2019 Kansas Agribusiness Update - Summer

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Summer 2019 Kansas Agribusiness Retailers Association 816 SW Tyler Topeka, KS 66612 (785) 234-0463 ksagretailers.org ASSOCIATION STAFF Ron Seeber President & CEO Randy Stookey Senior Vice President General Counsel Staci Storey Senior Vice President Chief Financial Officer Shari Bennett Vice President Event Planning Samantha Tenpenny Director of Member Services Lisa Anschutz Senior Director of Internal Operations Trae Green Director of Communications Sidney Storey Administrative Assistant


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President’s Letter Mapping Our Association’s Future Industry News Updates on Issues Affecting You TAL Class Marches on Capitol Hill 22nd Class visited D.C., and Finished Third Session Registration Made Easy 1A Recertification, Expo and Crop Production Update

BOARD OF DIRECTORS Lance Nelson Chairman Dustin Kuntz Vice Chairman Kevin Dieckmann 2nd Vice Chairman Clark Pearson Immediate Past Chairman Gary Beachner Bryan Bucl Troy Coon Yance Farney Justin Foss Bryan French Bill Garner Tim Giesick Jim Grilliot Jeff Holling

Rachel Hurley Brian Laverentz Jami Loecker Kevin Mears Scott Morris O.J. Pearl Dave Spears Mark Wegner

Editors: KARA staff Photos: Cover (iStock.com/ LeandroHernandez)

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2019 Annual Meeting KARA Elects New Board in Manhattan KARB Program Update An update on our industry’s clean-up Quivira Water Right Impairment KDA Chief Engineer to Issue Orders KARA No Ties Tours KARA Staff Logs the Miles this Summer

TAL Class Marches on Capitol Hill 22nd Class visited D.C., and Finished Third Session

2019 Annual Meeting KARA Elects New Board in Manhattan

The Kansas Agribusiness Update is published quarterly for the members, friends and affiliates of the Kansas Agribusiness Retailers Association. Email contributions to: Trae Green, trae@kansasag.org. Annual subscriptions for members can be purchased for $25.00. © 2019 KARA. Read this newsletter online at www.ksagretailers.org/printnewsletters. Advertising does not influence editorial decisions or content. KARA reserves the right to refuse, reject, or cancel any ad for any reason at any time without liability.


Mapping Our Association’s Future

Ronald Seeber President & CEO

Sept. 20 was a good day for KARA and one that was unquestionably needed. Problems were acknowledged with the understanding that hard choices will be needed to survive and thrive in the future.

Dear KARA Members In our industry, we either evolve or die. The same goes for your trade association. That is why on Sept. 20, the Kansas Agribusiness Retailers Association Board of Directors traveled to our office in Topeka to take a long, hard look at the current state of the association and make plans for the future. With the recent change in CEOs, I recognized that KARA was long overdue in having a strategic planning meeting. So, here is a quick recap of what happened. We first looked at KARA as an organization, its history, and did what I call an environmental scan, which is a review of our strengths, weaknesses, opportunities and threats to get a better sense of the internal and external influences on KARA. We then took a look at our current mission statement, “KARA is committed to the professional development and business viability for the retail crop production industry.” Is it still accurate? Does it still correctly describe who we are, who we serve and the services we provide? Does it have adequate public relations value? Finally, we discussed the vision for the future of KARA. What are our short-term outcomes, longterm outcomes and desired image of success? We needed to develop a strategy or business plan on how to reach those outcomes. What did we learn? A lot. Let’s start with our current mission statement. It was clear to everyone it needed a tune up and

that threats to the industry are real, chronic and mounting. We also learned that by not staying on top of the trends, technology and members’ needs, KARA will eventually be worthless. With that rosy picture painted, the KARA Board acknowledged things we are doing very well and the challenges needing to be addressed. They then charted out some possible solutions and took the steps needed to move forward. The following items will focused on in short order: 1) Review the current bylaws and see that they accurately reflect the KARA membership. 2) Update the Mission Statement to bring it to the 21st century. 3) Develop a task force to further study and start chipping away at our challenges, with the long-term goal of adapting and excelling as an association. Sept. 20 was a good day for KARA and one that was unquestionably needed. Problems were acknowledged with the understanding that hard choices will be needed to survive and thrive in the future. It was the first step in a long and challenging trek. Stay tuned for a blueprint for a better tomorrow and an exciting future for your association.

Ronald Seeber President and CEO

Summer 2019




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Agribusiness Update


INDUSTRYnews USDOL Final Rule on Overtime On Tuesday, Sept. 24, 2019, the U.S. Department of Labor announced a final rule to make 1.3 million American workers newly eligible for overtime pay. The final rule updates the earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime pay requirements, and allows employers to count a portion of certain bonuses/commissions towards meeting the salary level. The new thresholds account for growth in employee earnings since the thresholds were last updated in 2004. The final rule becomes effective on Jan. 1, 2020. In the final rule, the Department is: • Raising the “standard salary level” from the currently enforced level of $455 per week to $684 per week (equivalent to $35,568 per year for a full-year worker); • Raising the total annual compensation requirement for “highly

compensated employees” from the currently enforced level of $100,000 per year to $107,432 per year; • Allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10 percent of the standard salary level, in recognition of evolving pay practices; and • Revising the special salary levels for workers in U.S. territories and the motion picture industry. Disclaimer: This final rule has been submitted to the Office of the Federal Register (OFR) for publication, and is currently pending placement on public inspection at the OFR and publication in the Federal Register. This version of the final rule may vary slightly from the published document if minor technical or formatting changes are made during the OFR review process. Only the version published in the Federal Register is the official final rule.

Stookey to Serve on MACA Board The Mid America CropLife Association (MACA) held its annual business meeting in Indianapolis, Indiana, and elected officers for 2019-2020. The group also filled several board of director positions at the Sept. 5 meeting. New officers are President Tim Riley, AMVAC Chemical Company; Vice President Lindsey Jackson, Corteva Agriscience and Secretary/ Treasurer Greg Welsh, CNI. Paul Edsten, FMC, will serve as immediate

past president. Elected to three-year board of director terms were: Joe Olson, Helena Agri-Enterprises, LLC; Lisa Klein, MMI; and Jay Morris, MorrisBixby. Elected to two year board of director terms were David Bartine, XPO Logistics, and Randy Stookey, Kansas Agribusiness Retailers Association. Stookey will serve as the state association representative.

New Law Removes Requirements for Illinois FT or FS License Plates This year the Illinois Fertilizer and Chemical Association (IFCA) initiated legislation (HB 2669) to remove the registration requirement that has been in effect for decades. Effective Jan. 1, 2020, Illinois will no longer require registration and display of FT or FS license plates

on any fertilizer trailers or self-propelled spreaders/sprayers. The law is Public Act 101-0481. There are some parameters that must be followed.

Source: Asmark Institute

2019 International Roadcheck Results Released The Commercial Vehicle Safety Alliance (CVSA) recently released the results of Roadcheck 2019, which was held June 4-6, 2019. This year’s special emphasis was on steering and suspension systems. CVSA inspectors carried out 67,072 truck and bus inspections across Canada and the United States in the 3-day inspection and enforcement event. Of those inspections, 45,568 were North American Standard Level I Inspections. Level I Inspections involve a 37-step procedure that includes an examination of both driver requirements and vehicle safety, making it the most thorough of the levels inspections performed by enforcement. During the event, 21.5 percent of commercial motor vehicles that received Level I Inspections were placed out of service.

The top vehicle out-of-service conditions were for brake systems, tires and wheels, and brake adjustment. If you combine brake adjustment and brake system violations, it accounts for 45.1 percent of all out-of-service vehicle violations. The top driver out-of-service conditions were for hours of service, wrong class license and false record of duty status. In addition, there were 748 safety belt violations. Since its inception in 1988, more than 1.7 million roadside inspections have been conducted during International Roadcheck campaigns.

Source: Asmark Institute

Summer 2019



INDUSTRYnews Proposed Changes to Hours of Service Rules DOT has issued a Notice of Proposed Rulemaking (NPRM) to modify the hours of service (HOS) regulations for commercial motor vehicle (CMV) drivers. Comments on the proposed rulemaking must be submitted by Oct. 7, 2019. The proposed rule offers five key revisions: 1. Change the short haul exception to the record of duty status (RODS) requirement available to certain CMV drivers by lengthening the drivers’ maximum on-duty period from 12 to 14 hours and extending the distance limit within which the driver may operate from 100 air miles to 150 air miles. 2. Modify the adverse driving conditions exception by extending by 2 hours the maximum window during which driving is permitted. 3. Increase flexibility for the 30-minute break rule by requiring a break after 8 hours of driving time (instead of on-duty time), and allowing the requirement to be satisfied by a non-duty break from

driving, rather than requiring an off-duty break. 4. Modify the sleeper-berth exception to allow drivers to split their required 10-hours off duty into two periods: one period of at least 7 consecutive hours in the sleeper berth and the other period of not less than 2 consecutive hours, either off-duty or in the sleeper-berth. Neither period would count against the driver’s 14-hour driving window. 5. Allow one off-duty break of at least 30 minutes, but not more than 3 hours, that would pause a truck driver’s 14-hour driving window, provided the driver takes 10 consecutive hours off-duty at the end of the work shift.

Source: Asmark Institute

EPA Rejects Cancer Warnings on Glyphosate Labels The EPA has announced it will no longer approve product labels claiming that glyphosate is known to cause cancer. The letter explains that EPA scientists have performed an independent evaluation of available data and concluded that glyphosate is “not likely to be carcinogenic to humans.” EPA’s cancer classification is consistent with other international expert panels and regulatory authorities. EPA considers the Proposition 65 warning language based on the chemical glyphosate to constitute a false and misleading statement.

The agency will no longer approve labeling that includes the Proposition 65 warning statement for glyphosate-containing products and the warning statement must also be removed from all product labels where the only basis for the warning is glyphosate. For any pesticide that currently contains Proposition 65 warning language exclusively on the basis that it contains glyphosate, EPA requests the submission of draft amended labeling within 90 days.

Source: Asmark Institute

Self-Retracting lifeline Recall Notice 3M Fall Protection has announced an immediate stop use and product recall on two of their products: • DBI-SALA Twin-Leg Nano-Lok edge • Twin-Leg Nano-Lok Wrap Back Self-Retracting Lifeline This stop use recall affects all models of the Twin-Leg Nano-Lok edge and Twin-Leg Wrap Back SRLs since first introduced in 2013. It does not affect the single-leg versions of these models. The Twin-Leg Nano-Loks are used as part of a personal fall protection system that connects two self-retracting lifelines/devices (SRLs/SRDs) directly under the dorsal D-ring of a worker’s harness. The Twin-Leg Nano-Lok edge is intended to be anchored at foot-level, is designed for sharp and/or leading edge applications and incorporates an energy absorber. Source: Asmark Institute


Agribusiness Update

The Twin-Leg Nano-Lok Wrap Back is intended for wrapping around an anchor and incorporates a similar energy absorber. 3M has determined that in a fall and under certain conditions, the energy absorber of these devices may not properly deploy which could expose the worker to serious injury or death. There have been no reports of accidents or injuries associated with this issue. 3M is recalling all these devices to be repaired or replaced as soon as a solution is identified, tested and certified. Alternatively, end-users may elect to receive cash for their returned devices.

INDUSTRYnews OSHA Posts Enforcement Summary for FY 2018 OSHA posted its 2018 Enforcement Summary, which highlights the Agency’s inspection statistics. The data shows that the number of programmed inspections continues to decline, while the percentage of unprogrammed inspections remains high. In fiscal year (FY) 2018, OSHA conducted a total of 32,023 inspections. About 56 percent (18,067) were unprogrammed inspections, which include employee complaints, injuries/fatalities and referrals. The high percentage of

unprogrammed inspections indicates that OSHA continues to devote considerable resources responding to referrals and complaints. About 44 percent (13,956) were programmed inspections, which focus OSHA’s enforcement resources towards the industries and operations where known hazards exist (e.g., combustible dusts, chemical processing).

Source: Asmark Institute

DOT Proposes Changes for CDL Applicants U.S. DOT announced a proposed rule to reduce burdens and costs for commercial driver’s license (CDL) applicants by allowing applicants to take general and specialized knowledge tests in a state other than the applicant’s state of residence. This proposal will increase flexibility for driver applicants by reducing time and travel expenditures, while having no detrimental impact on safety. To promote further flexibility in the CDL issuance processes, DOT proposes to allow driver applicants to take the CDL knowledge tests in states as well. Under this proposed rule, a state would not be required to offer the knowledge tests to out-of-state applicants. However, if the testing state elects to offer the

knowledge tests to these applicants, it would transmit the results to the state of domicile, which would be required to accept the results. With the goal of reducing administrative costs and helping to alleviate testing delays, this proposal will eliminate needless inconvenience and expense to CDL applicants.

Source: Asmark Institute

KDA Announces State Noxious Weed Advisory Committee The Kansas Department of Agriculture has announced the members of the State Noxious Weed Advisory Committee. The committee was established this summer following the passage of HB 2583 which made revising the noxious weed list a regulatory instead of legislative process and established the advisory committee to assist the Kansas Secretary of Agriculture in, among other duties, determining which plant species will be on the list. The first meeting was held in July, and the committee will meet at least once but no more than four times per year. The next meeting will be held in August. The committee members are: Mike Collinge, livestock producer, Greenwood County; Anita Dille, weed specialist, Kansas State University; Sean Fetty, organic agricultural producer, Wichita County; Walt Fick, weed specialist, Kansas State University; Craig Freeman, Kansas Biological Survey; Mike Friesen, weed supervisor, Meade County; John Lee, weed supervisor, Morris County; Bob Nutt, Kansas Cooperative Council; Ron Ohlde, traditional agricultural producer, Washington County; Continued on Page 16

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Spring 2019



TAL Class

MARCHES On Capitol Hill


Agribusiness Update


The 21st Tomorrow’s Agribusiness Leaders (TAL) class braved the sweltering heat of July in Washington, D.C., and completed a memorable second session of the program by meeting with members of Congress. In July, the Tomorrow’s Agribusiness Leaders (TAL) class traveled to Washington, D.C. for their second of three sessions, where they gained invaluable experience and contacts that will help them grow professionally and add value to their respective companies, the industry and associations. The trip began with an extensive tour of Washington’s historical monuments, from the Lincoln Memorial to Arlington Cemetery, to Mount Vernon; followed by a private evening tour of the United States Capitol by Kansas Congressman Dr. Roger Marshall. The class received detailed briefings on federal issues from affiliated national agribusiness organizations prior to lobbying members of the Kansas Congressional Delegation on topics important to the crop production and protection industries. They also had the special opportunity to meet one-on-one with United States Department of Agriculture Chief of Staff, Farm Production & Conservation, Jamie Clover Adams. Clover Adams was previously a Kansas Agribusiness Retailers Association employee from 1993-96, serving as the association’s vice president of government relations. “I kept hearing the same message from congressmen that our individual voices matter and they value it,” 2019 TAL class member John Ricker of KFSA said. “I also realized I need to get more involved

and reach out to them and offer solutions instead of contributing to the problem.” KARA thanks all of the sponsors of the TAL program. Because of your contributions, class members are able to participate in this special and important experience with little expense of their own. In early September, the TAL class checked the final box on the way to graduation by completing Session III in Wichita. Dr. Don Hackett with Wichita State University’s Center for Management Development presented his well-known crash course on the fundamentals of management development. A working lunch with State Senators Dan Kerschen (R-Garden Plain) and Ty Masterson (R-Andover) gave class members the opportunity to learn first-hand on what it takes to engage in grassroots political campaigns, as well becoming a candidate themselves if they choose. The session wrapped up with presentations by Kansas Grain and Feed Association Chairwoman Deb Miller and Kansas Agribusiness Retailers Association Immediate Past Chairman Clark Pearson on how to hit your mark as a volunteer leader. The 2019 TAL class will graduate on Thursday, Nov. 21, during the Kansas Agri Business Expo’s awards breakfast. Continued on Page 12

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1A Recertification

Don’t Waste Time! REGISTER ONLINE!

A tradition at the Kansas Agri Business Expo, this is one of the few places you can go to fully recertify in 1A – Ag Plant and Pest Management. This is KARA’s final offering of the year to recertify your 1A license, and the only one we offer to recertify your license in one day.

To register online, either download a QR code reader on your smartphone or fill out the bottom portion and return to samantha@ kansasag.org.

INFORMATION DATE: Nov, 21, 2019 | TIME: 7:00 a.m. - 5:50 p.m. | VENUE: Hyatt Hotel | CITY: Wichita Company Name:

Wednesday 7B/4 Nov. 20, 2019 $155

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Both 7B/4 & 1A Nov. 20 - 21, 2019 $310

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Kansas Agri Business Expo

Don’t Waste Time! REGISTER ONLINE!

Registration for the largest indoor agribusiness tradeshow in the Midwest is now open. This year, we’ll be having keynote speaker Rebekah Gregory speak about how her life was changed forever during the Boston Marathon Bombing. Also, new this year, we’re having more than a half dozen educational agriculture speakers give 20-minute presentations on the future of our industry.

To register online, either download a QR code reader on your smartphone or visit ksabe.org/registration/ on your computer.

INFORMATION DATE: Nov. 20 - 21, 2019 | TIME: 10:00 a.m. - 8:30 p.m. | 7:30 a.m. - 8:00 p.m. | VENUE: Century II Convention Center | CITY: Wichita

Crop Production Update

Don’t Waste Time! REGISTER ONLINE!

& 2nd CCA Recognition Banquet

To register online, either download a QR code reader on your smartphone or fill out the bottom portion and return to samantha@ kansasag.org.

This training, offered in cooperation with Kansas State University Research and Extension provides the latest research and technological advances in the crop production industry. The presentations include the latest technology on weed and insect control, fertilizer and chemical recommendations, soil fertility concerns and much more.

INFORMATION DATE: Dec. 5 - 6, 2019 | TIME: 8:00 a.m. - 4:40 p.m. | 8:30 a.m. - 3:20 p.m. | VENUE: Salina Hilton Garden Inn | CITY: Salina Company Name:

Attendee Name & Email: Attendee Name & Email: Attendee Name & Email:


Agribusiness Update

Full Program Member $150

Full Program Non-Member $300

Day I (Dec. 5) Member $100

Day I (Dec. 5) Non-Member $210

Day II (Dec. 6) Member $100

Day II (Dec. 6) Non-Member $210


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BASF CoBank Heartland Ag Helena Chemical Company John Deere CAD Dealers MKC Nutrien Ag Solutions Rosen’s Diversified Inc. WinField United



ADM Fertilizer Allied Environmental Consultants Inc. Beachner Grain Inc. CHS Inc. Gavilon Fertilizer LLC Inter-Chem J.B. Pearl Sales & Service, Inc. Morrill Elevator, Inc. Offerle Coop

Frontier Ag, Inc.



CHS Inc. KFSA Syngenta

Allied Environmental Consultants Inc. BASF Crop Protection Central Prairie Co-op Fairbank Equipment, Inc. Farmers Coop Conway Springs Gavilon Fertilizer LLC Helena Chemical Company J.B. Pearl Sales & Service, Inc. MFA/AGChoice The Ottawa Cooperative Assn.

Agrilead Inc.

GIVER SPONSORS $750 Agrilead Inc. Alliance Ag & Grain LLC American Implement, Inc. Central Valley Ag, Beloit EGE Products Fairbank Equipment, Inc. Kansas Cooperative Council Kiser Ag Service LLC MFA/AGChoice Midwest Laboratories, Inc. Miller Elevator Inc. Pride Ag Resources Progressive Ag Coop Simplot One Skyland Grain LLC The Ottawa Cooperative Assn.

Summer 2019



Continued from Page 9

Recruiting for Next Batch of Leaders

The TAL program is jointly coordinated with the Kansas Grain and Feed Association and is designed to improve the leadership skills of Kansas agribusiness men and women through increasing their understanding of the association’s mission and activities, teaching the state and federal legislative process, improving leadership and communication skills and preparing members for possible public service through campaigns or public office. Five of the best and brightest members from each association are chosen to participate in three sessions throughout the year, with graduation held during the Kansas Agri Business Expo in November. The program is designed to:

Personal visits with Kansas Congressional Delegation on Capitol Hill; visit National Agribusiness Associations/Organizations headquarters; visit historical sites. Session III - September 4, Wichita Developing an informed and confident agribusiness leader; business leadership development and political activities. A tuition of $400 per participant covers some program costs. However, the majority of the TAL program is underwritten by corporations and friends of the agribusiness industry. These companies support the TAL program through financial support as well as in-kind contributions.

Increase member understanding and knowledge of the programs, services and representation provided by KARA and KARA; Increase member understanding of the state THE LEADER IN LIQUID APPLICATION and federal legislative process; EQUIPMENT PARTS & ACCESSORIES Increase member understanding and awareness of the various state and federal agencies that provide oversight of the agribusiness TANKS, PARTS NURSE industry in Kansas; & ACCESSORIES TRAILERS Improve member leadership and communication skills through professional development sessions and; Prepare members for possible public service through involvement in political campaigns and holding of public office. Session I - January 21-22, Topeka An introduction to the legislative and regulatory arena in Kansas with legislative leaders and Kansas Department of Agriculture. Session II - July 12-16 or July 19-23, Washington, DC (Dates subject to congressional schedule) 12

Agribusiness Update

7000 Schaben Court Newton, KS 67114




L-R: KARA Senior Vice President Randy Stookey, Senator Dan Kerschen and KARA President and CEO Ron Seeber during Kerschen’s meet and greet at KARA’s office in late August.

KARA SUPPORTS INDUSTRY ALLY SENATOR DAN KERSCHEN WITH FUNDRAISER When it comes to rural electorate votes, time is not on our side. However, when it comes to political clout, that is up to us. Let us explain. In late August, Kansas Agribusiness Retailers Association held a the full House and Senate will be up for re-election, it’s important to fundraiser for longtime friend of agribusiness, Senator Dan Kerschen. maintain strong relationships with our allies who watch for agribusiness’ Kerschen was elected to the State House best interest in the committee rooms and on in 2008 and worked to make sure the the House and Senate floors. values and interests of the citizens in In 1933, Kansas had eight seats in the 93rd District were represented. After the United States Congress. We were once districts were redrawn in 2012, Kerschen a population power broker. However, over was elected to the Kansas Senate. For the last 80 years we have seen national the past four years, he has served as the population patterns lowering that number to Senator for the 26th district of Kansas, just four Congressional districts in 1992. That and most recently as the Chairman of the is roughly one seat lost every 20 years. While Senate Agriculture and Natural Resources that number of Congressmen will remain after Committee. the 2020 U.S. Census, the national trend is Elected friends routinely seek out KARA set. to host fundraisers and meet and greets, Each year you receive your dues which is an important tool in maintaining renewal, we strongly urge you to consider the established clout your association holds checking that box to allow an additional 10 at the Statehouse. None of this would be percent of your dues be paid to our KABC possible without our members’ generous PAC. It is by your generous support that we contributions to the Kansas Agri Business keep our powerful election-year voice. In this Council (KABC), our voice and weapon to day and age, money talks and the rest of the ensure that friends of agribusiness are crowd can keep on walking. elected, not only in places like Wichita Just because Kansas is losing rural County but also in the city of Wichita. The population representation, the agricultural Political Action Committee (PAC) also helps community can still hold political clout. In defeat candidates who don’t see the big fact, we can grow that clout. We, again, picture for the state and only see their own Your government affairs staff spends countless hours inside implore your assistance and support of your the Kansas Statehouse from January to May watching for personal microcosms and special interests. your best interests on laws and regulations. Association’s PAC, the Kansas Agri Business As we move forward into 2020, where both Council. Summer 2019 13




KARA’s Immediate Past Chairman Clark Pearson presents the 2019 Distinguished Service Award to Charlie Swayze of Farmers Cooperative Equity at Isabel. Swayze was employed in the Coop system since 1961 and with Farmers Coop Equity (FCE) at Isabel since 1977. He was instrumental in the growth and success of FCE.

At its 2019 annual meeting in Manhattan, Kansas Agribusiness Retailers Association (KARA) chose Lance Nelson of Alliance Ag & Grain LLC as its chairman. Nelson was chosen by the association’s 20-plus member board of directors to serve his two-year term through August of 2021. “I am honored to serve the agribusiness industry in this role,” Nelson said. “This honor is a tremendous privilege and I look forward to helping advance our industry through this association.” Nelson is the 54th industry leader since 1960 to be picked into KARA’s pinnacle role after previously serving three terms on the board of directors beginning in 2007. “For more than a decade, Lance has been a great resource and representative for our industry.” KARA president and CEO Ron Seeber said. “We are excited about the direction he will guide us in the next two years.” KARA members also picked an officer succession of vice chairman, Dustin Kuntz of Harveyville Seed Co., Inc., and second vice chairman Kevin Dieckmann of WinField United. Other members elected to new, or renewed terms on the board of directors were: Yance Farney of Koch Fertilizer Co., Troy Coon of Gavilon Fertilizer LLC, Bill Garner of AGChoice, Jami Loecker of Syngenta, Kevin Mears of Mears Fertilizer, Scott Morris of KFSA and Dave Spears of MKC. The Distinguished Service Award, Kansas Agribusiness Retailers Association’s most prestigious award given annually to recognize someone who has made a significant and notable contribution to the industry and/or the association was presented to Charlie Swayze, who recently retired after a more than 40-year career at Farmers Coop Equity at Isabel. Swayze was employed in the Coop system since 1961 and with 14

Agribusiness Update

The winning golf team of Debbie Fleming, Gick Fleming, Zac Fleming and Matt Francis.

Farmers Coop Equity (FCE) at Isabel since 1977. He was instrumental in the growth and success of FCE. Swayze served as the chairman of Kansas Agribusiness Retailers Association in 2000. During his career with Isabel coop, Swayze traveled internationally several times to promote the industry to Russia, China and Canada. His trip to Canada was instrumental in helping save the short-line railroad in his customers’ area. Even though he is retired, his travel hasn’t ended, having recently traveled to Cuba this year with other international trips planned down the road. Also during its annual gathering at the Hilton Garden Inn on Monday and Tuesday, nearly 100 KARA members enjoyed networking and educational activities. Members heard keynote addresses from Bill Simmons, emeritus professor at the University of Illinois, on spray drift and an outlook on market economies from Mike Pearson who hosts a daily agriculture podcast.


2019 - 20 KARA



Alliance Ag & Grain LLC Chairman

GARY BEACHNER Beachner Grain Board Member


Harveyville Seed Co., Inc. Vice Chairman


Nutrien Ag Solutions Board Member



Miller Elevator Inc. Immediate Past Chairman

KOCH Fertilizer Company Board Member











Garden City Coop Board Member

Midwest Laboratories Inc. Board Member




Mears Fertilizer Board Member


WinField United Second Vice Chairman

Gavilon Fertilizer LLC Board Member

AGChoice Board Member

Syngenta Board Member


KFSA Board Member

Central Valley Ag Board Member

J.B. Pearl Sales and Service Board Member

Performance Ag Board Member

Bayer Board Member

MKC Board Member

Frontier Ag Board Member

FMC Board Member

ADM Fertilizer Board Member

Summer 2019



INDUSTRYnews Continued from Page 7

KDA Announces State Noxious Weed Advisory Committee Carla Pence, county commissioner, Harper County; Johnny Schaben, representing the agricultural industry, Barton County; Stuart Schrag, natural resource professional, Kansas Department of Wildlife, Parks and Tourism; and Jacob Thomas, non-traditional agricultural producer, Leavenworth County. Scott Marsh, the state weeds specialist at KDA, will serve as an ex-officio member of the committee. The committee will serve the state by providing advice and

oversight for the KDA noxious and invasive weed program. Read more about noxious weed control in Kansas at: agriculture.ks.gov/ NoxiousWeeds.

EPA Announces FY 2020 - 2023 Priorities EPA has announced seven enforcement and compliance assurance priority areas for fiscal years 2020-2023. Six of the seven priorities are National Compliance Initiatives (NCI), which will be led by EPA’s Office of Enforcement and Compliance Assurance (OECA). The newly announced National Compliance Initiatives are: Improving Air Quality. Creating Cleaner Air for Communities by Reducing Excess Emissions of Harmful Pollutants from Stationary Sources - will focus on reducing emissions of volatile organic compounds and hazardous air pollutants. Reducing Hazardous Air Emissions from Hazardous Waste Facilities - continue to focus on improving compliance by hazardous waste Treatment Storage and Disposal Facilities and Large Quantity Generators with regulations that require

effective control and monitoring of organic air emissions from certain hazardous waste management activities. Stopping Aftermarket Defeat Devices for Vehicles and Engines - will focus on stopping the manufacture, sale, and installation of aftermarket defeat devices on vehicles and engines used on public roads and on non-road vehicles and engines. Ensuring Clean and Safe Water. Reducing Significant Noncompliance with National Pollutant Discharge Elimination System (NPDES) Permits. EPA will focus on increasing the percentage of all NPDES permittees in compliance with their permit. Reducing Noncompliance with Drinking Water Standards at Community Water Systems (CWS). EPA will work with the EPA’s Office of Water to increase capacity in states, tribes and the EPA to address drinking water violations.

Reducing Risk from Hazardous Chemicals. Reducing Risks of Accidental Releases at Industrial and Chemical Facilities. EPA will continue to focus on reducing risk to human health and the environment by decreasing the likelihood of chemical accidents. EPA has found that many regulated facilities are neither managing adequately the risks they pose nor ensuring the safety of their facilities to protect surrounding communities as required under Clean Air Act Section 112(r). Lead Action Plan. EPA’s enforcement and compliance assurance program will contribute to the agency’s goal of reducing childhood lead exposures and associated health impacts as outlined in the Federal Lead Action Plan.

EPA Holds Environmental Modeling Meeting On Oct. 16, 2019, EPA will hold its semi-annual Environmental Modeling Public Meeting. This is a public forum for pesticide registrants, other stakeholders, and EPA to discuss current issues related to modeling pesticide fate, transport and exposure for risk assessments in a regulatory context. The meeting will focus on: • Sources of usage data (relating to the actual application of pesticides, in terms of the quantity applied or units treated); Source: Asmark Institute


Agribusiness Update

• Spatial applications of usage data; • Model parameterization; • Extrapolation of usage data to fill in gaps; • Temporal variability of usage; and • Updates on ongoing topics. There will also be presentations on incorporating pesticide usage data into environmental exposure and ecological risk assessments.


INDUSTRYnews NTSB Releases Preliminary Report on Beach Park Accident The National Transportation Safety Board (NTSB) released a preliminary report on the anhydrous ammonia spill in Beach Park, Illinois that occurred on April 25th. About 750 gallons of anhydrous ammonia were accidentally released from two 1,000-gallon nurse tanks mounted on a farm trailer that was being pulled by a John Deere tractor. The driver was operating the tractor in combination with an applicator tool bar. As a result of the hazardous materials release, 41 people, including 11 first responders, were injured and treated for various degrees of injury at local hospitals. The driver of the tractor

was not injured. The NTSB says a hazardous materials team found the liquid withdrawal valves on top of the tanks and a shut-off valve on the manifold, where the two hoses from the nurse tanks joined, to be fully open. The liquid supply hose was also disconnected from the union coupler. The hazardous materials response team closed the shutoff valve on the manifold, which stopped the release. The team then closed the liquid withdrawal valves, which secured the scene. Investigators plan to examine the valves at a laboratory in Washington DC.

Source: Asmark Institute

DHS to Expand PSP to Tiers 3 and 4 The Department of Homeland Security (DHS) has been given the green light from the White House Office of Management and Budget on a proposal to expand the Chemical Facility Anti-Terrorism Standards (CFATS) program’s Personnel Surety Program (PSP). DHS received the authorization to expand the program to cover CFATS facilities in risk Tiers 3 and 4, which consists of more than 3,000 CFATS facilities. Most agricultural retailers that are subject to CFATS are considered Tier 3 or 4. DHS plans to rollout this expansion to the PSP over the course of the next three years and to circulate some additional tools to assist with compliance, including a set of best practices informed by lessons learned from implementing the program for Tiers 1 and 2. DHS will

send out notices to CFATS facilities on a monthly basis, which will be randomly selected. Once facilities receive the notice, they will have 30 days to modify their pre-existing Site Security Plan (SSP) to incorporate the PSP obligation. The updated SSP will then be sent to DHS for review and approval. Once a facility receives DHS approval for the updated plan, the facility will have 60 days to implement the PSP requirement. The PSP requirement exists under the CFATS risk-based performance standard 12, Part 4, which requires employees at, and visitors to, CFATS regulated facilities be vetted against the federal terrorist screening database.

Source: Asmark Institute

Prevented Plant Acres Exceed 19 Million in U.S. The U.S. Department of Agriculture (USDA) recently released a new report regarding the total number of prevented plant acres for 2019. As severe weather pounded the Midwest this spring, agricultural producers reported that they were unable to plant crops on over 19 million acres. This marks the most prevented plant acres reported since USDA’s Farm Service Agency (FSA) began releasing the report in 2007 and 17.49 million acres more than reported at this time last year. The data reported is an aggregate of crop

acreage reports as of Aug. 1, 2019, filed by producers with FSA. The data outlines the number of acres planted, prevented from planting and failed by crop, county and state. Of those prevented plant acres, more than 73 percent were in 12 Midwestern states, where heavy rainfall and flooding prevented many producers from planting mostly corn, soybeans and wheat. A major source for this report is the benchmark survey of approximately 80,000 farmers from the USDA. The 2019 planting season will be one that

won’t soon be forgotten. Our nation’s farmers faced many hardships this year, and did what they could while being put in a tough situation. Now those efforts are showing, and it could be a glimpse of silver lining! Over the past few months, the crops have shown improvement and are expected to continue to progress - and with a warm Fall now in the forecast, there might be the opportunity for the late-planted crops to continue to mature even more than expected.

Source: Asmark Institute

Summer 2019



INDUSTRYnews EPA, U.S. Army Repeal 2015 WOTUS Rule At an event in Washington, D.C., ‘waters of the U.S.’, we’ll provide greater repeal of the 2015 Rule. U.S. Environmental Protection Agency regulatory certainty and clarity to our nation’s For example, the 2015 Rule: (EPA) Administrator Andrew Wheeler and landowners, farmers, and businesses,” said • Did not implement the legal limits on the Department of the Army Assistant Secretary EPA Region 7 Administrator Jim Gulliford. “In scope of the agencies’ authority under the for Civil Works R.D. James announced that doing so, we’re able to help our agricultural Clean Water Act as intended by Congress and the agencies are repealing a 2015 rule that community be economically successful, while reflected in Supreme Court cases. impermissibly expanded the definition of we continue our work together to protect • Failed to adequately recognize, preserve, “waters of the United States” and protect the primary responsibilities (WOTUS) under the Clean Water and rights of states to manage their own Act. The agencies are also land and water resources. recodifying the longstanding and • Approached the limits of the familiar regulatory text that existed agencies’ constitutional and statutory prior to the 2015 Rule—ending a authority absent a clear statement from regulatory patchwork that required Congress. implementing two competing Clean • Suffered from certain procedural Water Act regulations, which has errors and a lack of adequate record created regulatory uncertainty support as it relates to the 2015 Rule’s across the United States. distance-based limitations. “Today, EPA and the Department With this final repeal, the agencies of the Army finalized a rule to will implement the pre-2015 regulations, repeal the previous administration’s which are currently in place in more overreach in the federal regulation than half of the states, informed by of U.S. waters and recodify applicable agency guidance documents the longstanding and familiar and consistent with Supreme Court regulatory text that previously decisions and longstanding agency existed,” said Administrator practice. The final rule takes effect 60 Wheeler. “Today’s Step 1 action days after publication in the Federal fulfills a key promise of President Register. Trump and sets the stage for Step 2 – a new WOTUS definition that Background will provide greater regulatory The final Step 1 rule follows President certainty for farmers, landowners, Trump’s Executive Order 13778, home builders, and developers “Restoring the Rule of Law, Federalism, nationwide.” and Economic Growth by Reviewing In mid-September at an event in Washington, D.C., U.S. Environmental “Today, Administrator Wheeler the ‘Waters of the United States’ Rule.” Protection Agency Administrator Andrew Wheeler and Department of the Army and I signed a final rule that repeals Assistant Secretary for Civil Works R.D. James announced the agencies are Section 1 of the Executive Order states the 2015 Rule and restores the that “[i]t is in the national interest to repealing the 2015 Waters of the United States rule. previous regulatory regime exactly ensure that the Nation’s navigable how it existed prior to finalization of the 2015 the quality of our waters for generations to waters are kept free from pollution, while at Rule,” said Assistant Secretary James. “Before come.” the same time promoting economic growth, this final rule, a patchwork of regulations Step 1 provides regulatory certainty as to minimizing regulatory uncertainty, and existed across the country as a result of the definition of “waters of the United States” showing due regard for the roles of Congress various judicial decisions enjoining the 2015 following years of litigation surrounding the and the States under the Constitution.” The Rule. This final rule reestablishes national 2015 Rule. The two federal district courts Executive Order also directs the EPA and the consistency across the country by returning that have reviewed the merits of the 2015 Department of the Army to review the 2015 all jurisdictions to the longstanding regulatory Rule found that the rule suffered from certain Rule for consistency with the policy outlined in framework that existed prior to the 2015 Rule, errors and issued orders remanding the 2015 Section 1 of the order and to issue a proposed which is more familiar to the agencies, States, Rule back to the agencies. Multiple other rule rescinding or revising the 2015 Rule as Tribes, local governments, regulated entities, federal district courts have preliminarily appropriate and consistent with law. and the public while the agencies engage in a enjoined the 2015 Rule pending a decision second rulemaking to revise the definition of on the merits of the rule. In this action, EPA ‘waters of the United States.’” and the Army jointly conclude that multiple “By repealing this rule and redefining substantive and procedural errors warrant a 18

Agribusiness Update


AGRICULTURAL CHEMICAL REIMBURSEMENT PROGRAM UPDATE In 2000, the Kansas legislature passed the Agricultural and Specialty Chemical Remediation Act which created the Remediation Reimbursement Program (Reimbursement Program) and the Kansas Agricultural Chemical Remediation Reimbursement Fund (Reimbursement Fund). The Reimbursement Program provides financial reimbursement of expenses incurred by industry while conducting remediation (cleanup) activities for agricultural chemical and fertilizer contamination. The Remediation Reimbursement Fund and program are financed by fees from the commercial grain industry and ag-chemical and fertilizer industries. The Reimbursement Program is administered by the Kansas Agricultural Remediation Board (KARB). During the September 13, 2019 KARB meeting, the board reimbursed nine (9) applicants a total of approximately $131,459.16. The next KARB meeting will be held on December 13, 2019, and the deadline to submit applications prior to that meeting is November 15, 2019. 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, be sure to submit your application for reimbursement of those remediation costs today. Reimbursement applications and other information about the program are available at www.karb.org. Please contact your association office with any questions at 785234-0461, or by email to Randy@Kansasag.org.

The KARB program has reimbursed more than $20 million since January of 2002. In 2019, the program has granted the following reimbursements: 54 REIMBURSEMENTS $583,458.13

14 COMBINATION $98,949.79

36 NITRATES $361,284.53

4 PESTICIDES $123,223.81 Summer 2019



2020 NH3 Schools Announced

Don’t Waste Time! REGISTER ONLINE! To register online, either download a QR code reader on your smartphone or fill out the bottom portion and return to samantha@ kansasag.org.

This program includes a combination of demonstrations and presentations that will cover the characteristics of anhydrous ammonia, facility safety, emergency response and product handling. Learn from the best and brightest in the NH3 field.





February 11, 2020


Propane Marketers Association (540 NW Broad Street)

8:00 a.m.

February 12, 2020


Commercial Bank (1901 Main Street)

8:00 a.m.

February 13, 2020


Sedgwick County Extension Center (7001 W. 21st Street)

8:00 a.m.

February 18, 2020

Garden City

Garden City Coop (106 N. 6th Street)

8:00 a.m.

February 19, 2020


City Limits Center (2227 S. Range Ave.)

8:00 a.m.

February 20, 2020


Hilton Garden Inn (3320 S. 9th Street)

8:00 a.m.

2019 Weed ID Winners Winners from the 2019 Kansas Applicator Institute Weed Identification competition were: 1. Levi Larkins, K&L Agronomics 2. Sarah Zerger, Crop Service Center 3. John Bloesser, MKC

2020 CCA Exam Registration During the 2019 International CCA Board Meeting held in Wichita, the board voted to move forward with CCA exams being administered via a remote proctor - meaning all exams will now be internet based and monitored by a proctor via the examinees webcam. Other security features have been implemented to protect the integrity of the exam. Exam Registration – Those wanting to take the CCA Exams will register on the CCA website – www.certifiedcropadviser.org. Information regarding what is needed to take the exams via remote proctor will be on the site and in email communications. Closer to exam time a FAQ page on the website and a short instructional video regarding remote proctoring will be available.

INFORMATION DATE: Feb. 7 - 14, 2020 | TIME: Exams can be taken 24 hours a day | VENUE: The convenience of your own home


Agribusiness Update

Don’t Waste Time! REGISTER ONLINE! To register online, either download a QR code reader on your smartphone or fill out the bottom portion and return to samantha@ kansasag.org.


KDA CHIEF ENGINEER TO ISSUE ORDERS REDUCING IRRIGATION FROM RATTLESNAKE CREEK BASIN In order to sustain the Quivira National Wildlife Refuge (QNWR) in southcentral Kansas, U.S. Fish and Wildlife (USFWS) relies on a senior state water use permit to draw water from Rattlesnake Creek.

The Quivira National Wildlife Refuge at sunset. Photo courtesy: Ryan Moehring / USFWS.

In order to sustain the Quivira National Wildlife Refuge (QNWR) in southcentral Kansas, U.S. Fish and Wildlife (USFWS) relies on a senior state water use permit to draw water from Rattlesnake Creek. The Rattlesnake, an Arkansas River tributary, also supports approximately $1.44B worth of irrigated cropland and livestock in the predominantly agricultural water district. For many years, there has been much discussion in the district concerning an alleged impairment of USFWS’ water rights to the Rattlesnake Creek Basin by junior water right holders. In 2017, the Kansas Department of Agriculture (KDA) proposed a mitigation plan to remedy this impairment. This plan included the creation of a Local Enhanced Management Area (LEMA) in the Rattlesnake Creek Basin,

which sits within Big Bend GMD No. 5. However, in August of this year, KDA Chief Engineer Dave Barfield found the proposed LEMA to be insufficient to remedy the alleged water right impairment, and announced proposed agency action on the impairment. In the announcement, Chief Engineer Barfield stated his intention to release administrative impairment orders to be effective Jan. 1, 2020. The administrative orders would implement water use reductions in the basin to address the impairment and ongoing declines in stream-flows into the Refuge. The administrative orders will be the first of a three-pronged solution to the impairment, providing time for agricultural producers in the Basin to develop the other two components: (1) an augmentation project, and (2) retirement of 4400 acre-feet of use

in the highest impact area. KDA intends to issue administrative orders over three years beginning in 2020 for junior water rights that have a stream impact greater than 30 percent. These areas will be designated as “Zone C” areas. Next, in 2021, administrative orders will be issued for “Zone B” areas. Then, in 2022, administrative orders will be issued for areas designated as “Zone A”. Required water use reductions under the administrative orders will vary among water users based on the seniority of the water right and the historic use (with older rights receiving larger allocations). Reductions will average under 15 percent from long-term use.

Summer 2019





Kansas Agribusiness Retailers Association (KARA) staff celebrated the

summer months by ditching the ties for the first time in 2019 and hitting the road to see as many members as possible on their annual No Ties Tour. KARA cherishes the value of face-to-face time with its members at their place of business and looks forward to the No-Ties tours every year. “Why No Ties?” KARA President and CEO Ron Seeber rhetorically asked. “Because you can learn more and share more in a 30-minute face-to-face meeting at a member’s place of business than any other way.” During the more than 2,000 miles spent on the road, Seeber and Senior Vice President and General Counsel Randy Stookey heard concerns from members about issues ranging from harvest conditions to the political landscape in 2020. The forthright and informed level of input received from members provided invaluable ammunition for KARA to better evolve, adapt and serve the needs of its members. Seeber and Stookey appreciated their members’ ability to express ideas outside the normal confines of association goals and responsibilities and allow KARA to be the premier voice for the industry. “The week on the road reminded me about the best part of working for our association, which is getting to know and work with the exceptional men and women in our industry,” Stookey said.


Agribusiness Update




2,000+ Miles Driven


Members Seen


Ties Tied

“Why No Ties? Because you can learn more and share more in a 30-minute faceto-face meeting at a member’s place of business than any other way.”

Summer 2019


KANSAS AGRIBUSINESS RETAILERS ASSOCIATION Kansas Agribusiness Retailers Association 816 SW Tyler, Suite 100 Topeka, Kansas 66612

Stay Connected

2019 KANSAS AGRI BUSINESS EXPO INTERESTED IN EXHIBITING AT ONE OF THE LARGEST INDOOR TRADE SHOWS IN THE MIDWEST? Exhibit at the Kansas Agri Business Expo, a jointly sponsored convention between the Kansas Grain and Feed Association (KARA) and the Kansas Agribusiness Retailers Association (KARA). Join the 1,100+ attendees who represent the Kansas grain, plant nutrient and crop protection industry. KARA member firms have over 97% of the state’s total licensed storage capacity. KARA’s membership base includes distribution firms, manufacturer reps and equipment manufacturers. Reserve your 10x10 booth space today by going online to www.ksabe.org or you can contact Shari Bennett, Expo Manager at shari@kansasag.org or (785) 234-0464. ROOM BLOCK FOR THE KANSAS AGRI BUSINESS EXPO IS OPEN – Rooms always fill up quickly for the Kansas Agri Business Expo, November 20-21 in Wichita. Please make your reservation soon at the Wichita Hyatt Regency Hotel by either calling 1-888-421-1442 or going online to www.ksabe.org. Room rate is $141.00 and the cutoff date is 10/27/19. Overflow hotels are: Drury Plaza Hotel Broadview - $125, 1-800-325-0720, reference group number 2343625, Cutoff is 11/01/19 Fairfield Inn & Suites - $134, 1-316-201-1400, Kansas Grain and Feed Association, Cutoff is 10/19/19 Hotel at WaterWalk - $109, 1-316-263-1061, KS Agri Business Expo, Cutoff is 11/01/19

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