Seed to Silo - Winter 2021

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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

Winter 2021 Kansas Agribusiness Retailers Association 816 SW Tyler Topeka, KS 66612 (785) 234-0463 ksagretailers.org

Winter 2021 Kansas Grain and Feed Association 816 SW Tyler Topeka, KS 66612 (785) 234-0461 ksgrainandfeed.org

ASSOCIATION STAFF Ron Seeber President & CEO

ASSOCIATION STAFF Ron Seeber President & CEO

Randy Stookey Senior Vice President General Counsel

Randy Stookey Senior Vice President General Counsel

Staci Storey Senior Vice President Chief Financial Officer Shari Bennett Vice President Event Planning Samantha Tenpenny Director of Member Services Lisa Anschutz Senior Director Internal Operations Sidney Storey Administrative Assistant Trae Green Associate Vice President External Affairs & Creative Services BOARD OF DIRECTORS Lance Nelson Chairman Dustin Kuntz Vice Chairman Kevin Dieckmann Second Vice Chairman Clark Pearson Immediate Past Chairman Gary Beachner Brent Martin Bryan Bucl Warren Mayberry Troy Coon Kevin Mears Yance Farney Scott Morris Justin Foss Justin Ochs Tim Giesick O.J. Pearl Jim Grilliot Dave Spears Jeff Holling Mark Wegner Rachel Hurley Nick Krehbiel Brian Laverentz Jami Loecker

Editors: KARA & KGFA staff

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TABLE OF

CONTENTS 03 PRESIDENT’S LETTER An introduction to Seed to Silo, our newest creation

04 INDUSTRY NEWS Updates on issues affecting you

08 LEGISLATIVE ACTION DAY Senate President and Attorney General highlight first-ever virtual Legislative Action Day

18 TRAINING PROGRAMS Both associations have numerous training programs on the calendar to round out the year

22 NO TIES TOURS Association staff has been all around the state already this year visiting with our members

Staci Storey Senior Vice President Chief Financial Officer Shari Bennett Vice President Event Planning Samantha Tenpenny Director of Member Services Lisa Anschutz Senior Director Internal Operations Sidney Storey Administrative Assistant Trae Green Associate Vice President External Affairs & Creative Services BOARD OF DIRECTORS Deb Miller Chairwoman Bob Tempel Vice Chairman Brent Emch Second Vice Chairman

14 KANSAS STATEHOUSE INSIDER We’ve hit the halfway point of the 2021 Kansas legislative session, and it has been anything but a normal year

Advertising does not influence editorial decisions or content. Kansas Agribusiness Retailers Association and Kansas Grain and Feed Association reserve the right to refuse, reject, or cancel any ad for any reason at any time without liability.

SEED to SILO | Encompassing Agribusiness in Kansas

Gary Beachner Ted Behring Doug Biswell Brad Cowan Curt Engel Andrew Fullerton David Helfrich James Jirak Dub Johnson Mark Paul Troy Presley Devin Schierling Allen Williams


SEED to SILO | Encompassing Agribusiness in Kansas

PRESIDENT’SMESSAGE RONALD SEEBER

President and CEO

Ron Seeber was hired as president and CEO of Kansas Agribusiness Retailers Association and Kansas Grain and Feed Association in October 2017 after working for the associations since July 2008. An expert in state and federal legislative affairs, Seeber also worked for Senator Bob Dole in policy and political capacities, and has spent his entire career in the regulatory arena.

DEAR KARA and KGFA

MEMBERS

Seed to Silo seems like a fitting title for the joint publication of two different, yet intrinsically interdependent, related industry trade

associations.

Welcome to the inaugural edition of Seed to Silo, the combined newsletter of the Kansas Agribusiness Retailers Association and the Kansas Grain and Feed Association. Seed to Silo seems like a fitting title for the joint publication of two different, yet intrinsically interdependent, related industry trade associations. For background, both KARA and KGFA (listed alphabetically) are separate organizations with regard to mission and governance. Both associations have distinct and independent boards of directors, separate annual meetings and very different histories. Yet, while being different in form and function, KARA and KGFA companies constitute, “The alpha and the omega,” of production agriculture. KGFA, then the Kansas Grain Dealers Association, was established in 1896 to speak with a common voice and tackle problems such as difficulties with rail transportation, standardization of weights and grades, high insurance costs and the need for legislation to stop abuses of unethical speculators. Some of the issues have a familiar ring 125 years later and the association is still the leading voice of the grain industry in Kansas. KARA, beginning as the Kansas Fertilizer and Chemical Institute, started as a volunteer organization of Kansas’ chemical, fertilizer and equipment dealers nearly 60 years ago and has also evolved into one of the most influential trade associations in our state. Over the years, KARA and KGFA found that by combining shared interests, much could be accomplished. For example, in the 1980s, KARA’s precursor entered into a management agreement with KGFA, allowing for one staff to be shared by both associations. This decision capitalized on

personnel, management and government affairs synergies. Later in the decade, the associations formed the Kansas Agribusiness Council (KABC) Political Action Committee making the KABC a major player in the Kansas political and election process by supporting pro-agribusiness candidates and defeating those hostile to the industry. Also, 35 years ago, both associations formed the Kansas Agri Business Expo, which continues to be the largest indoor agribusiness tradeshow in the Midwest. Since then, the Kansas Agriculture Remediation Board and Tomorrow’s Agribusiness Leaders Programs were established giving both KARA and KGFA members long-lasting benefits. The list goes on and on. The latest and most recent blending of synergies is what you are reading right at this moment. Seed to Silo is a central meeting point of a somewhat diverse, yet interconnected, industry. A joint publication intended to inform members of both associations about the shared challenges to agribusiness and provide an opportunity to learn more about the industry as a whole. We hope you enjoy the latest evolution of two distinct, yet intertwined associations. Please do not hesitate to contact me if you have ideas or suggestions to improve Seed to Silo. Sincerely,

Ronald C. Seeber President and CEO

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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

INDUSTRYnews Driver Examination Forms

On April 23, 2015, the Federal Motor Carrier Safety Administration (FMCSA) published the Medical Examiner’s Certification Integration final rule, which was a follow-on rule to both the National Registry final rule and the Medical Certification Requirements as part of the Commercial Driver’s License final rule. Source: Asmark Institute

On April 23, 2015, the Federal Motor Carrier Safety Administration (FMCSA) published the Medical Examiner’s Certification Integration final rule, which was a follow-on rule to both the National Registry final rule and the Medical Certification Requirements as part of the Commercial Driver’s License final rule. One of the changes that impacted the Certified Medical Examiner’s (MEs) listed on the National Registry, was the required use of the revised driver examination forms. Beginning December 22, 2015, results of examinations conducted on or after this date, required the medical examiner to use the revised forms. Once the ME has conducted the examination, they will use the Determination

form to select whether the driver does not meet FMCSA standards, meets standards and qualifies for a 2-year certificate, meets standards but requires periodic monitoring, or the determination is pending for reasons specified. If the driver meets the FMCSA standards, then a Medical Examiner’s Certificate will be completed and given to the driver. The Certificate is what is needed to meet DOT’s requirements for documentation kept in the employee’s driver qualification file. For those with a Commercial Driver’s License (CDL), a copy of the Medical Examiner’s Certificate is also required to be sent in to the state as part of the CDL license.

EPA Proposes Chlorpyrifos Changes EPA is conducting its regulatory review of Chlorpyrifos pesticide and proposing measures to reduce risks. The proposed interim decision and draft risk assessments are open to public comment for 60 days. Specifically, EPA is proposing: • Label amendments limiting application to address potential drinking water risks of concern;

• Requiring additional personal protection equipment and application restrictions to address potential risks of concern for occupational handlers; and • Spray drift mitigation, in combination with the use limitations and application restrictions, to address drinking water and occupational risks, and to reduce non-target organism exposure. EPA is conducting its regulatory review of Chlorpyrifos pesticide and proposing measures to reduce risks. Source: Asmark Institute

a Marsh & McLennan Agency LLC company

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SEED to SILO | Encompassing Agribusiness in Kansas


SEED to SILO | Encompassing Agribusiness in Kansas

INDUSTRYnews OSHA Form 300A Deadlines

It’s time to complete your 2020 injury and illness recordkeeping obligations by posting the Summary of Work-Related Injuries and Illnesses (OSHA Form 300A). Source: Asmark Institute

It’s time to complete your 2020 injury and illness recordkeeping obligations by posting the Summary of Work-Related Injuries and Illnesses (OSHA Form 300A). OSHA requires that the notice be displayed from February 1st to April 30th each year in a conspicuous place where employee notices are customarily posted. Businesses with no injuries or illnesses for the year must still post the form. A company official must certify the information in Form 300A was examined and is believed to be correct and complete. All establishments

with 250 or more employees in industries covered by the recordkeeping regulation must electronically submit Form 300A no later than March 2nd, as well as, establishments between 20-249 employees in certain industries, including “warehousing and storage.” OSHA began accepting electronic submissions on January 2, 2021.

EPA Fines Ag Retailer Over $80K US EPA has announced a settlement agreement with an ag retailer in California following inspections at four facilities in 2018 and 2019. The inspections found multiple violations, including failure to seal cracks in containment structures and loading pads, insufficient capacity of containment structures, failure to generate and maintain repackaging records, failure to attach and maintain complete product labels, and offering for sale misbranded products.

The company has agreed to pay a civil penalty of $88,000 and has certified they are now in compliance. Federal pesticide laws require proper pesticide handling, labeling and packaging, as well as registration of pesticide products and pesticide production facilities.

US EPA has announced a settlement agreement with an ag retailer in California following inspections at 4 facilities in 2018 and 2019. Source: Asmark Institute

EZ-Update Feature: DOT Driver License Update

As the FMCSA Drug & Alcohol Clearinghouse has continued to provide transparency since its debut last January, the need for Asmark to know as quickly as possible when a DOT driver’s license changes to CDL is more important than ever. Source: Asmark Institute

As the FMCSA Drug & Alcohol Clearinghouse has continued to provide transparency since its debut last January, the need for Asmark to know as quickly as possible when a DOT driver’s license changes to CDL is more important than ever. To help make it easy to notify Asmark of a change, we’ve added a new feature to EZ-Update. Under the Employee section of EZ-Update you will now see “Change DOT Driver License (Oper/CDL)” to be able to easily select a DOT Driver from your facility’s driver list and let us know there’s been a

change. It’s important to note, that a driver who changes from an Operator License to a Commercial Driver’s License (CDL) or a CDL Permit (CDL-P) is required to have a: • *Pre-Employment Drug Test • *Pre-Employment Clearinghouse Query • and be included in the Random Drug Testing Pool. *The term “Pre-Employment” means before a driver is used in a safety-sensitive function, such as operating a commercial moter vehicle (CMV).

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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

INDUSTRYnews USDOT Increases Fine Amounts

While it has become a yearly event for DOT to increase civil fines for violations, this year’s announcement also included the addition of FMCSA Clearinghouse violations.

While it has become a yearly event for DOT to increase civil fines for violations, this year’s announcement also included the addition of FMCSA Clearinghouse violations. Although DOT has been enforcing carriers’ compliance with the FMCSA Clearinghouse for nearly a year, the inclusion of civil penalties for these violations speaks to the increased seriousness that the agency will be enforcing FMCSA Clearinghouse compliance in 2021.

Other fine amounts have been increased just over 1 percent to reflect inflation. The new civil penalties became effective January 11, 2021. The penalty adjustments apply only to violations that take place after the effective date. Make sure you are requesting the appropriate Clearinghouse queries on your CDL drivers to avoid violations and the fines associated.

Source: Asmark Institute

Are Your Independent Contractors Really Employees? The U.S. Department of Labor (DOL) adopted a final rule that simplifies the process for defining a worker as an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The rule establishes an “economic realities” test that considers whether a worker is in business for himself or herself (independent contractor) or is instead economically dependent on an employer for work (employee).

The new rule identifies and explains two “core factors” that are used to define whether a worker is economically dependent on someone else’s business: the nature and degree of the worker’s control they exercise over the work, and the worker’s opportunity for profit or loss based on initiative, investment, or both. It also sets out three other factors for this analysis, particularly when the two core factors do not point to the same kind of

classification: the amount of skill required for the work, the degree of permanence of the working relationship between the worker and the potential employer, and whether the work can be considered to be part of an integrated unit of production. The final rule is scheduled to become effective on March 8th unless overturned by Congress.

Source: Asmark Institute

Providing Kansas Agribusiness Professional Environmental Engineering Services since 1989

We provide: EXPAND YOUR AUDIENCE Advertise with KARA We know Kansas agribusiness. Our publications touch every aspect of Kansas ag retail. Call the association office 785.234.0463 or email membership@kansasag.org to learn more about our advertising opportunities.

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SEED to SILO | Encompassing Agribusiness in Kansas

Environmental Site Assessments (Phase I & II) ● Spill Prevention Control & Countermeasure (SPCC) Plans ● Stormwater Management ● Containment Engineering ● Groundwater Investigations ● Regulatory Audits, Compliance & Permitting 214 N Saint Francis ● Wichita, KS 67202-2610 ● 316.262.5698 aec@alliedaec.com ● www.alliedenvironmental.com


SEED to SILO | Encompassing Agribusiness in Kansas

WINTER 2021

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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

Associations Host First-Ever Virtual Legislative Action Day in January

Kansas Agribusiness Retailers Association (KARA), Kansas Grain and Feed Association (KGFA) and the Kansas Cooperative Council (KCC) held their annual joint Legislative Action Day on Wednesday, Jan. 20, 2021.

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SEED to SILO | Encompassing Agribusiness in Kansas

modification to the format of our 2021 Legislative Action Day and make it an online event,” KARA and KGFA President and CEO Ron Seeber said. “This year, maybe more than any other in recent memory, it was important for our industry to have a strong presence with lawmakers. We strongly encourage you to continue to reach out and make personal connections with your legislators on behalf of agribusiness.” Despite the success of the Zoom meeting, the associations - and our lawmakers - are looking forward to returning to normal in 2022. KARA, KGFA and KCC are planning to welcome back their membership in Topeka next year for a more familiar setup at the Topeka Country Club and inside the capitol where members can sit down with their elected officials face-to-face and have productive conversations concerning our industry.

RON SEEBER President and CEO

Typically, early January is agribusiness’ day to shine in Topeka as more than 100 business professionals from across the state travel to Topeka to hear from, and meet with their elected officials. For the first time in recent memory there were no cheeseburgers served for lunch and the always-enjoyed prime rib dinner was postponed, but members of Kansas Agribusiness Retailers Association (KARA), Kansas Grain and Feed Association (KGFA) and the Kansas Cooperative Council (KCC) were still productive in advocating for our industry as the associations held their firstever virtual joint Legislative Action Day on Wednesday, Jan. 20, 2021. Originally scheduled to deliver an address, Kansas Governor Laura Kelly had to forfeit her scheduled remarks, but Kansas Senate President Ty Masterson (R-Andover) and Kansas Attorney General Derek Schmidt graciously addressed a Zoom meeting of KARA, KGFA and KCC’s shared membership. “We, along with legislative leadership, determined it would be in the best interest of our membership and those who work inside the Kansas Statehouse to make a one-time

This year, maybe more than any other in recent memory, it was important for our industry to have a strong presence with lawmakers. We strongly encourage you to continue to reach out and make personal connections with your legislators on behalf of agribusiness.


SEED to SILO | Encompassing Agribusiness in Kansas

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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

THANK YOU, SPONSORS “We know our sponsorship of Kansas Grain and Feed Association goes directly toward the seminars, networking events and communication products the association provides to its membership and we take pride in supporting those efforts year after year.” ANDREW FULLERTON BARTLETT GRAIN

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SEED to SILO | Encompassing Agribusiness in Kansas


UNDERWRITER SPONSOR

COMMODITY PARTNERS

$20,000+

K A N S A S

C RN C O M M I S S I O N

ProValue Insurance is an independent agency providing comprehensive insurance products and business services to organizations in need of risk protection. Delivering unparalleled knowledge and experience, ProValue helps protect against more than organizational risk, offering coverages for personal assets to individuals throughout MidAmerica.

KANSAS W H E A T

®

Rediscover Wheat

FOUNDER SPONSOR

BENEFACTOR SPONSORS

$7,500

$5,000

PATRON SPONSORS $3,500

BUILDER SPONSORS $2,000 Bartlett Grain Company Beachner Grain Inc. Farmers Cooperative Equity Co. First National Bank of Hutchinson Gavilon Grain, LLC Grain Craft INTRUST Bank N.A. Irsik & Doll Feed Service Morrill Elevator, Inc. Offerle Coop Grain & Supply Co. The Cooperative Finance Assn. The Scoular Company

DONOR SPONSORS $1,250 Ag Partners Cooperative Inc. Agri Trails Coop B-R-C Bearing Company, Inc. CHS Inc. Conestoga Energy Partners LLC Cornerstone Ag LLC D.E. Bondurant Grain Co. Frisbie Construction Co., Inc. Frontier Ag Inc. Korol Financial Group LLC Midland Marketing Coop Inc. Midway Coop Assn. WindRiver Grain LLC

GIVER SPONSORS $750 BarnesCo Inc. Central States Fumigation & Services Central Valley Ag Cooperative Cline Wood A Marsh and McLennan Agency LLC Company Cloud Co. Coop Elev. Assn. Concordia Terminal LLC Drake Inc. Farmers Union Mercantile & Shipping Assoc. HABCO Inc. Kansas Coop Council Kanza Coop Assn. KC Supply Co. Inc. MFA/AgChoice Pride Ag Resources Rolfes @ Boone TSGC, Inc. Valley Coop, Inc. Wildcat Feeds LLC


UNDERWRITER SPONSOR $20,000+ ProValue Insurance is an independent agency providing comprehensive insurance products and business services to organizations in need of risk protection. Delivering unparalleled knowledge and experience, ProValue helps protect against more than organizational risk, offering coverages for personal assets to individuals throughout Mid-America.

FOUNDER SPONSORS $7,500

BENEFACTOR SPONSORS $5,000

PATRON SPONSORS $3,500

BUILDER SPONSORS $2,000

ADM Fertilizer Beachner Grain Inc. EGE Products Gavilon Fertilizer, LLC Interchem J.B. Pearl Sales and Services J.R. Simplot Co. Morrill Elevator, Inc. Nutrien Offerle Coop Grain & Supply Co.

DONOR SPONSORS $1,250

Ag Partners Cooperative Inc. CHS Inc. Fairbank Equipment, Inc. Farmers Cooperative Equity Co. MFA/AGChoice Novus Ag Skyland Grain LLC

GIVER SPONSORS $750

Agrilead Inc. Alliance Ag & Grain LLC American Implement, Inc. Central Valley Ag Cooperative Helm Fertilizer Corp. Kansas Coop Council Kanza Coop Assn.

Kiser Ag Service LLC Midwest Laboratories Inc. Pride Ag Resources Progressive Ag Coop Purple Wave, Inc. Servi-Tech Inc.


SEED to SILO | Encompassing Agribusiness in Kansas

THANK YOU, SPONSORS “Sponsoring KARA provides Syngenta an opportunity to support KARA’s initiatives to deliver expertise on critical industry issues and assist in training efforts for members. As a sponsor we are able to provide our own employees an additional opportunity to remain involved in making improvements locally and nationally for the agriculture industry.” JAMI LOECKER SYNGENTA

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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

Statehouse

INSIDER By: Association Government Affairs

In early March we reached the halfway point of the 2021 Kansas legislative session, known as ‘Turnaround,’ the initial deadline for each chamber to pass its own bills. It has been an odd year for statehouse regulars like your government affairs team. The capitol has been eerily quiet with no school field trips or grassroots advocacy events taking place. In addition, legislative leadership has been direct in achieving their agendas, fearful of the swift shutdown and unstructured timeline another outbreak would cause. 14

SEED to SILO | Encompassing Agribusiness in Kansas


SEED to SILO | Encompassing Agribusiness in Kansas

LEADING OFF ... There were only a few surprises in the session’s first two months as lawmakers started off by quickly addressing the Kansas Emergency Management Act, Medicaid expansion, property taxes and a proposed constitutional amendment concerning the right to regulate access to abortion. What we didn’t expect, however, was the heavy scrutiny and debate fraudulent payments out of the state’s unemployment insurance fund would cause, as well as a late-February polar vortex which resulted in legislation being passed in a mere 48 hours to assist municipalities in paying their utility bills. Fortunately, as far as our agribusiness interests are concerned, we’ve enjoyed a relatively smooth session, greeting old friends and establishing new relationships with legislators fresh off of a win in November’s election. From an agribusiness perspective, we had a few pieces of legislation we wanted to address and, with careful planning, we are very close to getting them over the finish line with bipartisan support and signed into law.

PESTICIDE WASTE DISPOSAL FUND In 2020, following the direction of both the Kansas Agribusiness Retailers Association (KARA) and Kansas Grain and Feed Association (KGFA) board of directors, we introduced legislation establishing the Kansas Pesticide Waste Disposal Program. We simultaneously introduced two copies of the same bill in the House and Senate to speed up the process as a contingency to a slowdown from the virus. The bill permits up to $50,000 to be transferred annually from the existing Kansas Agriculture Remediation fund and allows Kansans to apply to the state department of agriculture for assistance in covering the costs of appropriately disposing of pesticide waste products. As of early March, the Senate passed its version with a minor amendment, while the House passed its bill on a unanimous vote. Following passage through the legislative branch, we anticipate Governor Laura Kelly will celebrate signing the bill into law as it displays industry support for responsible disposal of pesticide waste products.

GRAIN WAREHOUSE FUNDING Throughout the summer the Kansas Dept. of Agriculture (KDA) held meetings with KGFA staff and stakeholders regarding a shortfall in the agency’s budget. Through our discussions, we found the budget gap would lead to increased costs on the industry through the grain warehouse inspection program. In early February the department introduced Senate Bill 143, which would end up passing the Senate favorably, 30-9. The bill increases the maximum functional unit license and storage fees and updates public warehouse laws. It also extends the 12-month inspection period to allow up to an 18-month inspection cycle. KDA testified that its intention is to hold to the 12-month cycle but would like the extra time for inspection flexibility. Additionally, KGFA and Kansas Cooperative Council have been advocating for a $60,000 allotment from state general funds to the agency’s grain warehouse inspection budget in order to reduce the increase in industry fees proposed in Senate Bill 143. This funding request has been

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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

approved by both the House Appropriations Committee and the Senate Ways and Means Committee. KDHE HAZARDOUS SPILL REPORTING Similar to the pesticide waste disposal legislation we introduced, we also worked with peer associations on a bill authorizing Kansas Dept. of Health and Environment to establish reportable minimum quantities of hazardous chemical spills in agency regulations. Currently, all spills of hazardous chemicals must be reported to KDHE, regardless of the amount. This bill would also allow the agency to provide technical guidance during a cleanup response, and permit cost-recovery from the responsible party for any state expenses related to a response to a release. In addition, the bill would allow KDHE to levy penalties for illegal dumping, refusal by a responsible party to clean up a release, or failure to timely report a release. KDHE has indicated that it intends to establish minimum thresholds in agency regulations that are consistent with federal requirements (EPA’s list of lists). Renew Kansas Biofuels Association, KARA and KGFA, testified in support of the bill. In previous years, those associations worked with KDHE and other stakeholders to amend the bill language to limit the total civil penalty authority and limit the effect on agriculture chemicals. On Thursday, February 18 the House Chamber passed House Bill 2155 on emergency final action

with an 85-36 vote, now advancing to the Senate for consideration. KANSAS EMERGENCY MANAGEMENT As anticipated, the pandemic, and the response the government had to it occupied the majority of the legislature’s time. In the first 60 days, the House and Senate each passed bills which would amend the governor’s powers under the Kansas Emergency Management Act when responding to a pandemic or natural disasters. House Bill 2416 and Senate Bill 273 each individually passed their chambers of origin. A conference committee between the two chambers met and spawned Senate Bill 40, installing new checks on powers of the governor, health officers, and school boards to manage the COVID-19 pandemic and future disasters. The Senate passed the bill 31-8 and the House by a vote of 118-5. The bill limits the power of the Governor, the state health secretary, and local public health officers to issue orders. It also gives Kansans more power to legally challenge emergency orders at all levels of government if they think their rights have been violated. The Legislature passed the bill about two weeks before the state’s existing emergency declaration expires on March 31. Passage of the bill would repeal the more than 60 executive orders issued by Governor Laura Kelly under the pandemic. The measure now goes to Governor Kelly for consideration.

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GARRETT BUSCHJOST Garrett.Buschjost@kochind.com T: 316-409-8074 AGROTAIN® | ANVOL® | CENTURO® | SUPERU®

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SEED to SILO | Encompassing Agribusiness in Kansas

KANSAS UNEMPLOYMENT FRAUD The pandemic also led to unexpected issues arising at the Kansas Dept. of Labor (KDOL) where the state’s unemployment numbers skyrocketed and antiquated technology allowed criminals access to payouts of an estimated $600 million according to the Kansas Legislative Division of Post Audit. The legislative auditors’ estimate was made using the 157,000 potentially fraudulent cases and finding them to be 24 percent of all claims paid out in 2020. KDOL disputes the estimated figure and has begun reporting a total of $290 million after requesting the legislative auditors withdraw their estimate, stating that the process did not consider the variation between state and federal unemployment programs or their operations during the pandemic. Either way, the House and Senate have been consumed with hours of drafting and debating on separate bills addressing the issue and have intentions to hold Kansas employers harmless for fraudulent payments, using money from either the state general fund (SGF), or federal CARES act funding, to reimburse the Kansas’ Unemployment Insurance Trust Fund. The actual amount to be transferred from SGF would be determined following the certification of all fraudulent claims. The House passed Sub for House Bill 2196 on an 87-36 vote in early March, while the Senate is still working its bill in the Commerce Committee. TAX ISSUES As always in Kansas politics, taxes are at the forefront of everyone’s mind. Numerous bills were introduced in the beginning of 2021 strengthening the rights of Kansas property tax payers. Heading into the legislature’s second half, the Senate has passed each of the following property tax bills to the House for consideration: SB 23 would allow the owner of property that has been destroyed or substantially destroyed by a declared disaster to apply to the county commission for a property tax abatement or credit. The bill was supported by Kansas Agribusiness Retailers Association, Kansas Grain and Feed Association, and Renew Kansas Biofuels Association. SB 98 would ensure that, in a hearing before a Kansas District Court, the county retains the burden of proof on the county appraiser’s valuation and classification. The bill also extends the time a state board of Continued on Page 20


SEED to SILO | Encompassing Agribusiness in Kansas

INDUSTRYnews IRS Decreases Standard Mileage Rates for 2021

The IRS has issued the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Source: Asmark Institute

The IRS has issued the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard

mileage rates. Beginning January 1, 2021, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) changed to: • 56 cents per mile for business miles driven, down from 57.5 cents for 2020 • 16 cents per mile driven for medical or moving purposes, down from 17 cents for 2020 • 14 cents per mile driven in service of charitable organizations (No Change).

OSHA Proposes Changes to HCS OSHA has issued a proposed rule to update the agency’s Hazard Communication Standard (HCS) to align with the seventh revision of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS). The proposed modifications to the standard include revised criteria for classification of certain health and physical hazards, revised provisions for updating labels, new labeling provisions for small

containers, technical amendments related to the contents of Safety Data Sheets (SDSs), and related revisions to definitions of terms used in the standard. Comments may be submitted electronically at http://www.regulations.gov by April 19, 2021.

OSHA has issued a proposed rule to update the agency’s Hazard Communication Standard (HCS). Source: Asmark Institute

EXPAND YOUR AUDIENCE Advertise with KGFA Would you like to reach more than 900 businesses involved in the Kansas grain industry? Call the association office 785.234.0461 or email membership@kansasag.org to learn more about our advertising opportunities.

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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

Scan the QR codes next to the photos with a QR scanner or point your smartphone’s built-in camera at the QR code for more information and registration abilities.

CDL Exam Prep Schools the Kansas CDL Manual with the goal of obtaining their Commercial Learners Permit (CLP). These courses are capped at 25 attendees per location.

April 15 Hays KSU Ag Research Center 1232 240th Avenue

We think we’re on the right track to best fulfill our members’ needs with practical, useful courses.

August 3 Hutchinson Encampment Building 2000 N. Poplar October 28 Butler Community College TBD

Elevator Safety & Maintenance Our Elevator Safety and Maintenance training offers practical lessons in elevator maintenance, everything from the basics to new technologies. May 4 Garden City Garden City Coop 106 N. 6th Street

ASSOCIATIONS OFFER PLETHORA OF TRAINING OPPORTUNITIES “

These one-day courses will walk attendees through

May 6 Salina Visit Salina Annex 120 W. Ash

May 5 Wichita Sedgwick Co. Extension 7001 W. 21st Street

Having already completed grain grading schools, NH3 workshops and one of the scheduled four CDL Exam Preparation Workshops, Kansas Agribusiness Retailers Association (KARA) and Kansas Grain and Feed Association (KGFA) are gearing up for the remainder of the associations’ training slates. “We’re always looking for new training opportunities and welcoming feedback on what we can do to diversify our training portfolio,” said Ron Seeber, President and CEO of KARA and KGFA. “We think we’re on the right track to best fulfill our members’ needs with practical, useful courses.” The associations are both now offering ‘house-call’ training sessions where for a guaranteed number of participants, KARA and KGFA will travel anywhere in the state to provide any of their offered training

programs at an agreed upon rate. Up next in early May, KGFA is offering Elevator Safety and Maintenance workshops to offer practical lessons in elevator maintenance, everything from the basics to new technologies. KGFA’s Elevator Safety and Maintenance workshops are scheduled for May 4 - 6 in Garden City, Wichita and Salina. KARA on the other hand will be hosting its annual Field Days with Kansas State University just after the Fourth of July with two sessions planned on July 6 - 7 and July 8 - 9. Participants will learn herbicide efficacy and injury, crop insect pests, crop diseases, weed identification, environmental water quality and so much more. KARA will also be in Hutchinson August 4 - 5 for its Kansas Applicator Institute, where applicators and certified crop advisors

LEARN MORE Visit our websites by pointing your smartphone’s built-in camera at the QR codes or enter www.ksgrainandfeed.org/events-training or www.ksagretailers.org/events-training in your search engine to see full agendas, speaker information.

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SEED to SILO | Encompassing Agribusiness in Kansas


SEED to SILO | Encompassing Agribusiness in Kansas

KSU Field Days 1A credit, CCA credit, herbicide efficacy and injury, crop insect pests, diseases, weed ID and more! July 06 - 07 & July 08 - 09 Manhattan K-State North Agronomy Lot Adjacent to Bill Snyder Family Stadium

discuss tomorrow’s precision application today. The highly-attended event features a popular ride-and-drive where attendees are able to get behind the wheel and drive the newest equipment around the fairgrounds. In conjunction with Kansas Applicator Institute, KARA and KGFA are jointly hosting a CDL Exam Preparation workshop in Hutchinson on August 3. The final CDL Exam Preparation workshop will be held October 28 in Andover. In November, at the 35th Kansas Agri Business Expo, each association will be hosting its yearly recertification training, with KGFA’s 7B/4 course up first on November

17, while KARA’s 1A recertification class is scheduled for November 18. KGFA will round out its 2021 training slate with a Grain Handlers workshop in Garden City on November 30, while KARA will end its continuing education courses on December 1 - 2 with a Crop Production Update in Lindsborg. For any questions on training offerings provided by the associations please contact Samantha Tenpenny (samantha@ kansasag.org) or call the association office (785.234.0461).

Kansas Applicator Institute Where applicators and certified crop advisors discuss tomorrow’s precision application – today. August 04 - 05 Hutchinson Kansas State Fairgrounds Encampment Building 2000 N. Poplar

Full 7B/4 Recertification This is one of the few places you can go to gain full certification in 7B/4 Seed Treatment and Fumigation. Nov. 17 Wichita Kansas Agri Business Expo Hyatt Hotel 400 W. Waterman

Full 1A Recertification This is one of the few places you can go to gain full certification in 1A ag plant and commercial application. Nov. 18 Wichita Kansas Agri Business Expo Hyatt Hotel 400 W. Waterman

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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

Continued from Page 16 tax appeals member may continue to serve after such member’s term expires. Finally, the bill would allow the Governor to temporarily appoint former board members as necessary. Kansas Grain and Feed Association and Renew Kansas Biofuels Association were proponents to the bill. SB 119 includes many positive changes to the Kansas property tax system that were spread out over a handful of bills last year. Kansas Grain and Feed Association and Renew Kansas Biofuels Association testified as proponents. SB 72 would require the appraisal courses necessary to qualify for the registered mass appraiser designation, and all continuing education courses, to be approved by the Real Estate Appraisal Board. The bill would require the Director of the Property Valuation Division at the Department of Revenue to only accept appraisal courses approved by the Real Estate Appraisal Board as alternatives to the courses required to be conducted by the Director. Kansas Grain and Feed Association, Renew Kansas Biofuels Association, and Kansas Agribusiness Retailers Association were proponents. STATE AGENCY OVERSIGHT In late-February, in a move agribusiness would benefit from, current Republican Attorney General Derek Schmidt strategically led the charge with GOP statehouse leadership to propose a constitutional amendment giving the legislature the power to veto administrative rules and regulations. According to Schmidt, the proposed constitutional amendment is intended to give the legislature, “Real and meaningful oversight over how regulatory agencies use 20

SEED to SILO | Encompassing Agribusiness in Kansas

the power entrusted to them by law.” Rules and regulations of state agencies have the force and effect of law. Currently, in Kansas, the legislature does not have the lawful authority to veto state agency regulations. The proposed constitutional amendment, if approved by two-thirds of the legislature, would still need to be approved by Kansas voters during the November 2022 election. UTILITY SPIKE CRISIS Most recently, an issue few in our state saw coming due to historic increases in natural gas prices during the February polar vortex, many Kansas municipalities faced gas bills that would likely be unpayable. The municipalities risked losing access to natural gas within days if they did not pay their bills. In response, the legislature quickly

passed a bill just before turnaround to provide $100 million in low-interest loans to Kansas municipalities in order to spread out the cost of their natural gas bills over time. House Sub for Senate Bill 88 establishes a low-interest loan program which allows cities to apply to the State Treasurer for loans from state unencumbered funds. These loans must be for the purpose of lowering the immediate impact of the spiked electric and gas costs. The interest rate would be set at 2.0 percent below the market rate with a minimum of 0.25 percent. The bill was structured similar to Senate Bill 15 which created an Economic Recovery Linked Deposit Loan program for businesses in response to the economic downturn caused by the COVID-19 pandemic. The legislation was heard and passed by the House and Senate and then signed into law by Governor Laura Kelly. FINISHING STRONG As we round out the 2021 legislative session, your government affairs team will remain vigilant in opposing any effort to balance the state budget on the backs of our industry. We thank you for your contributions to the Kansas Agri Business Council, which are vital to your association maintaining a strong voice in the legislative process. For up-to-date, week-by-week reports on the Kansas legislative session, visit our websites at ksgrainandfeed.org or ksagretailers.org/legislative-advocacy.


SEED to SILO | Encompassing Agribusiness in Kansas

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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

ASSOCIATI

NO TIES Association staff took a break from the legislative session to visit a few of our western Kansas members on yet another edition of our No Ties Tours. We enjoy when we get to see our members at annual meetings, golf courses and, of course, at the Kansas Agri Business Expo. What we really enjoy though is getting out and visiting our members inside their offices. President and CEO Ron Seeber, Vice President of Event Planning Shari Bennett and Director of Member Services Samantha Tenpenny took a break from the hustle of Topeka during the legislative session and visited nearly 15 KARA and KGFA member locations in Western Kansas in early March. “Throughout my time with the associations, our No Ties Tours are the best conversations

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SEED to SILO | Encompassing Agribusiness in Kansas

year-after-year,” Seeber said. “So much of what we do legislatively and offer to our members for networking or training has been a product of our No Ties Tours.” During the nearly 550 miles spent on the road, Seeber, Bennett and Tenpenny heard concerns from members about issues ranging from upcoming growing and harvest conditions to the political landscape in. “No matter how good of a grasp we feel like we have on the industry in our state, getting out and sitting down with members allows us to gain a better understanding of how these concerns affect their individual


SEED to SILO | Encompassing Agribusiness in Kansas

ON OFFICE

S TOURS 550+ Miles Driven

10+

Members Seen

operations and communities,” Tenpenny said. “These conversations put faces behind the issues and remind us of why do what we do.” The staff especially enjoyed the rewarding experience of seeing so many different operations and business models all working to improve agribusiness. “Being able to be a part of our member visits across the state has been very rewarding for me,” Bennett said. “Our members continue to impress me by how they do business daily with all the challenges they face. From regulatory issues, both

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Ties Tied

federal and state, to fertilizer shortages and also the lack of workforce talent, it was just a few of the many issues we discussed while on the road. During our visits, what really impressed me the most was how the business owners and general managers truly valued and respected their employees, treating them a lot like family members. This was very refreshing to me in the crazy world we are living in today and makes me very proud to work for and be a part of KARA, KGFA and the members of these two associations.”

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Kansas Grain and Feed Association 816 SW Tyler, Suite 100 Topeka, Kansas 66612

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

Stay Connected

Stay Connected

MARK YOUR CALENDARS!

ANNUAL MEE TINGS August 9 - 10, 2021 Topeka, Kansas Capitol Plaza Hotel

August 23 - 24, 2021 Manhattan, Kansas Hilton Garden Inn


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