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KANSAS GRAIN AND FEED ASSOCIATION

Spring 2020 Kansas Grain and Feed Association 816 SW Tyler Topeka, KS 66612 (785) 234-0461 ksgrainandfeed.org ASSOCIATION STAFF Ron Seeber President & CEO 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 Deb Miller Chairwoman

Kansas Grain and Feed Association (KGFA) has been working around the clock as events unfold during this unprecedented time in our world. We are doing our best to keep you informed on how COVID-19 decisions are affecting agribusiness. We are holding weekly phone meetings with Kansas Secretary of Agriculture Mike Beam and his staff at Kansas Department of Agriculture where we are relaying the message that even a temporary shut down of any aspect of production agriculture would be ill advised and would have permanent detrimental repercussions to Kansas and the country.

TABLE OF

CONTENTS 03 PRESIDENT’S LETTER We’ve been ahead of the curve in COVID-19 response

14 KGFA SCHOLARSHIP WINNERS KGFA awarded more than $25,000 in scholarships to Kansas students

04 INDUSTRY NEWS Updates on state, federal and industry news affecting your business

15 KGFA ANNUAL MEETING It definitely wasn’t the annual meeting we’re used to, but we got it done

13 KARB PROGRAM UPDATE An update on the Kansas Agricultural Chemical Remediation Program

19 ELEVATOR MAINTENANCE SCHOOLS ON TAP We are still planning to hold our Elevator Maintenance workshops May 5 - 7

06 KANSAS STATEHOUSE INSIDER This was anything but a regular session given the current circumstances we’re facing in our country.

15 KGFA ANNUAL MEETING It definitely wasn’t the annual meeting we’re used to, but we got it done

Bob Tempel Vice Chairman Brent Emch Second Vice Chairman Glen Hofbauer Immediate Past Chairman Gary Beachner Ted Behring Doug Biswell Brad Cowan Andrew Fullerton David Helfrich James Jirak Dub Johnson Mark Paul Troy Presley Devin Schierling Allen Williams Editors: KGFA staff Cover Photo: Cover (iStock.com/BeyondImages)

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The Kansas Grain and Feed Report is published quarterly for the members, friends and affiliates of the Kansas Grain and Feed Association. Email contributions to KGFA, Attention: Trae Green, trae@kansasag.org. Annual subscriptions for members can be purchased for $25. © 2020 KGFA. View each newsletter online at ksgrainandfeed.org/printnewsletters. Advertising does not influence editorial decisions or content. KGFA reserves the right to refuse, reject, or cancel any ad for any reason at any time without liability.


SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896

PRESIDENT’SMESSAGE RONALD SEEBER

President and CEO

Ronald Seeber became the sixth president and CEO in the 124-year history of Kansas Grain and Feed Association in 2017. Seeber has more than 30 years of association management and government affairs experience working in Washington, D.C., and his home state of Kansas. PHONE 785.234.0461 785.224.1848

ADDRESS 816 SW Tyler Street Topeka, KS 66612

EMAIL ron@kansasag.org

DEAR KGFA

MEMBERS If there has been one bright light in this whole COVID-19 odyssey, the average American now understands food doesn’t magically appear on a shelf in the grocery store aisle. That being said, it took a bit of reminding from your association to convince many on the city, county, state and federal government levels that the members of the Kansas Grain and Feed Association (KGFA) are indeed critical components of our nation’s food supply infrastructure. We needed to convince many of these leaders that without the tools to do our job, those grocery store shelves would remain wanting of food. We are fortunate KGFA is part of a tight-knit network of similar agribusiness trade associations in nearly every state of the union. Because of this relationship, we were the first to learn of the challenges our colleagues on the west coast were facing with stay at home orders and the needed definition of essential employees. Before the first Kansas COVID-19 case on March 7, KGFA staff already had draft letters in hand deeming our members’ employees as critical infrastructure and were ready to deploy them when the time was right. Before the first county order was implemented, KGFA had already taken the initiative and organized other Kansas ag-related associations and commissions by sending a letter to Governor Laura Kelly requesting that our industry and all of production agriculture be deemed essential infrastructure as defined by the Department of Homeland Security should a quarantine be implemented. We stressed

that our nation’s critical infrastructure for food not only includes supermarkets and distribution centers, but also heavily relies on those taking care of grain handling, livestock, poultry and equine in addition to those producing and processing feed for livestock, poultry, equine, meat, eggs and dairy processing plants. We also requested agricultural supply infrastructure (including seed, crop protectants, fertilizer, etc.), planting and harvesting of crops, fruits and vegetables; as well as transport between all these critical supply points be recognized. We are pleased to say that the day after our letter was received, the Governor issued a statewide order stating almost verbatim what we asked – Kansas agribusiness be deemed essential. We then issued our own letter to KGFA members to distribute to their employees verifying their exempt status. When Johnson County was the first county in Kansas to issue a poorly worded and vague stay at home order, KGFA immediately contacted a Johnson County Commissioner and had our industry exempted. Johnson County’s hastily-written and implemented health order started a chain reaction of other counties doing the same. It was similar to that old arcade game “whack-a-mole,” once we fixed one county, another would pop up. We did this for 15 additional counties until the Governor issued a statewide stay at home order and specifically exempted production agriculture from that order. In addition to keeping your employees at the job in a safe capacity, your association was also key in requesting and receiving

weekly Zoom meetings with the Secretary of Agriculture, Mike Beam, to discuss industry concerns. We requested and received an executive order temporarily increasing truck weights for the transportation of our products during the pandemic and received verification from the Kansas Highway Patrol that this was the case. We also requested and received CDL waivers and the availability of CDL exams by appointment from the state of Kansas. The COVID-19 pandemic has been a challenge for everyone, but at least for the Kansas Grain and Feed Association members, we had a plan from the beginning. We learned quickly from the mistakes being made in other states and proactively fixed those that arose in Kansas. We also used this opportunity to toot our horn and to let people know, that without you, their bread, meat and dairy aisles might look just like the toilet paper aisle. Sincerely,

Ronald C. Seeber President and CEO Kansas Grain and Feed Association

Spring 2020

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KANSAS GRAIN AND FEED ASSOCIATION

E V I CT

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E P S ER

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Governor Issues Statewide “Stay At Home” Order … Kansas Agribusiness Exempt On April 16, Governor Laura Kelly issued Executive Order #20-24 extending the statewide “stay home” order set to expire April 19, to midnight May 3. The Governor’s Order directs all individuals within the state of Kansas to stay in their residences unless performing an essential activity including but not limited to: Performing, or going to or from work at a business or organization to perform, an essential function as identified in the Kansas Essential Function Framework (KEFF). The KEFF includes businesses that maintain supply chains for essential functions and critical infrastructure as defined by a March 19, 2020 US Dept. of Homeland Security (DHS) memorandum. The memorandum defines “agricultural storage facilities,” “agricultural inputs,” and biofuel facilities as critical infrastructure.In addition, the order lists the following provisions: A. No individual leaving their home in order to perform an activity or function allowed under this order shall be required to carry or present any letter, identification card, or other paper proving that they are allowed to leave their home. B. No prior approval is required for individuals or entities to perform essential functions listed in the KEFF. Individuals or entities who are uncertain whether they perform functions exempted from the prohibitions of this order may email KEFF@ks.gov to determine whether their functions are deemed essential. C. All individuals performing essential functions authorized by this order must – to the extent possible without significant disruption 4

Grain and Feed Report

to essential functions – use telework capabilities to avoid meeting in person; and any essential functions being performed on-site or in-person must – to the extent possible without significant disruption to essential functions – follow appropriate safety protocols, including maintaining a six-foot distance between individuals and following other directives regarding social distancing, hygiene and other efforts to slow the spread of COVID-19. While this order is in effect, it supersedes all local “stay home” or similar orders. It remains in effect until May 03, 2020. Although provision A in the Governor’s Order above states, “no individual leaving their home in order to perform an activity or function allowed under this order shall be required to carry or present any letter, identification card, or other paper proving that they are allowed to leave their home,” we have drafted a template letter for you to download and modify in the event a situation arises you need verification. Prior to the Governor’s Executive Order, stay at home orders were issued by individual counties including: Atchison; Crawford; Doniphan; Douglas; Franklin; Jefferson; Johnson; Leavenworth; Lyon; Miami; Morris; Osage; Sedgwick; Shawnee and Wyandotte. If you have any questions or concerns regarding this order, please do not hesitate to contact the association office by emailing Ron Seeber and/or Randy Stookey or calling 785-234-0461.


SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896

KANSAS

COVID-19 NEWS Kansas Executive Order 20-22, Motor Carrier Extension KGFA During the Pandemic

Kansas Grain and Feed Association (KGFA) has been working around the clock as events unfold during this unprecedented time in our world, we are doing our best to keep you informed on how COVID-19 decisions are affecting agribusiness. We are holding weekly phone meetings with Kansas Secretary of Agriculture Mike Beam and his staff at Kansas Department of Agriculture where we are relaying the message that even a temporary shut down of any aspect of production agriculture would be ill advised and would have permanent detrimental consequences to Kansas and the country. A quick rundown of the services we’ve provided since the pandemic began affecting Kansas is below:

Governor Laura Kelly has issued Executive Order 20-22 which extends the previous Executive Order 20-09, which expired on April 12, 2020. The Order maintains the 10% weight wavier up to 90,000 lbs for trucks hauling essential goods and supplies. The new Order expires on May 15, 2020, or until the statewide state of disaster emergency on COVID-19 expires. Governor Laura Kelly’s Executive Order 20-22 (view by clicking the button below or HERE) allows a 10% weight waiver for motor carriers of essential services and food supplies. For our members’ clarification of the Executive Order, we requested clarification from the Kansas Highway Patrol if the waiver applies to the following: • transport of agricultural crop inputs (seed/pesticide/fertilizer/diesel) from import/manufacturer to the end user/farmer • transport of grain from farm to elevator • transport of grain from commercial elevator to end user (i.e., feed yards, feed mills, biofuel plants, export market, etc.) • transport of ethanol and biodiesel from processing plant to market Your association stated to the Kansas Highway Patrol that our industry will continue to work through the pandemic to ensure that our citizens have access to essential food supplies and fuel. Allowing this 10% weight waiver will become critically important as our industry – already short on commercial

drivers – loses additional drivers during the pandemic. The Kansas Highway Patrol stated that the waiver does apply to our industry, our members should be able to answer the following questions: 1. Does this particular trip contribute to the immediate restoration of essential services or supplies related to issues caused by the COVID 19 pandemic as required by the declaration, or is it business as usual for your company? 2. If I am stopped for inspection, or if my company is subject to a later compliance investigation, will I be able to support my decision to utilize the declaration to the inspector, trooper or safety investigator? While not required by the terms of the declaration any documentation, it would benefit you to have some form of documentation supporting your use of the weight waiver. 3. Am I making an honest assessment of the situation as to the benefits and risks for my fellow citizens on my use of the declaration?

MONDAY, 3-16-20 In response to the COVID-19 pandemic announcement and travel restrictions, the KGFA annual meeting in Wichita was cancelled. The annual meeting and KGFA board meeting were both scheduled for April 13th via conference call. TUESDAY, 3-17-20 KGFA staff began conversations with various state agribusiness associations about industry needs and concerns regarding the COVID-19 crisis. WEDNESDAY, 3-18-20 KGFA published first COVID-19 statement announcing that KDA’s priority was for continuity in the Ag industry. KGFA requested that the Administration allow for truck weight waivers during the pandemic. THURSDAY, 3-19-20 & FRIDAY 3-20-20 Requested and was granted weekly meeting with KDA Secretary Mike Beam to discuss COVID-19 concerns. Staff then reached out to members and requested items to discuss with Secretary Beam. Top priority was to secure an agribusiness critical infrastructure exemption in any quarantine action taken by the Governor. Staff initiated a letter to Governor asking Agribusiness be considered DHS defined critical infrastructure and be exempt for state quarantine orders. Staff then circulated letter to other Kansas Ag groups for input and signatures. SATURDAY 3-21-20 THROUGH MONDAY 3-23-20 Started contacting counties that had issued stay at home orders to ensure that all agribusiness and biofuel employees are to be exempt based on DHS guidelines. We contacted and received confirmation from over 15 counties. SUNDAY, 3-22-20 Governor signed Exec. Order 20-09 allowing for a temporary 10% truck weight waiver (90k lb max) for the transport of goods incident to the immediate restoration of essential services. KGFA requested KS Highway Patrol’s opinion on what industries and products would qualify under the Order, and then provided that information to members on Tuesday, 3/24/20. Spring 2020

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KANSAS GRAIN AND FEED ASSOCIATION

Statehouse

INSIDER By: Randy Stookey

The Legislature wrapped up regular session business, adjourning nearly a full week before its regularly scheduled adjournment date as concerns of COVID-19 exposure continue to grow. This shortened session prevented final legislative action on many bills. On Wednesday, April 22, 2020, the Legislative Coordinating Council (LCC) of the Kansas Legislature met to discuss the possible reconvening of the legislature ...

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SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896

LEGISLATURE PUSHES BACK DATE TO RECONVENE An adjournment resolution (Senate Concurrent Resolution 1615) passed by the legislature prior to its March 19th adjournment, calls for the legislature to return for final legislative work on April 27th. However, the resolution also allows the LCC to meet and call lawmakers back at a later date if the LCC determines “it is necessary to the security and health and safety of the pubic, legislative staff and legislators.” The LCC could potentially postpone the reconvening date to as late as May 21, the date the resolution identifies as the sine die (final day) of the 2020 legislature. Prior to the March adjournment, the legislature passed a basic budget bill for the remainder of this fiscal year, and next, which Governor Kelly signed into law. At the time the legislature adopted the budget, the state’s projected ending balance for June 30th was $927 million, and $730 million for the end of June 2021. According to a Consensus Revenue Estimating Group (CRE) report released earlier this week, following

the COVID-19 outbreak, it is now estimated that revenues to the state will decrease dramatically, leaving the state with only $200 million in the bank at the end of June 2020, and with a projected deficit of more than $600 million in June of 2021. These projected shortfalls are primarily due to decreases in individual income taxes (down $295 million), corporate income taxes (down $165 million) and sales taxes (down $110 million). When the legislature returns, it will need to make adjustments to the budget (through an omnibus bill) in response to the updated revenues report. Lawmakers may also consider the final passage of delayed legislation, and possibly new legislation in response to the pandemic and economic recovery. During the April 22nd LCC meeting, staff advisors stated that state law requires legislators to be physically in the capitol building, in open chamber, in order to take final action vote on bills. Administrative staff reported that it would be difficult to maintain 6 foot separation for legislators within House

and Senate chambers, and that other safety protocols would need implemented and followed. During the meeting, the LCC adopted a motion to postpone the reconvening of the legislature to a date to be set by the LCC at a meeting to be held on or before May 6, 2020. LEGISLATURE PASSES BUDGET FOR FISCAL YEARS ’20 AND ’21 On Thursday, March 19, following multiple rounds of conference committee meetings between the House and Senate, the legislature passed, and sent to the Governor for consideration, Conference Committee Report (CCR) on Senate Bill 66, which contains the approved state budget for fiscal years 2020 (remaining), and 2021. The budget contains appropriations for $6.4 million in funding for the State Water Plan Fund, and also contains a proviso limiting the regulatory authority of the Kansas Dept. of Health and Environment from increasing fees on industries to fund its Bureau of Air Quality. The agency had previously stated its intention Continued on Page 10

Spring 2020

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KANSAS GRAIN AND FEED ASSOCIATION

KANSAS

COVID-19 NEWS KDHE Air Permits During Statewide Stay-At-Home Order During a weekly conference call with Secretary of Agriculture Mike Beam (KDA) in April, a question was raised about annual air quality operating permits by the KS Dept. of Health and Environment (KDHE), and whether facilities could continue to operate if KDHE had not approved their annual permit due to reduced KDHE staffing from the Emergency Stay-At-Home Order. In reaching out to KDHE, we received the following response from Leo Henning, KDHE Deputy Secretary of Environment: “During this time of reduced staff, KDHE expects the regulated community to continue to implement the environmental regulations

and permit requirements to the best of their ability.” Additionally Leo provided that “KDHE will provide as much flexibility in these troubling times as possible. If a facility has difficulties implementing any of the environmental requirements that apply to its operations, they should call or notify us by email. We will do everything in our power to work through the issue with them.” Mr. Henning stated that KDHE would be following the COVID-19 Enforcement Guidance issued by the EPA.

Department of Labor Suspends Hearings Due to COVID-19 The U.S. Department of Labor has suspended all hearings until May 15, 2020 in view of the risks presented by the novel coronavirus COVID-19. An administrative order will be issued no later than May 4, 2020 on whether hearings will continue to be suspended beyond May 15, 2020. All procedural deadlines in cases currently pending are also suspended but it does

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not apply to cases not yet docketed. Until further notice email filings are encouraged. COVID-19 control efforts have resulted in reduced staffing at agency locations, and consequently have limited the ability to serve orders and decisions.

KGFA During the Pandemic MONDAY, 3-23-20 Sent letter to Governor on behalf of KGFA and all of agriculture asking that we be considered critical infrastructure under DHS guidelines should “stay at home” or “quarantine orders” be implemented. TUESDAY, 3-24-20 Governor issued executive order 20-15 overriding counties’ individual orders. As requested, DHS’s critical infrastructure definition was adopted. However, the order did leave in question on who actually had the ultimate authority – state or county. THURSDAY, 3-26-20 KGFA reported FMCSA granted waivers for CDL (medical certificates and expired licenses). FRIDAY, 3-27-20 KGFA provided employee documentation letter stating that the company is an essential business, and that the employee performs essential activities for the company. FRIDAY, 3-27-20 KGFA met with Secretary Beam and discussed, among other topics, PPE, interstate truck weights, CDL concerns, and air permit issues. SATURDAY, 3-28-20 KGFA announced Laura Kelly’s statewide order 2016, ensured that our members were held harmless, and provided updated employee letter. MONDAY, 3-30-20 KGFA shared DMV CDL appointment only locations.

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Grain and Feed Report

TUESDAY, 4-7-20 KGFA sent letters to KDOT and KDA urging assistance letter requesting they reach out to FMCSA and ask for grain, oilseeds and feed ingredients to be included in the pandemic relief effort. FRIDAY, 4-10-20 KGFA again met with KDA Secretary Beam to discuss ongoing COVID-19 efforts.


SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896

Spring 2020

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KANSAS GRAIN AND FEED ASSOCIATION

Statehouse

INSIDER

Continued from Page 7

to increase fees on Class I and Class 2 air emitters up to an additional $1.7 million in 2020. Additional proviso language extends the sunset on the underground petroleum storage tank fund; and, maintains $650,000 in the Ag Marketing Division of the Kansas Department of Agriculture that had been slated for transfer to another state agency. Fiscal year 2020 budget includes total expenditures of $18.7 billion, including $7.8 billion from the State General Fund. This is an all funds increase of $7.1 million, or less than 0.1 percent, and a State General Fund increase of $6.9 million, or 0.1 percent. Some of the highlights in the fiscal year 2020 budget include: -- $50.0 million for the coronavirus response in FY 2020. -- $15.0 million to the Kansas Division of Emergency Management for coronavirus response in FY 2020. -- Does not include the Governor’s proposed transfer of $54.0 million for the Local Ad Valorem Tax Reduction Fund. Fiscal year 2021 budget includes total expenditures of $19.9 billion, including -- $8.0 billion from the State General Fund. The recommendation is an all funds increase of $127.7 million. The FY 2021 projected ending balance is $627.8 million, or 8.0 percent of expenditures. Some of the highlights of the fiscal year 2021 budget include: Medicaid Expansion Proviso – language was added to prohibit the expansion of the Kansas Medicaid program without express consent of the Legislature. -- $17.5 million to the Coronavirus Prevention Fund of the State Finance Council if Medicaid expansion is not passed into law. -- $5 million for the Cancer Center Research Fund at the University of Kansas Medical Center, bringing the total amount in the fund to $10.0 million for FY 2021. -- $2 million from the State General Fund to the State Water Plan Fund, bringing the total transfer to $6 million for FY 2021, and $413k from the Economic Development Initiatives 10

Fund. -- $2.4 million to the Kansas Dept. of Agriculture, mostly from the State Water Plan Fund, for a variety of cost share water projects including: conservation ($250,000), Watershed conservation ($300,000), streambank stabilization ($250,000), watershed dams ($200,000), conservation reserve enhancement program ($297,699), -- Water Injection Dredging ($660,000), Dewatering in Hayesville ($200,000). -- Reduces Governor’s proposed transfer from the State Highway Fund to the State General Fund by $25 million – leaving a transfer to SGF of $133 million for FY 2021. -- Does not include the Governor’s proposed transfer of $54.0 million for the Local Ad Valorem Tax Reduction Fund. LEGISLATURE PASSES STATE TRANSPORTATION PLAN – RENAMED “EISENHOWER LEGACY” PLAN Following much debate in conference committees, on Thursday, March 19, the legislature passed, and sent to the Governor, House Sub for Senate Bill 173. Now known as the Eisenhower Legacy Transportation Program, this bill sets forth the

state’s next 10-year transportation plan. The final plan will: specify the types of projects authorized, address local funding and new and continuing grant programs, authorize alternative procurement methods under certain circumstances, increase city connecting links payments, add reporting requirements, require at least $8 million to be spent in each county through FY 2030, state 16.154 percent of sales tax shall be levied for the State Highway Fund (SHF), and make additional changes to law. In addition, the plan includes a new $15 million, 3-year, 70/30 cost-share grant program for improvements to short line rail and rail siding owned or leased industry. Kansas Grain and Feed Association, Kansas Agribusiness Retailers Association, and Renew Kansas Biofuels Association requested inclusion of this language for its member companies. BILLS PASSED, ADVANCED TO THE GOVERNOR: UNEMPLOYMENT INSURANCE BENEFITS EXTENDED House Sub for Senate Bill 27. This bill was passed by both chambers, and then

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SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896

UTILITY SECURITIZATION BILL RECEIVES HEARING Senate Bill 437. The bill would give the Kansas Corporation Commission the authority to authorize the issuance of ratepayer-backed securitized bonds in order to finance the retirement of existing generating assets in the state, as well as any replacement generation facilities necessary to replace the lost capacity and energy from the retired generation facility. The goal of the bill is lower utility rates by Kansas rate payers. A hearing on the bill was held in the Senate Utilities Committee. signed into law by Governor Kelly on Thursday, March 19. The bill extends the total number of benefit weeks for unemployment INSURANCE FOR KANSAS WORKERS, which is currently adjusted for the seasonal average unemployment rate. Kansas’ unemployment insurance system currently allows for 16 weeks of benefits at our current unemployment rate. The bill would increase the maximum benefit to 26 weeks. The bill would sunset on April 1, 2021. Kansas went through $800 million in six months during the 2008 recession. There is currently $1 billion in Kansas’ unemployment insurance fund. HIGH PERFORMANCE INCENTIVE PROGRAM AMENDMENTS On Tuesday, March 17, the Senate passed HB 2702 favorably on a vote of 39-0. The bill decouples the High Performance Incentive Program tax credit from the requirement to participate in either the Kansas Industrial Training (KIT) or Kansas Industrial Retraining (KIR) workforce training programs. The Division of the Budget states the bill would give the Department flexibility in using dollars from both the KIT and KIR programs. It is assumed that there would be an increase in those who qualify for the HPIP investment tax credit since there is no longer a training requirement and only the wage standard requirement. The Department of Commerce determines who would be qualified for the High Performance Incentive Program. The bill is advanced to the Governor for consideration. The bill was amended by the Senate Commerce Committee, and will head to conference committee.

LOCAL GOVERNMENT CONSOLIDATION BILL On Tuesday, March 17, the Senate passed House Bill 2510 favorably on a vote of 39-0. This bill would establish a procedure for a city or county to assume the powers, responsibilities, and duties of any special district located within the city’s corporate limits or county’s boundaries and dissolve such a special district if approved by a joint resolution adopted by the city or county and the special district. The bill was supported by the Kansas Grain and Feed Association, Kansas Agribusiness Retailers Association, and Renew Kansas Biofuels Association. BILLS AWAITING FINAL PASSAGE WHEN THE LEGISLATURE RECONVENES PUBLIC UTILITIES INCOME TAX EXEMPTION FOR RATE RELIEF Senate Bill 126. This bill would permanently exempt certain public utilities from paying an income tax and also exclude the utility from factoring the cost of this income tax in setting their utility rates. The purpose of the bill is to lower utility rates and make Kansas more competitive. The measure could save over 2 million Kansas residential and industrial rate payers over $40 annually in lower energy rates. The bill, which passed the Senate 40-0, awaits final action in the House Committee on Utilities. In addition, on a procedural motion, the Senate Committee on Utilities placed the contents of SB 126 into Senate Substitute for House Bill 2585, along with the contents of Senate Bill 339 concerning special contract rates for electricity.

PROPERTY TAX BILLS SB 262. This bill would change the time in which aggrieved parties may request a full and complete opinion from the State Board of Tax Appeals (BOTA) from 14 days following the receipt of a summary decision from BOTA to 21 days following service of a summary decision from BOTA. This bill passed the Senate favorably and received a hearing in the House Tax Committee. SB 263. This bill would require notice of the estimated property tax dollar amount to be stated on the property tax notice. The purpose is to increase transparency in property taxes. SB 264. This bill would allow PVD to remove persons from a list of eligible county appraisers due to termination in one or more counties and notification when person no longer holds officer of county appraiser. This bill would give PVD more authority to remove appraisers from PVD’s approved list. SB 265. This bill would require the State Board of Tax Appeals (SBOTA) to serve orders and notices via electronic means to parties and their attorneys who have requested and consented to such electronic service. This bill passed the Senate favorably and received a hearing in the House Tax Committee. SB 266. The bill would require appraisal courses for county appraisers and BOTA members to be approved by the Kansas real estate appraisal board. SB 272 would prohibit the Board of Tax Appeals (BOTA) from increasing the appraised valuation of a property to an amount greater than the final determination of the appraised value by the county appraiser. The bill would also prohibit a county appraiser from increasing the appraised value of property as the result of Continued on Page 16 Spring 2020

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KANSAS GRAIN AND FEED ASSOCIATION

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SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896

Ag Chemical Remediation Reimbursement Program The Agricultural Chemical Remediation Reimbursement Program (Program) provides financial reimbursement of expenses incurred while conducting remediation (cleanup) activities for agricultural chemical and fertilizer contamination. The Kansas Agricultural Chemical Remediation Reimbursement Fund and program are financed by fees on the commercial grain storage, ag-chemical, and fertilizer industries. The reimbursement program is administered by the Kansas Agricultural Remediation Board (KARB). In March of this year, after 19 years of service on the KARB, Board Chairman Larry Shivers stepped off of the board. Our industry is extremely appreciative of all of Larry’s leadership, hard work, and dedication in both developing this program and ensuring its success for so many years. Governor Laura Kelly appointed Kevin Dieckmann, Olathe, to fill the specialty chemical distributor seat on the Board, replacing Larry Shivers. Gov. Kelly also appointed Jodi Guetterman, Bucyrus, to fill the agricultural-producer seat on the Board. In addition, Kelly reappointed Kamyar Nikoomanesh, Lenexa, as the agricultural processor representative to the board, and also appointed him as the new Board Chairman. During the March 13, 2020 KARB board meeting, KARB reimbursed nine (9) applicants a total of $79,876. The next KARB meeting will be held on Friday, June 19, 2020. The deadline to submit applications

prior to that meeting is May 22, 2020. There is currently no back-log of applications to the fund, and applications are generally able to be reviewed for reimbursement in the quarter that they are submitted. If your facility is conducting agricultural chemical remediation activities either

ordered by the Kansas Department of Health and Environment, or agreed to under the state Voluntary Cleanup Program, please submit an application for reimbursement to the Board. The application form and information about the program are available at www.karb.org.

Spring 2020

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KANSAS GRAIN AND FEED ASSOCIATION

$1,500 WINNERS Corley Becker - Seneca Johnathan Goetting - Weir Ashley Chandler – Neodesha Elizabeth Horinek - Sublette Rachel Harman - Inman Bailey Sipes - Manter Kevin Mills - Chapman Alexis Hansen - Belleville Brenna Strecker - Minneola Kady Figge - Onaga Brody Nemecek - Iola Piper Schlatter - Hutchinson Jordan Akins - Pittsburg Jessica Jensen - Courtland $1,000 WINNERS Mackenzie Birney - Bucklin Justus Kidd - Mulvane Elizabeth Sturgis – Joplin, MO Blake Allender - Spivey Dub & Inez Johnson Memorial Kade Funston - Abilene 14

Grain and Feed Report

KGFA Announces Scholarship Winners Kansas Grain and Feed Association’s (KGFA) scholarship committee met over conference call at the association’s 124th Annual Meeting in early April and awarded more than $25,000 in scholarships to Kansas high school graduating seniors for the 2020-21 academic year. The scholarship committee, comprised of KGFA’s membership, received more than 180 applications and awarded 19 students scholarships to assist in advancing their academic endeavors. “We are very proud of the KGFA scholarship program that has helped so many people throughout the state for so many years,” KGFA’s president and CEO Ron Seeber said. “The association, its board and members take tremendous pride each spring investing in students and helping them pursue their education.” KGFA annually awards 14 scholarships worth $1,500, four scholarships worth $1,000 and administers the Dub and Inez Johnson $500 memorial scholarship fund. Students must be a graduating Kansas high school senior, a self-starter with excellent academic credentials, good school and community ccitizens and show a strong desire to continue their education. They also must be planning to attend any Kansas four-year university, community college or technical school. KGFA has assisted countless students pursue their education since 1976.

RON SEEBER KGFA President & CEO

2020-21 WINNERS

We are very proud of the KGFA scholarship program that has helped so many people throughout the state for so many years. The association, its board and members take tremendous pride each spring investing in students and helping them pursue their education.


SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896

2020 KGFA Annual Meeting - Not the Meeting We Expected, but the One We Needed Due to cancellation of the in-person 2020 Kansas Grain and Feed Association (KGFA) annual meeting over concerns with the spread of COVID-19 (coronavirus), KGFA held its 2020 annual meeting via conference call on April 13 at 9:00 a.m. CST.

Minutes from the meeting are below: Chairperson Deb Miller called the 124th KGFA Annual Meeting to order at 9:00 a.m. (cst). The KGFA annual meeting was held via conference call following an Executive Order by Governor Laura Kelly requiring Kansas residents to “stay at home,” and prohibiting groups of 10 or more people, in response to the COVID-19 pandemic of 2020. KGFA staff provided notice of the annual meeting conference call to all KGFA members, including appropriate call-in information, via electronic mail, on Monday, April 6, 2020. Miller declared a quorum of the members participating in the meeting as required by the KGFA bylaws. Miller requested a nominating report from Immediate Past Chairman Glen Hofbauer.

Hofbauer presented the nominating report and slate of candidates. The following were nominated for election to the KGFA Board of Directors for 2020: Ted Behring, Farmers Cooperative Equity, Isabel, KS James Jirak, Valley Coop, Winfield, KS Doug Biswell, Jackson Farmers Inc., Holton, KS Miller asked Seeber if there were any additional nominations, pursuant to the bylaws. There being none, a motion was made and seconded to approve the candidates, as presented. Motion passed. Miller asked if there was any new or old business to be discussed. There being none, a motion was made and seconded to conclude the business portion of the annual meeting. Motion passed. Miller gave a report on the association’s activities in 2019, including member services, the association expo, and other programs. KGFA President Ron Seeber thanked KGFA sponsors, reviewed the membership status of the association, gave a financial report, and provided an overview of KGFA activities concerning the COVID-19 pandemic. The annual meeting was adjourned at 9:20 am.

DEB MILLER KGFA Chairwoman

Chairwoman Deb Miller (Stockton Farmers Union Mercantile and Shipping Association), Nominating Committee Chair and Immediate Past Chairman Glen Hofbauer (The Scoular Company) and President and CEO Ron Seeber administered the KGFA annual business meeting obligations and provided KGFA’s annual ‘State of the Association’ report.

As members of KGFA, this annual event provides a platform to hear how the association works on your behalf. I’d like to remind you, it’s your support throughout the year that keeps our association strong. So, thank you for your membership.

Spring 2020

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KANSAS GRAIN AND FEED ASSOCIATION

Continued from Page 11 an informal meeting between the aggrieved taxpayer and the county appraiser. SB 273. This bill would allow taxpayer or their representative to attend any Board of Tax Appeals proceeding by audio or video electronic communication. SB 294. This bill would establish notice and public hearing requirements prior to approval by a governing body to exceed its certified tax rate for property tax purposes. This bill, patterned after Utah property tax law, would require local taxing jurisdictions to lower the mill levy in order to keep the budget flat if property valuations in the jurisdiction increased. The stated goals of the Utah property tax model are taxpayer protection, increased accountability to tax payers, and increased transparency in the process. The model would prohibit automatic property tax increases from increases in property valuations, as usually happens when valuations rise. The model is intended to offer a balanced approach by allowing greater transparency and more local control by allowing local governments the flexibility to pay for the services their constituents say they want. If local government requests an increased budget, they must first notify all property owners in their jurisdiction of their intent to increase the budget. Then then must hold a public meeting on the proposal, and take a public vote in order to raise the budget. SB 295. This bill would prohibit property tax valuation increases solely as the result of normal repair, replacement or maintenance of existing structure. SB 297. This bill would remove language requiring appraisals to be performed in accordance with generally accepted appraisal standards promulgated by the Appraisal Standards Board of the Appraisal Foundation, and would replace it with a requirement to comply with the Uniform Standards of Professional Appraisal Practice (USPAP). Additionally, the bill would remove a county appraiser’s authority to require compliance with additional standards and would require that if the Director requires compliance with additional standards that those additional standards do not conflict with USPAP. SB 309. Under current law, a taxpayer has the option to appeal any summary decision or full and complete opinion of the Board of Tax Appeals (BOTA) that would allow for a new trial with the district court. SB 309 16

Grain and Feed Report

would place the burden of proof on the county appraiser to initiate the production of evidence to demonstrate the validity and correctness of the property valuation or classification of residential or commercial property before an appeal de novo to the district court. Your association sought introduction of the bill and testified in support of the measure. House Bill 2517. The bill would allow a property tax abatement following a Governor-declared natural disaster when that natural disaster causes substantial or total loss to the property. Current law provides the tax abatement to residential property owners. Following a request by the Kansas Grain and Feed Association, the bill was amended to extend the tax abatement to owners of commercial property as well. The House Tax Committee passed the bill out of committee favorably. A similar bill (SB 242) passed out of the Senate Tax Committee. NET OPERATING LOSSES CARRIED FORWARD House Bill 2490. This bill would extend the net operating loss carried forward period to 20 years (currently 10 years) beginning in tax year 2018. The bill was passed by the House on a vote of 118 to 2.

NEW PESTICIDE WASTE DISPOSAL FUND House Bill 2432. This bill would establish the Kansas Pesticide Waste Disposal Program and Fund within the Kansas Department of Agriculture. The program would be funded by an annual transfer of no more than $50,000 from the Kansas Agricultural Remediation Fund. The bill passed the House on a vote of 122-0, and was later recommended favorably for passage by the Senate Agriculture Committee. KDHE CHEMICAL SPILL NOTIFICATION BILL Senate Bill 153. The bill would authorize KDHE to establish reportable threshold quantities of chemical spills in rules and regulations. The bill would also allow the agency to provide technical guidance during a clean-up response, and permit cost-recovery from the responsible party for any state expenses for response to a release. The bill would also provide KDHE the ability to levy penalties for illegal dumping, the refusal of the responsible party to clean up a release, or the lack of timely reporting of a release. Stakeholders – including, Kansas Grain and Feed Association, Kansas Agribusiness Retailers Association, and Renew Kansas Biofuels Association – worked with the agency to amend the bill to limit the effect of agriculture chemicals,


SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896

and limit the total amount of civil penalty authority. The House Agriculture Committee held a hearing on this bill which passed the Senate on a vote of 37-3. “PUBLIC LITIGATION COORDINATION ACT” House Bill 2461. This bill – requested by Kansas Attorney General Derek Schmidt – would require local units of government to coordinate with the Attorney General in order to enter into a contract for legal services on a contingency fee basis. The bill is intended to allow for the state to exercise greater control over large suits such where the state – or local units of government – are the plaintiffs, rather than allowing each subordinate unit of government to enter into independent lawsuits. The bill represents good public policy for both the state and for industry, but was opposed by the Kansas Trial Lawyers Association and various cities and counties. Your association joined other agricultural interests in supporting the bill. The bill has received a hearing in the House Judiciary Committee, and a similar bill was introduced in the Senate Judiciary Committee. POSTSECONDARY SCHOLARSHIP ACT Senate Sub House Bill 2515. This bill would create the Kansas Reinvest in Postsecondary Education Act (RISE Act), and amend the Kansas Private and Out-ofState Postsecondary Education Institution Act (KPOPEIA). The bill would also establish the Kansas RISE Scholarship Program (Program), which would be administered by the Kansas Board of Regents (KBOR). The Program would, subject to appropriations, provide a scholarship to eligible students for up to two years to attend a public or private eligible postsecondary educational institution in an associate degree program, career and technical education program, or baccalaureate degree completion program. The bill, which passed the House on a vote of 116-6, was supported by the Kansas Grain and Feed Association, Kansas Agribusiness Retailers Association, and Renew Kansas Biofuels Association. The Senate Committee on Education advanced the bill favorably for passage. VOCATIONAL TRAINING LIABILITY House Bill 2507. This bill limits a business’ exposure to liability from injury to a student participant in a school-sponsored vocational programs at the business’ worksite. The

intent of the bill is to cover students during these vocational training activities in the same manner as they would be covered during school-sponsored sports activities. The bill was supported by the Kansas Grain and Feed Association, Kansas Agribusiness Retailers Association, and Renew Kansas Biofuels Association. The bill was passed by the House 97-27, and was advanced favorably for passage from the Senate Commerce Committee. BROADBAND DEPLOYMENT GRANT PROGRAM House Bill 2618. This bill would establish the state broadband deployment grant program in the department of commerce to encourage the deployment of broadband in the state. The bill was introduced following multiple meetings of a legislative broadband task force in 2019. Funding for this costshare grant program is included in the state transportation plan. The bill had passed the House on a vote of 120-5, and was then recommended favorably for passage by the Senate Utilities Committee. AGENCY REGULATIONS House Bill 2411. This bill would roll back certain changes made by legislation passed in 2018 which amended the Rules and Regulations Filing Act to introduce a heightened scrutiny of fiscal notes on proposed agency regulations. Kansas Grain and Feed Association testified on the bill, requested certain amendments, and then worked with other stakeholders to amend the bill to ensure that the net economic impact statement on a regulation includes all new costs imposed on industry. The House Committee on Federal and State Affairs recommended the bill favorably for passage to the full House.

reimbursement maximum. Kansas Grain and Feed Association, Kansas Agribusiness Retailers Association, and Renew Kansas Biofuels Association were proponents of the bill which passed the Senate on a vote of 39-0, and was then recommended favorably for passage by the House Committee on Agriculture. MULTI-YEAR FLEX ACCOUNT FOR WATER CONSERVATION SB 270. This bill allows water rights that were certified after 2009 to be placed in multi-year flex accounts, or MYFA’s. These tools, which were initially passed in 2011, allow farmers to conserve water in wet years to be used in more dry years over a five year period. The bill passed the Senate on a vote of 39-0 and was advanced favorably for passage from the House Agriculture Committee. RESOLUTION ON RATTLESNAKE CREEK SUB-BASIN SCR 1614. This Resolution supports Kansas farmers in the Rattlesnake Creek sub-basin in their ongoing effort to protect their water rights and livelihood through a collaborative solution to the region’s water impairment issue. Multiple agricultural stakeholders testified in support of this measure, including the Kansas Grain and Feed Association, Kansas Agribusiness Retailers Association, and Renew Kansas Biofuels Association. The resolution passed the Senate on a vote of 37-0, and was advanced favorably for passage from the House Committee on Agriculture.

UNDERGROUND STORAGE TANK FUND House Substitute for SB 285. This bill, which also includes the contents of SB 286 and SB 287, would extend the existence of the UST redevelopment fund and compensation advisory board to 2032; amend the Kansas storage tank act by extending the sunset of the aboveground fund and the underground fund and increase the maximum reimbursement; and, amend the Kansas storage tank act by extending the expiration of certain reimbursement provisions to 2030 and increase the underground storage tank replacement Spring 2020

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KANSAS GRAIN AND FEED ASSOCIATION

INDUSTRYnews Agriculture Deemed Essential Critical Infrastructure by DHS

Courtesy: US Department of Homeland Security

The Department of Homeland Security (DHS) has designated agriculture essential to continued critical infrastructure viability.

The Department of Homeland Security (DHS) has designated agriculture essential to continued critical infrastructure viability. Guidance on the Essential Critical Infrastructure workforce was issued on March 19th and states “If you work in a critical infrastructure industry, as defined by the Department of Homeland Security, such as healthcare services and pharmaceutical and food supply, you have a special responsibility to maintain your normal work schedule.” Highlights include workers listed in

the sectors of Food and Agriculture, Transportation and Logistics, Critical Manufacturing and Chemical. In the wake of the coronavirus outbreak, this should allow agricultural retailers to continue operating as usual amid current and potential restrictions created to stop the spread of the virus. This designation is extremely timely for the upcoming planting season.

FMCSA Issues Waiver in Response to COVID-19 FMCSA has issued a waiver in response to COVID-19 outbreaks as several states are experiencing employee absences or have closed offices. As a result, many drivers are unable to renew their CDLs or are unable to provide medical certificates. In addition, many medical providers nationwide have canceled appointments to

dedicate resources to the COVID-19 response. As a result, drivers are unable to obtain physicals to comply with the regulations. Among the provisions, this waiver extends the expiration of CDLs due for renewal on or after March 1, 2020 until June 30, 2020. It also waives the requirement that drivers have a medical examination and

certification, provided that they have proof of a valid medical certification that expired on or after March 1, 2020. Drivers claiming relief under this waiver must carry a paper copy of their expired medical certificate.

FMCSA has issued a waiver in response to COVID-19 outbreaks as several states are experiencing employee absences or have closed offices.

Annual Report Deadline Extended

Consistent with Governor Laura Kelly’s Executive Order 20-13, the Office of the Kansas Secretary of State has extended the deadline for businesses to file annual reports for 2019.

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Grain and Feed Report

Consistent with Governor Laura Kelly’s Executive Order 20-13, the Office of the Kansas Secretary of State has extended the deadline for businesses to file annual reports for 2019. The extended deadline is now July 15, 2020. As a friendly reminder, many business filings can be made online at sos.kansas. gov. In addition to annual reports, online filings include apostille or authentication of

documents, business formation documents for corporations, LLCs and domestic limited partnerships, registered agent or registered office changes, business dissolution or cancellations, and certificate of good standing requests. You can also submit documents through the mail, by fax (785.296.4570) or at a temporary, secure drop box located outside Memorial Hall (120 S.W. 10th, Topeka).


Kansas Grain and Feed Association

SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896

2020 Elevator Maintenance Workshops May 5 - 7, 2020 Kansas Grain and Feed Association will be in Garden City, Wichita and Salina with its membership discussing elevator safety and maintenance. These day-long training courses offer practical lessons in elevator maintenance and cover everything from the basics to new technologies.

Agenda

Program to Include

May 5 - 7, 2020 8:30 a.m.

Confined Space Considerations: other than grain bins Presented by: ProValue Insurance

9:20 a.m.

Hazardous Monitoring Equipment Management Presented by: Electro-Sensors, Inc.

10:10 a.m.

Break

10:30 a.m.

Preventive Maintenance for Drag Conveyors and Bucket Elevators

Confined space considerations Concrete elevator maintenance Preventive maintenance Structural repairs Aeration Hazardous monitoring Pre-harvest maintenance

Presented by: The Essmueller Company 11:20 a.m.

Concrete Elevator Maintenance and Repair Presented by: Custom Concrete Specialists

12:10 p.m. 1:00 p.m. 1:50 p.m.

Lunch

REGISTER Elevator Safety & Maintenance DATES: May 5 - 7, 2020

PJHA or JSA, safety in not just a document, a practiced behavior

TIME: 8:30 a.m. - 3:30 p.m.

Presented by: Custom Concrete Specialists

CITIES: Garden City, Wichita,

Structural repairs without cutting or welding Presented by: Noorwood Contracting LLC

2:40 p.m. Getting Your Head Wrapped Around Pre-harvest Maintenance Presented by: McPherson Concrete Storage Systems 3:30 p.m.

IMPORTANT

Adjourn

Salina PRICE: $100 or $150

LOCATIONS Garden City - Garden City Coop, 106 N 6th Street Wichita - Sedgwick County Extension Center, 7001 W 21st St N Salina - Visit Salina Annex, 120 W Ash

Registration begins at 8:00 a.m. Cancellations must notify KGFA at least 48 hours in advance

To register, either scan the QR code above with your smartphone’s camera or enter https://www.ksgrainandfeed.org/elevator-safety-and-maintenance-workshop. If you have any questions regarding this event, call or email Samantha Tenpenny at 785.234.0461 or samantha@kansasag.org.

Spring 2020

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KANSAS GRAIN AND FEED ASSOCIATION

INDUSTRYnews

OSHA Issues New Respirator Guidance Courtesy: American Feed Industry Association

The Department of Labor’s Occupational Safety and Health Administration has issued new enforcement guidance on the use of respiratory protection equipment certified under international standards or other jurisdictions during the coronavirus disease pandemic.

OSHA’s memorandum provides additional interim guidance to compliance safety and health officers for enforcing the Respiratory Protection standard (29 CFR § 1910.134) and certain other health standards, with regard to supply shortages of disposable N95 filtering face-piece respirators (FFRs). All employers that have employees who are required to use, or are permitted to use respiratory protection voluntarily, must continue to manage their respiratory protection programs (RPPs) in accordance with the OSHA respirator standard. OSHA advises that they should also pay close attention to shortages of N95s throughout the COVID-19 pandemic and where possible, are encouraged to reassess their engineering controls, work practices and administrative controls to identify any changes they can make to decrease the need for N95 respirators. If respiratory protection must be used, and acceptable alternatives that are certified by the National Institute for Occupational Safety and Health (NIOSH) or ones that have exceeded their manufacturer’s shelf life are not available for use in accordance with OSHA’s April 3 memorandum, then employers may consider using respirators and filters certified under standards of other countries or jurisdictions. OSHA advises that all employers should: 20

Grain and Feed Report

equipment. Equipment used beyond its manufacturer’s recommended shelf life must be used in accordance with OSHA’s April 3 memorandum. •Prioritizing efforts to use equipment that has not exceeded its intended service life (e.g., disposable FFRs used for the first time) before implementing protocols for the extended use or reuse of equipment. The extended use or reuse of equipment should follow the Centers for Disease Control and Prevention’s Strategies for Optimizing the Supply of N95 Respirators. •Using homemade masks or improvised mouth and nose covers only, as a last resort (i.e., when no respirators or facemasks •Make a good-faith effort to provide are available). Improvised masks are not workers with the most appropriate personal protective equipment and ideally respiratory protection available for the should be used with a face shield to cover hazards against which they need to be the front and sides of the face. When this protected. This should be accomplished in measure is the only resort, refer to the CDC’s this order: • Implementing the hierarchy of controls guidance. •Ensure employees know how to in an effort to first eliminate or reduce perform a user seal check each time they workplace hazards, then using engineering wear a respirator, regardless of whether it is controls, administrative controls and safe a NIOSH-certified device or device certified workplace practices to prevent worker under standards of other countries or exposures to respiratory hazards. jurisdictions. Do not allow employees to use •Prioritizing efforts to acquire and use a respirator on which they cannot perform equipment in the following order: a successful user seal check (See 29 CFR § •NIOSH-certified equipment; •Equipment certified in accordance with 1910.134, Appendix B-1, User Seal Check Procedures). standards of other countries or jurisdictions, except the People’s Republic of China, unless •Train workers on how to visually inspect FFRs to determine if the structural or equipment certified in accordance with the functional integrity of the respirator has been standards of the People’s Republic of China compromised. Over time, components, such is manufactured by a NIOSH certificate as the straps, nose bridge and nose foam holder; material, may degrade, which can affect •Equipment certified in accordance the quality of the fit and seal. Workers must with the standards of the People’s Republic understand that if the structural or functional of China, the manufacturer of which is not a integrity of any part of the respirator is NIOSH certificate holder; and compromised, to protect their health and •Facemasks (e.g., medical masks, safety, it should be discarded. procedure masks). Train employees on the procedures for the •Prioritizing efforts to acquire and sequence of donning/doffing to prevent selfuse equipment that has not exceeded its contamination. manufacturer’s recommended shelf life before allowing workers to use expired


SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896

INDUSTRYnews

DOT Provides Guidance on Compliance with Drug & Alcohol Testing Regulations DOT recognizes that we are facing an unprecedented public health emergency that is straining medical resources and altering aspects of American life, including the workplace. During this time compliance may not be possible in certain areas such as drug and alcohol testing requirements due to the unavailability of program resources. You should make a reasonable effort to locate the necessary resources. As a best practice at this time, employers should consider mobile collection services for required testing if the fixed-site collection facilities are not available. If you are unable to conduct DOT drug or alcohol training or testing due to COVID19-related supply shortages, facility closures or imposed quarantine requirements, you should document why a test was not completed. If training or testing can be conducted later (e.g., supervisor reasonable suspicion training at the next available

opportunity, random testing later in the selection period, follow-up testing later in the month), you are to do so in accordance with the applicable regulations. For example, without a “negative” pre-employment drug test result, an employer may not permit a prospective or current employee to perform any DOT safety-sensitive functions. Additionally, DOT is aware that some employees have expressed concern about potential public health risks associated with the collection and testing processes. It is the employer’s responsibility to evaluate the circumstances of the employee’s refusal to test and determine whether or not it should be considered a refusal. However, as the COVID-19 outbreak poses a novel public health risk, DOT asks employers to be sensitive to employees who indicate they are not comfortable or are afraid to go to clinics or collection sites.

DOT recognizes that we are facing an unprecedented public health emergency that is straining medical resources and altering aspects of American life, including the workplace. Source: Asmark Institute

OSHA Releases Guidance Determining COVID-19 as a Recordable Illness Courtesy: American Feed Industry Association

On April 10, the Occupational Safety and Health Administration issued an enforcement guidance with details on how employers should record occupational illnesses, specifically cases of the COVID-19. In areas where there is ongoing community transmission, employers – other than those in the healthcare industry, emergency response organizations and correctional institutions – may have difficulty determining whether workers contracted COVID-19 due to exposures at work. In light of those difficulties, OSHA is exercising enforcement discretion in order to provide certainty to the regulated community. OSHA has determined that under its recordkeeping requirements in 29 CFR

§ 1904.5, COVID-19 is a recordable illness and employers are responsible for recording cases of the disease, if: the case is a confirmed case of COVID-19, as defined by the Centers for Disease Control and Prevention; the case is work-related, as defined by 29 CFR § 1904.5; and the case involves one or more of the general recording criteria set forth in 29 CFR § 1904.7. The American Feed Industry Association expects that it will be difficult for companies to determine whether a case of COVID-19 is work-related as defined by 29 CFR § 1904.5. However, until further notice, OSHA will not enforce 29 CFR § 1904 to require other employers to make the same workrelated determinations, except where: • There is objective evidence that a COVID-19 case may be work-related. This could include, for example, a number of cases developing among workers who work closely together without an alternative explanation; and • The evidence was reasonably available to the employer. For purposes of this memorandum, examples of “reasonably available evidence” include information

given to the employer by employees, as well as information that an employer learns regarding its employees’ health and safety in the ordinary course of managing its business and employees. This enforcement policy should help employers focus their response efforts on implementing good hygiene practices in their workplaces and otherwise mitigating COVID-19’s effects, rather than on making difficult work-related decisions in circumstances where there is community transmission. If it is determined that a case is work-related, COVID-19 is a respiratory illness and should be coded as such on the OSHA Form 300. Because this is an illness, if an employee voluntarily requests that his or her name not be entered on the log, the employer must comply as specified under 29 CFR § 1904.29(b)(7)(vi). This memorandum will take effect immediately and remain in effect until further notice. This guidance is intended to be timelimited to the current public health crisis. Visit OSHA’s webpage frequently for updates.

Spring 2020

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KANSAS GRAIN AND FEED ASSOCIATION

INDUSTRYnews

KGFA to Stands Up with NGFA for Grain Safety Week April 13-17 Kansas Grain and Feed Association worked with National Grain and Feed Association and the Occupational Safety and Health Administration (OSHA) to publicize a major safety outreach effort – the “Stand Up for Grain Safety Week” – from April 13-17, 2020, to help raise awareness about grain handling and storage hazards and ways to prevent them, provide education and training, and convey safety best practices. Throughout the week, members may participate by providing a focused activity and/or toolbox talk for employees on any hazard-prevention measure. Featured topics that NGFA and its safety partners — the Grain Elevator and Processing Society (GEAPS) and the Grain Handling Safety Council (GHSC) — will highlight throughout the week include: Preventive maintenance; machine/conveyor guarding; grain bin entry; and slips, trips and falls. “As an association, we always look to create training programs emphasizing safety for our membership and the public in general,” President and CEO Ron Seeber said. “If we can distribute information and assist our members in staying on top of the latest technologies and methods to maintain a safe workplace, we’re doing our job.” This year’s event also will be supplemented with safety-related information to protect employees during the COVID-19 22

Grain and Feed Report

pandemic, including a new NGFA Safety Tips Sheet and other resources that can be found on ngfa.org/covid-19. “As the food and agricultural industry continues to work to provide essential human and animal food during the pandemic — during which grain, feed and processing facility employees have been deemed part of the nation’s ‘critical essential infrastructure’ — it may be more important than ever to bring awareness and practicability to best safety practices for grain handlers to maintain and protect our robust workforce,” said NGFA Vice President of Safety and Regulatory Affairs Jess McCluer in an April 8 press release. “We encourage all companies to participate in this effort and show their continued commitment to the health and safety of their employees.” The campaign is hosted under the auspices of the NGFA-OSHA Alliance. The NGFA has several resources, including Safety Tip Sheets, guidance documents and training videos, for companies wishing to become involved in the campaign on ngfa.org/safety.

THE RESOURCES Monday, April 13 Stand Up Week Kickoff Tuesday, April 14 Preventive Maintenance Wednesday, April 15 Machine/Conveyor Guarding Thursday, April 16 Grain Bin Entry Friday, April 17 Slips, Trips, Falls

To view the resources from NGFA’s Stand Up for Grain Safety Week, point your smartphone’s camera at the QR code below.


SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896

INDUSTRYnews

Courtesy: commons.wikimedia.org/MichaelKranewitter

USDA Announces Coronavirus Food Assistance Program

SONNY PERDUE USDA Secretary

The American food supply chain had to adapt, and it remains safe, secure, and strong, and we all know that starts with America’s farmers and ranchers. This program will not only provide immediate relief for our farmers and ranchers, but it will also allow for the purchase and distribution of our agricultural abundance to help our fellow Americans in need.

U.S. Secretary of Agriculture Sonny Perdue today announced the Coronavirus Food Assistance Program (CFAP). This new U.S. Department of Agriculture (USDA) program will take several actions to assist farmers, ranchers, and consumers in response to the COVID-19 national emergency. President Trump directed USDA to craft this $19 billion immediate relief program to provide critical support to our farmers and ranchers, maintain the integrity of our food supply chain, and ensure every American continues to receive and have access to the food they need. CFAP will use the funding and authorities provided in the Coronavirus Aid, Relief, and Economic Security Act (CARES), the Families First Coronavirus Response Act (FFCRA), and other USDA existing authorities. The program includes two major elements to achieve these goals. Direct Support to Farmers and Ranchers: The program will provide $16 billion in direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted and will assist producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19. USDA Purchase and Distribution: USDA will partner with regional and local

distributors, whose workforce has been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat. We will begin with the procurement of an estimated $100 million per month in fresh fruits and vegetables, $100 million per month in a variety of dairy products, and $100 million per month in meat products. The distributors and wholesalers will then provide a preapproved box of fresh produce, dairy, and meat products to food banks, community and faith based organizations, and other nonprofits serving Americans in need. USDA has up to an additional $873.3 million available in Section 32 funding to purchase a variety of agricultural products for distribution to food banks. The use of these funds will be determined by industry requests, USDA agricultural market analysis, and food bank needs. The FFCRA and CARES Act provided at least $850 million for food bank administrative costs and USDA food purchases, of which a minimum of $600 million will be designated for food purchases. The use of these funds will be determined by food bank need and product availability.

Spring 2020

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KANSAS GRAIN AND FEED ASSOCIATION

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

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Kansas Grain and Feed Report - Spring 2020  

2020 Kansas Grain and Feed Association spring newsletter

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2020 Kansas Grain and Feed Association spring newsletter

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