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The Grain and Feed Report

SpringIssue


Board of Directors Glen Hofbauer Chairman

Jeremy Girard Vice Chairman Bob Tempel 2nd Vice Chairman Pete Goetzmann Immediate Past Chairman

Gary Beachner Deb Clark Brad Cowan Brent Emch Andrew Fullerton James Jirak Ryan McCoy Jerry Murphy Mark Paul Russ Ronnebaum John Van Meter Clark Wenger

Association Staff

Tom Tunnell President & CEO

Ron Seeber Senior Vice President of Government Affairs Staci Storey Vice President and Chief Financial Officer Randy Stookey Vice President and General Counsel Shari Bennett Vice President of Event Planning Samantha Tenpenny Director of Member Services Devon Stewart Marketing and Communications Specialist Lisa Anschutz Senior Director of Internal Operations Mitzi Dodds Executive Administrative Professional

816 SW Tyler, Topeka, KS 66612 | (785) 234 - 0461 | www.ksgrainandfeed.org


Legislative Action Day A Great Success

On January 18th, the Kansas Grain and Feed Association (KGFA), in conjunction with the Kansas Agribusiness Retailers Association (KARA) and the Kansas Cooperative Council (KCC), completed its Legislative Action Day at the Statehouse. The day started out with a lunch for members at the Topeka Country Club where Senate Ways and Means Chair Carolyn McGinn and House Appropriations Chair Troy Waymaster spoke to the audience regarding challenges facing the legislature this session. They reviewed the hot button issues facing the legislature including the 2017 budget deficit and school finance court challenges. After the presentations, KGFA staff Ron Seeber and Randy Stookey and KCC President Leslie Kaufman and KCC Member Services Director Mandy Roe gave a briefing to members of key points they need to update their legislators on regarding the industry. Those items include taxation policy, funding for the Kansas Agribusiness Retailers Association, opposing a bill to regulate elevators, and supporting a bill increasing the weight limits on motor carriers by adding an axel. After the briefing, members headed to the statehouse to meet with their elected representatives and senators. After meeting, members returned to the Country Club where our members enjoyed dinner with numerous legislators and other elected officials. The Association staff is very appreciative of our members who set aside work and traveled to our state capitol. Their actions speak volumes to our legislators and will help the industry promote good policy and avoid proliferation of impractical agendas.


Kansas Agriculture Chemical Remediation Reimbursement Program In 2000, the Kansas Legislature passed the Agricultural and Specialty Chemical Remediation Act which created the Remediation Reimbursement Program and the Kansas Agricultural Chemical Remediation Reimbursement Fund (Reimbursement Fund). The Remediation Reimbursement Program provides financial reimbursement of expenses incurred while performing remediation activities for agricultural chemical and fertilizer contamination, as ordered by the Kansas Department of Health and Environment (KDHE) for properties enrolled in the Voluntary Cleanup and Property Redevelopment Program or State Cooperative Program. Under the Remediation Reimbursement Program, the commercial grain industry and ag-chemical and fertilizer industry pay fees into the Reimbursement Fund. The Board approves reimbursement of qualifying expenses submitted by applicants to the fund up to $200,000 per site. The Reimbursement Program is administered by the Kansas Agricultural Remediation Board (KARB). During the March 10, 2017 KARB meeting, the Board reimbursed twenty-two (22) applicants a total of $395,000.

  

During 2016, the Board reimbursed sixty-four (64) applicants a total of $1,205,051. The next KARB Meeting will be held on June 16, 2017, and the deadline to submit new applications prior to that meeting is May 19, 2017. In the summer of 2016, the Board amended a regulation concerning which expenses are eligible for reimbursement. Beginning June 1, 2016, For all new applications to the fund, expenses submitted for meals, lodging, mileage, or other travel expenses will no longer be eligible for reimbursement from the fund. Since 2009, applications to the fund have exceeded the amount of money in the fund. Therefore, a priority-based ranking system is utilized for all applications received by which each application is reviewed by the KDHE and given a priority score. Applications involving potential risk to human health and safety are scored higher. Applications are reimbursed in priority order based on their priority score. The current amount of outstanding reimbursement requests to the fund is approximately $3.57 million.


Federal Legislative Update

Waters of the United States (WOTUS) Rule: Update

On February 28, 2017, President Trump signed an Executive Order (EO) rolling back the Waters of the United States (WOTUS) rule, which had negative implications for agriculture and other industries across the nation. The EO directed the U.S. Enviromental Protection Agency (EPA) and the U.S. Army Corps of Engineers (Corps) to rescind and replace the Clean Water Rule (CWR). President Trump’s EO is the latest development in the attempt to resolve the longstanding question of which surface waters and wetlands may be federally regulated and subjected to permitting under the Clean Water Act (CWA). In the decade since the U.S. Supreme Court issued its fractured opinion in Rapanos v. United States, 547 U.S. 715 (2006), EPA and the Corps have made three attempts to formally interpret Rapanos and add clarity to the WOTUS definition. Trump’s EO includes specific instruction to the EPA and the Corps to consider interpreting “navigable waters” in a manner consistent with the late Justice Antonin Scalia’s opinion authored on behalf of the plurality in Rapanos. The CWR applied more weight to Justice Anthony Kennedy’s concurrence than Scalia’s opinion, and Kennedy’s case-by-case “significant nexus” analysis, based on ecological and hydrological functions, is incorporated in several provisions of the final rule. In popular culture, the mass production of food, specifically meats such as chicken and beef, has come under fire from various documentaries, most recently Food, Inc, documenting the mass slaughter and poor treatment of animals, often for easier revenues from large corporations. Along with a current trend towards environmentalism, people in Western culture have had an increasing trend towards the use of herbal supplements, foods for a specific group of people (such as dieters, women, or athletes), functional foods (fortified foods, such as omega-3 eggs), and a more ethnically diverse diet.

EPA’s Risk Management Program (RMP) Proposed Rule Several organizations have begun calling for a new kind of agriculture in which agroecosystems provide food but also Change: Update support vital ecosystem services so that soil fertility and biodiversity are maintained rather than compromised. According to the International Water Management Institute and United Nations Environment Program (UNEP), wellmanaged agroecosystems not only provide food, fiber and animal products, they also provide services such as flood mitigation, groundwater recharge, erosion control and habitats for plants, birds fish and other animals.

House Advances Bill to Stop OSHA's Recordkeeping Requirements

U.S. House of Representatives passed legislation last week under the Congressional Review Act to block a regulation put forward by the Occupational Safety and Health Administration (OSHA) in the waning days of the Obama Administration. The OSHA rule would require employers to record and maintain a log of workplace injuries and illnesses that occur during a five-year span. This five-year window is contrary to current statutory law that explicitly says employers can only be cited for record-keeping violations within a six-month time period. Two federal court of appeals have already declared that the statute of limitations is the six-month window as opposed to five years. The bill now moves to the Senate for consideration. The White House has already issued a statement announcing the Administration "strongly supports" the passage of this bill.

Executive Order Pushes for Regulatory Reform

On February 24, President Trump signed an Executive Order (EO) designed to cut red tape and reduce the regulations on businesses nationwide. The EO directs each federal agency to designate a Regulatory Reform Officer and establish a Regulatory Reform Task Force. The agencies are to seek input from impacted stakeholders. You can read the order online at www.whitehouse.gov.


Upcoming Events Elevator Safety and Maintenance Training

Garden City, Garden City Coop May 2 Wichita, Sedgwick County Extension May 3 Salina, American Ag Credit May 4

John Cranor Memorial Golf Tournament

Garden City August 7

Kansas Agri Business Expo

Wichita, Century II November 15 - 16

7B/4 Recertification

Wichita, Century II November 15

Grain Handlers Workshop

Information coming soon!


Membership and Training KGFA teams up with National Grain and Feed Association for regulatory compliance seminar KGFA and NGFA teamed up once again to provide members with a regulatory compliance seminar to address OSHA, FDA and EPA issues impacting the grain, feed and processing industry. In addition, with the recent elections, the seminar addressed how the changes to the Administration and Congress might affect the aforementioned agencies and their agendas. The operations part of the seminar highlighted the importance of implementing a safety and health management plan to comply with OSHA standards and developing effective training programs on a variety of issues for employees as well.

KGFA hosts 87th Annual Grain Grading Schools KGFA and the Kansas Grain Inspection Service offered valuable information to nearly 300 elevator operators, producers, brokers and grain buyers about grain grades and how to use grain standards in marketing during the 2017 Grain Grading Schools held February 21-23 and March 7- 9. Hands-on training was utilized by participants to recognize various types of kernel damage and samples were graded to assist in practical, cost effective procedures for grain inspection.

Register for 2017 Elevator Safety and Maintenance Training KGFA will once again be hosting Elevator Safety & Maintenance Trainings in a town near you! May 2-4th we will be on the road offering complete, day-long workshops in Garden City, Wichita and Salina that cover the basics of elevator maintenance, evaluation and safety. Join KGFA, Drake Inc., CMC Industrial Electronics, KFSA, Essmueller Co. and KC Supply for an important conversation on current topics ranging from structural integrity and evaluation, to up-to-date information on fall protection, employee safety and how each of these are directly correlated to overall grain condition. This 5-hour training offers practical lessons, covering everything from the basics to new technologies. To register, please see the attached flier or visit our website at https://www.ksgrainandfeed.org/events.

KGFA sponsors North American Colleges and Teachers of Agriculture Conference KGFA was proud to support the Kansas State University College of Agriculture and 2017 North American Colleges and Teachers of Agriculture (NACTA) Judging Conference held April 6-8 in Manhattan. The competition consisted of 12 different contests including agronomy, horticulture, soils, livestock judging, meats, equine management, livestock management, ag business, ag communications and computer applications. With more than 750 students from 50 colleges across the country, KGFA was honored to sponsor this event that encourages students to build and improve their skills in agronomic sciences.

KGFA Welcomes New Members Thanks to the reputation of our membership and industry, KGFA continues to grow and provide useful products and services for grain handlers in the region. Please welcome GFG Ag Services LLC and Presto-X Pest Control to KGFA.


TAL Class Completes Session I The 2017 Tomorrow’s Agribusiness Leaders (TAL) class traveled to Topeka for two days and completed session I. During these meetings they learned of many challenges facing the state, our top leaders' plans to move Kansas forward and what they hoped to accomplish this legislative session. They received staff briefings on the legislative process and the roles and history of KARA and KGFA. During the session, the TAL class enjoyed a detailed policy briefing and a private breakfast with Attorney General Derek Schmidt. The class then met with Associated Press Bureau's John Hanna on how to accurately communicate a message to the press. They also had a working lunch with Deputy Secretary of Agriculture Chad Bontrager and were updated on the many functions the agency plays. Finally, they received training on effective lobbying methods and put those practices to good use during Legislative Action Day on the 18th. The 2017 class showed astute talent in communicating the Association’s message to the legislature and we anticipate that they will continue to excel during future TAL sessions.

The 2017 TAL Class: KGFA Lance Adams, Team Marketing Alliance Seth Born, Beachner Grain, Inc. Andrew Ochampaugh, Agrilead Inc. Ryan Roberts, Lortscher Animal Nutrition, Inc. Lindsey Vincent, Plains Equity Exchange

KARA Bradly Brensing, Winfield/Land O Lakes Matthew Burdiek, Koch Agronomic Service David Klahr, Kansas Farmer Service Assn. Nathan Miller, Mid Kansas Coop Shane Williams, Canton Cooperative Grain & Supply

The next TAL session is in July and entails traveling to Washington D.C., meeting with our Congressmen, industry leaders and other officials. The TAL class will sneak in a little sightseeing as well. If you or one of your association colleagues are interested in applying for this premier agribusiness leadership program, applications are being taken for the 2018 class at www.ksgrainandfeed.org or www.ksagretailers.org.


Kansas Grain and Feed leaders share priorities with Congress on Capitol Hill

T he K ans as group meets with S enator Moran

The Kansas group meets with Senator Moran

In F ebruary, officers of the K ans as G rain and F eed As s ociation (K G F A) vis ited members of the K ans as congres s ional delegation to s upport open markets , free enterpris e and competition, all isGrain s ues of to In February, officers of the Kansas anddeep Feedconcern Association (KGFA) visited of Kthe congressional delegation members of Kmembers G F A. T he G FKansas A team, with fellow leaders to support openasmarkets, and from the K ans Agribusfree inesenterprise s R etailers Ascompetition, s ociation all issues to members of KGFA. The KGFA (K AR of A),deep met concern with leading agricultural lawmakers on team, with fellow leaders from the Kansas Agribusiness Retailers C apitol Hill. Association (KARA), met with leading agricultural lawmakers on Capitol Hill. K KGFA Vice Chairman Jeremy Girard and President Tom Tunnell T spent the day visiting the Kansas congressional delegation d sharing details of issues facing the industry. Their concerns T encompassed free trade, importance of waterways infrastructure w and conservation programs.

T he U.S The U.S. transportation infrastructure has long provided U.S. U.Sagricultural . ag producers and agribusinesses with a strong competis trong c advantage in the marketplace. Surprisingly, a significant tive S urpris i number of locks on the U.S. inland waterways system have surpassed their 50-year life span. Navigation channels and U.S. inland ports must be widened and deepened to accommodate larger life s pa vessels in order for this nation to remain competitive. Members widene of the KGFA team urged Congress to support a spending bill that order fo prioritizes projects that include navigation and funding which will the K G keep inland waterways on track. that pri Included which w in the conversations, KGFA addressed conservation and that consumers are holding U.S. agriculture to a higher level of environmental responsibility and sustainable production. In order to produce sustainably for a growing population, the Conservation Reserve Program (CRP) must be revamped. The Kansas leaders encouraged them to cap the CRP acreage at 24 million acres, utilize scarce funding for working lands conservation programs and prioritize the most environmentally sensitive acres. "Most importantly, the visit of the KGFA team serves as a reminder that Kansas agriculture is at the forefront on important issues that affect our members," said KGFA President Tom Tunnell.

KGFA stressed the need for the new administration to preserve K the gains achieved in the North American market and strengthen pr our global competitiveness by engaging anew in the Asia-Pacific a region. The North American market has been a bonanza for U.S. a farmers and ranchers. Total U.S. exports have more than m quadrupled since the 1990s, growing from nearly $9 billion in 1983 tora almost $40 billion in 2015. The U.S. food and agricultural sector sis i seeking to modernize and update NAFTA to preserve and expand previous gains. al se pr

KGFA meets with 1st District Congressman Roger Marshall


KGFA Annual Meeting KGFA was honored to host 236 members at our recent annual meeting on April 10-11 in Wichita, KS. Following breakfast, members heard from a panel of experts on Property Evaluation which included an overview of grain elevator valuations from 1988 to 2017; a case study in asset transaction; practice tips on purchasing a grain elevator; the importance of the SVQ; distinguishing between purchase price and assets purchased, and the process of challenging your valuation. The meeting ended with the “Voice of the Kansas City Chiefs,” Mitch Holthus, who is a wellrespected motivational speaker. The KGFA Annual Meeting isn’t all business…following the popular Prime Rib Dinner on Monday evening, there were several hospitality receptions allowing attendees the time and space to socialize with existing friends and customers. There was also a golf tournament held at Reflection Ridge Golf Club on Tuesday afternoon in which 111 golfers enjoyed a beautiful day, 68 degrees and no wind on the course followed by an awards presentation. Thank you to all sponsors of the KGFA Annual Meeting and Golf Tournament.


The Sunflower Award was presented to Lowell Downey, a veteran of the grain and feed industry. The Sunflower Award is the Kansas Grain and Feed Association’s most prestigious award given annually to recognize an individual who has made a significant and notable contribution to our industry and our association. The contribution may be of scientific achievement, marketing, engineering, transportation or management, but is certainly not limited to these.

During G F A members members participated partic ipatedininaa50/50 50/50raffle. raffle. Duringthe theannual annual meeting, meeting, K KGFA T heproceeds proc eeds from raffle were donated to the K ans as wildfire The from thethe raffle were donated to the Kansas wildfire reliefrelief fund. fund.

Chairman Pete Goetzmann and Immediate Pas t Chairman, Chairman Pete Goetzmann and Immediate Past Ted S chultz. Chairman, Ted Schultz.

Left: Newly appointed Chairman, Glen Hofbauer, and Voice of the Kansas City Chiefs, Mitch Holthus. Outgoing Chairman, Pete Goetzmann, and incoming Chairman, Glen Hofbauer.

Right: Chairman Glen Hofbauer closing the KGFA Annual Meeting


First place golf team from left to right, Doug Story, Watco Companies, Joe Griffith, Bartlett Grain, Casey Harbour, Watco Companies and Mike Brainerd, UP Railroad

TAL Alumni Nick Hansen, Ag Mark, LLC and David Klahr, KFSA and current TAL class member raised over $800 at the TAL fundraising golf hole at the KGFA Annual Meeting Golf Tournament. Congratulations and thank you to these two T.A.L. class participants.


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

THANK YOU KGFA SPONSORS Commodity Partners Kansas Corn Kansas Grain Sorghum Kansas Soybean Kansas Wheat Commission Underwriters $15,000+ KFSA Founders $7,500 Kansas Grain Inspection Benefactors $5,000 ADM Watco Companies Patrons $3,500 BNSF Railway Company Bunge North America Cargill Incorporated Farmers Coop Equity Co., Isabel Hammel Scale Co., Inc. Industrial Maintenance, Inc. Korol Financial Group LLC Louis Dreyfus Company Builders $2,000 Bartlett Grain Company, L.P. Beachner Grain Inc. CHS Inc. First National Bank of Hutchinson Frontier Ag, Inc. Grain Craft Hannebaum Grain Co. Inc.

INTL FCStone INTRUST Bank, N.A. Irsik & Doll Feed Services, Inc. Morrill Elevator, Inc. Offerle Coop Grain & Supply Co. Team Marketing Alliance The Cooperative Finance Association The Scoular Company Tri-States Grain Conditioning, Inc.

Rolfes @ Boone Valley Cooperatives, Inc. Wildcat Feeds LLC WindRiver Grain, L.L.C. Tomorrow’s Agribusiness Leaders

Donors $750 BarnesCo Inc. CCS Group LLC Central States Fumigation & Services Cline Wood, A Marsh & McLennan Agency LLC Company Cloud County Coop Elevator Assn. CoMark Grain Marketing, LLC Conestoga Energy Partners LLC Cornerstone Ag LLC CTECAG D.E. Bondurant Grain Co., Inc. Drake Inc Ernest-Spencer Gamet Manufacturing Inc HABCO, Inc. Highlands Livestock Services Hooker Equity Exchange Kansas Cooperative Council KC Supply Co Inc Midway Coop Assn. Nemaha County Coop The Ottawa Cooperative Assn. Pride Ag Resources

Founder $1,000 ADM AgMark LLC Beachner Grain, Inc. Cargill Incorporated CHS Inc. Frisbie Construction Co. Inc. Kansas Corn Kansas Grain Inspection Services WindRiver Grain, LLC Patron $700 KC Supply Co., Inc. Builder $500 D.E. Bondurant Grain Co., Inc. Frontier Ag, Inc. INTL FCStone KFSA Nemaha Country Coop Pride Ag Resources Team Marketing Alliance Wildcat Feeds, LLC Other Co-Mark Grain Marketing, LLC Kansas Cooperative Council

The Kansas Grain and Feed Report is published quarterly for the members, friends and affiliates of the Kansas Grain and Feed Association. Mail contributions to: KGFA Attn: Devon Stewart, 816 SW Tyler, Topeka, KS 66612 The KGFA team welcomes your comments, contributions and suggestions. Annual subscriptions for members can be purchased for $25. © 2017 KGFA

KGFA SPRING 2017  
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