Grain & Feed Report, Winter 2014

K S G R A I N A N D F E E D . O R G

Winter 2014

Photos from the Kansas Agri Business Expo Grain Grading School Registration Staff Holds Pre-session Meeting with Attorney General Welcome 2014 TAL Class

Winter 2014, GRAIN AND FEED REPORT AN

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CONTENTS Member Spotlight: Rich Arpin...3 2013 Expo attracts nearly 1,200 attendees!...4â&#x20AC;&#x201D;5

President & CEO Tom R. Tunnell

Senior Vice President, Government Affairs Ron Seeber

Mark your calendars for Annual Meeting...6

Senior VP and Chief Financial Officer Stephanie Jensen

Kansas Sorghum Production Schools Announced for 2014...6 Accepting scholarship applications for 2014-2015...6 Auction raises nearly $17,000 for scholarships...6

Vice President and General Counsel Randy Stookey Vice President of Event Planning Shari Bennett

Welcome 2014 TAL class...7

VP of Member Services & External Operations Dana Minihan

Staff meets with Attorney General...7

VP of Marketing & Communications Shahira Stafford

Informative video for Kansas taxpayers...7 USDA announces plans to re-purpose Food Safety Modernization Act rules...7 Kansas Supreme Court rules on Farmway vs. Lincoln Center...8 Railcar fall protection webinar recording available...8 Carl Ice named BNSF President and CEO...8 Trade Talk...9 KGFA welcomes new members...9 Online advertising opportunity...9 Update your membership profile...9 Posters and products for sale...9

Senior Director of Internal Operations Lisa Anschutz Executive Assistant to the President Julie Stueve 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: Shahira Stafford, 816 SW Tyler, Topeka, KS 66612. The KGFA team welcomes your comments, contributions and suggestions. Annual subscriptions for members can be purchased for $25.00. ÂŠ 2011 KGFA Read this newsletter online at www.ksgrainandfeed.org/printnewsletters.

2014 KGFA Sponsors...10 Are you taking advantage of your KGFA membership?...11

............................................................................... To follow us on Facebook, search for KGFA. For Twitter, visit www.twitter.com/kansasag.

GRAIN AND FEED REPORT, Winter 2014

MEMBER SPOTLIGHT Member Spotlight: Rich Arpin In each issue of the Grain & Feed Report, KGFA is featuring a new member. Let’s get to know each other better and share in each other’s industry success. Thank you to Rich for answering the call this time; but beware, you may be next! Name: Rich W. Arpin Job title: General Manager Company: Palmer Grain, Inc. in Palmer, Kansas Business started in: 1976 Company specializes in: Ag inputs and services to local producers Services provided: We handle grain, feed, fertilizer, and pesticides. We provide custom grind and mix feed rations, feed ration balancing, feed delivery, fertilizer and pesticide application, and soil testing. Something unique about your company: We are locally owned and operated and strive to be personal. Although we are computerized, a customer will never talk to a computer when contacting this company. Where do you consider your “hometown” or where you grew up: I grew up in Salina, KS on a small farm with several brothers and sisters. How long have you been in the grain business: Since 1980, so almost 33 years How did you get started in the grain business: When I graduated from college, I went to work for DeKalb Seed in Kearney NE. After eight months of feeling bored, I quit my job without having another lined up. The following day, a classmate asked if I’d be interested in working at a nearby grain elevator. I interviewed and began working at Axtell Co-op and Grain in Axtell, NE the following day. I worked with grain at harvest and drove a sprayer during the spring. Several months later, I was named Fertilizer Department Manager. In 1984, I became a location manager in Leonardville, KS, and in April of 2001, I became General Manager of Palmer Grain, Inc. My passions are working with farmers, being outdoors and grain merchandising. What KGFA services are the most valuable to you and your company: Palmer Grain is a proud member of KGFA and I appreciate the services they provide. This association gives the agribusiness industry a voice in our state legislature and keeps us informed of issues affecting our businesses. I also appreciate the training and informative meetings they provide that help us meet the requirements in our industry.

Winter 2014, GRAIN AND FEED REPORT

KANSAS AGRI BUSINESS EXPO 2013 Expo attracts nearly 1,200 attendees! Thanks to the 1,190 attendees of the 2013 Kansas Agri Business Expo on November 20-21 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 in the industry today. A special thank you to the following

exhibitors of the 2013 Kansas Agri Business Expo: A.J. Sackett and Sons Adams Fertilizer Equipment ADM Fertilizer Advanced Biological Marketing AFLAC Ag 1 Source, LLC Agra Liners, LLC Agrilead, Inc. Agrium Agrium Advance Technologies AgTrax Technologies AgVision Agribusiness Software Agworks, Inc. Alliance Tank Service, LLC Allied Environmental Consultants Inc. American Vanguard Corporation (AMVAC) Ameritrack Rail ASM Engineering Consultants, LLC BarnesCo Inc. BASF Corporation Bayer CropScience Ben Trei Fertilizer Co., LLC Bergquist, Inc. Bolivar Contracting, Inc. Brewer Restoration & Coatings Brian Lingle Photography Brothers Equipment, Inc. Bunge North America CCS Group LLC CDL Railroad Construction, LLC Central Life Sciences Central States Hydroseal Charm Sciences CHS, Inc. Convey-All by Hamilton Systems CPS Wholesale Cropland Containers CrustBuster/Speed King Inc. CTEC AG Don's Tire Dow AgroSciences Doyle Equipment Mfg. Co. Drake, Inc. Dultmeier Sales DuPont Crop Protection El Dorado Chemical Company Electro-Sensors, Inc. Ernest-Spencer Essmueller Company Fairbank Equipment FARMCHEM 4

GRAIN AND FEED REPORT, Winter 2014

FMC Corporation Frisbie Construction Co., Inc. Gamet Mfg. Inc. Gish Fabrication and Machine, LLC Grain Belt Supply Co. Inc. Gypsoil H & H Restoration HABCO, Inc. Hammel Scale Co., Inc. Heartland Ag Inc. Helena Chemical Co. High Plains Journal IBT Industrial Solutions Integra Plastics Intelliair, LLC INTX Microbials Jade Millwrights Inc. John Deere Kansas Corn Commission Kansas Grain Inspection Service Inc. Kansas Highway Patrol Kansas Soybean Commission Kansas Wheat Kansasland/Nebraskaland Tire KC Supply Co. Inc. Ken Babcock Sales, Inc. KFSA Koch Agronomic Services, LLC Korol Financial Group LLC KSU - Department of Agronomy KSU - Grain Science and Industry Kugler Co. La Crosse Forage & Turf Seed Lang Diesel, Inc. LeMar Industries Corporation Lester Building Systems, LLC M & M Specialty Services, LLC Macon General Contractors Manhattan Data Systems Inc. Marcus Construction Mathews Company McPherson Concrete Storage Systems MFA Incorporated MFS-York-Stormor Micro Solutions Microsource Mid-Continent Industries Mid-State Tank Co., Inc. Mid-West Fertilizer Inc. Midwest Laboratories Inc. MK Minerals, Inc.

Monsanto Mosaic National Billing Neville Welding Inc. Novozymes BioAg Nutrients for Life Pepper Maintenance Systems, Inc. Plain Jan's Precision Edge Precision Grain Management Consultants PSC Group Purple Wave Auction RBH Mill & Elevator Riggins R-Co. LLC Rosen's Inc. RWI General Contractors Schaben Industries Seedburo Equipment Co. SFP Sharp Brothers Seed Company Simplot Agribusiness Simpson Farm Enterprises, Inc. Sioux Steel Company Skinner Tank Company Software Solutions Integrated LLC Star Seed Stueve Construction Company Syngenta Terracon The Heartland Tank Companies The KBH Corporation TMHC Services Tri-States Grain Conditioning, Inc. TTS, LLC UAS Service Corp UniBridge Systems, Inc. Union Iron, Works United Sorghum Checkoff Program United Suppliers, Inc. Valent USA Valleywide Sales, Inc. Van Diest Supply Company Vertical Software Inc. W Design Associates Waconia Mfg., Inc. Westheffer Co. Inc. Winfield Solutions Woofter Construction Irrigation, Inc. Wylie Sprayers Yargus Mfg.

KANSAS AGRI BUSINESS EXPO

KGFA Board Chairman Ted Schultz (right) cuts the ribbon with KARA Chairman Mike Shirley to officially open the 2013 Kansas Agri Business Tradeshow.

KGFA Board Members (l-r) Scott McWilliams, James Jirak, Deb Miller, Jeremy Girard and Brent Emch attend the Exhibitor Appreciation Reception.

Large equipment vendors begin moving in for the tradeshow set-up.

Carpeted isles and isle markers added to the tradeshow floor this year.

North America’s only performing Strong Woman Mama Lou performs at the Expo.

Wichita State University Basketball Coach Greg Marshall shares his team’s road to the 2013 Final Four Championship.

2013 TAL class members graduate during the recognition breakfast.

2013-2014 KGFA Board of Directors.

Mike Schaffter accepts an award on behalf of KFSA for being KGFA’s Underwriting Sponsor in 2013.

Kansas Department of Revenue Nick Jordon speaks to attendees about Governor Sam Brownback’s tax policy vision for Kansas.

A packed audience watches Strong Woman Mama Lou perform several feats of strength including tearing a phone book in half.

Roy House and Dub Johnson enjoy Xtreme Trivia Night on Thursday.

Winter 2014, GRAIN AND FEED REPORT

TRAINING, EVENTS Register for 2014 Grain Grading Schools KGFA and the Kansas Grain Inspection Service will be offering valuable information to elevator operators, producers, brokers, and grain buyers about grain grades and how to use grain standards in marketing during the 2014 Grain Grading Schools on February 18-20 and March 4-6. Hands-on training will be utilized by participants to recognize various types of kernel damage and samples will be graded to assist in practical, cost effective procedures for grain inspection. See the enclosed form to register. Mark your calendars for Annual Meeting Mark your calendars and make your hotel reservations early for the 2014 KGFA Annual Meeting on April 14-15 at the Marriott Wichita. The golf tournament is being held at Reflection Ridge Golf Club. KGFA has reserved a room block for $101/night. Please call 800-610-0673 by March 30, 2014 to guarantee this rate. Kansas Sorghum Production Schools announced for 2014 A series of four Kansas State University Sorghum Production Schools will be offered in early February to provide in-depth training targeted for sorghum producers, crop consultants and key-stakeholders. The schools will be held at four locations around the state with registration information found at http://bit.ly/KSUSorghum. These events are sponsored by the Kansas Grain Sorghum Commission (KGSC), and supported by the United Sorghum Checkoff, Chromatin, KFRM radio station, and Bayer CropScience.    

Feb. 11 – Scott City – William Carpenter 4 H Building Feb. 12 – Beloit – NC Kansas Technical College Auditorium Feb. 13 – Wichita – Sedgwick County Extension Center Feb. 14 – Manhattan – International Grain Programs Building

Accepting scholarship applications for 2014-2015 If you know of a student in your community that wants to continue their education in Kansas and could benefit from one of KGFA’s college scholarships, please encourage them to apply. See the enclosed flier. Applications can be downloaded at www.ksgrainandfeed.org and are due no later than March 7. Each year, KGFA awards $8,500 in scholarships to deserving high school students to help relieve the financial burden on their families. Nine scholarships are offered: one $500 Dub & Inez Johnson Memorial Scholarship, one $1,000 John Cranor Memorial Scholarship (chosen by KSU), and seven $1,000 KGFA Scholarships. Auction raises nearly $17,000 for scholarships KGFA is proud to announce that the Scholarship Auction at the Expo raised $16,780 jointly toward the KGFA and Kansas Agribusiness Retailers Association scholarship programs, which is a six-year high and exceeds 2012 numbers by over $5,000! Thank you to every member that contributed to the Scholarship Auction in some way. Because of your generosity, KGFA is able to increase the number of scholarships awarded to college students wanting to pursue an education in agricultural-related fields and further our industry’s future workforce. The 2013 Scholarship Auction at the Expo raises $16,780 toward the KGFA and KARA scholarship funds.

GRAIN AND FEED REPORT, Winter 2014

ASSOCIATION NEWS Welcome 2014 TAL class Congratulations to the applicants chosen to be part of the 2014 Tomorrow’s Agribusiness Leaders (TAL) class. The TAL program is the premier leadership program for agribusiness leaders in the nation, and KGFA is proud to welcome these individuals to the group: Chase Demaree, BarnesCo, Inc., Arkansas City Lucas Price, The Scoular Company, Overland Park Wyatt Rundel, Bank of the West, Wichita Trent Weatherly, Cargill, Inc., Overland Park Kevin Zoglmann, Farmers Coop Grain Assn., Conway Springs If you would like to invest in a bright future for the agribusiness industry, please consider becoming a sponsor of the TAL program. Your sponsorship will significantly reduce the financial burden of these students and will ensure a top-quality educational experience. Staff meets with Attorney General KGFA staff members had an opportunity to meet with Kansas Attorney General Derek Schmidt to discuss several legal issues facing our industry, including: Kansas Supreme Court decision regarding the public nuisance suit against Farmway Coop., and potential future claims against our industry  Fertilizer explosion in West Texas, and the national private industry response initiative: ResponsibleAg  AG staff review timelines of regulatory changes and updates helpful to our industry  Various member concerns 

(l-r) KGFA President & CEO Tom Tunnell, KGFA General Counsel Randy Stookey, Kansas Attorney General Derek Schmidt, Kansas Cooperative Council President & CEO Leslie Kaufman, and KGFA Senior VP Ron Seeber.

Informative video for Kansas taxpayers The Kansas Department of Revenue and the Kansas Society of CPAs joined forces to create a video to help Kansas Taxpayers understand the new Kansas tax law that is effective for tax year 2013. The video can be found at www.kscpa.org. Nick Jordan, Secretary of Revenue, introduces Gary Allerheiligen, CPA and describes the purpose of the tax policy, which is economic growth. AFIA: USDA announces plans to re-propose Food Safety Modernization Act rules On December 19, 2013, the U.S. Food and Drug Administration announced plans to re-propose the Food Safety Modernization Act rules on produce safety and preventive controls for human food (which includes feed). FDA plans to propose revised rule language and seek comment on it, allowing the public the opportunity to provide input on FDA’s new thinking. There may be other revisions to the proposed rules; the scope of the revised proposals, on which FDA will seek further comment, will be determined after FDA completes the initial review of written comments. FDA believes that this additional step to seek further input on revised sections of the proposed rules that need significant adjustment is critical to fulfilling their continuing commitment to getting these rules correctly written for implementation. USDA’s plan is to publish revised proposed rule language by early summer 2014.

Winter 2014, GRAIN AND FEED REPORT

INDUSTRY NEWS Kansas Supreme Court rules on Farmway vs. Lincoln Center On Friday, December 20, 2013, the Kansas Supreme Court released its opinion on the nuisance action matter between Farmway Co-op, Inc. and the City of Lincoln Center. In reviewing the Appellate Court’s holding that Lincoln Center’s nuisance ordinance was unconstitutionally vague, the Supreme Court affirmed in part, reversed in part, and remanded to the District Court for further findings of fact. The Court found as follows: As written, Lincoln Center's noise ordinance is unconstitutionally vague as applied to the defendants, Farmway Co-op, Inc. and Farmway Storage #1, LLC, because it lacks sufficiently objective standards to prevent its arbitrary enforcement.  Lincoln Center's nuisance ordinance is not unconstitutionally vague as applied to the defendants, Farmway Co-op, Inc. and Farmway Storage #1, LLC. The ordinance conveyed definite warning and fair notice to the defendants as to the prohibited conduct and sufficiently protected them against arbitrary and discriminatory enforcement.  Judgment of the Court of Appeals affirming the district court is affirmed in part and reversed in part. Judgment of the district court is affirmed in part, reversed in part, and remanded. 

Railcar fall protection webinar recording available On Tuesday, December 3, 2013, in conjunction with Grain Journal, Eric J. Conn, head of the national OSHA Practice Group at Epstein Becker & Green, delivered a webinar focused on the OSHA enforcement landscape related to work on top of rolling stock - specifically railcars - at grain elevator facilities. The webinar, including a Q&A session, was recorded, and the Grain Journal has made the recording available online. The recording includes an audio broadcast with a video of the accompanying PowerPoint presentation and can be found at www.ksgrainandfeed.org. Carl Ice named BNSF President and CEO BNSF President and Chief Operating Officer Carl Ice became President and Chief Executive Officer effective January 1, 2014. Ice has been with BNSF for 34 years, most recently serving as President since November 2010. In 1995, he led a team that orchestrated the merger and subsequent integration of Burlington Northern Railroad and Santa Fe Railway. Since then, he has helped lead the company and culture into what it is today. Ice has been integral to the development of the company’s operating and marketing plans. As a long-time member of BNSF’s executive team, Mr. Ice said, “I am humbled and honored to be in this role. BNSF is a great organization with great people that provides important services to our customers and country. I look forward to continuing BNSF’s success in improving safety, providing quality service and consistent growth.”

GRAIN AND FEED REPORT, Winter 2014

KGFA President & CEO Tom Tunnell (left) attends the BNSF Business Symposium with BNSF President and CEO Carl Ice in Dallas last spring.

MEMBER CORNER Trade Talk If you have a short business announcement you’d like included in the newsletter, email shahira@kansasag.org. 

Ryan McCoy was named the new President/General Manager of CoMark, Inc. in Cheney, effective November 8, 2013.

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 these companies to KGFA: CCS Group LLC, Seward, NE Sioux Steel Company, Sioux Falls, SD Trans Coastal Supply Co., Inc., Decatur, IL W.B. Johnson Grain Co., Enid, OK Western Feed Mills Inc., Cedar Vale, KS Online advertising opportunity Each month, hundreds of people visit KGFA’s website for access to industry news, resources and association events. By having your company logo featured on the homepage as a “KGFA Partner,” you can increase your company’s online presence, attract business and further your brand among professionals in the agribusiness industry. If you are already advertising in KGFA’s membership directory, you are also eligible to receive a 20% discount. Visit www.ksgrainandfeed.org to learn more. 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. From there, enter your login information and make your changes directly online. Forgot your username or password? Email lisa@kansasag.org, and we’ll get it to you. Posters and products for sale Don’t forget that KGFA sells several posters and products for your facilities, including:          

Daily Position Record Book $25 Storage Records $15/100 Deferred Price Contract $.50 Security Agreements $.50 Deferred Payment Contract $.50 Cranor Commemorative Print $30 UCC-4 Forms $10/100 KGFA Logo Polo Shirt $50 Grain Grading Manual $15 Grain Quality Poster $10 KGFA visits Wind River Grain, LLC in Garden City. (l-r) Charlie Sauerwein, Kammi Hansen, Randy Stookey, Jeff Huggard

Winter 2014, GRAIN AND FEED REPORT

2014 KGFA SPONSORS Underwriter ($15,000+) KFSA Founder ($7,000) Kansas Grain Inspection Service Patrons ($3,000) ADM Companies BNSF Railway Company Cargill CoBank ACB Frisbie Construction Co., Inc. Hammel Scale Co. Inc. Hannebaum Grain Co. Inc. Industrial Maintenance Inc. Korol Financial Group LLC Union Pacific Railroad Watco Companies Builders ($1,500) Bartlett Grain Company, L.P. Bunge CTEC AG First National Bank of Hutchinson Frontier Ag Inc. Gavilon Grain, LLC HABCO Hooker Equity Exchange INTRUST Bank Jade Millwrights Inc. KC Supply Co. Inc. 10

GRAIN AND FEED REPORT, Winter 2014

Elevating Your Image

Louis Dreyfus Commodities McPherson Concrete Storage Systems RBH Mill & Elevator, a Lewis Goetz Co. Team Marketing Alliance The Cooperative Finance Association The Scoular Company Tri-States Grain Conditioning Inc. Donors ($500) ADM Investor Services Inc. Advance Trading Inc. AgMark LLC Andale Farmers Coop Bank of the West BarnesCo Inc. Central States Fumigation Cline Wood Agency Comark Grain Marketing, LLC Cornerstone Ag LLC D.E. Bondurant Grain Co. Drake Inc. Ernest-Spencer Gamet Mfg. Inc. Hutchinson/Mayrath Irsik & Doll Feed Service Kansas Coop Council Offerle Coop Grain & Supply Co. Palmer Grain Inc. Rolfes @ Boone Schoen Fumigation Inc. Skyland Grain LLC Southern Plains Coop

Are you taking full advantage of your KGFA membership? For details on the following benefits, please visit www.ksgrainandfeed.org or call (785) 234-0461. Thanks to KGFAâ&#x20AC;&#x2122;s Underwriting Sponsor, comprehensive hospital and medical, group life, dental, salary continuation, accidental death and property/casualty programs are offered through KFSA at a rate which is considerably less than what could be enjoyed by an individual firm. In todayâ&#x20AC;&#x2122;s competitive business climate, it is essential that you engage your customer base, and KGFA and Agri-Services Agency has just the program for you. As many of your producers struggle to find health insurance, ASA lets you extend insurance to your customers at no cost to you. Does your company need new apparel? Looking for appreciation gift ideas for your customers? Get 10% off Cabela's merchandise and 5% off Cabela's gift cards just for being a KGFA member. Turn waiting callers into customers. Spectrio On Hold Messaging is giving KGFA members a 25% discount on monthly rates. Promote specials, decrease caller agitation, reduce hang-ups and enhance your company's image for only $75/month. A 30-day trial is also available. KGFA and Purple Wave are working together to provide members with the best resource to liquidate your unused assets through an online auction service. Purple Wave will make a donation to KGFA every time a member utilizes their services.

Chairman Ted Schultz Team Mktg. Alliance, Moundridge Vice-Chairman Pete Goetzmann ADM Grain Co., Overland Park Second Vice-Chairman Scott McWilliams Lansing Trade Group, Overland Park Immediate Past Chairman Stan Stark Farmers Coop Co., Haviland Directors Rich Arpin Palmer Grain, Palmer Gary Beachner Beachner Grain, Parsons Brad Cowan Frontier Ag, Goodland Brent Emch Cargill, Kansas City Jeremy Girard Hannebaum Grain Co. Inc., Salina Glen Hofbauer The Scoular Company, Kansas City James Jirak Pro-Ag Marketing, Kensington Deb Miller Farmers Union Merc. & Shpg., Stockton Jerry Murphy Bunge North America, Emporia Russ Ronnebaum Hammel Scale, Wichita Steve Shaver Andale Farmers Coop, Andale Bob Temple WindRiver Grain, Garden City

Winter 2014, GRAIN AND FEED REPORT

PRSRT STD U.S. Postage

PAID TOPEKA, KS Permit No. 545

816 SW Tyler Topeka, Kansas 66612

Visit our website for up-to-the-minute association news by scanning this QR Code with your smartphone, or going to www.ksgrainandfeed.org.

Mark your calendars. Registration coming soon.

GRAIN AND FEED REPORT, Winter 2014