Winter 2017 SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896.
GRAIN & FEED REPORT
IN THIS ISSUE: Process Safety Management (PSM) Regulations– an Update KDA Moisture Meter Testing Agricultural Chemical Remediation Reimbursement Program: Update Alan Young Retires After 44 Years 2016 Kansas Agri Business Expo 2017 Legislative Action Day
Tom Tunnell President & CEO Ron Seeber Senior VP of Government Affairs Staci Storey 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
Pete Goetzmann Chairman ADM Grain Co.
Mark Paul Cloud County Coop
Glen Hofbauer Vice Chairman The Scoular Company
Andrew Fullerton Bartlett Grain Company, L.P.
Jeremy Girard 2nd Vice Chairman Hannebaum Grain Co.
Gary Beachner Beachner Grain
Ted Schultz Immediate Past Chairman Team Marketing Alliance
Brad Cowan Frontier Ag Inc. Brent Emch Cargill Ag Horizons Jerry Murphy Bunge North America
Devon Stewart Marketing and Communications Specialist
Coming Events
James Jirak Valley Coop Ryan McCoy Co-Mark Grain
Register for 2017 Grain Grading Schools
Deb Clark Farmers Union Merc. & Shpg.
KGFA and Kansas Grain Inspection Service will be offering valuable information to elevator operators, producers, brokers, and grain buyers about grades and how to use grain standards in marketing during Grain Grading SchoolsFebruary 21-23 and March 7-9.
Russ Ronnebaum Hammel Scale Bob Tempel WindRiver Grain LLC
Hands-on training will be given to recognize various types of kernel damage and samples will be graded to assist in practical, cost effective procedures for grain inspection. See enclosed form to register and for more information.
John Van Meter Midland Marketing
Grain Grading Schools Feb. 21 – Topeka Feb. 22 – Parsons Feb. 23 – Wichita Mar. 7 – Colby Mar. 8 – Dodge City Mar. 9 – Salina
Lisa Anschutz Senior Director of Internal Operations Julie Stueve Executive Assistant to the President
Welcome to the Staff Staci Storey
Regulatory Compliance Seminar – Coming to Hays! KGFA and NGFA have 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 will address how the changes to the Administration and Congress could affect the aforementioned agencies and their agendas. The operations part of the seminar will address 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. See enclosed form to register and for more information.
Regulatory Compliance Seminar with NGFA Jan. 12 – Hays
Happening at the Office
KGFA Hosts Grain Handlers Training Program KGFA members from Kansas and Oklahoma gathered at the Garden City Coop on November 29, and American AgCredit Building in Salina on November 30 for the KGFA Grain Handlers Program to take a unique look at the challenges grain handlers faced during the 2016 harvest. This day-long training evaluated various crop quality issues and provided practical lessons for future harvests.
On behalf of the Kansas Grain and Feed Association, we hope you and yours had a
Vice President & Chief Financial Officer
Staci Storey is responsible for the accounting functions for Kansas Grain and Feed Association (KGFA),Kansas Agribusiness Retailers Association (KARA), Kansas Agriculture Education Foundation (KAEF), Kansas Agribusiness Expo (KABE), Kansas Agribusiness Council (KABC), Midwest Management Solutions (MMS), Renew Kansas, Kansas Ethanol PAC (KEPAC), and Kansas Veterinary Medical Association WINTER 2017, GRAIN AND FEED REPORT
(KVMA).
Happy Holiday & a blessed New Year!
Storey studied accounting at Washburn University and Kansas State University. Prior to joining KARA in October, she worked 23 years for Midas Auto Service with the last 13 serving as the Vice President of the company. She is married with two teenage children, her oldest attending Kansas State University. 2
Process Safety Management (PSM) Regulations– an Update On September 23, 2016, the D.C. Circuit Court of Appeals struck down the Occupational Safety and Health Administration’s (OSHA) attempt to narrow the Process Safety Management (PSM) regulation’s retail exemption. The Court held that OSHA had failed to go through the proper notice-andcomment rulemaking process. Following the April 17, 2013 explosion at a fertilizer facility in West Texas that killed 15 people, President Obama issued an Executive Order (13650) directing OSHA, EPA and other agencies to examine their hazardous material regulations and recommend revisions to those regulations to prevent future catastrophes. OSHA’s PSM regulation exempted “retail facilities” from its coverage. OSHA defined “retail facilities” as those that derived at least 50 percent of their income from direct sales to end users.
KDA Moisture Meter Testing On November 15th, the Kansas Department of Agriculture (KDA) held an industry meeting in Wichita, Kansas to discuss moisture meeting 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.
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
In July of 2015, OSHA issued an enforcement memorandum: Process Safety Management of Highly Hazardous Chemicals and Application of the Retail Exemption (29 CFR 1910.119[a][2][i]). Under the memorandum, OSHA stated that the retail exemption would now apply only to facilities that fall within the NAICS code for “retail employers.” This defined a retailer as “a facility that sells small quantities to the general public.” Under OSHA’s new policy, approximately 4,800 previously-exempt facilities would have been subject to PSM’s requirements.
formal notice-and-comment rulemaking process.
Following OSHA’s memorandum redefining the retail exemption, numerous agricultural and employer groups filed suit, arguing that any changes to the retail exemption should have been implemented through formal notice-and-comment rulemaking, and not enforcement guidance. On September 23rd, the DC Circuit Court agreed, holding that by redefining the retail exemption to address a “particular significant risk,” OSHA was required to make the change through the
Following the election of President-elect Donald Trump, there is also the wildcard issue of the pending change in administration which promises to retract many of the regulatory actions imposed under the current administration. KGFA continues to advocate for our industry, and is closely following the outcome of this legal challenge. We will keep members informed on how this important issue develops.
During the meeting, Musick said Kansas law requires moisture meters to be tested annually. Such testing must be performed by a KDA-licensed service company. After each inspection, the service company is required to leave an inspection report which must be kept on site for five years. The service company will also keep a copy for five years and send another copy to the KDA.
which have either not been inspected in over a year, or which have failed the most recent inspection.
Beginning next year, KDA intends to conduct random inspections of moisture meters 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 December 9, 2016 KARB meeting, the Board reimbursed eight (8) applicants a total of $250,000. During 2016, the Board reimbursed sixty-four
WINTER 2017, GRAIN AND FEED REPORT
OSHA clearly did not appreciate the court’s decision, which potentially jeopardizes the validity of numerous other regulatory actions taken by the agency in the past using the same procedures. On the eve of the presidential election, OSHA petitioned the court for a rehearing, en banc. As the U.S. Supreme Court has previously upheld OSHA’s use of similar procedures, the outcome of the petition is uncertain.
KDA is considering adopting the most current version of NIST handbook 44, which would set forth the types of moisture meters that would be authorized for commercial use in Kansas. In addition, Handbook 44 would include testing standards and procedures for moisture meters.
(64) applicants a total of $1,205,051. The next KARB Meeting will be held on March 10, 2017, and the deadline to submit new applications prior to that meeting is February 10, 2017. 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 $4.08 million.
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After 44 years of service to the Kansas grain and feed industry, Alan Young announced his retirement in September 2016 from Ardent Mills. Young joined the industry in 1971 when he began working for Melvern Grain, Melvern, Kan. In 1983, Alan went to work for Cargill, later known as Ardent Mills. It was then that Young became a member of the Kansas Grain and Feed Association. During his membership with the Association, Young served on the scholarship committee for a number of years. With his leadership, the KGFA Scholarship committee has awarded thousands of dollars in student financial assistance since its inception. Creating opportunities to grow future industry leaders was important to Alan. “The KGFA staff and board are grateful to Alan for serving this industry for decades,” said KGFA CEO Tom Tunnell. “I’d like to congratulate him on his retirement and wish him well.” Young’s colleagues say his professional and personal DNA are made up of four core values: service, trust, WINTER 2017, GRAIN AND FEED REPORT
simplicity and safety. Service – as a recipient of the nation’s Presidential Volunteer Service Award, Alan’s commitment to serving his community was a distinct value. Trust – with Alan a handshake seals a transaction, his reputation is his brand. Simplicity – approaching situations logically and avoiding complications were key for any project he would tackle. Safety – a solid game plan, cross-functional focus and communication allowed Ardent Mills teams to anticipate and avoid unsafe situations. “Alan is a superb basis trader with a deep understanding of the supply chain. We had the honor to have him on our team for the past 17 years,” said Mike Dean, director Hard Red Winter Wheat – Ardent Mills. “Bottom line, he is a Grain Man, one of the best.” Young will enjoy his retirement with wife Linda. The couple have two grown daughters, Sherry and Tina and enjoy spending time with seven grandchildren. The Young’s share their home with two foster children as well. Their giving nature has provided a safe home for these children and aided in their completion of high school. 5
2016 Kansas Agri Business Expo Thank you to all attendees, Sponsors and Exhibitors of the 2016 Kansas Agri Business Expo on November 16-17 in Wichita. From exhibitors to general managers to recertification attendees, the Century II Convention Center was filled with agribusiness men and women learning about the latest technology and services available today.
KGFA Chairman Pete Goetzmann and KARA Chairman Kevin Brady greet Expo goers at the Chairmen’s Reception.
Another successful Scholarship Auction at the Expo!
Attendees and exhibitors attend the Expo Kick-off Party.
Great “baseball” style food is served during the Thursday night Dinner and Entertainment. KGFA Chairman Pete Goetzmann and KARA Chairman Kevin Brady cut the ribbon to officially open the 2016 Kansas Agri Business Expo!
Pictured left to right: Tom Tunnell, President & CEO of KGFA & KARA; Clark Pearson, KARA Vice Chairman; Kevin Brady, KARA Chairman; Jim Morris “The Rookie”; Glen Hofbauer, KGFA Vice Chairman; and Pete Goetzmann, KGFA Chairman. Casino Party goers trade in tickets for prizes.
Ventriloquist Greg Claassen performs on the trade show floor.
Jim Morris “The Rookie” speaks at the Thursday morning Recognition breakfast. He was a definite crowd pleaser!
Expo Attendees enjoy socializing and the comradery at the Chairmen’s Reception. Jeff Lavery, KC Supply sets up his booth.
2016 Tomorrow’s Agribusiness Leadership Class graduates at the Thursday morning Recognition Breakfast.
Thank you to Attendees, Sponsors and Exhibitors of the Kansas Agri Business Expo. A special thank you to the following exhibitors: ACG Materials Adams Fertilizer Equipment ADM Fertilizer AFLAC Ag 1 Source, LLC Ag Ads Ag Spray Equipment Agra Liners, LLC Agrilead, Inc. Agrium U.S., Inc. AgTrax AgVision Agribusiness Software Agworks, Inc. AgXplore Alliance Tank Service, LLC Allied Environmental Consultants Inc. American Plant Food Corporation American Vanguard Corporation (AMVAC) Ameritrack Rail ASMARK INSTITUTE Association Insurance Services, Inc. BarnesCo Inc. BASF Corporation Bavarian Tractor Works Bayer CropScience Bentrei Fertilizer Co., LLC BKD, LLP Bolivar Contracting, Inc. Borton, LC Boundless Brehmer Mfg. Brothers Equipment, Inc. Bulk Conveyors, Inc. Buresh Building Systems, Inc. CapstanAG CCS Group LLC Cen-OK Services LLC Central Life Sciences Central States Hydroseal Certified Crop Adviser Program (CCA)--Kansas CGB Fertilizer CHS, Inc. CP Products Company, Inc. CPS Wholesale CrustBuster/Speed King Inc. CTEC, Inc. Dome Corporation of North America Don’s Tire Dow AgroSciences Doyle Equipment Mfg. Co. Drake, Inc.
DuPont Crop Protection EGE Products Electro-Sensors, Inc. Environmental Works, Inc. Ernest-Spencer Fairbank Equipment FARMCHEM Farmers Oil Company, Inc. FMC Corporation Frisbie Construction Co., Inc. Gamet Mfg. Inc. Gavilon Fertilizer/MicroSource Gilmore Solutions Gowan USA, LLC Grain Belt Supply Co. Inc. GSI HABCO, Inc. Hammel Scale Co., Inc. Heartland Ag Inc. Heartland Tank Companies Helena Chemical Co. IBTGrain Division IGP Institute INAalert J. R. Simplot Company Jade Millwrights Inc. John Deere Kahler Automation Kansas Corn Growers/Commission Kansas Dept. of Agriculture Kansas Grain Inspection Service Inc. Kansas Grain Sorghum Kansas Highway Patrol Kansas Soybean Commission Kansas Wheat KC Supply Co. Inc. KDHE/Bureau of Environmental Remediation Ken Babcock Sales, Inc. KFSA Koch Ag & Energy Solutions, LLC Korol Financial Group LLC KSU - Department of Agronomy Kugler Company La Crosse Seed, LLC Lang Diesel, Inc. Lewis Goetz M & M Specialty Services, LLC Marcus Construction McPherson Concrete Storage Systems MFA Incorporated MFS-York-Stormor
WINTER 2017, GRAIN AND FEED REPORT
Commodity Partners Mid-Continent Industries Midwest Laboratories Inc. MK Minerals, Inc. Moeller Engineering Monsanto NACHURS National Billing Neville Welding Inc. Nutrients for Life Pepper Maintenance Systems, Inc. Plain Jan’s Poole Chemical Company Potash Corporation Probe A Load, Inc. Purple Wave Auction Riggins Ag Equipment Road Runer Manufacturing Rosen’s Inc. Seedburo Equipment Co. Servi-Tech Laboratories Shore Measuring Systems Sieker Sales Simpson Farm Enterprises, Inc. Sioux Steel Company Skinner Tank Company Star Seed Stueve Construction, LLC Sullivan Insurance Agency SumaGreen Syngenta Terracon Consultants, Inc. The Essmueller Company The KBH Corporation Tiger Natural Gas, Inc. TMHC Services Travis Scale TSGC, Inc. United Wind Valent USA Corporation Valleywide Sales, Inc. Van Diest Supply Company Verdesian Life Sciences Vertical Software Inc. Waconia Mfg., Inc. Waldon Equipment Warrior Mfg., LLC Webcon, Inc. WinField US Woofter Construction Irrigation, Inc. WT Contractors Yargus Mfg.
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Kansas Corn Commission Kansas Grain Sorghum Commission Kansas Soybean Commission Kansas Wheat Sorghum the Smart Choice
Underwriter $15,000 KFSA
Founder $7,500
BASF Kansas Grain Inspection Service Inc. Koch Ag & Energy Solutions
Benefactor $5,000
ADM Companies Dow AgroSciences Syngenta Watco Companies Patron $3,500 ADM Wholesale Fertilizer Bayer CropScience BNSF Railway Company Bunge North America Cargill CHS Inc. CoBank ACB Coffeyville Resources Crop Production Services Frisbie Construction Co., Inc. Hammel Scale Co. Inc. Heartland Ag, Inc. Helena Chemical Co. Industrial Maintenance Inc. John Deere CAD Dealers Korol Financial Group LLC Lang Diesel Inc. Monsanto Rosen’s Inc.
Simplot Growers Solutions Union Pacific Railroad United Suppliers Verdesian Life Sciences Wilbur-Ellis Co.
Builder $2,000
Allied Environmental Consultants Inc. Bartlett Grain Company Beachner Grain CGB Fertilizer C-TEC, Inc. DuPont Crop Protection EGE Products First National Bank of Hutchinson FMC Frontier Ag Inc. Hannebaum Grain Co. Inc. Highlands Livestock Services INTRUST Bank J.B. Pearl Sales & Service KC Supply Co. Inc. Kiser Ag Service LLC Louis Dreyfus Commodities McPherson Concrete Storage Systems MKC Morrill Elevator Inc. Offerle Coop Grain & Supply Co. Team Marketing Alliance The Cooperative Finance Association The Scoular Company Tri-States Grain Conditioning Inc. Winfield
Donor $700
AGChoice AgMark LLC American Implement, Inc.
WINTER 2017, GRAIN AND FEED REPORT
Bank of the West BarnesCo Inc. Brothers Equipment CCS Group LLC Central States Fumigation Central Valley Ag 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 Ernest-Spencer Fairbank Equipment Farmway Coop Inc. Farmers Coop Equity, Isabel Farmers Union Merc. & Shpg. Assn., Stockton Gamet Mfg. Inc. Garden City Coop Gavilon Fertilizer LLC HABCO Harveyville Seed Co. Inc. Heartland Tank Services Inc. Hooker Equity Exchange Irsik & Doll Feed Service Kansas Cooperative Council Midway Coop Assn. Midwest Laboratories Nemaha County Cooperative Offerle Coop Grain & Supply Co. Performance Ag Pride Ag Resources Purple Wave Auction Riggins Ag The Ottawa Cooperative Association WindRiver Grain LLC
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Legislative Action Day January 18, 2017 l Topeka, Kansas
Schedule of Events: 11:00 a.m. Registration Opens: Topeka Country Club, 2700 SW Buchanan 11:30 a.m. Welcome and Invocation Tom Tunnell, President & CEO, KGFA & KARA Leslie Kaufman, President & CEO, KCC 12:00 p.m. 2017 Legislative Session Preview Special Guests will be announced once Legislative Committees are selected (after January 3) 1:00 p.m. Issues Update Ron Seeber, Senior Vice President Government Affairs, KGFA & KARA Leslie Kaufman, President & CEO, KCC Randy Stookey, Vice President and General Counsel, KGFA & KARA 2:00 p.m. Personal Legislator Visits: Kansas State Capitol, 300 SW 10th St. 3:30 p.m. Committee Hearings (House Agriculture and other 3:30 p.m. Committees) 5:00 - 7:00 p.m. Reception with Legislators: Topeka Country Club, 2700 SW Buchanan Legislative Action Day is a free event for members. However, pre-registration is required to ensure proper counts for meals and materials. The deadline to register is January 13.
_____ I am attending the lunch & meeting
_____ I am attending the evening reception
Hotel Accommodations: Capitol Plaza Hotel, 800-579-7937, $94.00/night. Cut-off date is January 3 . Name ___________________________________________________________________________________ Firm ____________________________________________________________________________________ Mailing Address _________________________________________________________________________ Phone ________________________ Email ___________________________________________________ My State Senator is _______________________________________________________________________ My State Representative is _________________________________________________________________ Please return to: Association Office, 816 SW Tyler, Topeka, KS 66612, Fax (785) 234-2930, Email lisa@kansasag.org.
FALL 2016, GRAIN AND FEED REPORT
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Legislative Action Day is a jointly-sponsored event of the: Kansas Grain and Feed Association, Kansas Agribusiness Retailers Association Kansas Cooperative Council
Kansas Grain and Feed Association 816 SW Tyler, Suite 100 Topeka, Kansas 66612
Commodity Partners Kansas Corn Kansas Grain Sorghum Kansas Soybean Kansas Wheat Commission
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.
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.
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
Rolfes @ Boone Valley Cooperatives, Inc. Wildcat Feeds LLC WindRiver Grain, L.L.C. Tomorrow’s Agribusiness Leaders 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, 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. © 2016 KGFA