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SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896

Grain and Feed Report

Summer Issue


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

2017 Kansas Agri Business Expo Shooting for Success KRIS “TANTO” PARONTO - Expo Keynote Speaker Former Ranger, 2nd Battalion, 75th Regiment Security and Military Consultant Hero of Benghazi Attack Kris Paronto - “Tanto” as he is affectionately known in security contracting circles - is a former Army Ranger from 2nd Battalion 75th Ranger Regiment and private security contractor who has deployed throughout South America, Central America, the Middle East and North Africa. He also worked with the US Government’s Global Response Staff conducting low profile security in high threat environments throughout the world. Mr. Paronto was part of the CIA annex security team that responded to the terrorist attack on the US Special Mission in Benghazi, Libya, September 11th, 2012, helping to save over 20 lives while fighting off terrorists from the CIA Annex for over 13 hours. Mr. Paronto’s story is told in the book “13 Hours” written by Mitchell Zuckoff and his five surviving annex security team members. More information about the Expo can be found on the Expo website at www.ksabe.org. Registration information for the Expo will be mailed in September; however recertification and attendee registration will be available on the Expo website by late August. Feel free to contact Shari Bennett, Expo Manager, at (785) 234-0464 or shari@kansasag.org if you have questions regarding the 2017 Kansas Agri Business Expo.


SAVE THE DATE! NOVEMBER 15 - 16, 2017 Get Recertified in One Day Recertification training will be offered for anyone certified in categories 7B/4 and 1A during the 2017 Kansas Agri Business Expo at the Century II Convention Center in Wichita. The 7B/4 - Fumigation and Seed Treatment program will take place on Wednesday, November 15th, and the 1A - Ag Plant/Application program will occur on Thursday, November 16th. These programs will provide all required hours for recertification. The 1A program on Thursday will also be submitted for CCA CEU credits. See the enclosed Expo registration form to register.

DECEMBER 7, 2017 Grain Handlers Workshop Coming to Hays Make plans to join KGFA on December 7th at the KSU Research Center in Hays for our annual Grain Handlers Workshop! This program will take a unique look at the challenges grain handlers and elevator operators faced during the 2017 harvest. This course will be approved as a full 7B recertification program. Additional program and registration information will become available in September.

WELCOME OUR NEWEST MEMBERS! Thanks to the reputation of our membership and industry, KGFA continues to grow and provide useful products and services for grain handlers in Kansas. Please welcome Borton LC (Wichita), Hudson Consulting Services (Wichita) and Kennedy/Jenks Consultants (Mission).

Update Your Membership Profile Did you move or take a new job? Have a new phone number or email address? KGFA wants to know, and we’ve made it easier than ever to update your membership profile. Visit www.ksgrainandfeed.org and click on Member Directory. Login and make your changes directly online. Forgot your username or password? Email lisa@kansasag.org, and we’ll get it to you.

KGFA Hosts Meet and Greet for Congressman Ron Estes KGFA was pleased to host a reception for newly elected Congressman Ron Estes at the association office in May. The Congressman, formerly Kansas State Treasurer, was pleased to visit with several members of our association and others about the key issues being debated in Washington and his new job responsibilities. Congressman Estes serves on both the House Education and Workforce and Homeland Security committees in Congress.


NO TIES - Pt. 1 KGFA Staff Starts 2017 No Ties Tours

Now that the legislature has wrapped up, association staff commenced the first of several “no ties” tours of members of the association across the state. Association staff was pleased to spend a few days stopping and discussing issues with members in Salina, Lindsborg, Oakley, Colby, Pierceville and Goodland. For the next several months, staff will be traveling statewide and hearing from members on how we can better serve you.

T.A.L Class Completes Session II In July, the 2017 Tomorrow’s Agribusiness Leaders (T.A.L) class traveled to Washington D.C. for Session II, where they gained invaluable experience and contacts that will allow them to grow professionally and add to their respective companies, the industry and associations.

The T.A.L. class this year was treated to two very unique and historic experiences during their visit. They enjoyed a private meeting with Sonny Perdue, the Secretary of Agriculture, and a personal after hours tour of the U.S. Capitol hosted by Congressman Roger Marshall. During the meeting with Secretary Perdue, your association was able to express our ideas on renegotiating trade agreements, the recently approved GMO law, and to share our appreciation for all the Secretary has done for the industry both publically and privately. Secretary Perdue previously served as the Governor of Georgia and on the board to the National Grain and Feed Association. First District Congressman Dr. Roger Marshall personally gave T.A.L. Session II participants a personal after hours tour of the U.S. Capitol. This tour included sections of our nation’s capitol normally off limits to the general public. The KGFA team enjoyed a visit to the floor of the House chamber and enjoyed the view of nighttime Washington, D.C. from the Speaker of the House’s private balcony. KGFA staff would like to express a special thanks to Secretary Perdue and Congressman Marshall for going out of their way to make the 2017 T.A.L. trip a memorable and historic experience. Applications are being accepted for the 2018 T.A.L. class. Please apply at www.ksgrainandfeed.org.

Nathan Bishop and Jeff Bhend, Scoular, Goodland, with association staff, Ron Seeber.

Shane Eck, MKC, Lindsborg, with association staff, Ron Seeber.

Phil Van Court, Scoular, Salina, with association staff, Ron Seeber.

Albert Reyes and Jacob McCullar, Garden City Co-op, Inc., Pierceville.


Legislative Update Agricultural Chemical Remediation Reimbursement Program: Update 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

Recent Change in Kansas Law Allows For Overweight Agricultural Truck Permits Six-axle trucks may transport 90,000 lbs. beginning July 1, 2017 This Legislative session, your association joined with a coalition of agricultural interests to seek an increase in the maximum gross weight that commercial trucks can lawfully transport in Kansas. Following the successful passage of House Bill 2095 this year, motor carriers with a $200 annual permit may now transport up to 90,000 lbs. on 6-axle vehicle configurations on non-interstate roads. The new law allows the transport of up to 90,000 lbs. for motor carriers transporting “agricultural products.” As defined in the law, agricultural products includes “agricultural inputs, farm supplies, biofuels, feed, raw or processed agricultural commodities, livestock, raw meat products, or farm products.” The bill specifically states that the term “agricultural products” is to be construed liberally. The law became effective July 1, 2017.

(KARB). During the June 16, 2017 KARB meeting, the Board reimbursed fifteen (15) applicants a total of approximately $250,000. The next KARB meeting will be held on September 15, 2017, and the deadline to submit new applications prior to that meeting is August 18, 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. 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 $3.79 million.

association staff contacted the Kansas Department of Transportation (KDOT) for guidance on how industry participants can apply for the annual permits and take advantage of the increased maximum gross weight. According to the department, starting July 1, 2017, motor carriers will be able to apply for and purchase an Annual Overweight Agricultural Permit through KDOT’s online permitting system, at www.k-trips.com. On the login page, the motor carrier will have access to various tutorial videos that will walk them through the process to create an account and order an overweight permit. Once logged into the system, the motor carrier will have access to an online document that will further assist them. In addition, the motor carrier may call KDOT’s Central Permitting office for assistance, at (785) 368-6501. As always, please contact your association office should you have any questions, at 785-234-0461.

2017 Legislative Session General Overview The legislative session is normally set to last 90 days. However, this year it went to a near record 113 days. During this session, KGFA staff either nurtured the passage of, tracked, lobbied or killed over hundreds of bills that affected the industry. The effects of these bills could have small or large

impacts, but all had consequences. The Kansas Legislature approved the three policy items needed in order to meet the requirements of the Kansas Constitution and the Kansas Supreme Court. They balanced the state budget, approved a school finance plan and raised $1.2 billion in new taxes to pay for the aforementioned two.

Ag Targeted Taxes Stopped With a $1.2 billion shortfall, several tax bills were introduced and/or discussed that targeted Agribusiness to raise revenue. These bills were pushed targeting production agriculture as a disproportionate source of revenue for the state. KGFA successfully stopped dead in their tracks several such bills detri-

mental to the industry. Bills KGFA killed included imposing a sales tax on utilities based on agricultural use, eliminating the sales tax exemption for farm machinery and equipment, an excise tax on ethanol and increasing the statewide assessed valuation of agricultural land.

Grain Elevator Property Tax Valuation Review Project Earlier this year, KGFA’s Board of Directors directed staff to contract with a commercial appraiser to review the accuracy of grain elevator sales data compiled and used by the Kansas Department of Revenue’s (KDOR) Property Valuation Division (PVD). The PVD includes this data in its Grain Elevator Property Guide. County appraisers then use this information in PVD’s property guide to make comparative analysis when establishing the fair market value of other grain elevators for property tax purposes. The KGFA Board intends to demonstrate that the total purchase price of most grain elevators includes personal property and intangible business value, and that these values must be subtracted from the purchase price to find the true fair market value of the grain elevator realty. Otherwise, the purchase price overstates the fair market value of the realty.

To accomplish this, KGFA has partnered with the Kansas Cooperative Council (KCC) in contracting with Commercial Property Appraiser Jim Hudson. Jim is currently contacting each of the grain elevators included in PVD’s grain elevator property guide in order to review the sales transaction and the property (real/personal) purchased in the sale. Jim’s mission is to help our industry ensure that the sales data in PVD’s property guide is fair and accurate. If Jim contacts your facility, KGFA and KCC want you to know that he is working to help the industry. We would ask that you work with Jim and help him perform his review of PVD’s sales data. If you have any questions about this project or the information that Jim might request from you, please contact the association office at 785.234.0461.

$1.2 Billion Retroactive Tax Increase Passed, Vetoed and Overridden The Kansas House and Senate approved and sent to the Governor a bill that would make a number of changes in the Kansas individual income tax structure, which was vetoed, then overridden. It is now the law of Kansas. As of July 1, 2017, individual income tax rates were retroactively increased beginning in tax year 2017 and will increase again in 2018. 4.60

% in tax year 2018. The law also repeals provisions of Governor Brownback’s 2013 tax cuts. These include repealing provisions that could have provided for rate reductions in certain future years based on growth in selected State General Fund tax receipts. The law also retroactively repeals for tax year 2017 income exemptions for LLCs, subclass s, partnerships, rental income and farm income.

KGFA Staff Member Attends US Chamber Management Institute On June 4-8, 2017, KGFA Vice President & General Counsel, Randy Stookey, attended the Institute for Organization Management (IOM), a professional development program of the U.S. Chamber of Commerce Foundation in Madison, Wisconsin. IOM is the premier nonprofit professional development program for association and chamber professionals, fostering individual growth through interactive learning and networking opportunities. Since its commencement in 1921, the IOM program has educated tens of thousands of association, chamber and other nonprofit leaders on how to build stronger organizations, better serve their members and become strong busi-

ness advocates. IOM’s curriculum consists of four week-long sessions. Through courses in areas such as leadership, advocacy, marketing, finance and membership, Institute participants enhance their organizational management skills and add fuel to their organizations. At the completion of the four-year curriculum, each attendee receives IOM graduate recognition, signifying completion of 96 hours of course instruction in nonprofit management and their commitment to the industry. “I greatly appreciate this opportunity to attend IOM, and for the association’s investment in this training program,” said Stookey. “IOM provides a tremendous educational opportunity in which to sharpen my skill set and expand my professional knowledge in the nonprofit sector.”

KDA Moisture Meter Testing – What You Need to Know On June 14th, the Kansas Department of Agriculture (KDA) held an industry meeting in Manhattan, Kansas to discuss moisture meter testing requirements. The meeting was held by Doug Musick, manager of KDA’s weights and measures program. KDA inspectors test all kinds of commercial weighing and measuring devices, to include moisture meters used for commercial dockage. During the meeting, Musick said that Kansas law requires moisture meters be tested annually. Such testing must be performed by a KDA-licensed service company, with the service conducted by a KDA-licensed technical representative.

KDA. KDA intends to conduct random follow-up inspections of moisture meters which: have not been inspected in over a year; have failed a recent inspection; have no record verifying the deficiency was corrected; and for which KDA has received a complaint. The owner of the moisture meter will be required to retain the moisture meter inspection reports for 5 years.

After each inspection, the service company is required to create an inspection report. One copy of the report is left with the owner of the moisture meter and another copy is sent to

Starting July 1, 2017, technicians and service companies testing grain moisture meters are required to be licensed. Also, starting July 1, 2017, firms using grain moisture meters commercially must have their meters inspected and tested annually by a licensed service company. Firms needing inspections and testing of their grain moisture meters will have until June 30, 2018 to have their first test completed. KDA is also considering adopting the most current version of the NIST handbook 44, which would set forth the types of moisture meters that would be authorized for commercial use in Kansas.


Cranor Memorial Golf Tournament Hosted at The Golf Club at Southwind

The 2017 John Cranor Memorial Golf Tournament turned out to be another successful KGFA event. Over 100 golfers waited out the rainy forecast and continued the tradition of remembering past KGFA President John Cranor, who passed away in 1980. Sixty-five KGFA members enjoyed an evening of socializing on Sunday night at Samy’s Spirits and Steak-

house before hitting the course at 10:00 a.m. on Monday, August 7, to compete with other agribusiness professionals. The Golf Club at Southwind originally opened in 1980 under the name Southwind Country Club through the vision and dedication of Earl Brookover and the members at the Garden City Country Club. It was Mr. Brookover who had the

original vision of building a fine private country club to the south of Garden City, Kansas. Part of the vision of Mr. Brookover was to create a community with the club as the center and as his vision came to life Southwind became the premier club in Southwest Kansas. The Brookover family owned and managed Southwind until 2009 when a long time member purchased the club from the Brookover family.

This year’s winning Cranor team with a score of 58 was: Daryl Strecker, George Strecker, John Strecker and Marietta Strecker, all of Hi-Plains Coop.

Past T.A.L. class member Barbie Padgett, Pride Ag, Dodge City, and Phillip Butler, Purple Wave, Inc., Manhattan, raised more than $900 for the T.A.L. program at the T.A.L. fundraiser golf hole.


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 Underwriter $15,000 KFSA Founder $7,500 Kansas Grain Inspection Service Inc. Benefactor $5,000 ADM Companies Watco Companies Patron $3,500 BNSF Railway Company Bunge North America Cargill Incorporated CoBank ACB Farmers Coop Equity Co., Isabel Frisbie Construction Hammel Scale Co., Inc. Industrial Maintenance, Inc. Korol Financial Group LLC Louis Dreyfus Company Builder $2,000 Bartlett Grain Company, L.P. Beachner Grain Inc. CHS Inc. First National Bank of Hutchinson Frontier Ag, Inc. Int’l FCStone Grain Craft

Hannebaum Grain Co. Inc. INTRUST Bank, N.A. Irsik & Doll Feed Services, Inc. McPherson Concrete Storage Systems Morrill Elevator, Inc. Offerle Coop Grain & Supply Co. Team Marketing Alliance The Cooperative Finance Association The Scoular Company Tri-States Grain Conditioning, Inc. Donor $700 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 Rolfes @ Boone Union Pacific Railroad

Valley Cooperatives, Inc. Wildcat Feeds LLC WindRiver Grain, LLC Tomorrow’s Agribusiness Leaders Founder $1,000 ADM AgMark LLC Beachner Grain, Inc. Cargill CHS Inc. Frisbie Construction Co. Inc. Kansas Corn Commission Kansas Grain Inspection Services Lortscher Animal Nutrition Patron $700 KC Supply Co., Inc. Builder $500 D.E. Bondurant Grain Co., Inc. Int’l FCStone Frontier Ag, Inc. KFSA Nemaha County Coop Pride Ag Resources Team Marketing Alliance Wildcat Feeds, LLC WindRiver Grain, LLC Other Co-Mark Grain Marketing, LLC Kansas Cooperative Council

The 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

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