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MANAGER’S DESK
Jerald Kemmerer-CEO/GM Pride Ag Resources I hope your summer is going well and your wheat harvest was better than expected. This will go down as our 5th smallest wheat crops in the last several years. The wheat harvested was about 60% of a normal crop based off the last 10 year average. The projection on this year’s wheat harvest was 50% of normal and the yields obviously came in better than expected with the potential of an even better crop had it not been for all the hail damage in our area. I think the employees did a good job working through the needed rain storms and taking wheat later to help provide the services you need. I appreciate their long hours and their drive to take pride and taking care of you. The old saying “rain makes grain” will be apparent hopefully this fall. We received more rain in the month of July than we have in total years past. The recent moisture has the potential for some very good yields this fall in corn, milo, and soybeans. With the rains come the weed problems that occur
THIRD QUARTER 2014
on summer fallow ground and other fields which has kept the agronomy team of employees hopping trying to stay ahead. Operationally, we are very close to finishing up our new Chemical Shed at Ensign. Product should be arriving soon and we will have an open house to show the capabilities it will have. We want product in the tanks and also shuttle on hand to give you a good picture of how the building will function and how product will be handled. The facility comes with state of the art control systems plus safety features for workers and adequate containment. Look for information on the open house soon. At Pride Ag Resources we are in the process of finishing up installing a seed treater at our wheat cleaning facility in Dodge City. We will be able to offer the services of treating your grain just cleaned or new wheat if you choose to. There are a lot of advantages such as enhancing performance of wheat seed that has been treated.
Look for more information coming to you from our team of employees as we get ready to offer that service. The grain team is working hard on trying to figure out the logistics of all the facility needs to handle what we think will be a great fall crop. Regarding the last several fall harvests, this is a good problem for our branch locations to have. Grain at some elevators has already been moved and we will continue to get facilities prepared to help try to keep the grain off the ground and get you in and out of the elevators quickly. Congratulations to all of our member youth 4-Hers at your county fairs. We now currently participate in 8 county fairs each summer making sure that the youth and leaders of tomorrow in agriculture get recognized for their hard work. I hope you enjoy the rest of your summer. Believe it or not school and fall sports will be starting back up less than 30 days
Inside This Issue 2 Safety 3 Ace Hardware - Grain 4 Feed - Agronomy 5 AV Energy 6 Board of Directors
from now. Thanks for your business it is always appreciated and never taken for granted.
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Safety Division
Skyler Hayes Safety Director
Grain Bin Safety If I asked you to name the leading cause of death of workers in grain elevators across the Midwest from year to year, what would you name? If your guess was falls from height, getting run over, exposure to fumigants, electrocution or explosions, your guess would be incorrect. Most years the leading cause of death of workers at grain elevators is from death inside a grain bin, usually by engulfment or entrapment in the grain itself. This happens in both concrete and metal bins. It happens to young and old. It happens to experienced and inexperienced workers. It happens in all kinds of grain. The average number of reported grain engulfments each year is around 40, with about half of those ending in a fatality. Because of this great danger of death inside grain bins, Pride Ag Resources elevator employees at all of our fifteen grain elevators receive extensive classroom and hands on training in safe bin entry procedures. We have also sent many of our employees to grain bin rescue training taught by the KU School of Fire and Rescue. We have spent many thousands of dollars on bin entry equipment such
as harnesses, lanyards, ropes, air monitors and respiratory equipment. We have also put together bin rescue kits to be used in case of an emergency inside of a grain bin. We have procedures that require completing a rigorous checklist of items that could cause injury to an employee, and all of those items must be eliminated before entry into a bin is allowed. You are probably asking yourself what this has to do with you the producer. The answer is that over half of the grain engulfments in the Midwest each year occur on farms in farm bins. It is the farmer, or his family, friends or workers who are the ones getting injured or killed more than commercial grain elevator workers. The reason for this is primarily that not all farmers follow basic safety procedures when entering grain bins. It appears at the time of this writing that southwest Kansas farmers will harvest a large grain crop this fall. Farmers will store this crop in grain bins either on their farms or they will haul the grain to elevators. There also is the wheat crop from this summer, and in some cases from years past, that is stored either on the farm or in elevators. This all means that there will be many thousands of grain bins that will be entered in the next months, with each bin entry presenting potential dangers to the entrant. Those dangers are identifiable and should always be eliminated before entry into a bin is attempted. Before a Pride Ag Resources employee is allowed to enter a bin a Bin Entry Permit is filled out. The Bin Entry Permit is a checklist of potential dangers of a bin entry, and the employee is not allowed to enter the bins until all dangers have been eliminated. I will not discuss all of the items on the Bin Entry Permit, but following I will discuss a few of the dangers of bin entry. Never allow a person to go into a bin without a standby person at the entrance of the bin. This standby person’s only job is to get help if the entrant gets into trouble
inside the bin. The standby is to never enter the bin to help the entrant, as often the standby person who went into the bin to help the entrant becomes engulfed also. Before anybody enters a bin, make certain to establish a method of getting emergency help if the need arises. The standby person should have a cell phone and should have a list of the numbers of emergency responders, the numbers of additional workers on the farm and the numbers of any neighbors who may be able to help in case of an emergency. Do not enter a bin when grain is being removed from the bin if the grain is more than waist deep. It may surprise you to learn that you cannot get out of a grain mass on your own if the grain is more than waist deep. That depth decreases even more if the grain is flowing. Flowing grain can quickly pull you down and engulf you. Engulfment in flowing grain is one of the leading causes of engulfment deaths. Out of condition grain is one of the leading culprits leading to engulfment. Never go into a bin if the grain mass is bridged over or if there is grain caked. The reason for this is that the grain that is bridged or caked can break free and cover you up before you have a chance to get out of the way. Out of condition grain is a factor in about half of all grain engulfments. Never allow children to play around or inside a grain bin. Children younger than ten years old have been killed in grain bin accidents, not just from engulfment, but also by the machinery used to convey the grain. Make certain that all augers are properly guarded. This includes not just the flighting of the auger, but also the drive belts and chains. If a worker must go into a bin where the grain is more than waist deep, the worker should wear a harness and be tied off from the top of the bin with a strong rope. The rope must be manned from above by a worker who will keep the rope tight enough to keep the bin entrant 2
from sinking more than waist deep in the grain. These are just a few of the dangers of bin entry. The Bin Entry Permit we use has eighteen items that must be checked off before a bin entry is allowed. If you have questions about bin entry safety I will be glad to answer them.
GRAIN DIVISION .
Soybeans
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ACE HARDWARE
Eric McMillan Grain Merchandiser Grain prices have been under extreme pressure since early May, as weather for fall crop development has been near ideal across the large majority of the major grain producing states. We currently have the potential to see record national yields this fall.
Corn
Jack Lane, Ace Manager Stop by Ace and take a look at the line of Kay Dee mineral products called Super Ranger Kaydets. Use Kay Dee products with Altosid IGR to help break horn fly life cycle. Adult flies live about 2 – 5 weeks spending their entire adult life on the same animal night and day sucking blood 20 to 30 times per day. Females can produce as many as 400 eggs. A female horn fly leaves the animal to lay eggs in fresh manure and usually return to the same animal. The eggs hatch in manure within 1 – 2 days. Larvae then feed and grow in the manure for another 3 – 5 days. Larvae develop into pupae under manure or in the soil for 6 – 8 days. In about 10 – 15 days the cycle is complete and adult flies emerge. IGR breaks the horn fly cycle in the pupae stage in the manure.
after the dry early spring, but did come in at expected yields to slightly higher than expected. We were pleased the test weight and quality held up fairly well after the pause we experienced midway thru harvest in late June after the heavy rains.
The USDA July WASDE (World Agriculture Supply Demand Estimates) report projects the national corn yield at 165.3 bu/acre, which if realized would be a record. The large yield is projected to increase U.S. ending stocks for the 2014/15 crop by 555 million bushels to a total of 1.8 billion bushels. On the demand side of the equation, the USDA is projecting lower total demand mainly attributable to lower exports due to larger world supplies. If the current projections are accurate we could be looking at the most ample supply of corn in the U.S. since the 2004/05 crop year.
The soybean situation is basically the same as the corn at this point. We’re looking at a potential record yield, and a rebuilding of national supplies. Currently the USDA is projecting a national yield of 45.2 bu/acre, and a carryout next year of 415 million bushels, which is almost 3 times as large as the 2013/14 carryout.
*New CBOT Limits
Grain
Price
Effective May 1, 2014 the exchange implemented a variable price limit system. The gist of this is that rather than having fixed price limits, the new system will have limits that attempt to match up with the actual market volatility. This will be accomplished by taking 7% of the 45 day average twice per year. The first average will be calculated using the 45 day average prior to April 16, and the new limit (if applicable), will take effect May 1. The second reset day will be the first trading day in November based on the previous 45 day average. Current daily limits are: Corn: $0.35/bu KC Wheat: $0.50/bu Soybeans: $1.00/bu Please contact us with questions or concerns. appreciate your business.
any We
Wheat After an impressive $2+ rally spanning from early February to early May, wheat has given back all of the gains and is back to early February trading levels. The USDA July WASDE report lowered export forecasts for all wheat and has forecast a larger U.S. wheat carryout for the 2014 crop, than the 2013 crop. This is mainly due to larger world supplies. Locally our wheat crop was not impressive, as was expected
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
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FEED DIVISION .
Calvin Carey Feed Sales Specialist Cow Nutrition What effect does feeding a wellbalanced vitamin / mineral program have on maintaining a healthy cow and calf? What are the requirements during gestation and lactation in the cow’s reproduction cycle? During the breeding season do cows have what they need to maintain a healthy body condition as well to grow a healthy and vigorous calf? Are you confident that you did everything during the early months of the cow’s gestation to ensure optimum early fetal development? The effect of nutrition on a pregnant cow is still an area of study. As an embryo in a cow develops into a fetus and grows during gestation, there’s specific nutrition requirements to meet at each phase that is directly affected by the cow’s nutrition. From organ and muscle development in the first and second trimesters to calving. If something goes wrong or if a cow’s plane of nutrition is lower, her calf may still develop but may not function ideally after birth. In comparing cows that were supplemented with protein during the last trimester to cows that received no supplementation showed little difference in birth weights, but heifer calves from the cows receiving supplementation had greater weaning weights, prebreeding weights, higher weights at
pregnancy check and higher pregnancy rates. In one study, heifers from the supplemented group showed a 28% advantage in the heifers calving during the first 21 days of calving season. Another study reported that heifers reached puberty faster. Research has also showed that supplementing cows on winter grass has an impact on steer carcass weight and quality as well as sickness rates in the feedlot. We’ve developed a year- round cow- care program that provides a mineral and a supplement that is designed to provide cows with steady plane of nutrition, regardless of stresses occurring from diets naturally varied in nutrient quality and quantity based on season, weather, environment, and other factors. Having a mineral and protein source available on a consistent basis has resulted in heavier weaning weights for producers who have utilized the program. During hot and dry summer months or during drought conditions when forage quality is reduced, the first thing that drops is milk production, which can result in reduced weaning weight from the growing calf. If you are doing things right, there not a day in her life when she’s eating just for herself – she is either pregnant, pregnant and lactating or just lactating. Each herd is different, cattlemen should work with their veterinarians and feed consultant’s to develop a feeding program for you. Give us a call to put a program together for you.
AGRONOMY
Scott Hedke Agronomy Manager First I would like to thank you for the welcome Deb and I have received and I look forward to working with all of you. The crops look good and with a few more timely rains could be set up for a good crop. Mother Nature runs the show in that department so what we can do is control the things we can, like setting up for drilling wheat. We should have our wheat cleaner and new treater up and going by this newsletter and will have good supplies of heavy certified seed wheat at competitive prices. Fertilizer prices are dropping but not as fast as grain prices, the exception to this as of this writing is NH3 which seems to have found a short term bottom. We have been talking to our producers about locking in some prices for wheat application. The chemical warehouse is just finishing up and will be online shortly. This facility is one of the nicest in the country and will allow your cooperative the ability to buy correctly, passing the savings on to you our owners. This facility, coupled with the dry and liquid plants are all part of your cooperative plans to be efficient, competitive and profitable. The future looks bright and we will strive to earn your trust and business.
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AV Energy
Chris Klein
With the wheat in the bins and the fall crops in the ground it’s time to start thinking about your propane supply for the winter. As we all are aware the propane price spiked last winter to prices we have never seen. For our customers who had their propane contracted they had little worries about what their propane price was going to be. Other customers that didn’t contract propane saw their price go from $1.50 per gallon to over $3.00 per gallon. Some customers even bought propane as high as $4.00 per gallon. The best way to protect yourself from winter price spikes is to contract your propane. AV Energy mailed out contracts the 1st of July and so far we have seen a great response, and still have more contracts coming in daily. If you are not a current propane customer or your current supplier does not offer contracting give us a call. If you attended the 3i show I hope you had a chance to stop by our booth and talk to Terry. We had on display a 12 volt DEF pump set up on a 55 gallon barrel of DEF. We had a lot of questions and comments about DEF, so I thought I would give you a little insight and let you know what AV Energy has to offer. Diesel Exhaust Fluid (DEF) is made up of a urea and water mixture. The DEF is put into a special tank on your newer diesel equipment. This tank has a blue
cap and the nozzle hole is much smaller than the nozzle hole where you would put your diesel. This was designed to prevent people from putting the wrong product into the DEF tank. Once the DEF is in the tank it is injected into the diesel exhaust to help reduce the exhaust emissions. Currently we sell DEF in 2 ½ gallon jugs, 55 gallon drums, and 330 gallon totes. The drums and totes are closed systems which keeps dirt and other foreign material out. To get the DEF out you have to use a special valve and pump. The valve is connected to the container by a four prong locking system. The pump can be a plastic hand pump or a stainless steel electric pump. These pumps come with a special hose and nozzle which was designed just for the use of DEF. Since, the pumps are specially made for DEF they are not cheap, but we have seen the price come down to about half of what they were when DEF first came out. If you are looking at purchasing new equipment that has DEF call Terry Summers or me. We would be glad to answer any question you might have. Enjoy the rest of summer!
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
Chris Klein General Manager AV Energy, LLC O. (800)752-1580 O. (620)225-4994
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............................................................. ` Pride Ag Resources 3rd Quarter 2014 Published quarterly by the
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Pride Ag Resources
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710 West Trail, Dodge City, KS 67801
DODGE CITY, KS PERMIT #399
(620) 225-4193
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