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MANAGER’S DESK

Jerald Kemmerer-CEO/GM Pride Ag Resources Your cooperative just completed its fiscal year. The auditors have completed their duties of confirming what our accurate accounting department already knew, and that is we finished with a decent year despite all the challenges and lack of moisture. This year will mark the 99th annual meeting of your cooperative. You should be receiving your notice in the mail along with a copy of last year’s annual meeting notes soon. The meeting is set for Tuesday, May 20th at the Knights of Columbus in Dodge City starting with registration from 5:30 to 6:30 pm. Dinner will start at 6:30 followed by the annual meeting. I hope you will have an opportunity to attend. This year’s guest speaker will be Kevin Ochsner, who is a Senior Consultant for Adayana Agribusiness Group. Kevin has worked with several large agriculture companies as a business consultant for the last 23 years. You will enjoy his expertise and

SECOND QUARTER 2014

knowledge of what is going on in today’s world of agriculture. Look for his bio on our website. We will continue to pay out 50% in cash while also paying out deferred equity that you have accumulated over the years that was earned by just doing business with your cooperative. We have gained on deferred equity in the last seven years and will be paid up within 8 years thru 2005. The payout on patronage and deferred equity is at the highest level we can pass back and still operate an effective cooperative. You should be proud that your cooperative is the only one in the state or Midwest that I know of that is that current on it deferred equity program while paying back 50% cash of the nearby patronage. This year will mark our 6th year of giving away five $1000 scholarships, making a total over $25,000 going out to area senior students whose parents are members of Pride Ag Resources. This has been a great way for your cooperative to give back to our members who have outstanding students that are well deserving of a

scholarship. Selection process is done by random business people throughout our trade territory, and the selection of five candidates gets more difficult each year. It was a good year for all of the Pride Ag Resources business units. Even with half of a wheat crop, less than expected fall harvest, and other challenges that we have dealt with. Three years of drought situations are starting to catch up though. The agronomy department had a good year with application acres and adequate tons of fertilizer handled through our facilities. Our central dispatch has made our agronomy team more efficient and effective to better serve your application needs. Because of the lack of moisture received, it did effect the amount of fertilizer tons that was applied. Additional Farm Supply stores have also assisted to the bottom line. Fuel also had a good year to help produce a solid bottom line enabling us to continue to upgrade our fuel pumps at almost all locations. Thanks to all the dedicated employees who make your cooperative work each day. Being little over two months

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


away from wheat harvest, we will need more spring showers to help this year’s wheat crop be very productive. The 20 inches of snow received this winter helped but is still not enough based off low moisture profile. The employees have been working hard preparing the facilities for a normal crop at best. I hope you have a great summer and thank you for your business. It is always appreciated! See you at the 99th Annual Meeting so we can share with you the numbers! Jerald Kemmerer-CEO/GM Pride Ag Resources .------------

Safety Division

When you do have to lift, remember to use proper lifting techniques. Take a balanced stance with your feet shoulder width apart. Squat down to lift the object, but keep your heels off the floor. Get as close to the object as you can. Get a secure grip on the load. Make certain you’ll be able to maintain a hold on the object without switching your grip later. Lift gradually, without jerking, using your legs, abdominal and buttock muscles. Keep the load as close to your body as possible. Once you’re standing, change directions by pointing your feet in the direction you want to go by turning your whole body. Don’t twist at your waist while carrying a load. Use the same guidelines in reverse when putting a load down.

your own pace. This system senses and smoothly adjusts the mowers pace to your walking speed up to 4.5 mph. TheTimeMaster 30” is for homeowners with bigger yards. It covers more ground in far less time. The TimeMaster makes a big impact with a small footprint. Stop by Ace today and check out the full line of mowers from electric all the way to riders

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GRAIN DIVISION

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ACE HARDWARE

Skyler Hayes Safety Director One of the ways to reduce the risk of a back injury is simply to avoid lifting and bending whenever possible. This way you will avoid the stress and strain that lifting and bending invariably place on your back. If you don’t use your back then you avoid putting it under so much potentially damaging force. You can help accomplish this by placing objects up off the floor such as placing something down on a table or other elevated surface instead of the floor, so you won’t have to reach down to pick it up again. When using shelving remember to place heavier objects on shelves at waist level and lighter objects on lower or higher shelves. Use cranes, hoists, lift tables and other lift assist devices whenever you can.

Jack Lane, Ace Manager The new line of Toro mowers are in stock at Ace. The new kid on the block is the smartstow. Breakthrough technology that allows the mower to be stored vertically, reducing the storage needed. Some other features on the line of torso are bag on demand feature that allows you to switch from mulching to bagging in seconds by flipping the quick change lever. The personal pace system with traction handle assist is a feature that allows you to mow at

Eric McMillan Grain Merchandiser As we enter the growing season for the 2014/15 crop year, the market’s attention is being turned from old crop fundamentals to new crop prospects. Corn The USDA March 31 stocks report stated U.S. corn stocks at 7.01 billion bushels, which is up 30% from the same period last year. The prospective plantings report was issued on March 31 as well and pegged U.S. corn acres for the upcoming season at 91.7 million acres, which is 4% lower than last year, but still the fifth largest corn acreage in the U.S. since 1944. The April WASDE (World Agriculture Supply Demand Estimates) report issued on April 9 did not provide any major surprises for the corn market. The projected export number was the only change, being raised 125 million bushels to 1.75 billion total for the 2013/14 crop year. Many in the trade feel this total export projection could be 2


overstated with actual shipments so far this year being historically lower as a percentage of total projected exports for the crop year. Bottom line, the USDA pegged corn ending stocks for the 2013/14 crop year at 1.33 billion bushels, which if realized, would be the highest ending stocks number since the 2009/10 crop year. Wheat Wheat has experienced an impressive rally as of late with July KC wheat up $1.12/bu since late February as I write this. The ongoing tension and possibility for escalated conflict in the Ukraine has fueled uncertainty in the global market as the Ukraine is a major exporter of wheat and corn. Be cautious as these types of rallies fueled by uncertain social issues can quickly end and reverse if the fears end up being unwarranted. The March 31 stocks report stated U.S. wheat stocks at 1.06 billion bushels, which is down 15% from the same period last year. The prospective planting report estimated the area to be planted to all wheat at 55.8 million acres, down 1% from last year. The April WASDE report was fairly quiet for the wheat market as well. Feed usage was reduced 30 million bushels, which was the only material change. All wheat carryout is projected to be 583 million bushels, which is the lowest carryout since the 2007/08 crop year, but still 277 million bushels higher than the tight carryout situation experienced that year. Soybeans At this time soybeans are the only crop facing an extremely tight supply situation in the U.S. The national stocks as of March 1 were 992 million bushels, down 1% from last year’s tight stocks level. Due to this tightness we are seeing unusually large amounts of soybeans being imported into the United States from South America. The WASDE report is projecting 65 million bushels to be imported this year. 2013/14 carryout is projected to be a very tight 135 million bushels. There is potential for significant replenishment of

soybean stocks for 2014/15 with projected acres at 81.5 million, which is up 6% from last year. Summary In conclusion, it appears we’ll have adequate acres planted to these three major crops to potentially build stocks in 2014/15. However, being mid-spring the major determining factor of yields, which are determined by Mother Nature, remains to be seen. Please contact us with any questions or concerns. We appreciate your business.

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FEED DIVISION .

end up reducing the stocking rate. If dry weather persists here are some ideas to use: -Sacrifice pastures - last winter producers sacrificed pastures or used dry lots to keep the cattle from over grazing and doing further damage to the pastures. The most common approach here was to shut the gate and start feeding hay and protein tubs (30-13). This area will be overgrazed but the balance of the pasture will be saved. Depending on cost and available of feed commodities and hay, a total mixed ration using primarily concentrate feeds might be more economical than feeding hay. Caution needs to be used to make sure that enough hay is fed to prevent acidosis. Roughages need to be sampled. -Protein – is critical to development and reproduction. Many pastures affected by drought will have lower protein levels.

Calvin Carey Feed Sales Specialist It looks like we missed the rain on Easter weekend. It appears we are not having any luck getting rain to get us out of this drought. Pastures have not grown back and cool season annuals grasses will mature and decline in quality in early summer. Native warm season grasses will take over the task of feeding cattle. Warm-season pastures will mature and will lose protein. Warm-season grasses can be diluted by cool-season grasses reducing the quality of the grass. To avoid long term damage producers should look to (if possible) leasing more pasture, or moving cattle to dry lot or sacrifice pasture as a way to avoid longterm permanent damage to pasture and cow condition. Native grass varieties are more sensitive to over-grazing. It takes a long time to come back. So, you’ll

-Vitamins and Minerals - are also leached from plants during drought and weather stress. The most significant of these is beta-carotene, which converts to Vitamin A. Phosphorus will help improve everything from bone structure to cell growth to immunity and a healthy digestive system. Copper and Zinc can also be low. They can affect reproduction and immunity levels -Energy – mature or poor quality forage is less digestive, causing slow weight gains

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-Stress – one a way to reduce stress to the cow is to creep feed the calf. You can feed Creep Feed 14%. Calf Creep Feed 14% is: Protein ------ 14% Fiber -------- 25% Fat ---------- 1% Calcium ----- .5-1.00% Phosphorus --- .4% Potassium ----- .7 % Salt ------------.25-.75% Zinc ------------225 ppm Copper ------ 75 ppm Selenium ----- 1 ppm Vit A ------------10,000 IU/lb. Vit D ----------- 1,000 IU/lb. Vit E ------------10 IU / lb. When to feed Calf Creep Feed 14% - When pastures begin to decline - Cows and heifers begin to lose body condition - When cows and heifers are not milking – will reduce calf growth potential - Adjust calves to bunk environment - High calf price Mineral is another way to reduce stress and keep cows in the right body condition. Pro Phis 8 is: Calcium Phosphorus Salt Magnesium Zinc Manganese Copper Iodine Selenium Vitamin A Vitamin D Vitamin E

11-13% 8% 22-25% 2% 4375 ppm 2500 ppm 1300 ppm 130 ppm 22 ppm 150,000IU/lb. 12,000IU/lb. 60 IU/lb.

Mineral is to fed free choice and provide clean fresh water. You can get mineral with Altosid and Aureomycin added. Stop in and visit with us on a feeding program that is right for

AGRONOMY

David Seymore Agronomy Sales

Weed Control for Planting Time Starting a year of Corn, Soybeans, and Milo planting can be a time to look forward to or take a back seat if you are not prepared for challenges. Herbicide resistance didn’t develop overnight. By repeatedly applying the same herbicide or herbicides that use the same mode of action, resistance pressure increases. Results of herbicide resistance can be costly, but farmers can take a proactive approach to weed management to be most effective and economical. Weeds aren’t going away any time soon. In fact, as resistance grows, it’s becoming more important than ever to know what herbicides are working, how they work together and even if they aren’t working. Difficult to control weeds – whether due to herbicide resistance or cut rates or too tall weed height/maturity or all of the above – must be taken very seriously and moved to the top of your agronomy to-do list for 2014. Effective weed management should be planned out for each field and each crop, over multiple years in order rotate modes/sites of action. And a successful program begins with learning your main problem weeds and the issues that each present.

crop has emerged. The philosophy of the delayed burn down approach is to reduce trips across the field; however, this approach usually ends up to be a considerable loss of crop yield potential and profit. The best option now is to apply residual herbicides in combination with a burn down product immediately prior to, or immediately following planting, but prior to the emergence of the crop. Selection of herbicides must be done with an understanding of existing resistances to herbicides in weeds. Take into consideration we now have a selection of weeds that are resistant to different herbicides. Thus, any herbicide (single product or pre-package mixture) may not provide any control or stewardship. The take-home message is make herbicide selection a wellthought and informed decision. Take a look at what has been working on your farm with the length of time being used; it may be time to change to a different formulation. Your greatest advantage is starting with a clean field. The least competition for nutrients, moisture, and sunshine allows the greatest opportunity for a healthier plant along with higher yields. Checking with your crop consultant and coordinating with our agronomy personal we can fit the right chemicals in the right field at the right time. Contact one of the local locations for assistance along with Jim (620-338-5506), Lawrence (620-789-1484), and myself (David-620-253-0216). Let us be a partner in your operation.

Date

Wheat Corn Milo Soybean

1/4/14

6.17

4.40

4.12 12.27

2/4/14

6.32

4.50

4.22 12.33

2/19/14

6.78

4.62

4.34 12.74

3/24/14

7.80

4.92

4.65 13.46

Last Year –May, 2013 AVG.

7.17

6.96

6.37 14.15

In no-till fields, DO NOT wait to apply the traditional burn down herbicide treatment until after the 4


AV Energy

Chris Klein Wow, what a winter that was! If you like cold and windy then Western Kansas was the place to be the last six months, and just last week one day the high was 85 degrees and the next the low was 25 degrees. Doesn’t make it very easy to select your wardrobe for the day does it? PROPANE As we come out of a very hectic propane season I would like to thank our propane customers for being very understanding and patient while we went through the most volatile propane market we have ever had. At one time our customer price was over $4.00/gallon, but thanks to some hard work by the office staff and delivery drivers most of our customers paid a lot less. When the market started going up we decided was it best to inform our customers up front what was going on. I had the drivers calling their customers and asking them if they would want us to skip a delivery or have us only put enough in their tank to get by a month. Most of our customers were very appreciative for us informing them of what was going on and giving them options on what they could do. The one customer who didn’t have a worry during the high propane price was the customer who contracted their propane last summer. Last summer the customer

contracted propane price was $1.50 a gallon and that price was good either until the end of the contract term or until the propane contract was used up. Our contracted customers enjoyed knowing that even though the truck price was $4.00 a gallon they were getting their propane for $1.50. Granted, the contract price might not always be the lowest price, but it is a stable price that you know you’re getting and not having to worry about. We will be sending out our winter contracts very soon. When you get your contract; sign it and send it back. If you are not currently a propane customer call our office, we would love to talk to you about your propane usage and lock in your propane price for the next heating season.

fuel contracts, or if you have any questions regarding your energy needs.

Chris Klein General Manager AV Energy, LLC O. (800)752-1580 O. (620)225-4994

REFINED FUEL The recent strength of the energy markets has come on the heels of large inventory draws and most recently tensions between Russia and the Ukraine. Something to note regarding this upward momentum is that it happened without a large volume of farming being completed. Kansas is part of the Group Market and that includes all of the Upper Midwest. Once the areas further to the north get into the fields you should not be surprised to see these markets strengthen or at least maintain higher prices. Now, is a decent time to price out forward contracts for the summer and fall. Basis levels have been weak and should start to rise once summer demand starts. Even if you’re on the fence, calling for quotes on a daily basis is not a bad idea. AV Energy can also set up customers to receive daily emails with the current contract prices. Protect yourself and try to cover a portion of your needs, don’t leave yourself out there to possibly get stung by a volatile market during the busiest time of year. Please give Terry Summers (620-338-0879) or myself (620225-4994) a call if you would like to discuss our propane and refined

BOARD OF DIRECTORS Scott Mac Nair ........................ Chairman Tony Bleumer... .............. Vice-Chairman Clint Hamilton ......... Secretary-Treasurer Jeremy Derstein ........................ Director Butch Irski ................................. Director Jeff Reinert ................................ Director Bruce Giessel ............................ Director Toby Whipple….........Associate Director Jeff Breuer…..……….Associate Director Jerald Kemmerer………………CEO/GM Debby Kennedy….......Newsletter Editor

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Pride Ag Resources 2nd Quarter 2014 Published quarterly by the

PRSRT STD U.S. POSTAGE

Pride Ag Resources

PAID

710 West Trail, Dodge City, KS 67801

DODGE CITY, KS PERMIT #399

(620) 225-4193

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Second Quarter Newsletter 2014