bicycles. If you are driving, try to safely exit the roadway and park your vehicle. Stay in the vehicle and turn on the emergency flashers until the heavy rain ends.

Avoid touching metal or other

surfaces that conduct electricity in and outside the vehicle.

After the storm passes remember to never drive through a flooded roadway.

Stay away from stormdamaged areas to keep from putting yourself at risk from the effects of severe thunderstorms. Continue to listen to a NOAA Weather Radio or to local radio and television stations for updated information or instructions, as access to roads or some parts of the community may be blocked.

Help people who may require special assistance, such as infants, children and the elderly or those with access or functional needs. Stay away from downed power lines, and report them immediately.

If someone has been struck by lightning, administer first aid. If the victim has stopped breathing, begin mouth-tomouth resuscitation. If the heart has stopped, administer CPR. If the victim has a pulse and is breathing, look for other possible injuries.

Check for burns where the lightning entered and left the body. Also be alert for nervous system damage, broken bones and loss of hearing and eyesight.

Many of the items I have written about are common sense items, and you probably already knew about most of them. You may want to review these items with your children and grandchildren for their safety.

ACE HARDWARE

Dave McCollum, ACE Manager Ace has been selling water hoses, sprinklers, grass seed and fertilizer. Come check out our deals on all these spring offerings!

Warmer days and barbecue season has arrived. 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 are starting to move. New this year are Halo grills, griddles and even a pizza oven. They would be an excellent gift for the grill master in your family!

Come see our Ben Moore, Clark Kensington, Royal and more paints.

It’s not too early to be thinking about those exterior paint projects!

Milwaukee pack outs, power tools and hand tools are big sellers. These high quality, professional grade tools are strong sellers for a reason.

Milwaukee tools are made very well and are backed with a terrific warranty.

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Date 04/05/23 03/15/23 02/14/23 01/19/23

Wheat 8.32 7.90 8.81 8.07

Corn 7.68 7.42 8.02 8.02

Milo 6.93 6.62 7.22 7.17

Soybean 14.81 14.59 15.18 14.95

Last Year –May. 2022 AVG.

11.80

8.57

7.74

15.68

For those of you who need to get some fencing done- we have creosote posts in popular sizes of 4 ½ to 8 inches. Also in stock are t posts in common lengths, and Red Brand 2 point wire for those fencing projects.

As always, thanks for making Ace the place to get your warm summer season buying done!

GRAIN DIVISION

Mike Schmidt Grain Division/ Operations Manager Here we are the end of April, and still no rain and very little chances for much rain in the near future.

It is not information that we want to hear, but since August 1st, Dodge City has only received 4.45 inches of moisture. The worst part of this is that in the month of September we received half of this total precipitation. Looking at the next 10 day forecast, we do have a few chances of rain, and just maybe one of those chances will come true and the sky’s

will open up and beautiful rain will fall.

The grain prices have been steady since the first of the year.

Wheat since January 1 is down 12 cents, corn is down 9 cents, and soybeans are up 5 cents.

How volatile the markets have been for the last 2 years, this has been very steady market trade.

A lot of this slow market trade is due to lack of business being done with selling grain to other countries, The U.S. wheat price is a lot higher than what the world is selling. In addition, Brazil is selling corn so much cheaper than what the U.S. price is and this is keeping a lid on the grain markets.

If we do finally receive enough rain before the wheat crop is ready to cut, then your Pride Ag Resources team will be here ready to take care of all your needs. If there is anything we can do better to get your wheat crop in the bin this harvest, please let us know.

Pride Ag Resources employees are here to help make your harvest time the safest and stress free part of your operation.

Thanks for making Pride Ag Resources your business of choice.

Agronomy Division

Tim Spector Agronomy Division Manager

Fertilizer Markets The globe has reshuffled in the past 6 months in regards to production. China has reentered the export market wide scale for the first time in 5 years. Anticipate the Chinese will export 5-7 MM tons of Urea and retain 5-10MM tons for domestic use. It is worth noting that China is the largest producer of Urea in the world and with their production capabilities we should see easing of markets. Russia is at capacity and have been exporting globally for the last year and a half. Russia filled all the orders for Brazil and most of India, in addition, Russia has been the number 1 importer of UAN into the US since last May 2022. Europe is expected to bring more production facilities back on line for the 2024 crop needs. As production ramps up internationally one would anticipate a softening of Nitrogen values. However, if war escalates, if China invades Taiwan or any other major event then the market could turn bullish.

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As of April 18, 2023, supply was the issue for Southwest Kansas and farming markets across the Midwest. Weather has delayed planting intentions ( too dry or too wet), supply chains can’t keep up from traditional port points. In our market the majority of dry fertilizer needs derive from the Inola, Ok port. In the last weeks of April , the truck lines were over a mile long and growing.

Supply is unable to keep up with demand.

Pride Ag Resources has the ability to receive rail delivered straight from production facilities and ports of entry ( NOLA and Galveston). Our number one issue is not the fertilizer markets, not supply limitations but lack of moisture. I am hoping that the last week of April we did receive a good level of moisture to end this drought. The best thing we can do is pray accordingly and when the rain comes be thankful.

Crop Protection – There are not many positives with our drought conditions in SWKS or other areas of the Midwest being too wet.

However, the market realized that farmers were not purchasing key herbicides since nothing was growing in the fields that warranted spraying.

We have seen dramatic declines in the glyphosate, dicamba and phenoxy markets in the first half of March. Assuming moisture arrives accordingly, make certain to remain flexible on your pre-herbicide choices. We have ample supply to take care of your needs via various key products lines, Syngenta, Bayer, Corteva, BASF, FMC and others. In addition the majority of the line offers flexibility to

address planting options between Milo or Corn.

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.

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.

FEED DIVISION

Zach Brewer Dodge City Feed Division Manager Drought had a long-reaching influence on the 2022 cattle industry. At the peak, a startling 89% of the United States cattle inventory was impacted by drought, with 46% categorized as severe to exceptional. Half of the cattle stayed in moderate drought, or worse, for the entire year.

These conditions led to issues like lower cattle performance, poor forage availability, higher input prices and increased cull rates. If drought conditions continue through 2023, having a plan in place can help you weather the storm – or lack thereof.

Have a plan Looking back at those impacted by drought over the last couple of years, generally those who had a plan and started making decisions early on fared better than those with the “wait and see” mindset. Your plan must be tailored to your operation, but one place to start is to think ahead about what you can do if you miss out on spring moisture, or if it starts to get dry later in the summer.

Evaluate your resources It’s important to know what resources you have available to meet your herd’s needs.

Comparing the carrying capacity and stocking density of your pastures and evaluating the availability and affordability of stored forages for winter are great starting points. From there, you can set a strategy for making difficult decisions.

If you need to reduce your herd numbers, there are a few characteristics to consider.

Depending on the timing of your breeding season, pregnancy checking can allow you to remove any open cows or 5

those bred outside your ideal calving window. Cows with a history of producing calves that perform below average are justified for culling. Problem cows can also be moved to the top of your cull list.

Body condition scoring is a valuable tool to assist you in evaluating your current nutrition program, as well as look forward to long term impacts. If a cow is showing signs of subpar nutrition in a drought, it can also have lifelong impacts on her calf and the calf she is carrying in utero.

Aside from reducing overall herd numbers, early weaning is another method to manage drought impacts. When you take the calf off the cow, you are drastically reducing her nutritional requirements and decreasing forage intake. The cow can maintain or improve her condition while you feed the calves to add pounds until they reach the ideal sale weight.

Cattle nutrition strategy As always, but especially in drought, your nutritional strategy is your largest investment as a cattle producer.

During drought, feed prices typically increase, so you want to be as efficient as possible.

You’ve got to know your economics.

Your Purina representative can help develop a strategy for your operation.

When it starts to get dry and forage quality drops, protein supplementation can help cattle better utilize those low-quality forages. Purina® Accuration® products and Purina® RangeLand® tubs are designed specifically for this scenario.

Strategic placement of protein supplements can also influence cattle’s grazing pattern and move them to underutilized parts of the pasture.

Purina® Accuration® Starter is ideal for your early

weaned calves. It’s a complete feed with roughage, supporting optimal feed intake and gains, while sparing limited or expensive forages.

Water quality Water is also a vital aspect of your cattle nutrition plan. In drought conditions, you’re likely thinking about the quantity of water available, but often, the quality of your water drops first.

Poor water quality can have a negative impact on cattle health and production. Poor palatability of water may cause cattle to limit their consumption, affecting feed intake and ultimately, gains.

Drought conditions can also lead to algae bloom and high nitrate and sulfate concentrations, impacting cattle health.

Water sources can be monitored by testing for total dissolved solids (TDS), sulfates and nitrates. Knowing your water quality is always important, but especially during drought when using shallow water sources or sources with a history of quality issues.

Lessons learned from past droughts •Be proactive, not reactive.

Make a plan and stick to it.

Drought decisions can be difficult and costly, but they can be less costly the quicker you make them.

•Don’t be afraid to try something different.

Early weaning may make you uncomfortable if you’ve never done it, but it has benefits. Even weaning at six months instead of eight can aid your herd during a drought.

•Be aware of long-term impacts.

There may be impacts on your cows that don’t show immediately. Pregnancy rates could take a hit the year following a drought. Calves born to cows during drought

may suffer from lower production later in life. Pastures not managed well during drought conditions will take time to rebound.

Plan for productivity Weather struggles are inevitable for most cattle producers.

Utilize lessons learned from previous droughtimpacted years to set a strategy for the future. Have a plan for dealing with reduced forages, higher feed prices and lower water quality to reduce the impact of drought on your herd’s productivity and your profitability.

AV Energy

Chris Klein AV Energy Manager I hope everyone is having a great spring! With the arrival of spring and summer please remember to be cautious and look out for farm machinery traveling up and down the county roads. Also, remember the farm machinery sometimes has impaired vison behind them, so be patient and take your time when trying to pass.

800 Number A few months ago we upgraded our phone system and for some reason during the changeover we ended up losing our 800 number (18007521580).

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If you have been calling the number and cannot get thru that is the reason why. As of this time we have chosen not to get another 800 number, so please call our local number at 620225-4994 from now on.

Propane Safety Checks We are just wrapping up another propane season and as we do every year we will be starting our customer safety checks. We are required by our insurance company to do a five year inspection on all of our customer’s propane locations.

These inspections are very important and we do them for the safety of our customers.

Most of the time our safety checks take less than an hour and we do not charge for this service.

Bulk Oil/DEF Delivery AV Energy offers many great Cenex lubricants at very completive prices. We would love to come out to your location and discuss your oil and DEF needs.

Our Oil/DEF truck runs each Tuesday from March 1st to November 1st. If you do have an emergency we can deliver on a different day, but there could be a delivery charge for an off day delivery. It is best to talk to Jordan or myself and most of the time we can work something out to get you by until the next delivery.

Refined Fuels Our fuel customers continue to be very active when it comes to contracting. Of course, this year we have a whole new problem with having very little to no moisture. At this time we are telling our customers to contract at least half of their normal usage for the summer/fall. This way they have some protection on the price. Please, remember that after the end of the contract

term you could be charged for any unused gallons. Below is a portion of our contract that references the unused gallons when the contract is termed.

Any and all gallons not used by said “Purchaser” will be retained by “Dealer” and “Purchaser” will be charged for all non-delivered gallons, the difference between the contract price and the Cenex rack price FOB the Great Bend, KS terminal, based on the rack price the 10th day following the contract expiration.

Please contract Jordan or myself if you have any questions regarding contracting or our fuel delivery service.

Have a great spring and summer!

Pride Ag Employee Spot Light

Name: Brooklyn Droste Resides: In country West of ford Location: Main Office Position: Grain Merchandising / accounting How long with Company: 6 months Hobbies: Working on Cattle ranch, Watching Softball spending time with Husband Taylor & Kids Peyton & Hayden Voluntary Groups: Serve as Secretary on the Ford County Fair Board & on the board with Ford County Farm Bureau 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

Name: Molly Gleason Resides: Wright, KS Location: Dodge City, Main Office Position: Human Resources Manager How long with Company: Since August 2022 Hobbies: I love to go for walks, watch my kids’ sports and music activities, and I love listening to live music at local venues.

Voluntary Groups: SHRM of Southwest Kansas

Levi Salmans.…........Associate Director Jerald Kemmerer………………CEO/GM Kirstie Harrington….....Newsletter Editor

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Pride Ag Resources Second Quarter 2023 Published quarterly by the Pride Ag Resources 908 W. Frontview, Dodge City, KS 67801

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PAID DODGE CITY, KS PERMIT #399

(620) 225-4193

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