Kansas Agribusiness Update Spring 2018

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Spring 2018 Kansas Agribusiness Retailers Association 816 SW Tyler Topeka, KS 66612 (785) 234-0463 ksagretailers.org ASSOCIATION STAFF Ron Seeber President & CEO Randy Stookey Senior Vice President General Counsel Staci Storey Vice President Chief Financial Officer Shahira Stafford Vice President Government Affairs Shari Bennett Vice President Event Planning Samantha Tenpenny Director of Member Services Lisa Anschutz Senior Director of Internal Operations Mitzi Dodds Executive Administrative Professional Trae Green Director of Communications and Marketing


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President’s Letter Fighting to Keep Agriculture’s Clout Annual Steak Cookout Legislators and Staff Enjoy Steaks KARA Scholarship Industry Awards Nearly $10,000 Industry News Stay Up-to-Date on Industry News Transportation of Ag Commodities Rules and Regulations Affecting You

Jim Grilliot Rachel Hurley Roger Long Scott Morris O.J. Pearl Johnny Schaben Dave Spears Kevin Tomka Mark Wegner Dave Wilcox

It’s Almost Annual Meeting Time Aug. 27-28 in Manhattan Chemical Accident Prevention First One We’ve Offered & It’s Free KARA Hosts Historic Bill Signing Governor Signs Legislation Capitol Analysis What We Saw at the Capitol


BOARD OF DIRECTORS Clark Pearson Chairman Lance Nelson Vice Chairman Dustin Kuntz 2nd Vice Chairman Gary Beachner Scott Boyd Brian Bucl Troy Coon Kevin Dieckmann Justin Foss Bryan French Bill Garner Tim Giesick Alan Goldsby

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Membership News See Who Joined KARA


Chemical Accident Prevention First One We’ve Offered & It’s Free

KARA Hosts Historic Bill Signing Governor Signs Legislation

The Kansas Agribusiness Update is published quarterly for the members, friends and affiliates of the Kansas Agribusiness Retailers Association. Email contributions to: Trae Green, trae@kansasag.org. The KARA team welcomes your comments, contributions and suggestions. Annual subscriptions for members can be purchased for $25.00. © 2018 KARA. Read this newsletter online at www. ksagretailers.org/printnewsletters.


Spring 2018



President’s Letter: Fighting to Keep Agricultural Clout in Topeka Dear KARA Members When it comes to rural electorate votes, time is not on our side. However, when it comes to KARA’s political clout, that is up to us. Let me explain. In 1933, Kansas had eight seats in the United States Congress. We were once a population power broker. However, over Ronald Seeber President & CEO the last 80 years we have seen national population patterns lowering that number to just four Congressional districts in 1992. That is roughly one seat lost every 20 years. While that number of Congressmen will remain after the 2020 U.S. Census, the national trend is set. That pattern is also consistent when we look at the shift from rural representation in the Kansas House and Senate from places like Johnson City to Johnson County. No one knows better than our membership that rural population is migrating in the wrong direction, especially with regard to our collective voice in Washington and Topeka. It is reality, and it is a problem. But with every problem, there is a solution. Your Kansas Agribusiness Retailers Association, in conjunction with Kansas Grain and Feed Association, has a strong and effective political arm known as the Kansas

Agri Business Council (KABC) Political Action Committee (PAC). This appendage is our voice and weapon to ensure that friends of agribusiness are elected, not only in places like Wichita County but also in the city of Wichita. The PAC also helps defeat candidates that don’t see the big picture for the state and only their own personal microcosms and special interests. This political stick that we wield is provided by you. Whether it be a Johnson County republican Senator that wants to tax our customers out of business or a Wichita democrat who would rather support the labor unions over common sense truck weight legislation, our PAC has proven to be a strong and effective voice. By the way, that Johnson County Senator was prematurely retired in 2016. Thanks, in large part, to our PAC. When you receive your KARA dues renewal request this month, I strongly urge you to consider supporting an additional 10 percent of your dues be paid to our KABC PAC. It is by your generous support that we keep our powerful election-year voice. In this day and age, money talks and the rest of the crowd can keep on walking. Just because Kansas is losing rural population representation, the agricultural community can still hold political clout. In fact, we can grow that clout. We, again, implore your assistance and support of your Association’s PAC, the Kansas Agri Business Council. Thank you for your time and consideration. Sincerely, Ronald Seeber President and CEO

Ron Seeber, Kansas Attorney General Derek Schmidt, KARA Vice President of Government Affairs, Shahira Stafford and KARA Senior Vice President and General Counsel, Randy Stookey, during Schmidt’s meet-and-greet at KARA’s office in late May. KARA was pleased to host this fundraiser for the Attorney General’s re-election. 4

Agribusiness Update


LEGISLATIVE STEAK COOKOUT KARA Hosts Legislators for Steaks and Music Steady rain and chillier than usual temperatures on April 25 didn’t detract the attendance at KARA’s annual steak cookout welcoming back legislators from their spring break period. Instead of holding the event outside in KARA’s parking lot as in previous years, the festivities were moved across the street into the basement of the Senate Suites apartments. A group effort through and through, KARA teamed with government affairs staffs from many Topeka-based associations to put on the event. KARA provided side dishes of potatoes and Legislators enjoyed prime rib during the first Tuesday Night Reception in January. KARA hosts more green beans, ribeye steaks were than 15 Tuesday Night Receptions each year. donated by Tyson, the Wichita legislative session. Vice president of event planning, Marriott facilitated a margarita machine, K-State provided Shari Bennett, and government affairs professionals, Ron its famous Call Hall ice cream, and Kansas Livestock Seeber, Randy Stookey and Shahira Stafford, help facilitate Association and Capitol Strategies cooked more than 200 approximately 15 Tuesday Night Receptions during the steaks on a grill lent to the event by the Propane Marketers regularly scheduled 90-day legislative session. Association. While patrons enjoyed platefuls of food, the Building relationships with lawmakers at these informal band, Easy Pieces, serenaded the audience with covers of events is vitally important to growing KARA’s respected hit songs from a plethora of genres. influence at the statehouse. The steak cookout is typically the last big reception for legislators provided by KARA and 39 other lobbying Vice president of event planning, Shari Bennett (left), with Valerie sponsors to celebrate the beginning of the end of the Lumry of the Wichita Marriott and Wendy Harms of Kansas Livestock Association, during the annual steak cookout on April 25.

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Kansas Agribusiness Retailers Association’s (KARA) scholarship committee met in late-April and awarded nearly $10,000 in scholarships to Kansas high school graduating seniors and current college students for the 2018-19 academic year. The scholarship committee, comprised of KARA’s membership, received 77 applications and awarded seven students scholarships to assist in advancing their academic endeavors. “KARA has a long and proud history of providing scholarships to worthy students,” KARA’s president and CEO Ron Seeber said. “We congratulate this year’s recipients and wish them the best with their studies and their future contributions to the industry.” Each year, KARA awards one $500 Jim Lee Memorial scholarship, five $1,500 KARA general scholarships and one $1,500 Dr. David Whitney Agronomy scholarship. The winners of 2018-19 scholarships are listed at right with their current town:


Agribusiness Update

Jim Lee Memorial Scholarship – $500 Total Riley Sleichter – Manhattan KARA Scholarships – $1,500 Total Brittany Duer – Abilene Hayden Heigele – Manhattan Suzanne Huntley – Phillipsburg Calista Long – Great Bend Ashtyn Wallace – Plains Dr. David Whitney Agronomy Scholarship – $1,500 Total Keren Duerksen – Manhattan


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INDUSTRY NEWS Does Your Nurse Wagon have Lights? Don’t be surprised the next time you go to purchase a new wagon for an anhydrous ammonia nurse tank and it comes equipped with tail and turn lights. Originally reported in our August 2016 newsletter, changes for the lighting and marking of agricultural equipment have hit the field - causing quite a ruckus. Beginning June 22, 2017, the new National Highway Traffic Safety Administration (NHTSA) rule applies

to equipment manufactured by the original manufacturer (OEM), and requires the equipment to be built with lighting and markings that meet the American Society of Agriculture and Biological Engineers (ASABE) standard 279.14. Retrofitting equipment made before June 22, 2017 is not required. If you think lights will be hard to maintain, you should be particularly interested that last month ASABE announced that they have initiated the

development of five new standards regarding the braking of agricultural equipment. Part 4 will be requirements for equipment braking on towed equipment. These proposed standards could result in significant changes for manufacturers, and ultimately the end user when it comes to repair and maintenance. *Asmark Institute

FieldWatch Celebrates 10 Years! Congratulations to FieldWatch, Inc, a non-profit company that helps applicators, growers of specialty crops and beekeepers communicate about the locations of crops and hives to improve stewardship. FieldWatch offers an online national registry and tools that facilitate communication between commercial applicators and growers of sensitive crops and beekeepers. In 2018, FieldWatch welcomed five new states to its ranks; South Dakota, Virginia, Ohio, Arkansas

and Tennessee came on board, joining 14 other states. FieldWatch operates two voluntary mapping tools that are free for all users: DriftWatch Specialty Crop Site and BeeCheck Apiary Registry. The sites feature an easy-to-use Google Maps interface that clearly shows pesticide applicators the locations of registered areas (sensitive crops or beehives) so they can use this information to make informed decisions before they spray. Go to

www.FieldWatch.com and check out their two new mobile apps that make it easier for members to access and input data. FieldCheck is designed to give applicators more functionality from their mobile device while in the field. BeeCheck™ is designed specifically for beekeepers and will make changing the entered location of beehives easier and faster for the beekeepers. *Asmark Institute

ELD Enforcement in Full Swing The Commercial Vehicle Safety Alliance (CVSA) confirms that property-carrying commercial motor vehicle (CMV) drivers operating their vehicle without a required registered electronic logging device (ELD), or a grandfathered automatic on-board recording device (AOBRD), will be placed out of service for 10 hours. In addition, failing to have a required electronic record of duty status will appear on the roadside inspection report and a ticket or civil penalty may be given to the driver.

All ELD violations appearing on a roadside inspection report will be counted against a motor carrier’s Safety Measurement System (SMS) score, which will drive selection for investigation within the Federal Motor Carrier Safety Administration’s (FMCSA) Compliance, Safety, Accountability (CSA) program. FMCSA will determine appropriate action against non-compliant motor carriers. After 10 hours out of service, the driver may continue to their final destination if the driver has accurately

documented their hours-of-service requirements using a paper record of duty status and has a copy of the inspection report and/or citation. If the driver is stopped again before reaching their final destination, the driver must provide the safety official with a copy of the inspection report and proof that they are still on the continuation of the original trip. This may be satisfied using a bill of lading. After reaching their final destination, if the driver is redispatched again without obtaining Continued on page 8 Spring 2018



a compliant ELD, they will again be subject to the out-ofservice process, unless the driver is traveling back to the principle place of business or terminal empty to obtain an

ELD. Remember, the ELD mandate does not change the underlying hours-of-service requirements. *Asmark Institute

OSHA Clarifies PSM Retail Exemption OSHA has issued an updated enforcement policy for its Process Safety Management (PSM) standard, clarifying that it does not apply to “retail facilities.” Under the updated enforcement policy, OSHA will not issue PSM standard citations for employers in the following North American Classification System (NAICS) codes: • 424510 - Grain and Field Bean Merchant Wholesalers • 424590 - Other Farm Product Raw Material Merchant Wholesalers

• 424910 - Farm Supplies Merchant Wholesalers This updated enforcement policy comes after the 2016 Washington, D.C. Circuit Court of Appeals decision in Agricultural Retailers Association v. US Department of Labor. The court decision required OSHA to revert back to the original 1992 interpretation. This memorandum was necessary to align the guidance with the current rule for its inspectors, the public and regulated community. The court decision provides an opportunity

for retailers to continue to make mechanical integrity upgrades to their facilities, including the use of P&IDs and developing detailed written operating programs. We continue to recommend developing and refining your Risk Management Program (RMP) with the goal of substantial compliance with the maintenance and mechanical integrity requirements of their ammonia installation. *Asmark Institute

Driver Shortage is a Top Concern Finding a driver over the past decade has become harder and harder for agribusinesses. There’s the issue of finding a qualified driver who is in the right price range and willing to work the long seasonal hours - and then there is the issue of being able to retain them when the DOT rules constantly eliminate drivers from the pool of availability. Historically, the agribusiness industry has pulled drivers from the farm families they service, typical employment ads and from the trucking industry when their drivers wanted to stay closer to home or be home every night. A recent survey shows that agribusinesses aren’t the only ones facing this problem - and the problem is not likely to ever improve. According to an American Transportation Research Institute (ATRI) survey, driver shortage is the number one concern for the trucking industry too. 8

Agribusiness Update

Interestingly, driver shortage even tops concerns about the electronic logging device (ELD) mandate. Using CDL Life magazine’s statistics that hit closer to home, a surprising 21% of drivers said they had to quit driving because they no longer qualified for a commercial drivers license (CDL) for medical reasons. According to the CDL Life survey, 24% of drivers said that heavy-handed regulations prompted their desire to work in a less regulated work environment. One other surprising statistic is their survey showed that 7% of the drivers said they weren’t actually leaving the occupation of being a driver which for us downstream recipients of drivers from high profile trucking companies, beware of a driver who walks through your door and seems too good to be true no matter how difficult a time you are having finding *Asmark Institute drivers.

ATRI’s Survey Findings Top 10 Concerns for Trucking Industry

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Driver Shortage ELD Mandate

Hours-of-Service Truck Parking Driver Retention Compliance, Safety, Accountability Cumulative Economic Impacts of Trucking Regulations Driver Distraction

Transportation Infrastructure / Congestion / Funding

Driver Health and Wellness


Regulatory Guidance: Transportation of Ag Commodities With the Electronic Logging Device (ELD) rule now in effect for six months, the Federal Motor Carrier Safety Administration (FMCSA) is continuing to work to provide support and clarity to the industry as well as its law enforcement partners. A review of the inspections completed since the rule went into effect indicates that less than one percent of those vehicles inspected were cited for not having an ELD when required. In addition, Hours of Service violations are less than half of what they were a year ago. On December 20, 2017, the FMCSA published a Federal Register notice proposing regulatory guidance concerning the transportation of agricultural commodities, which includes livestock and requested public comment on the proposals. FMCSA sought to provide clarity on the use of this exception to both industry and law enforcement, and to provide as much flexibility as possible for the industry, while maintaining safety. This guidance is applicable to all transporters of agricultural commodities, which is defined in 49 CFR 395.2 and includes the transportation of nonprocessed food, feed, fiber, or livestock and insects. The final guidance clarifies the applicability of the “Agricultural commodity” exception in 49 CFR 395.1(k)(1) to the “Hours of Service of Drivers” regulations. This guidance is limited to the application of the 150 air-mile exception for the transportation of “agricultural commodities.” This regulatory guidance clarifies that the following operations are not subject to the Hours of Service Regulations while operating within 150 air-mile radius of the source of the commodity: Drivers operating unladen vehicles traveling either to

pick up an agricultural commodity, as defined in § 395.2, or returning from a delivery point; and Drivers engaged in trips beyond 150 air-miles from the source of the agricultural commodity are not subject to the hours of service regulations until they exit the 150 air-mile radius. The guidance also clarifies many longstanding questions about what can be considered a “source” of an agricultural commodity: The guidance clarifies that a source may not only be the farm or ranch where the agricultural commodity originates, but also may include intermediate storage and loading facilities, such as grain elevators or sale barns, provided the product still meets the definition of an agricultural commodity. The guidance also clarifies that when agricultural commodities are loaded at multiple sources during a trip, only the first loading point can be considered a source. While this guidance focuses specifically on how the agricultural commodities exception impacts a driver’s daily and weekly hoursof-service limits, it also should be considered when determining the applicability of the ELD rule more broadly. While transporters of livestock are not required to have an ELD until September 30, 2018, and

transporters of other agricultural commodities are not required to have an ELD until June 18, 2018, this exception and the clarifications provided under this guidance may be used to determine applicability of the ELD requirements after these dates. Thus, motor carriers utilizing the agricultural commodities exception – like other exceptions to the Hours of Service rule – will be able to take advantage of an exception from the ELD requirements if they do not operate outside of the 150-mile radius more than 8 days out of every 30. The Agency’s Agriculture webpage at www.fmcsa.dot.gov/ag provides a variety of resources to help with understanding all agriculture exemptions, the applicability of the rule and regulations to agriculture, and how to use your ELD when operating under an agricultural exception. This guidance is effective immediately.

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For RISK years, our industry has proven good stewardship MANGAGEMENT of our facilities by remediating soil and ground water from PROGRAM agricultural chemical contamination. Usually, this process includes enrollment in the Voluntary Cleanup Program The Management K.S.A. 2015by theRisk (VCP), or State CooperativeProgram Program,Act, administered Supp. 65‐34,176, was established in House Bill the Kansas Department of Health and Environment (KDHE). 2193, passed by the Kansas Legislature, became Too effective July 1, 2015. often, however, members enrolled in these programs have found it very difficult to reach a level of remediation The Risk Management Program provides a allow that would them to receive a “No Further Action” mechanism for the long‐term care and (NFA) letter from KDHE. management of low risk, low priority sites that not able to meet requirements for As aare response to this situation, your Association worked unrestricted closure or no further action with KDHE in 2015 tosite pass legislation establishing the Risk (NFA). This program provides another option in Management Program (RMP). This new, voluntary program the remediation tool box allowing for conditional serves closure of a site where the risks are managed or as an alternative to the VCP that provides a more toward completion clear path controlled under of an a remediation established project. Risk The Management Plan (RMP). RMP allows a low-risk facility to leave the VCP and, instead, enter into a long-term monitoring agreement with An RMP may be established site‐wide or, with department approval, applied to only a portion of a site (“RMP Boundary”). For example, the identified source area has been remediated to applicable cleanup standards, yet impacts in be currently enrolled in the Voluntary Cleanup Must groundwater persist beneath multiple properties. Program, State Cooperative Program, or otherwise The properties adversely affected by the groundwater plume could be addressed through subject to an agreement or order under the authority ofan RMP (e.g., continued groundwater monitoring KDHE, on a less frequent basis, every three years versus semi‐annual or annual). Risk management plans may also used health in conjunction with a low Pose riskbe to human and the Environmental Use Controls (EUCs) to address environment,

KDHE. Under the RMP, monitoring parameters are included ELIGIBILITY in a site plan prepared by the responsible party and approved by KDHE. In order to participate in the Risk Management Program, the area within the RMP boundary must So long as the monitoring activities in the RMP are performed and site conditions do not change, KDHE would meet the following criteria: consider the site “conditionally-closed.” If site conditions  Subject to an agreement or order under the changed or a new risk were identified, the responsible authority of KDHE/BER; party may be required to remedy the newly identified risk.  Poses a low risk to human health and the RMP’s may also be used in conjunction with Environmental environment; Use Controls to address residual contamination at a site.  The extent of environmental contamination has been clearly defined; Costs incurred through participation in the RMP may be reimbursable under the Kansas Agricultural Remediation  Source reduction has been completed, if Reimbursement Program (KARB). necessary; For more information about the RMP, contact your concentration are not  Contaminant Association or your KDHE projecttrends manager. dependent on continued operation and maintenance of active remediation systems;

 The associated groundwater contaminant plume is stable or shrinking, if applicable,

future certain exposure criteria, to contaminated In order to enroll into the RMP, the property Imminent must meet including:

residual contamination at a Site.

The extent of environmental contamination has been clearly defined, APPLICATION

media is not likely; and

 All current complete exposure pathways have Any associated groundwater contaminant plume been addressed

must be stable or shrinking,

Responsible/voluntary parties should communicate with their KDHE/BER project manager if they have an interest in the Risk Imminent future exposure to contaminated media is Management Program. KDHE will determine if not likely; and the site meets eligibility criteria.

All current complete exposure pathways have been addressed

The extent of environmental contamination has All current complete exposure pathways www.kdheks.gov/redevelopment/euc/index.html A copy of the application can be found on our website, have been been clearly defined, addressed All applications must include a Site Location Map, a Parcel and Owner Identification Map, Proof of Notification and Acknowledgment for property owners, an RMP, and a completed signature page.

Contaminant concentration trends are not dependent on continued operation and maintenance ofPlease contact the Long‐Term Stewardship & Brownfields Unit at 785‐296‐3393 for more information active remediation systems; Kansas Department of Health and Environment, 1000 SW Jackson, Topeka, KS 66612


Agribusiness Update


MEMBERSHIP NEWS Welcome New Members Thanks to the reputation of our membership and industry, KARA continues to grow and provide useful products and services for agribusiness retailers. Please welcome AgSource Laboratories (Lincoln, Neb.) and Northern Ag Suppliers (Smithville, Mo.) to our family.

FEI Inc.

Valley City, North Dakota

Tischhauser Seeds Inc. Wilsey, Kansas

Tell Us How We Can Better Serve You Ron Seeber | Ron@Kansasag.org President & CEO Randy Stookey | Randy@Kansasag.org Senior Vice President and General Counsel Staci Storey | Staci@Kansasag.org Vice President and Chief Financial Officer Shahira Stafford | Shahira@kansasag.org Vice President of Government Affairs Shari D. Bennett | Shari@Kansasag.org Vice President of Event Planning Samantha Tenpenny | Samantha@Kansasag.org Director of Member Services Lisa A. Anschutz | Lisa@Kansasag.org Senior Director of Internal Operations

Inaugural Kansas CCA Annual Meeting Coming to Hays The Kansas Certified Crop Adviser Board of Directors will be hosting their inaugural Annual Meeting event at the Smoky Hill Country Club on December 4 – the evening before KARA’s CEU Bonus Session at the KSU Ag Research Center, also in Hays! Open to all KARA members and Certified Crop Advisors, please stay tuned for more information and make plans to join us at this exciting program! December 4 Smoky Hill Country Club 3303 Hall Street Hays, Kansas

Mitzi Dodds | Mitzi@Kansasag.org Executive Administrative Professional Trae Green | Trae@Kansasag.org Director of Communications and Marketing

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Kansas Applicator Institute Kansas Agribusiness Retailers Association (KARA) is excited to announce its 7th Annual Kansas Applicator Institute (KAI) – a cutting-edge, retailer and producer precision application program – August 8-9 at the Kansas State Fairgrounds in Hutchinson! After a full day of educational programming, attendees will spend Wednesday evening at the State Fairgrounds viewing exhibits, enjoying dinner and socializing with their peers. On Thursday, attendees will rotate throughout various training sessions, with the exhibit and popular “Ride and Drive” areas set aside as individual rotations.

You will not find a more specialized, interactive program for applicators in the state. Please call the Association office at 785-234-0463, or email Director of Member Services, Samantha Tenpenny, at samantha@kansasag.org should you have questions regarding the show.

SCHEDULE Tuesday, Aug. 7 1:00 - 4:00 p.m. Exhibitor Move-in & Registration | Fairgrounds Wednesday, Aug. 8 7:30 - 8:30 a.m. Attendee Registration | Encampment Building

5:00 p.m. Ride and Drive Demo, Parking Lots NB 6:00 – 9:00 p.m. Dinner and Social, Fairground

8:30 a.m. Program begins, Encampment Building

Thursday, Aug. 9 7:30 a.m. Exhibits/tradeshow opens, Encampment Building

11:30 a.m. Lunch, Encampment Building

8:30 a.m. Program resumes, Fairgrounds


Agribusiness Update

12:30 p.m. Lunch, awards & closing, Encampment Building 1:30 p.m. Exhibits/tradeshows Close, Encampment Building 1:30 – 4:30 p.m. 1A + General Applicator Exams


Thank You, 2018 Sponsors Thank you for your sponsorship and continued support. Sponsorship is fundamental to the events, membership services and special projects members enjoy. Because KARA values and appreciates partners and key stakeholders, the annual sponsorship program is designed to provide the best value for KARA supporters. Founder $7,500 Corteva Agriscience Koch Agronomic Services, LLC Koch Fertilizer, LLC Benefactor $5,000 Syngenta Winfield United Patron $3,500 BASF Crop Protection CHS Inc. Coffeyville Resources Crop Production Services Heartland Ag Helena Chemical Company John Deere CAD Dealers MKC Monsanto Rosen’s Inc.

Builder $2,000 ADM Fertilizer Allied Environmental Consultants Inc. Beachner Grain Inc. CGB Fertilizer FMC Gavilon Fertilizer LLC J.B. Pearl Sales & Service, Inc. Morrill Elevator, Inc. Offerle Coop



Donor $750 MFA/AGChoice Agrilead Inc. American Implement, Inc. Bartlett Coop Assn. Central Valley Ag EGE Products Fairbank Equipment, Inc. Frontier Ag, Inc. Simplot One Kansas Cooperative Council Kiser Ag Service LLC Midwest Laboratories, Inc. Miller Elevator Inc. Nemaha County Coop The Ottawa Cooperative Assn. Pinnacle Agriculture Pride Ag Resources Riggins Ag Rural Jobs Coalition

Tomorrow’s Agribusiness Leaders Patron $700 Agrilead Inc. MFA/AGChoice Winfield United

Builder $500 BASF Crop Protection Central Prairie Co-op Fairbank Equipment, Inc. Gavilon Fertilizer LLC J.B. Pearl Sales & Service, Inc. KFSA Monsanto Nemaha County Coop Offerle Coop

To become a sponsor, contact Lisa by phone at (785) 234-0463 or by email at lisa@kansasag.org Spring 2018



Join Us at the KARA Annual Meeting Aug. 27-28 | Hilton Garden Inn & Suites | Manhattan, Kan. Mark your calendar to attend the 2018 KARA Annual Meeting August 27-28 in Manhattan at the Hilton Garden Inn & Suites/Manhattan Conference Center. This annual event gives you the opportunity to meet, network and socialize with other agribusiness men and women and to further educate yourself on issues vital to the success of your company and industry. We will kick the annual meeting off with a Welcome Reception on Monday, August 27 from 5:00-6:30 p.m., to include heavy appetizers and complimentary drinks. Dinner is on your own, so feel free to take customers out to eat. The Annual Meeting and General Sessions take place on Tuesday morning.


Agribusiness Update

The annual meeting golf tournament is slated for Tuesday afternoon, August 28, at Manhattan Country Club. Lunch is provided from 11:45-12:45 p.m. Tournament begins at 1:00 p.m. An awards presentation with heavy appetizers will conclude the tournament around 6:00 p.m. Annual Meeting and Golf registration will be emailed in a couple of weeks. If you have additional questions regarding the meeting and golf, please contact Shari Bennett at shari@kansasag.org or (785) 234-0463. A room block has been reserved for $109/night for both Monday (8/27) and Tuesday (8/28). Please call 785-532-9116 and ask for the KARA block to make your reservations by August 8.




Want to avoid a “very bad day?”

Join EPA Region 7 and KARA for a

Chemical Accident Prevention Workshop on July 24th from 8:00AM-4:00PM in Perry, KS.

Featured topics include:     

Chemical Accident Prevention Program overview What to expect during an EPA Region 7 Risk Management Program Inspection (includes a site visit to a local facility) Common inspection findings at agriculture facilities What happens after the inspection Tips for emergency planning

Register online at www.ksagretailers.org, by calling the Association office at 785-234-0461 or onsite from 7:30-8:00 AM on July 24th. There is no cost to attend this program and lunch will be provided, compliments of BASF. American Legion Hall 410 Perry Street Perry, KS Questions? Please contact: Samantha Tenpenny, KARA samantha@kansasag.org 785-234-0461 Spring 2018



ts s o H ARA


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Agribusiness Update

Kansas Agribusiness Retailers Association’s (KARA) office near downtown Topeka hosted Governor Dr. Jeff Colyer on May 19 as he inked his signature onto House Bill 2280, which revises the Rules and Regulations Filing Act pertaining to economic impact statements. The bill requires the economic impact statement to include a description of businesses that would be directly affected, the benefits of the proposed rule and regulation, and measures taken to minimize the impact on businesses and economic development. In addition, if the proposed regulation has an estimated economic impact of $3 million over two years, then the agency must hold a public hearing prior to adoption.





“This bill revises the Rules and Regulations Filing Act contained in economic impact statements,” Colyer said. “It deletes holding the individual companies responsible and makes it where the state agency budget director performs a real quantified cost-benefit analysis of these regulations. It puts the burden back on the government, rather than the company.” Prior to signing the bill, Colyer addressed those in attendance before turning over the podium to KARA president and CEO Ron Seeber. “State and federal regulations carry the full force and


effect of law,” Seeber said. “This bill will help to ensure a more open and accurate process in agency rule-making in our state. This is good policy for Kansas Agribusiness and our state as a whole.” Following Seeber, president and CEO of the Kansas Chamber, Alan Cobb spoke, followed by Lucas Heinen of the Kansas Soybean Association and Representative Ron Highland, who assisted passing the bill in the legislature.








The Kansas Legislature adjourned Sine Die its 90-day legislative session on Friday, May 4. Your government affairs staff worked day and night watching for your best interests in Topeka so you didn’t have to. Take a moment to recap on the highlights, victories and a few defeats… TAX CUTS After days of debate and negotiation between House and Senate leaders during the Veto Session, lawmakers failed to pass a mega tax cut bill that would have returned an estimated $85 million back to Kansans. The Conference Committee Report on House Bill 2228 died on a 59-59 vote in the House, just four votes shy of the 63 needed for passage. The Senate passed it 21-19 just hours before. In short, the bill would have allowed Kansas to decouple from several provisions of the federal Tax Cuts and Jobs Act, returning the “windfall” to both individual and corporate taxpayers rather than the state coffers. The main provisions of the tax cut package were: • Permanent decoupling on repatriated foreign income, which has never been taxed in Kansas before. • One-year decoupling on global intangible low-taxed income, interest expense limitations, capital contributions, and FDIC premiums. • Allowing individual taxpayers the option to itemize on their state tax forms – even if they claim the standard deduction on the federal level – reducing their tax liability. • Restoration of 100% deductions for medical expenses, property taxes, charitable contributions, and mortgage interest deductions.


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By: S

a St hahir

*To stay current on the latest news from the Capitol be sure to subscribe to our legislative emails and follow us on Facebook and Twitter. 18 Agribusiness Update

Staff, along with other interested parties, is continuing discussions with the Governor’s office and the Department of Revenue asking for regulatory guidance on how repatriated income will or won’t be taxed in Kansas this year.

SCHOOL FINANCE The Governor signed into law Senate Bill 423, which spends an additional $525 million on K-12 education over the next five years in response to the Kansas Supreme Court’s ruling that the current school finance formula is constitutionally inadequate. On Monday, June 25, 2018, the Court released its decision on the Gannon vs. Kansas lawsuit. The Court stated that while it would not prohibit Kansas schools from opening this fall, the Legislature will need to provide additional funding in every future year for inflation - with estimates of between $80 million and $120 million annually. The Court’s ruling means that there will not need to be a July special session this


summer to provide additional funding for the upcoming school year. There is still discussion of the legislature pursuing a constitutional amendment vote under House Concurrent Resolution 5029. This proposed legislation would remove the jurisdiction of the Kansas Supreme Court over whether the legislature has made “suitable financial provision for public education,” while retaining jurisdiction over the issue of equitable distribution of funds, protecting rural schools. A 2/3 majority of both legislative chambers is necessary before the constitutional amendment question can be placed on the next state-wide election ballot. Staff monitored the issue closely, as additional dollars toward K-12 education would most certainly come from an increase in property taxes, which are already burdensome on our industry.

held at the KARA office on May 19.

RIGHT-TO-KNOW FUNDING The Conference Committee Report on House Bill 2577 amends the Kansas Emergency Planning and Community Right-to-Know Act by creating the Kansas Right-to-Know Fee Fund within the Kansas Department of Health and Environment (KDHE). Revenue from the fund, in the amount of $311,000, would be used to administer the Tier II hazardous chemicals inventory and train first responders on how to use the

Staff testified and lobbied strongly in support, successfully amending the bill to ensure certain provisions caused no harm to the industry. The bill has been signed into law.

INDUSTRIAL HEMP RESEARCH Senate Bill 263 establishes the Alternative Crop Research Act and allows the Kansas Department of Agriculture – alone or in conjunction with a state higher education institution – to research, grow and cultivate industrial hemp in counties designated by the Secretary.

Staff lobbied to amend the bill, successfully removing the restriction of the pilot program to just two specified counties. The bill has been signed into law.

CDL RENEWAL EXTENSION Ron Seeber Randy Stookey Shahira Stafford The Conference President & CEO Senior VP | General Counsel VP Gov. Affairs Committee Report on House Bill 2606 extends from four RULES AND years to five years REGULATIONS the period of time OVERSIGHT before expiration of a database. Currently, fees paid by the The Conference Committee Report commercial driver’s license. Extending industry are deposited into the State on House Bill 2280 creates a new the renewal period by one year is an requirement for state agencies to submit General Fund, with only a portion being easy, small step toward lowering the transferred to KDHE. Under this bill, an economic impact statement to the regulatory burden, reducing cost and all fees will go toward their intended State Budget Office when proposing expediting the process of conducting purpose. or amending any rule and regulation. agribusiness in Kansas. It will also put Staff testified and lobbied strongly in support. Kansas in compliance with the federal The bill requires the economic impact The bill has been signed into law. statement to include a description Transportation Security Administration’s of businesses that would be directly hazmat endorsement, which is also NOXIOUS WEEDS affected, the benefits of the proposed renewed every five years. rule and regulation, and measures taken The Conference Committee Report on Staff testified and lobbied in support. The bill House Bill 2583 gives authority to the to minimize the impact on businesses has been signed into law. and economic development. In addition, if Secretary of Agriculture – with input from the proposed regulation has an estimated an advisory committee on which the ELECTRONIC PESTICIDE RECORDS Kansas Agribusiness Retailers Association House Bill 2619 recognizes electronic economic impact of $3 million over two years, then the agency must hold a public will have a seat – to designate a plant as methods of communication as a valid hearing prior to adoption. This legislation noxious. Current authority lies with the form of record after a commercial Legislature, which can be a burdensome is a way to ensure that agencies are pesticide application has occurred. and time-consuming process. It also considering all actual industry costs Current law requires written notice be requires county weed directors to check before passing new regulations. sent to the land owner within 30 days Staff testified and lobbied strongly in support. an online specialty crop database prior to of an application. This bill allows for A bill signing ceremony with Governor Colyer was applying pesticides. instant notification via email or text,

Advocating for


Spring 2018



if the customer agrees to receive it electronically.

Staff testified and lobbied in support. The bill has been signed into law.

BUDGET The Conference Committee Report on Senate Bill 109 is adjustments to the biennial budget for fiscal years 2018 and 2019 that was approved last year. A few appropriated items of interest include $3.25 million toward the State Water Plan Fund and $100 thousand toward hemp crop research, both within the Kansas Water Office.

Staff monitored negotiations closely throughout the session to track funding for the state agencies that regulate our various industries. The bill has been signed into law.

SCRAP METAL DELAY The Conference Committee Report on Senate Bill 261 allows for a one-year extension to implement and fund through the Attorney General’s office the Scrap Metal Theft Reduction Act passed in 2015. It also requires a progress report be submitted to the Legislature by February 1, 2019.

Staff testified as neutral, understanding that while additional time may be needed, the industry strongly supports fighting scrap metal theft. The bill has been signed into law.

BROADBAND TASK FORCE The Conference Committee Report on House Bill 2701 establishes the Statewide Broadband Expansion Planning Task Force to study and identify opportunities and potential funding sources to expand broadband infrastructure and services across Kansas, including rural areas. Final recommendations are due to the Legislature by January 15, 2020. Staff monitored the issue closely in support of expanded broadband in rural Kansas. The bill has been signed into law.

DICAMBA INFORMATIONAL HEARINGS Staff, along with the Kansas Department of Agriculture, coordinated informational hearings on Dicamba in both the House and Senate Agriculture Committees. Representatives from manufacturing companies traveled to Topeka to educate legislators on Dicamba technology, changes made to the label for the upcoming season and the new training requirements for applicators. Staff lobbied strongly against further regulation of Dicamba, successfully preventing any spray drift legislation from being introduced this year. 20

Agribusiness Update

AD ASTRA RURAL JOBS ACT The Conference Committee Report on Senate Bill 296 would have allowed tax credits on income, premiums or privilege taxes for taxpayers who contribute capital to an approved investment company to fund a “rural business concern” with less than 500 employees, in counties with a population of less than 50,000. Businesses engaging in manufacturing, plant sciences, technology or agricultural technology would have qualified for the program. Beginning in tax year 2020, 20% of the tax credit could have been claimed annually over a five-year period. The amount of tax credits claimed in any one fiscal year would have been limited to $10 million. Staff testified and lobbied in support. The CCR passed the House 83-36 on the last day of the Veto Session, but the Senate adjourned before taking it up for a vote.

HPIP EXTENSION The Conference Committee Report on Senate Bill 296 would have extended 25% of unused High Performance Incentive Program (HPIP) tax credits beyond the current carryforward limit, from 16 years to 25 years, for those taxpayers who initially claimed an HPIP credit prior to January 1, 2018. In any tax year after the 16th year, the amount of tax credits used by a taxpayer would have been limited to 10% of the reduced amount. The HPIP provides a 10% income tax credit for eligible capital investments that exceed either $50 thousand in nonmetropolitan counties or $1 million in the five metropolitan counties of Douglas, Johnson, Sedgwick, Shawnee, or Wyandotte. Staff monitored the issue closely. The CCR passed the House 83-36 on the last day of the Veto Session, but the Senate adjourned before taking it up for a vote.


Human Trafficking Awareness Training Requirement for CDL Holders Courtesy of the office of the Kansas Attorney General Human trafficking is a modern form of slavery and one of the fastest growing criminal industries in the world. It is based on recruiting, harboring and transporting people for the purpose of exploitation. More than 80 percent of human trafficking involves domestic victims, and the majority of those are children. The U.S. Department of Justice classifies Kansas as an originating state for human trafficking, which means most trafficking in Kansas involves local children. Kansas has adopted laws that seek to protect and rescue human trafficking victims – especially children. Last year, the Kansas Legislature adopted a new law requiring all CDL holders to receive human trafficking awareness training approved by the attorney general’s office. Starting July 1, all new CDL applicants will be required to complete the training before receiving their license. Current CDL holders must complete the training before the next regular renewal of their licenses. The training must be completed only once, not each time a license is renewed, so it would be advisable to keep proof of completion in a driver’s own permanent reference files.

Derek Schmidt Attorney General

The approved online training, which takes about 30 minutes, may be completed in advance rather than waiting to take it at the driver’s license office. It consists of watching a short video and answering a series of questions. It is free, easy and available online at any time convenient for the CDL applicant. For those who do not choose to complete the training in advance, the Kansas Department of Revenue will make it available online at all 39 driver’s license offices across the state beginning July 1 but the facilities may not provide the capability to print a paper copy of the training certificate for the CDL holder’s own file. “The purpose of this online training is to help save the lives of people, particularly children, trafficked and exploited along our streets and highways,” said Attorney General Derek Schmidt. More information is available at https://www.ag.ks.gov/public-safety/ human-trafficking/cdl-training.

“The purpose of this online training is to help save the lives of people, particularly children, trafficked and exploited along our streets and highways.”

To complete the training before going to the driver’s license office: GET TRAINED ONLINE

1 Complete the online training from any device connected to the Internet and capable of printing a certificate of completion. The approved curriculum can be accessed on the Truckers Against Trafficking website at http://education. truckersagainsttrafficking.org. PRINT THE PROOF

2 Print a hard copy of the certificate of completion.


3 Take the printed certificate with you to the driver’s license office when going to obtain your CDL. For those who do not choose to complete the training in advance, the Kansas Department of Revenue will make it available online at all 39 driver’s license offices across the state beginning July 1 but the facilities may not provide the capability to print a paper copy of the training certificate for the CDL holder’s own file.

Spring 2018



Agricultural Chemical Remediation Reimbursement Program: Update In 2000, the Kansas Legislature passed the Agricultural and Specialty Chemical Remediation Act which created the Remediation Reimbursement Program and the Kansas Agricultural Chemical Remediation Reimbursement Fund (Reimbursement Fund). The Remediation Reimbursement Program provides financial reimbursement of expenses incurred while performing remediation activities for agricultural chemical and fertilizer contamination, as ordered by the Kansas Department of Health and Environment (KDHE) for properties enrolled in the Voluntary Cleanup and Property Redevelopment Program or State Cooperative Program. Under the Remediation Reimbursement Program, the commercial grain industry and ag-chemical and fertilizer industry pay fees into the Reimbursement Fund. The Board approves reimbursement of qualifying expenses submitted by applicants to the fund up to $200,000 per site. The Reimbursement Program is administered by the Kansas Agricultural Remediation Board (KARB). During its June 22, 2018 meeting, the Board reimbursed twenty-two (22) applicants a total of approximately $200,000. The next KARB meeting will be held on September 14, 2018, and the deadline to submit new applications prior to that meeting will be August 17, 2018.

In the summer of 2016, the Board amended a regulation concerning which expenses are eligible for reimbursement. Beginning June 1, 2016, for all new applications to the fund, expenses submitted for meals, lodging, mileage or other travel expenses will no longer be eligible for reimbursement from the fund. Since 2009, applications to the fund have exceeded the amount of money in the fund. Therefore, a priority based ranking system is utilized for all applications received by which each application is reviewed by KDHE and given a priority score. Applications involving potential risk to human health and safety are scored higher. Applications are reimbursed in priority order based on their priority score. The current amount of outstanding reimbursement requests to the fund is approximately $700,000.00. The KARB program has reimbursed


since January 2002.

Total reimbursements in the last five years. 2018 (through March 16, 2018)


20 Total Reimbursements – $330,000.00 11 Combination – $218,754.41 8 Nitrates – $101,200.81 1 Carbon Tet – $10,044.78

4​ 3 Total Reimbursements – $​1,031,013.48​ ​32​ Nitrate – $​798,501.22 ​4​Pesticide & Nitrate – $​69,570.48 ​7​ Combination – $​162,941.78



72 Total Reimbursements – $1,349,811.78 52​Nitrate – $1,064,509.03 14 Combination – $162,470.39 3 Pesticide – $73,889.61 3 Carbon Tet – $48,942.75

58 Total Reimbursements – $995,063.36 51 Nitrate – $924,618.32 3 Pesticide – $60,279.12 1 Pesticide & Nitrate – $3,981.95 3 Combination – $6,183.97



66 Total Reimbursements – $1,205,051.12​ 59​Nitrate – $1,​176,500.14 ​6​Pesticide & Nitrate – $​11,001.18 1 Pesticide – $​17,549.80

65 Total Reimbursements – $1,245,493.99 58 Nitrate – $767,380.94 3 Pesticide and Nitrate – $99,351.24 4 Combination – $40,854.90


Agribusiness Update


Important KARA Dates in 2018 JUNE S M T W TH F 1 3 4 5 6 7 8 10 11 12 13 14 15 17 18 19 20 21 22 24 25 26 27 28 29

JULY S 2 9 16 23 30

SEPTEMBER S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

S 1 8 15 22 29

M T 2 3 9 10 16 17 23 24 30 31

W TH F 4 5 6 11 12 13 18 19 20 25 26 27

S M T 1 2 7 8 9 14 15 16 21 22 23 28 29 30

W TH F 3 4 5 10 11 12 17 18 19 24 25 26 31

S M T W TH F S 1 6 7 8 2 3 4 5 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

JULY Wednesday, July 4 Independence Day (KARA office closed) Tuesday, July 10 - Friday, July 13 K-State Field Days (Manhattan) Sunday, July 22 - Thursday, July 26 T.A.L. Session II (Washington, D.C.) AUGUST Friday, Aug. 3 Fall CCA Exam (Salina) Wednesday, Aug. 8 - Thursday, Aug. 9 Kansas Applicator Institute (Hutchinson)

S 7 14 21 28



JUNE Friday, June 15 Staff Strategic Plan (KARA office closed)

AUGUST S M T W TH F 1 2 3 5 6 7 8 9 10 12 13 14 15 16 17 19 20 21 22 23 24 26 27 28 29 30 31

S 4 11 18 25

NOVEMBER S 6 13 20 27

S M T W TH F 1 2 4 5 6 7 8 9 11 12 13 14 15 16 18 19 20 21 22 23 25 26 27 28 29 30


Monday, Aug. 27 - Tuesday, Aug. 28 KARA Annual Meeting (Manhattan) SEPTEMBER Monday, Sept. 3 Labor Day (KARA office closed)

S 3 10 17 24

Wednesday, Nov. 14 - Thursday, Nov. 15 Kansas Agri Business Expo (Hyatt Regency, Wichita) Room block opens June 1, 2018 Thursday, Nov. 22 - Friday, Nov. 23 Thanksgiving Holiday (KARA office closed)

Friday, Sept. 7 T.A.L. Session III (Wichita)

DECEMBER Wednesday, Dec. 5 CEU Bonus Session (KSU Ag Research Center, Hays)

NOVEMBER Tuesday, Nov. 13 Sporting Clay Shoot (Wichita)

Monday, Dec. 24 - Tuesday, Dec. 25 Christmas Holiday (KARA office closed)

Tuesday, Nov. 13 KARA Board Meeting (Hyatt Regency, Wichita) Thursday, Nov. 15 1A Recertification (Hyatt Regency, Wichita)

Spring 2018



Kansas Agribusiness Retailers Association 816 SW Tyler, Suite 100 Topeka, Kansas 66612

Kansas Agribusiness Retailers Association | Spring 2018 Editors Ron Seeber Randy Stookey Staci Storey Shahira Stafford Shari Bennett Samantha Tenpenny Mitzi Dodds Trae Green 24

Agribusiness Update

Photography & Illustrations Cover Photo Trae Green Graduation Cap iStock/LightFieldStudios Tractor-Trailer iStock/ryasick Attorney General Derek Schmidt Kansas Attorney General

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