K S G R A I N A N D F E E D . O R G
Spring 2012
2012 Annual Meeting Speakers
Martin Hawver, Dean, Kansas Statehouse Press Corps Todd Kemp, Directory of Marketing/Treasurer, National Grain and Feed Association Mike Smith, Senior Vice President, AccuWeather Enterprise Solutions Spring 2012, GRAIN AND FEED REPORT AN
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CONTENTS President’s Report...3 Join us for the 2012 Annual Meeting...4 Grain Grading Schools benefit grain trade...4 TAL class gets direct access to Governor...5
President & CEO Tom R. Tunnell Senior Vice President, Government Affairs Ron Seeber
Members lobby state lawmakers at Legislative Action Day...5
Senior VP and Chief Financial Officer Stephanie Jensen
Association leaders visit Washington D.C....6
Vice President and General Counsel Randy Stookey
KGFA hosts Tuesday Night Receptions...6
Vice President of Event Planning Shari Bennett
KGFA speaks to KFB members on mycotoxins...7 Water conservation bills signed into law...7
VP of Member Services & External Operations Sarah Sexton-Bowser
KU elevator training trailer nears completion...7
VP of Marketing & Communications Shahira Stafford
Update on sorghum odor developments...7
Senior Director of Internal Operations Lisa Anschutz
KGIS fee increase, new moisture meters...8
Executive Assistant to the President Julie Stueve
Feed Ingredient Buyer’s Mission in June...9 KGFA sponsors FFA Agronomy Career Development Event...9 Nearly 200 apply for scholarships...9
The Kansas Grain and Feed Report is published quarterly for the members, friends and affiliates of the Kansas Grain and Feed Association.
Committee volunteers needed...9
Mail contributions to KGFA, Attention: Shahira Stafford, 816 SW Tyler, Topeka, KS 66612. The KGFA team welcomes your comments, contributions and suggestions.
Online advertising opportunity...10
Annual subscriptions for members can be purchased for $25.00. © 2011 KGFA
KGFA welcomes new members...10
Read this newsletter online at www.ksgrainandfeed.org/printnewsletters.
Mark your calendars now...9
Trade Talk...10 Are you taking full advantage of your KGFA membership?...11
............................................................................... To follow us on Facebook, search for KGFA. For Twitter, visit www.twitter.com/kansasag.
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PRESIDENT’S REPORT “I would challenge you to find another industry in Kansas that has increased production to the extent that Kansas agriculture has had in recent decades.” Tom R. Tunnell, KGFA President and CEO
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W
ith the racing pace of today’s grain industry, it is easy to become shortsighted. In 2011, Kansas felt the disappointment of poor yields at the hand of Mother Nature. Despite this disappointment, I would challenge you to find another industry in Kansas that has increased production to the extent that Kansas agriculture has had in recent decades. This graph looks at the top four producing Kansas commodities: corn, grain sorghum, soybeans and wheat. It also provides a comparative look at KGFAmember licensed capacity in light of Kansas crop production. The KGFA membership currently represents 98% of licensed grain capacity in Kansas and has been in the high 90’s throughout the graphed time period. With the upcoming presidential election, there is a lot of rhetoric about needing to maintain the “American dream.” Without a doubt, KGFA members are a vital part of that dream. The productivity, innovation and adaptation represented in our industry are an excellent example for others to emulate. On another note, I’m pleased to have had the opportunity this month to spend a morning in Kansas City with several KGFA member companies and visit about the issues they wrestle with in the industry. Thank you for welcoming me and taking time out of your busy day to share what’s going on in your business. The insight truly helps your staff do our job better as we strive to represent the industry with excellence.
Larry Kittoe, Mike Barrett and Jon Ingebretson with Gavilon.
Scott McWilliams with Bartlett Grain.
Glen Hofbauer with The Scoular Company.
Pete Goetzmann and Dave Warrington with ADM.
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EDUCATION, TRAINING Join us for the 2012 Annual Meeting KGFA is pleased to invite you to the 2012 Annual Meeting, which will be held April 9-10 in Wichita at the Marriott Hotel. Our goal is to provide members with opportunities to network with industry colleagues and customers, as well as provide valuable education you and your employees can use in running your business. We’ve tailored this meeting to accomplish just that.
Grain Grading Schools benefit grain trade The 2012 Grain Grading Schools have come to a close. These programs provided training to 302 grain handlers across Kansas. Attendees were able to learn hands-on skills that will assist them in swiftly identifying grain quality issues.
Leonard Hicks of Kansas Grain Inspection Service (KGIS) was a featured trainer throughout the program Join us Monday evening for the popular Steak Fry that and enlightened attendees on his experiences ranging begins at 6pm, followed by hospitality receptions that from the true smell of boot-pit to the various grading evening. Tuesday morning, we have Martin Hawver, requirements established by the Federal Grain Inspecdean of the Kansas Statehouse press corps, to provide a tion Service. humorous, insider’s look into the 2012 legislative session. After breakfast, you will be briefed on the Associa- Allen Trower, also with KGIS, arranged for samples to tion’s accomplishments from 2011 and the financial re- be provided for attendees to gain experience in identifyport. We will also hold board of director elections at this ing damages. Thanks to all of the supporters and KGIS time. employees that made this training possible. If you missed the Grain Grading road show, stay tuned as KGFA will be announcing one more school in 2012. A special thanks to our supporters:
We then have two educational sessions that are guaranteed to provide new insight into our country’s agricultural landscape. Todd Kemp, Director of Marketing/ Treasurer of the National Grain and Feed Association, will discuss the affects the industry is seeing and will continue to see from the MF Global bankruptcy. Mike Smith, Senior Vice President of AccuWeather Enterprise Solutions, will then talk about climate change and how to weatherproof your business. We hope that you leave this meeting with greater knowledge on the battles that face the industry and how you can best fight them.
Kansas Grain Inspection Service Kansas Corn Commission Kansas Grain Sorghum Commission Kansas Soybean Commission Kansas Wheat Commission Seedburo Equipment Company
Following the meeting, join us for golf at Wichita’s treasured Terradyne Country Club Tuesday afternoon before you travel home. Please join your fellow members for the 2012 Annual Meeting. Visit www.ksgrainandfeed.org to register.
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Leonard Hicks, Kansas Grain Inspection Service, trains attendees how to detect damage in grain samples at the 2012 Grain Grading Schools.
LEGISLATIVE ADVOCACY TAL class gets direct access to Governor The 2012 Tomorrow’s Agribusiness Leaders (TAL) class traveled to Topeka for two days and completed session I. During which, the class enjoyed a detailed policy briefing from Governor Sam Brownback and a private breakfast with Attorney General Derek Schmidt. During these meetings they learned of many challenges facing the state and how our top leaders’ plans to move Kansas forward.
Members lobby state lawmakers at Legislative Action Day On January 25, members of KGFA, the Kansas Agribusiness Retailers Association and the Kansas Cooperative Council came to the capitol city to learn about the issues being debated at the Statehouse that will directly affect their industry and for a chance to have their voices heard by state lawmakers.
Over 100 members attend the 2012 Legislative Action Day in Topeka. Governor Sam Brownback spends time visiting one-on-one with the 2012 TAL class during their Session I in Topeka.
In addition to meetings with Associated Press Bureau Chief John Hanna and Deputy Secretary of Agriculture Chris Wilson, the class learned exactly how a bill moves through the legislature to become state law and how lobbyists aid in the process.
After lunch, members had the chance to personally visit with their legislators at the Capitol Building and spread the industry’s message on key agribusiness issues. Several also had the chance to see first-hand how the committee process and Senate floor debate works in Kansas. The event concluded with a dinner reception at the Topeka Country Club where nearly 200 legislators and members were in attendance.
TAL class members participate in an “I’m Just a Bill” exercise during TAL Session I and walk through the process of how a bill becomes law.
KGFA Chairman Stan Stark (left) visits with Representative Ponka-We Victors (D-Wichita) and KGFA VP & General Counsel Randy Stookey at the Legislative Action Day reception.
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LEGISLATIVE ADVOCACY Association leaders visit Washington D.C. KGFA Chairman Stan Stark, Farmers Coop in Haviland; Vice Chairman Ted Schultz, Team Marketing Alliance in Moundridge; and President Tom Tunnell were in Washington D.C. on February 13-15 to discuss issues with Federal officials.
KGFA officers meet Mike Seifert, Senator Roberts’ Senate Agriculture Committee Chief of Staff, during a trip to Washington D.C.
KGFA greatly appreciates the assistance given while on Capitol Hill by National Grain and Feed Association’s Ryan Bennett and Todd Kemp. KGFA officers meet personally Senator Jerry Moran with during a trip to Washington D.C.
While there, the group visited Kansas elected members of Congress as well as Commodity Trading Commissioner Jill Sommers. Issues discussed included the MF Global bankruptcy, 2012 Farm Bill, agricultural transportation and international trade issues, and grain handling safety.
KGFA hosts Tuesday Night Receptions During the months of January – May, the capitol city is buzzing with state lawmakers here for the legislative session. Every year, KGFA is always at the heart of this activity, hosting the longest-standing weekly hospitality event for the Kansas Legislature. On January 9, over 150 state legislators, leaders and lobbyists attended the first reception of the session at the KGFA office. KGFA has been hosting Tuesday Night Receptions for over 25 years, along with 40 other lobbying organizations. Legislators are invited to relax and enjoy a catered dinner each week while they're in Topeka. These receptions are an excellent opportunity for KGFA to gain recognition and for your staff lobbyists to visit with lawmakers on a personal level. KGFA, along with every other advocacy organization in Kansas, is facing serious legislative challenges this year. KGFA lobbyists are working hard, day and night, to advocate on your behalf on issues that include: immigration reform, taxes, water conservation and many more.
(l-r) Tom Tunnell, KGFA President; Todd Kemp, National Grain and Feed Association Director of Marketing/Treasurer; Stan Stark, KGFA Chairman; Jill Sommers, Commodity Futures Trading Commissioner; and Ted Schultz, KGFA Vice Chairman.
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Please watch for the weekly Legislative Update emailed every Monday to members. This electronic news update is a great way to stay abreast on important bills working their way through the session and how they may affect your business.
INDUSTRY NEWS KGFA speaks to KFB members on mycotoxins Randy Stookey, KGFA VP and General Counsel participated in a 3-person panel discussion to approximately 100 KS Farm Bureau members at the their annual Ag Advisory Committee Meeting in Manhattan on February 9. Stookey discussed the grain elevators’ perspective on handling mycotoxins in grain, including sampling, testing, storage, marketing, and discounting grains with mycotoxins.
KU elevator training trailer nears completion KGFA members joined KFSA and KCC in donating $90,000 to KU Fire and Rescue for the completion of a joint firefighter and elevator personnel training program. This mobile trailer is in the process of completion, and KGFA looks forward to seeing the finished product this summer.
Following the presentation, the panel answered questions, which were mostly directed at KGFA. Other panelists included Allen Trower with Kansas Grain Inspection Service, and Lon Burke with RMA Insurance. Water conservation bills signed into law The Governor signed into law two KGFA-backed bills key to water conservation in western Kansas in Garden City this month. John McClelland, with Garden City Coop and Bob Tempel with WindRiver Grain were in attendance to represent KGFA. The Governor signed House Bill 2451 which eliminates the state’s “use it or lose it” water policy and gives landowners incentive to conserve water because they won’t feel that they must use their maximum amount of water when they don’t need to just so they don’t lose water rights. He also signed into law Senate Bill 272 which amends multi-year flex accounts to expand irrigators’ capabilities and options so they can manage their crop water without increasing long-term water use under their water right.
The KU Fire & Rescue grain engulfment training module is expected to be complete this summer.
Update on sorghum odor developments According to the Grain Inspection Packers and Stockyard Administration (GIPSA), a reference storage musty sorghum odor sample will be available this month. The chemical (Geosmine and 1,2,4 Trimethoxybenzene) compound reference sample will be utilized by officials to assist in determining whether sorghum has storage musty odor. The effectiveness of this reference sample is especially important to Kansas. The Kansas Grain Inspection Service (KGIS) inspects approximately 60% of the domestic sorghum market, and the Kansas Grain and Feed Association (KGFA) has been actively involved in this issue.
Governor Sam Brownback signs two bills into law at a ceremony in Garden City. KGFA testified in support of both bills that will help conserve water in western Kansas.
In April 2011, KGFA hosted GIPSA Deputy Administrator Randall Jones at their board meeting and expressed the need to have consistent grades and consideration of sorghum end-users. In June, several KGFA Board members and staff attended a stakeholder meeting at GIPSA’s Kansas City office. During this stakeholder meeting, a variety of odor samples were provided to obtain feedback in determining the line for sorghum storage musty odor. Spring 2012, GRAIN AND FEED REPORT
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INDUSTRY NEWS After the anticipated March release, GIPSA intends to continue efforts to evaluate this sample. GIPSA’s official timeline includes training through 2012 on the sample usage, training quality assurance specialists and additional BAR monitoring samples. As this sample is utilized over time, questions such as shelf-life, who has access to the sample and quality assurance concerns will have to be addressed.
March 2012 - GIPSA will issue instructions to the field concerning the reference sample. March 2012 - GIPSA will prepare and distribute the reference sample. March-June 2012 - The BAR will conduct follow-up training at the Quality Assurance Specialists seminars.
Sorghum is an important crop for Kansas agriculture, March-December 2012 - The BAR will request addiand it is important that this new tool in grading will lead tional opinion samples and monitoring samples for sorto better marketing consistency. ghum odors when deemed necessary. GIPSA’s Timeline August 2011 - GIPSA selected a reference sample for “storage musty” sorghum. The reference sample is a mixture of the chemical compounds Geosmine and 1, 2, 4 – Trimethoxybenzene added to a base sample of old storage sorghum which has an okay odor.
March-December 2012 - If necessary, the BAR will travel to official service points for additional training. KGIS fee increase, new moisture meters The Kansas Grain Inspection Service (KGIS) Board of Directors, along with the Federal Grain Inspection Service, have approved the following fee increase, effective June 1, 2012. They were last increased in 2001 (submits & IDK) and 2004 (proteins).
October 2011 - Dr. Edgar Chambers, Sensory Analysis Center, Kansas State University started conducting a new shelf-life study for the reference sample at room temperature and refrigeration. This study will be more Submits $7.50 realistic of how often the reference sample will be used Proteins $5.00 in the field. On the original study, the samples were IDK $4.00 taken and set out every day for an extended time period. Additionally, the transition to a new official moisture November 2011 - The Board of Appeals & Review meter is expected to begin in August 2012. The Grain (BAR) started training official inspection personnel for Inspection Packers and Stockyards Administration calibrating “storage musty” sorghum odors to the refer- (GIPSA) has worked on this project for several years ence sample. Training was conducted for the BAR, and developed the Unified Grain Moisture Algorithm. Grading Services Lab, and Kansas Grain Inspection. There are many advantages to this new technology. MeJanuary 2012 - Training will be conducted for the sorters with this technology provide readings that align ghum inspectors in Oklahoma and Texas. The BAR will more closely with the official reference method and will travel to Enid Grain Inspection and the League City provide an accurate reading at lower temperatures. Field Office. Training for the League City Field Office will be conducted at the service points in Galveston, KGIS will utilize this technology once an implementaLeague City, Beaumont, and Corpus Christi, Texas. tion date is determined. Customers with on-site labs receiving official grading services will also need to utilize February 2012 - The BAR will travel to the New Orthese new meters. KGIS will keep the KGFA and their leans Field Office to conduct training for the sorghum customers updated with the meter selection and impleinspectors from their circuit. mentation timeline. February 2012 - GIPSA will evaluate the new shelf-life study for the reference sample.
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ASSOCIATION HAPPENINGS Feed Ingredient Buyer’s Mission in June The Kansas Department of Agriculture and Food Export Midwest are holding their Feed Ingredient Buyers Mission at World Pork Expo on June 6-8, in Des Moines, IA.
Mark your calendars now The John Cranor Memorial Golf Tournament is scheduled for August 13 at Prairie Band Casino and Resort’s Firekeeper Golf Course in Hiawatha. Watch for registration information coming soon.
Open to all feed ingredient producers, the Feed Ingredient Buyer’s Mission is an opportunity to meet one-onone with potential buyers that are matched based on product and needs. Producers will only meet with buyers that have an interest in their product. Each meeting will last 30 minutes.
The Kansas Agri Business Expo is scheduled for November 14-15 at Century II Convention Center in Wichita. Vendor registration will begin in June and attendees may register shortly thereafter. Visit www.ksabe.org often for updates.
7B Recertification Training is scheduled for NovemTo learn more and register, click here. If you have ques- ber 14 at Century II Convention Center in Wichita, in tions please contact JJ Jones from the Kansas Departconjunction with the Kansas Agri Business Expo. Get ment of Agriculture at JJ.Jones@kda.ks.gov. all your hours to recertify in one day. Watch for registration information coming soon. KGFA sponsors FFA Agronomy Career Committee volunteers needed Development Event KGFA is looking for volunteers to serve on one or KGFA is proud to be a sponsor of more of our many committees for 2012-2013. The 16the Kansas FFA Agronomy Career Development Event that encourages member board of directors governs the association with input from many special and standing committees. students to build and improve their skills in agronomic sciences. At the Our committee volunteers shape some of the most imcompetition, participants complete a portant decisions KGFA makes. If you are interested in 50-question written exam; identify seeds, insects, soils and crops; demon- getting more involved in your association and want to strate knowledge of agronomic man- have a voice in KGFA affairs, we have a place for you. agement and solve a practical problem. They also give The Board Chairman will be making committee assignoral reasons explaining their placing of various classes. The sponsorship also supports the winning Kansas team ments soon, so fill out the enclosed form and return to in competing in the national FFA convention in the fall. KGFA no later than May 4. Nearly 200 apply for scholarships KGFA received 199 scholarship applications from students across Kansas hoping to receive one of the association’s $1,000 scholarships for the 2012-2013 school year. The KGFA Scholarship Committee will meet on April 9 in Wichita to choose the winners, and announcements will be made shortly thereafter.
Congratulations to Ron Seeber, KGFA Senior Vice President, for successfully completing his term as President of the Kansas Agricultural Alliance (KAA).
Each year, KGFA awards $5,500 in scholarships to high school students wanting to pursue an education in Kansas. Six scholarships are offered: one Dub and Inez Johnson $500 Memorial Scholarship, and five KGFA $1,000 Scholarships.
The KAA is an organization of several agricultural groups who meet weekly during the legislative session to collaborate on policy initiatives important to Kansas agriculture.
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MEMBER CORNER Car for Sale. KGFA is selling one of its company vehiOnline advertising opportunity If you are an advertiser in the 2012 Kansas Official Di- cles. 2008 Chevy Impala LT, Flex Fuel. 60k miles. $11,500. Call (785) 234-0461 if interested. rectory, KGFA is offering your company a 20% discount on website advertising purchased through December 31, 2012. Each month, hundreds of people visit KGFA’s website for access to agribusiness industry knowledge and resources. 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 grain handling industry. See the enclosed form for details. 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 Job Opening. The Andale Farmers Cooperative Comwelcome these companies should you come in contact pany is accepting applications for Location Manager in with them in your business. Colwich, Kansas. The Location Manager will be responsible for supervising all daily activities of this branch Hutchinson/Mayrath, Clay Center, KS which include grain, agronomy (dry fertilizer, NH3), and VICAM, Milford, MA a full service farm store. This position will supervise 3 full-time employees and seasonal help as needed. The Location Manager will solicit new business, ensure cusTrade Talk If you have a short business announcement you’d like included in tomer satisfaction by consistent delivery of both quality products and services to members, and maintain a posithe newsletter, email shahira@kansasag.org. tive image of Andale Coop within the community. Congratulations to Dennis Blick, who will be retiring as Send resume with cover letter to: The Andale Farmers CoBank’s Regional Vice President effective June 30, Cooperative Company, Attn: Steve Shaver, General 2012. Alan Woodward will be assuming this new role Manager, PO Box 18, Andale, KS 67001. You may also effective April 1. upload your resume online at www.provaluellc.com. Congratulations to Gaylord Sanneman, who retired as Sublette Coop’s General Manager. Kendall Poland assumed this new role effective February 1, 2012. Mr. Carlos Campabadal joined KSU faculty as the new International Grains Program Specialist and Instructor in Feed Manufacturing and Grain Storage. Ms. Cassandra Jones will join the KSU Grain Science department as the new Assistant Professor in Feed Technology. Brian Linin, Frontier Ag CFO and past TAL Graduate, was elected to serve on the Kansas Wheat Commission. 10
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2012 Membership Directories were mailed. Additional copies: $50/member $100/non-member
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. A comprehensive hospital and medical, group life, dental, salary continuation, accidental death and a property/casualty program are offered through KFSA at a rate which is considerably less than could be enjoyed by an individual firm. Exclusively through KGFA, you can have your employee benefit programs customized and tailored to meet your budget and needs through Harrington Health. Whether it is COBRA, HIPAA, FMLA, FSA, Harrington Health has the answers. In today’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. AMS On Hold Solutions 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 Stan Stark Farmers Coop Co., Haviland First Vice-Chairman Ted Schultz Team Mktg. Alliance, Moundridge Second Vice-Chairman Pete Goetzmann ADM Grain Co., Overland Park Immediate Past Chair Gary Gantz D.E. Bondurant Grain Co., Ness City Directors Mike Barrett Gavilon Grain LLC, Kansas City Brad Cowan Frontier Ag, Goodland Jeremy Girard Hannebaum Grain Co. Inc., Salina Glen Hofbauer The Scoular Company, Kansas City Scott McWilliams Bartlett Grain Co., Kansas City, MO Deb Miller Farmers Union Merc. & Shpg., Stockton Jerry Murphy Bunge North America, Emporia Rob Nordmeyer Cargill Inc., Overland Park Russ Ronnebaum Hammel Scale, Wichita Steve Shaver Andale Farmers Coop, Andale Bob Temple WindRiver Grain, Garden City Vance Westhusin Midland Marketing, Hays
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GRAIN AND FEED REPORT, Spring 2012