FALL 2016 SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896.
GRAIN & FEED REPORT
IN THIS ISSUE: Meet the newest KGFA board member All you need to know about the Expo (registration enclosed) Kansas Department of Agriculture says practice of limiting grain receipts to “Historical Customers” is inconsistent with Kansas Grain Warehouse Act No Ties Tour Annual Cranor Golf Tournament
Tom Tunnell President & CEO Ron Seeber Senior VP of Government Affairs Stephanie Jensen Senior VP 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
Pete Goetzmann Chairman ADM Grain Co. Glen Hofbauer Vice Chairman The Scoular Company Jeremy Girard 2nd Vice Chairman Hannebaum Grain Co. Ted Schultz Immediate Past Chairman Team Marketing Alliance
Mark Paul Cloud County Coop
James Jirak Valley Coop
Joe Griffith Bartlett Grain Company, L.P.
Ryan McCoy Co-Mark Grain
Gary Beachner Beachner Grain
Deb Clark Farmers Union Merc. & Shpg.
Brad Cowan Frontier Ag Inc.
Russ Ronnebaum Hammel Scale
Brent Emch Cargill Ag Horizons
Bob Tempel WindRiver Grain LLC
Jerry Murphy Bunge North America
Announcements from the Office Get Recertified in One Day Recertification training will be offered for anyone certified in categories 7B/4 and 1A. The 7B/4 Fumigation and Seed Treatment - program will be on Wednesday, November 16, and the 1A Ag Plant/Application - program will be on Thursday, November 17 at Century II Convention Center in Wichita, Kansas.
John Van Meter Midland Marketing
These programs will provide all required hours for recertification. The 1A program on Thursday will also be submitted for CCA CEU credits.
Lisa Anschutz Senior Director of Internal Operations
Grain Handlers Workshop Register Now! KGFA is hosting the Grain Handlers Workshop on December 2 in Salina. This program will take a unique look at the challenges grain handlers and elevator operators faced during the 2016 harvest. Attention 7B Licensees: This program will be approved as a full 7B Recertification Program.
Julie Stueve Executive Assistant to the President
Welcome to the Board Mark Paul
Update Your Membership Profile Did you move or take a new job? Have a new phone number or email address? KARA wants to know, and we’ve made it easier than ever to update your membership profile.Visit www.ksagretailers. 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.
Mark was raised in a small rural community in West Central Kansas. He attended Dodge City Community College, Fort Hays State University and Kansas State University majoring in Ag Business Management, Industrial Arts and Grain Milling Science. After college he worked in the construction industry in Hays, Kansas building homes, banks and schools. This is where he met his wife, Elaine, of 34 years.They have four adult children and four very special grandchildren. Mark has spent over 35 years working in the Agriculture field and has worked as a farmer/rancher, from elevator operator to a Cooperative Board Member. He and his family moved to Concordia in 1998 and he is currently the General Manager for Cloud County Coop Elevator Association in Concordia and President of Concordia Terminal LLC. Mark has been involved in the Concordia community as a President of the Lions Club, Chairman of the Concordia Chamber of Commerce, the Concordia Board of Zoning Appeals, Cloud Resource Council Board and The Community Foundation of Cloud County. Mark likes to spend time with his children and grandchildren, fishing, playing golf and spending time with Elaine at their special place in Colorado.
FALL 2016, GRAIN AND FEED REPORT
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FALL 2016, GRAIN AND FEED REPORT
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 Kansas. Please welcome Iola Grain (Iola) and Tax Appraisal Specialists (Wichita) to KGFA.
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Keynote by Jim Morris, ”The Rookie” This year’s keynote speaker is Jim Morris, the real-life inspiration behind Disney’s “The Rookie” movie, which won the ESPY for Sports Film of the Year. Come hear Jim’s Cinderella story and testimony to the power of dreams and their ability to inspire and transform human life. Morris, took a risk that proved to be nothing less than a miracle. You’ll want to set your alarm for Thursday’s breakfast for sure.
Chairman’s Reception with Greg Claassen, Ventriloquist The Chairmen’s Reception is the #1 event during Expo week to sit down with fellow general managers and existing or potential customers for one-on-one face time. The food is always amazing and so is the comradery.
table games.
Additional events have been added to the Chairmen’s Reception to include a 30 minute performance by Ventriloquist Greg Claassan and 1-1/2 hours of
Win Southwest Airline Ticket Vouchers Visit at least 10 exhibitors each day and be entered to win a $500 Southwest Airlines voucher on Wednesday and one on Thursday. It might just pay your way round trip to the World Series! Two drawings will take place: 4:30 p.m. on Wednesday and 4:00 p.m. on Thursday. You must be present to win. *Recertification attendees can participate.
Sporting Clay Shoot Raises Money for PAC The Sporting Clay Shoot is scheduled for Tuesday, November 15. Sign-up form is included in this newsletter. Both the Kansas House and Senate are up for re-election this year so it is vital to help our rural friends in the legislature as they defend agribusiness on our behalf. Prizes will be awarded at the shoot. If you prefer to golf, t-times can be made at Rolling Hills Country Club at (316) 722-1181. FALL 2016, GRAIN AND FEED REPORT
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KGFA Sponsors 4-H Wheat Variety
KDHE Releases Statement on New VCP Site Project Manager Turnover Guidance
Display
ASSOCIATION STAFF -- The Kansas Department of Health and Environment (KDHE) has announced a new policy addressing our members’ number one concern with the Voluntary Cleanup and Property Redevelopment Program (VCP).
Every year, KGFA is proud to help sponsor the Kansas 4-H wheat plot variety display contest at the Kansas State Fair. Participants plant and raise five varieties of wheat, and then create an educational display to showcase their wheat production and accomplishments. KGFA sponsored plaques and cash awards to the third, fourth and fifth place winners. KGFA Chairman Pete Goetzmann presented these awards.
Many Association members may be familiar with or enrolled in the VCP, where a facility works with the KDHE in remediating past ag chemical contamination at their facility. Enrollment in this program allows a company to later apply to the Remediation Reimbursement Fund ( KARB program) for reimbursement of expenses related to the clean-up project. In recent years, Association Staff has worked with the KDHE on amending the VCP to improve the program for industry. In 2015, your Association worked with KDHE to pass HB 2193, a bill which modified the VCP to allow industry members a more clear path toward completing a remediation project and receiving a “no further action” letter. Other changes included moving to a riskbased remediation system rather than requiring a defined drinking water standard, and removing an enrollment requirement for adjacent properties contributing to the contamination site. However, when members were asked to identify their primary frustration with the VCP program, the most common response was the additional time and expense related to the turnover of a KDHE project site manager. KDHE has acknowledged that this situation presents itself quite often. All too often, however, this administrative change on KDHE’s end has translated into new requirements on the facility once the newly assigned KDHE project site manager performs their initial evaluation of the site. Commonly, the new KDHE project manager required additional monitoring, sampling, testing, digging, etc., activities that were either
Agricultural Chemical Remediation Reimbursement Program: Update
The 2016 Kansas 4-H wheat plot variety display winners were announced in the Showcase Building during the Kansas State Fair in Hutchinson.
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.
2016 winners and 4-H home town and county/district include:
1st Place – BrayLynn Anshutz and BreAnn Anschutz, Barton County
2nd Place – Luke Ryan, Dickinson County 3rd Place – Brianna Stefan, Clark County
4th Place – Dexter Small, Wildcat District – Independence
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
5th Place – Christian Tipton, River Valley District - Belleville
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FALL 2016, GRAIN AND FEED REPORT
not required or consistent with what the previous KDHE project manager had required. All of these new requirements come with additional expenses on the owner of the facility. Hearing from our members, Association Staff brought this important issue to the attention of the KDHE. In response to those conversations, your Association is pleased to report the following new policy and announcement from the KDHE: KDHE appreciates your bringing to our attention the concerns of your association members. With regards to new project managers, [KDHE has] been directing the project managers to follow prior decisions made at sites to ensure KDHE provides a consistent direction to the VC applicant. Any project manager that believes an error has potentially been made in the past is required to present the information to Deanna and me prior to consideration for a change. No changes will be made unless a previous decision creates a significant risk to human health or the environment. We do not take these decisions lightly and any changes will require direct input and discussion with the applicant and/or their designated consultant. - Bob Jurgens, Chief, Assessment & Restoration Section, Bureau of Environmental Remediation, Kansas Dept. of Health & Environment Your Association staff is pleased with this new development and appreciates KDHE’s willingness to listen to industry and work to improve the program. If you encounter a similar situation in the future with the assignment of a new project manager, please feel free to contact your Association staff.
fund up to $200,000 per site. The Reimbursement Program is administered by the Kansas Agricultural Remediation Board (KARB). During the last KARB meeting, on June 10, 2016, the Board was able to reimburse four (4) applications for a total of $153,576.37. In all of 2016, the Board has reimbursed thirty-three (33) applicants a total of $565,330. 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 $4.3 million. The next KARB Meeting is on December 9, 2016.
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TIME TO APPLY FOR T.A.L.!!!
T.A.L. Wraps Up Sessions Tomorrow’s Agribusiness Leaders Class Lobbies Washington, Completes Session In July, the 2016 Tomorrow’s Agribusiness Leaders 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. In addition to touring several historical monuments and the capitol in Washington, the T.A.L. class, board chairmen and staff met with our national associations, members of our Congressional delegation, and Surface Transportation Board Commissioner and former Kansas Secretary of Transportation Deb Miller.
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During their meetings at the United States Capitol, the team relayed thoughts and support for the GMO labeling bill, and concerns about regulatory environment facing agribusiness to the Kansas Congressional
Delegation. In September, the T.A.L. class completed session III in Wichita. The agenda included a morning class taught by Dr. Don Hackett, with WSU’s Center for Management Development on the fundamentals of responsible managers. A working lunch was held with State Senator Ty Masterson on how to run a political campaign. The session wrapped up with presentations by KGFA Pete Goetzmann on how to hit your mark as a volunteer leader. During the session, Blake Connelly, Alliance Ag and Grain, LLC, and Derrick Tice, Innvictis Crop Cave, LLC, were chosen to be representatives of the 2016 T.A.L. class on the T.A.L. selection committee. The 2016 T.A.L. class will graduate Thursday, November 17th during the Kansas Agribusiness Expo’s awards breakfast.
Kansas Department of Agriculture says practice of limiting grain receipts to “Historical Customers” is inconsistent with Kansas Grain Warehouse Act Randy E. Stookey, KGFA General Counsel Sept. 2, 2016 In a time of record harvests and abundant grain, elevator storage space becomes extremely limited. Because of that, the Kansas Department of Agriculture (KDA) has received questions from industry on whether a state-licensed grain warehouse is required to receive all grain tendered to it from any producer. The KDA enforces the Kansas Grain Warehouse act, which regulates all state-licensed grain elevators in Kansas. The Kansas Grain Warehouse act requires statelicensed public grain warehouses to “receive for storage or shipment, so far as the available capacity of the warehouse shall permit, all grain in a suitable condition for storage tendered to the warehouse in the usual course of business, without discrimination of any kind.” KSA
“Acceptable Documentation” for Fees on Grain Warehouse Receipts
KGFA recommends that members with state-licensed facilities In years past, at another time of remove any poster which states bumper crops when elevators found that the facility will “only accept grain from historical customers/ themselves short on space, KDA had provided KGFA with guidance stockholders.” which allowed grain warehouses to Upon receiving this new guidance post a sign limiting its grain refrom KDA, Chairman Goetzmann ceipts to “historical customers and members.” The intent was to ensure and President Tunnell contacted Tim Mehl, Chief of the Warethat a facility did not run out of house Licensing Division, USDA, storage space for their customKansas City office. Mehl assured ers. Consistent with that guidance, KGFA provided posters to its mem- Goetzmann and Tunnell that - for federally licensed grain warehouses bers stating: - the practice of limiting grain delivery to historical customers and/ In order to facilitate the proper or members was both reasonable handling of harvested grain and assure adequate storage space to ac- and consistent with the U.S. Grain commodate high volumes received Warehouse act. at harvest, we will only accept grain KDA clarified that a grain warefrom historical customers/stockhouse maintains the ability to deholders at this grain warehouse fine its available storage space, and facility. allocate that available storage space among its customers. For example, However, KDA recently released a grain warehouse may limit each new guidance to state-licensed grain warehouses on the practice of customer to no more than 10,000 restricting grain receipts to histori- bushels of storage space. An elevator may also determine how much cal customers, as follows: of its physical capacity to use as a public grain warehouse. In addiThe Kansas Grain Warehouse Act tion, KDA is willing to work with prohibits discrimination of any the grain warehouse industry to kind in taking grain delivery. The approve temporary storage during practice of limiting grain delivery the harvest season, as needed, in to historical customers and/or order to allow grain warehouses to members would be a form of disservice all customers. crimination, and inconsistent with the requirements of the act. Please contact KGFA staff with any questions. Based on KDA’s new guidance, 34-233(a).
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Earlier this summer, KGFA staff was asked to provide guidance on the type of information that was required to appear on grain warehouse receipts concerning inhandling and out-handling fees in order for the receipts to be deemed “acceptable documentation” for a producer’s marketing loan. The Kansas State Farm Service Agency (KS FSA) and the USDA Regional Commodity Office provided the following information in answer to the question presented: The basic rule from the FSA Handbook (https://www.fsa.usda.gov/ Internet/FSA_File/8-lp_r02_a11. pdf, is that producers must be able to provide “acceptable documentation” to the loan office demonstrating that the in-handling fees have been paid or otherwise provided for. If paid, then the receipt must show that the fees are paid. According to the FSA Handbook, “Acceptable Documentation” includes either:
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1. prepaid in-handling charges that are recorded directly on the grain warehouse receipt; or, 2. certification signed by the warehouse operator with the following language: “Arrangements for the payment of all in-handling charges have been made by the depositor of the commodity covered by the receipts numbers. No lien will be asserted by the warehouse operator against Commodity Credit Corporation or any subsequent holder of the warehouse receipt for in-handling charges.” A loan disbursement can be offset to provide for charges other than in-handling, if the warehouse receipt indicates in-handling charges have been provided for or paid. Under Chapter 545, Section A of the FSA Handbook, all grain warehouse receipts must include: • name and location of storing warehouse • all in-handling charges (if not prepaid, a statement must be provided according to type of commodity) • CCC-assigned warehouse code • warehouse receipt number • date receipt was issued • date commodity was deposited or received
FALL 2016, GRAIN AND FEED REPORT
• date to which storage has been paid according to subparagraph 540 G or storage start date • whether commodity was received by rail, truck, or barge • amount per bu. or cwt of prepaid in or out charges, and • the signature of the warehouse operator or authorized agent. Regarding the question of whether a facility must charge an “in-handling” fee, and the amount of that fee, the USDA Regional Commodity Office provides the following guidance: • Each grain warehouse is unique as to whether it charges an “in-handling” fee or other storage fees. • Fees charged by each grain warehouse must be set forth in their tariff and posted in the elevator in a place accessible to producer customers. • Fees charged by a grain warehouse must be consistent with the elevator’s posted tariff. • Generally, grain warehouses will not assess an “in-handling” fee during the initial in-taking period when the customer is deciding whether to sell their grain to the elevator. If they sell the grain, then often the elevator will not assess the “in-handling” fee.
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KGFA was pleased to facilitate a tour of the Kansas Grain Inspection Service for Congresswoman Lynn Jenkins. The Congresswoman was impressed by the operation and important role KGIS plays in ensuring a safe, affordable, abundant food supply. Pictured are Randy McCormick, Congresswoman Lynn Jenkins, Alan Trower, and Ron Seeber.
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No ties tour in Cheney visiting Farmers Coop Elevator and CoMark. Pictured are Troy Presley, Ryan McCoy, Brad Scheer and Ron Seeber.
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Staff no ties tour in Moundridge visiting MKC and Team Marketing. Pictured are Darin Marti, Steve Peterson, Devin Schierling, Erik Lange, Ron Seeber and Ted Schultz.
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Pictured are Kristin Boltz (2016 TAL class member) and Ron Seeber at Randall Farmers Coop Union, Randall.
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KGFA no ties tour. Ron Seeber and Russ Ronnebaum at Hammel Scale Company in Wichita.
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No ties tour in Haviland. Pictured are Ron Seeber and Jon Francis with Alliance Ag and Grain, LLC.
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Senator Pat Roberts hosted a round table discussion on Agriculture Issues with several Ag organizations in Kansas. James Jirak, Valley Coop, and Association President Tom Tunnell participated and were able to give valuable input to the Senator.
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The Association was pleased to host a very successful fundraiser for 1st Congressional District Republican Nominee, Dr. Roger Marshall. Congresswoman Lynn Jenkins was the featured guest at this packed house event. FALL 2016, GRAIN AND FEED REPORT
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Current T.A.L. class member Barbie Padgett, Pride Ag, Dodge City and T.A.L. Alumni Brian Rosenhagen, Fairbank Equipment, Wichita, raised more than $1,500 for the T.A.L. program at the T.A.L. fundraiser golf hole.
Pictured from left to right: KGFA Chairman Pete Goetzmann, ADM Grain; KGFA President & CEO Tom Tunnell; Tom Meyer, President, KGIS and Mike Schaffter, KGIS Board Trustee enjoy golfing together at the Cranor Memorial Golf Tournament
Cranor Memorial Golf Tournament Hosted at Prairie Dunes The 2016 John Cranor Memorial Golf Tournament turned out to be another successful KGFA event. Over 100 golfers continued the tradition of remembering past KGFA President John Cranor, who passed away in 1980. Seventy-five KGFA members enjoyed an evening of socializing on Sunday night at Jillian’s Italian Grill before hitting the course at 9:00 a.m. on Monday, August 8, to compete with other agribusiness professionals. Prairie Dunes Country Club was founded in 1935 by the Carey family who commissioned architectural genius Perry Maxwell (Southern Hills, Colonial Country Club, redesign of Pine Valley and Augusta National) to design a masterpiece. Thus, the idea of Prairie Dunes was born. 9 SPRING 2016, GRAIN AND FEED REPORT
KGFA Members enjoy good food and great fellowship at the Cranor Dinner at Jillian’s Italian Grill in Hutchinson, KS.
This year’s winning Cranor team with a score of 60 was: PJ Forbes and Casey Harbour, Watco Companies; Joe Griffith, Bartlett Grain; and Doug Story, Watco Companies. FALL 2016, GRAIN AND FEED REPORT
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Kansas Grain and Feed Association 816 SW Tyler, Suite 100 Topeka, Kansas 66612
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 CHS Inc. CoBank ACB Frisbie Construction Co., Inc. Hammel Scale Co. Inc. Industrial Maintenance Inc. Korol Financial Group LLC Union Pacific Railroad Builder $2,000 Bartlett Grain Company Beachner Grain Inc.
C-TEC, Inc. First National Bank of Hutchinson Frontier Ag Inc. Hannebaum Grain Co. Inc. Highlands Livestock Services INTRUST Bank KC Supply Co. Inc. Louis Dreyfus Commodities 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 AgMark LLC Bank of the West BarnesCo Inc. CCS Group LLC Central States Fumigation Cline Wood Agency, a Marsh & McLennan Agency LLC CoMark Grain Marketing, LLC
Cornerstone Ag LLC D.E. Bondurant Grain Co. Drake Inc. Equity Marketing Alliance, LLC Ernest-Spencer Farmers Coop Equity, Isabel Farmers Union Merc. & Shpg. Assn. Gamet Mfg. Inc. HABCO Hooker Equity Exchange Irsik & Doll Feed Service Kansas Cooperative Council Midway Coop Assn. Nemaha County Cooperative Pride Ag Resources The Ottawa Cooperative Association WindRiver Grain LLC Commodity Partners Kansas Corn Commission Kansas Grain Sorghum Commission Kansas Soybean Commission Kansas Wheat Sorghum the Smart Choice
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, Attention: 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. Š 2016 KGFA