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The Kansas

Spring 2013

AGRIBUSINESS UPDATE

The official publication of the Kansas Agribusiness Retailers Association

Thank you, 2013 Sponsors Check out the new “Member Spotlight” Save the dates for summer training programs Update on HOS federal exemption

Spring 2013

THE KANSAS AGRIBUSINESS UPDATE

K S A G R E T A I L E R S . O R G


CONTENTS A big thank you to KARA sponsors...3 Crop Production Update brings agronomists to Junction City...4 NH3 Workshops train over 350 KARA members...4 KSU Field Day grows attendance...4 Kansas Applicator Institute announces second annual program...4

President & CEO Tom R. Tunnell Senior VP, Government Affairs Ron Seeber Senior VP and Chief Financial Officer Stephanie Jensen

Become a CCA...5

Vice President and General Counsel Randy Stookey

Scholarship recipients chosen on April 15...5 Staff discusses issues with Attorney General...5 Officers take lobbying trip to Washington...5 KARA participates in Kansas Ag Week...6 TFI and ARA join other agricultural groups in Legal Brief filing...6

Vice President of Event Planning Shari Bennett VP of Member Services & External Operations Sarah Sexton-Bowser

ACRC seeks qualified container recycling service provider...7

VP of Marketing & Communications Shahira Stafford

Survey on nutrient stewardship efforts - your feedback is appreciated...7

Senior Director of Internal Operations Lisa Anschutz

Update on federal hours of service (HOS) exemption regulations...7 TAL class gets behind the scenes look at Kansas politics...8 Industry takes message to lawmakers during Legislative Action Day...8 Agribusiness Update adds “Member Spotlight”...9 Trade Talk...9 Tax deduction on 2012 KARA dues...10 KARA welcomes new members...10 Still time to sell excess fleet and plant equipment before the busy season...10 MFA looking for Account Manager….10

Executive Assistant to the President Julie Stueve

The Kansas Agribusiness Update is published quarterly for the members, friends and affiliates of the Kansas Agribusiness Retailers Association. Mail contributions to KARA, Attention: Shahira Stafford, 816 SW Tyler, Topeka, KS 66612. The KARA team welcomes your comments, contributions and suggestions. Annual subscriptions for members can be purchased for $25.00. © 2011 KARA Read this newsletter online at www.ksagretailers.org/printnewsletters.

Keep your membership profile current...10 Free membership to new retailers...10 Are you taking full advantage of your KARA membership?...11

........................................................................ To follow us on Facebook, search for KARA. For Twitter, visit www.twitter.com/ ksagretailers.

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2013 SPONSORSHIP PROGRAM

A big thank you to KARA sponsors The 2013 Sponsorship Program has taken off with huge success. As previously reported, KARA launched a new sponsorship program that offers companies the opportunity to budget their sponsorship annually, while providing greater recognition and access to the industry. Sponsors will be featured on event signage and promotional materials at various events, as well as on the website. We hope that by increasing your exposure and company presence in Kansas, you are able to stretch the value of your sponsorship dollars within the agribusiness industry. Thank you to every company that has stepped up to “grow their pledge” to the association and become one of KARA’s sponsors and treasured partners.

Underwriter $15,000+ KFSA Founders $7,000 BASF Helena Chemical Co. Patrons $3,000 Bayer CropScience CHS Inc. CoBank ACB Coffeyville Resources CPS Central Plains Wholesale Dow AgroSciences Heartland Ag Lang Diesel Inc. Monsanto Morrill Elevator Inc. SFP Syngenta United Suppliers

Builders $1,500 Allied Environmental Consultants DuPont Crop Protection FMC Frisbie Construction Co., Inc. J.B. Pearl Sales Rosen's Inc. Winfield Solutions LLC Donors $500 Agrilead Inc. Andale Farmers Coop Farmers Coop Elevator Co. Farmers Coop Equity Farmers Coop Grain Assn. Farmway Coop Inc. J.R. Simplot Kansas Coop Council Leavenworth County Coop Assn. Nachurs Alpine Solutions Offerle Coop Grain & Supply Co. Riggins R-Co. LLC. United Farmers Coop

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TRAINING, EDUCATION

Crop Production Update brings agronomists to Junction City Over 115 agronomists gathered in Junction City in January to gain more than just continuing education hours. Attendees were updated on issues ranging from pest control to new production methods. A special thanks to Dr. Dorivar Ruiz Diaz for coordinating the speakers and topics.

Assn., Farmway Coop Inc., J.R. Simplot, Kansas Coop Council, Leavenworth County Coop Assn., NACHURS ALPINE SOLUTIONS, Offerle Coop Grain & Supply Co., Riggins R-Co. LLC. and United Farmers Coop.

Gary Cless, Fairbank Equipment, was an instructor at KARA’s NH3 Workshops. Dr. Peter Tomlinson talks about the latest in crop production practices at KARA’s Crop Production Update in Junction City.

NH3 Workshops train over 350 KARA members The Kansas Agribusiness Retailers Association trained over 350 individuals last week on the basics of NH3 properties and plant design, regulatory laws and safety essentials. A special thanks to Gary Cless of Fairbank Equipment, John Ricker of KFSA, Rick Wiedmann of Kansas Department of Agriculture and the Kansas Corporation Commission for their contribution of time and expertise. KARA wishes all members a great application season with safety as the first priority.

KSU Field Day grows program KSU Field Day is a partnership between KARA and KSU Research and Extension. This partnership yields a successful, two day program that highlights the latest KSU research. Due to growing numbers and KARA and KSU’s commitment to keeping KSU Field Day an interactive program, two KSU Field Day sessions will be offered this year. The same program, times and speakers will be featured twice- once on July 9-10 and again on July 11-12. It is essential that program attendees pre-register for their preferred day, as registration will be capped at 100 attendees per session.

Join KARA for this exciting program either on July 9 NH3 Training is made possible through the following -10 or July 11-12. Visit www.ksagretailers.org or see 2013 Growing your Commitment Sponsors: KFSA, the enclosed form to register. BASF, Helena Chemical Co., Bayer CropScience, CHS Inc., CoBank ACB, Coffeyville Resources, CPS Kansas Applicator Institute announces Central Plains Wholesale, Dow AgroSciences, Heart- second annual program land Ag, Lang Diesel Inc., Morrill Elevator Inc., SFP, KARA encourages you to mark your calendar for the second annual Kansas Applicator Institute. Plan on Syngenta, United Suppliers, Allied Environmental being in Hutchinson at the Kansas State Fairgrounds Consultants Inc., DuPont Crop Protection, FMC, Frisbie Construction Co., Inc.. J.B. Pearl Sales, Mon- on August 7-8. Interested in exhibiting? Email santo, Rosen's Inc., Winfield Solutions LLC, Agrilead sarah@kansasag.org for more information. Inc., Andale Farmers Coop, Farmers Coop Elevator Co., Farmers Coop Equity, Farmers Coop Grain

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ASSOCIATION NEWS

Become a CCA Do you work with producers on their crop production decisions? Are you actively involved in agronomic agriculture? Join hundreds of others by becoming a Certified Crop Adviser. Certification programs from the American Society of Agronomy and Soil Science Society of America are the benchmark of professionalism. Farmers and employers prefer to work with Certified Crop Advisers (CCA) because CCAs have demonstrated they have the commitment, education, expertise, and experience to make a difference. To learn more, please call (785) 234-0463 or email sarah@kansasag.org.

(l-r) KGFA VP & General Counsel Randy Stookey, AG Legislative Liaison Willie Prescott, KGFA President Tom Tunnell, Attorney General Derek Schmidt, KGFA Senior VP Ron Seeber.

Scholarship recipients chosen on April 15 KARA received 33 scholarship applications from students across Kansas hoping to receive one of the association’s $1,000 scholarships for the 2013-2014 school year. The KARA Scholarship Committee will meet on April 15 to choose the winners, and announcements will be made shortly thereafter.

Officers take lobbying trip to Washington KARA officers traveled to Washington D.C. in February, along with officers from the Kansas Grain and Feed Association (KGFA) to lobby Kansas delegates and regulatory agencies on issues vital to agribusiness.

Each year, KARA awards $4,500 in scholarships to high school students wanting to pursue an education in Kansas. Five scholarships are offered: one Jim Lee $500 Memorial Scholarship, three KARA $1,000 Scholarships, and one $1,000 Dr. David Whitney Agronomy Scholarship.

They held one-on-one meetings with Congressmen Kevin Yoder, Mike Pompeo and Tim Huelskamp, Congresswoman Lynn Jenkins, and Senators Pat Roberts and Jerry Moran. The group also received briefs from the Agricultural Retailers Association and The Fertilizer Institute on a number of federal issues, as well as tour of the U.S. Capitol Building.

Staff discusses issues with Attorney General KARA staff had an opportunity to meet with Kansas Attorney General Derek Schmidt to discuss pending agriculture-related issues, such as the Kansas Department of Agriculture’s intent to repeal the anhydrous ammonia fertilizer bulk storage containment laws and regulations, and the department’s intent to create a new state registry for all large scales in Kansas and assess an annual registration fee. Additionally, association staff requested that the Attorney General help expedite the review of regulations which adopt new federal hours-of-service exemptions for the agricultural industry. By statute, all regulations must be reviewed and approved by the Attorney General’s office.

KARA & KGFA officers and staff meet with Congresswoman Lynn Jenkins in her Washington D.C. office.

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INDUSTRY NEWS

KARA participates in Kansas Ag Week In recognition of the state’s largest industry, Kansas Governor Sam Brownback declared March 12-19 Kansas Agriculture Week, and KARA was proud to be a sponsor of the celebration.

and in support of the Environmental Protection Agency (EPA) strategy to deny the GRN petition. In addition, 13 states also intervened in support of our position. The intervention of these 13 states, which came about through the encouragement of TFI, our members and other stake holders, sends a critical The Kansas Department of Agriculture (KDA), along message to EPA that the states will not tolerate fedwith help from the agricultural community, Dillon’s eral preemption of their water quality standards. Food Stores, and several local food banks, planned a By way of background, TFI’s strategy on the issue of number of activities for Kansas Agriculture Week. One event that was highlighted was the Neighbor to EPA’s goal to set strict numeric nutrient criteria Neighbor statewide food drive, which ran from Feb- (NNC) is three-fold. First, we are challenging this from both a scientific and regulatory perspective; as ruary 18 to March 19 and raised 58,000 meals for Kansas families in need. Another featured event was the science does not support rigid numeric limits given the unique nature of nutrients. Nutrients, unlike a “Dialogue on Kansas Agriculture,” which took place on Kansas Agriculture Day, Tuesday, March 19 other pollutants, are integral and necessary within any watershed system and cannot be treated like tradiat the Kansas State Capitol. The dialogue brought together thought-leaders in the agricultural sector to tional pollutants (where the closer to zero you get, the better). Second, we have successfully litigated discuss the hot topics of the day. precedent-setting cases, such as Florida, by challenging both the science and legality of EPA’s actions. Finally, we are aggressively advancing 4R nutrient stewardship as the voluntary pathway to achieve greater nutrient use efficiency at the field level.

Secretary of Agriculture helps package meals during the launch of the Neighbor to Neighbor statewide food drive to celebrate Kansas Agriculture Week.

TFI and ARA join other agricultural groups in Legal Brief filing The following memo was sent from The Fertilizer Institute to state associations on March 7: On March 5, The Fertilizer Institute (TFI), the American Farm Bureau Federation (AFBF), the National Pork Producers Council (NPPC), Agricultural Retailers Association (ARA), and the National Corn Growers Association (NCGA), submitted a joint memorandum as intervenors in opposition to the Gulf Restoration Network (GRN), et al (plaintiffs)

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The GRN lawsuit petitions EPA to develop NNC in the Mississippi River Basin (MRB). In our brief, we argue the EPA acted reasonably by denying the plaintiffs petition to set multi-state NNC. Specifically we argue the plaintiffs failed to show the necessity of EPA setting a multi-state NNC; that the Clean Water Act (CWA) specifically gives deference to the states in setting water quality standards; and the plaintiffs failed to show that the states in the MRB are failing to improve water quality standards. In addition, the brief argues that not only does EPA not have a scientifically robust system to set such standards; but also that the legal underpinnings are questionable. The brief argues that EPA was correct to deny the plaintiffs petition based on 40 years of CWA precedent. The authority to set water quality standards lies almost exclusively with the states. We believe the states know their watersheds and their issues better than the EPA. We support EPA’s position that they are better served to provide technical support to states as they implement their own water quality standards.


If you know of any person/organization interested in providing the required services in one, some, or all of the Midwest states, please call 877 952-2272 or e-mail rperkins@acrecycle.org. SOQs are due no later than April 26, 2013. Survey on nutrient stewardship efforts your feedback is appreciated Five organizations have partnered to create an online survey that asks about the important work you and your employees do with nutrient stewardship. The sponsoring organizations include the National Council of Farmer Cooperatives, the Agricultural Retailers Association, the National Association of Conservation Districts, the American Society of Agronomy (Certified Crop Advisors), and The Fertilizer Institute. Information from this survey will be used by the sponsoring organizations to develop strategies that will make you more effective in accelerating the adoption of nutrient stewardship practices with your customers – the farmer.

INDUSTRY NEWS

ACRC seeks qualified container recycling service provider The Ag Container Recycling Council (ACRC) would like to identify any and all qualified companies interested in providing pesticide container recycling services for the period 2014-2016 in a manner that benefits both the ACRC and all program participants. To that end, the ACRC is issuing a Request for Statements of Qualifications (SOQ) from qualified companies with interest in providing pesticide container recycling services in the fifteen states currently defined as the ACRC Midwest service area beginning January 1, 2014.

every question. Your responses will be confidential and the results will be aggregated and shared with you by one of the sponsoring organizations. Go to https://www.surveymonkey.com/s/ agretailersfeedback to take the survey. The deadline is April 19, 2013. Update on federal hours of service (HOS) exemption regulations Last October, two new statutory exemptions to the federal hours-of-service (HOS) rules became effective under Sections 323101 and 32934 of the moving ahead for progress in the 21st century act (MAP-21). Section 32101 provided an exemption from HOS regulations for certain carriers transporting agricultural commodities and farm supplies. Section 32934 provided a statutory exemption from most federal regulations for the operation of covered farm vehicles by farm and ranch operators. Note: a previous 2-year exemption from federal HOS regulations for carriers transporting anhydrous ammonia will not be renewed, as it is now substantively included under Section 32101. Association staff notified the Kansas Corporation Commission (KCC) at the time and petitioned the KCC to amend its regulations to reflect the new HOS exemptions under MAP-21. On Thursday, March 14, 2013, the FMCSA, under the federal department of transportation, published a final rule in the Federal Register amending the federal regulations to reflect the new, broader, HOS exemptions under MAP-21. Adoption of this final rule allows states to amend their own regulations to reflect the federal HOS exemptions under MAP-21.

Association staff was recently notified that the Kansas Attorney General's office has approved all but two of the KCC regulations concerning the MAP-21 HOS exemptions, and that this stage in the process is nearing completion. Once all of the regulations are approved, the regulations will be published in the Kansas Register for a 60-day public comment period and a public hearing. Please note that all currently existing KCC regulations concerning HOS exemptions remain in effect until the new KCC regulations The survey will take no more than 20 minutes and the deadline is April 19th. Although it's not necessary are passed. to respond to questions where you feel you have limited knowledge, please make an effort to respond to It is intended that the survey be taken by a representative from individual facilities. If your organization is a cooperative or has multiple facilities, please distribute this survey request to each facility or cooperative member. Because of some membership overlap between the sponsoring organizations, you may receive this request more than once. You only need to respond to one of the request.

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LEGISLATIVE EVENTS

TAL class gets behind the scenes look at Kansas politics The 2013 Tomorrow’s Agribusiness Leaders class traveled to Topeka for two days in January and completed session I. During which, the class enjoyed a detailed policy briefing from association lobbyists, a private lunch with Attorney General Derek Schmidt, breakfast with Kansas Department of Agriculture’s Chief Counsel Kim Christiansen, and a meeting Associated Press Bureau Chief John Hanna. Industry takes message to lawmakers during Legislative Action Day In January, members of KARA, Kansas Grain and Feed Association and Kansas Cooperative Council came to the capitol city to learn about the issues being debated at the Statehouse that will directly affect their industry. Members personally visited with their legislators at the Capitol Building and spread the industry’s message on key agribusiness issues. Several also had the chance to see first-hand how the committee process and Senate floor debate works in Kansas. The event concluded with a dinner reception at the Topeka Country Club where over 150 legislators and members were in attendance. See photos from both events below...

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MEMBER SPOTLIGHT

Agribusiness Update adds “Member Spotlight” Beginning this year, the Agribusiness Update will be featuring a new member in each issue. Let’s get to know each other better and share in each other’s industry successes. Thank you to Steve for answering the first call; but beware, you may be next! Name: Steve Taylor Age: 49 Title: Vice President Company: Fairbank Equipment in Wichita, Kansas Been in business since: 1987 Company specializes in: Fairbank Equipment specializes in old fashioned customer satisfaction in a modern environment. Fairbank Equipment offers everything for the ag retailer: Plant automation, Hagie Self Propelled Sprayers, Dry Fertilizer Blenders, Tenders and Spreaders as well as Ammonia Equipment and Parts.

Steve Taylor, Vice President, Fairbank Equipment.

Something unique about your company: Fairbank Equipment is unique in that we have many long term employees dedicated to providing our customers with the products, knowledge and support to enhance their bottom line. Our people and their relationships with our customers set us apart. How did you get started in the agribusiness industry: I’ve been in the industry since 1987 when I first began working for Fairbank Equipment, Inc. Where do you consider your “hometown” or where you grew up: Wichita, Kansas What KARA services are the most valuable to you: KARA provides us the opportunity for our company to have a positive impact in Kansas Agriculture. Through our participation and support in the TAL Program, scholarships, safety schools and the EXPO, we get great satisfaction in giving back to our industry. Trade Talk If you have a short business announcement you’d like included in the newsletter, email shahira@kansasag.org. Alan Goldsby has accepted a position with CHS in Minneapolis, MN. KARA is thankful for Alan’s years of service on the Board of Directors and wishes him the best in his new endeavors. Jon Ingebretson has accepted a new position with CHS in Overland Park as Account Manager for the Southern Plains Region. Congratulations to KARA VP of Member Services, Sarah Sexton-Bowser, and her husband Jarrod, for being runners-up in American Farm Bureau’s national Excellence in Ag competition.

Congratulations to KGFA’s own Sarah Sexton-Bowser and her husband Jarrod for being named runners-up in Farm Bureau’s national Excellence in Ag competition.

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INFO CORNER

Note: Tax deduction for 2012 KARA dues The percentage of KARA dues that are not used by the organization for advocacy efforts may be a tax deduction for member companies.

MFA looking for Account Manager MFA Incorporated has an immediate opening for an Account Manager in their Plant Foods division. This position will maintain and increase sales of all MFA plant food products to new and established dealers in KARA has calculated that 14 percent of the dues paid Kansas and SE Nebraska. In addition, this person was used for the purpose of lobbying and is not de- will: ductible as a business expense. The calculation by KARA's auditor means that 86 percent of the dues  Coordinate sales pricing and marketing guidance paid by member organizations is used for purposes with Plant Foods staff. other than strict lobbying expense and may be tax  Research market for new opportunities: new cusdeductible. KARA recommends that members contomers, LLC’s, source points, carriers, etc. sult with their tax advisers regarding this deduction.  Provide the MFA Procurement Manager with market intelligence that will help with procureKARA welcomes new members ment of product and enhance marketing. Thanks to the reputation of our membership and industry, KARA continues to grow and provide useful products and Qualified applicants will have a BS degree or miniservices for agribusinesses in Kansas. Please welcome these com- mum two years marketing/sales experience within panies to KARA: the fertilizer industry. A general knowledge of feed, animal health, seed, farm supply and crop protection Sioux Steel Company, Sioux Falls, SD areas is required. Must have good leadership abilities, Top Ag Inc., Colby be able to communicate/listen effectively, make deciTripple C Feed, Colby sions without procrastinating, have sense of urgency, and be able to think outside the box. Send a resume and salary requirements to MFA Incorporated, 201 Still time to sell excess fleet and plant Ray Young Dr., Columbia, MO 65201 or email to equipment before the busy season Spring is the time to finish your off-season fleet asset birish@mfa-inc.com or apply online at www.mfainc.com. EOE/M/F/D/V sales. KARA is proud to support Purple Wave, a Kansas-based full service fleet remarketing company. Keep your membership profile current Did you move or take a new job? Have a new phone Whether you are looking to sell application equipment, rolling stock or tender fleet, Purple Wave can number or email address? KARA wants to know, and help. Just ask other association members such as An- we’ve made it easy to update your member profile. Visit www.ksagretailers.org and click on Member Didale Farmers Coop, Farmway Coop or Mid Kansas rectory. From there, enter your login information and Coop about their experience with Purple Wave. make your changes directly online. Forgot your username or password? Email lisa@kansasag.org, and Upcoming Ag Equipment Auctions: we’ll get it to you. April 10 - Bidding starts to close at 10 a.m. April 24 - Bidding starts to close at 10 a.m. Free membership to new retailers Purple Wave, the largest no-reserve Internet auction If you are a member of KARA, hopefully you are firm in the country, is transforming the way sellers aware of the value of your membership dues. For reach buyers to turn assets into cash. Established in those non-member retail companies across the state, 2000 and headquartered in Manhattan, Kan., Purple we’re offering to pay your dues for one year, so you Wave specializes in liquidating equipment and vehi- can see what you’re missing. This is for “retail” memcles through no-reserve public Internet auctions — bers only that have never joined the association. providing the easiest and most straightforward way to sell used equipment quickly and efficiently. For more information, visit purplewave.com.

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Are you taking full advantage of your KARA membership? A comprehensive hospital and medical, group life, dental, salary continuation, accidental death and a property/casualty program are offered through KFSA at a rate which is considerably less than could be enjoyed by an individual firm. Exclusively through KARA, you can have your employee benefit programs customized and tailored to meet your budget and needs through Harrington Health. Whether it is COBRA, HIPAA, FMLA, FSA, Harrington Health has the answers. Regulatory compliance can be a timely and expensive part of your business operations. As a member of KARA, you are eligible to take advantage of the Asmark Institute's program and products that will help you navigate the regulatory maze. Does your company need new apparel? Looking for appreciation gift ideas for your customers? Get 10% off Cabela's merchandise and 5% off Cabela's gift cards just for being a KARA member. Turn waiting callers into customers. AMS On Hold Solutions is giving KARA members a 25% discount on monthly rates. Promote specials, decrease caller agitation, reduce hang-ups and enhance your company's image for only $75/month. A 30-day trial is also available. KARA and Purple Wave are working together to provide members with the best resource to liquidate your unused assets through an online auction service. Purple Wave will make a donation to KARA every time a member utilizes their services.

Spring 2013

Chairman Doug Wright Mid-Kansas Coop, Moundridge Vice Chairman Mike Shirley SFP, Oakley Second Vice Chairman Kevin Brady Lang Diesel Inc., Benton Immediate Past Chairman Randy Whisenhunt Ag Service Inc., Hillsboro Directors Scott Anderson KFSA, Hutchinson Bill Conrey Koch Nitrogen Co., Wichita Roger Cunningham Beachner Grain, Parsons Kevin Dieckmann United Suppliers, Olathe Alan Goldsby CHS Crop Nutrients, Hillsboro Jon Ingebretson CHS, Overland Park Kirk Kennedy Valley Coop Inc., Atlanta Dustin Kuntz Harveyville Seed, Harveyville Roger Long Rosen's Inc., Great Bend Lance Nelson Farmers Coop Co., Haviland Brian Norton Syngenta Crop Protection, Girard Clark Pearson Miller Elevator Inc., Reading Johnny Schaben Golden Valley Coop, Rozel Larry Shivers Specialty Fertilizer Products, Salina Andy Smarsh Helena Chemical, Garden City Steve Taylor Fairbank Equipment Inc., Wichita Kevin Tomka Dow AgroSciences, Overland Park Tommy Warner CPS, Garden City Dave Wilcox Farmway Coop, Beloit Craig Zwick B.Z. Bee, Lyons

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Agribusiness Update, Spring 2013