Spring 2018 Kansas Grain and Feed Association 816 SW Tyler Topeka, KS 66612 (785) 234-0461 ksgrainandfeed.org ASSOCIATION STAFF Ron Seeber President & CEO Randy Stookey Senior Vice President General Counsel Staci Storey Vice President Chief Financial Officer Shahira Stafford Vice President Government Affairs Shari Bennett Vice President Event Planning Samantha Tenpenny Director of Member Services Lisa Anschutz Senior Director of Internal Operations Mitzi Dodds Executive Administrative Professional Trae Green Director of Communications and Marketing
CONTENTS
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President’s Letter Fighting to Keep Agricultural Clout Association Happenings KGFA Participates in Ag Tour Industry News Protecting our State’s Interests Annual Steak Cookout Legislators and Staff Enjoy Steaks KGFA Scholarships KGFA Awards $25,000 in Scholarships
BOARD OF DIRECTORS Glen Hofbauer Chairman Jeremy Girard Vice Chairman Bob Tempel 2nd Vice Chairman Pete Goetzmann Immediate Past Chairman Gary Beachner Deb Clark Brad Cowan Brent Emch Andrew Fullerton James Jirak Dub Johnson Ryan McCoy David Helfrich Mark Paul Clark Wenger
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Happy Trails KGFA Celebrates Spring Retirements Capitol Analysis What We Saw at the Capitol KGFA Holds 122nd Annual Meeting Grain Industry Meets in Wichita Continuing Education Members Keep Learning Safety Tips and Reminders
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Capitol Analysis What We Saw at the Capitol
KGFA Holds 122nd Annual Meeting Grain Industry Meets in Wichita
The Kansas Grain and Feed Report is published quarterly for the members, friends and affiliates of the Kansas Grain and Feed Association. email contributions to KGFA, Attention: Trae Green, trae@kansasag.org. The KGFA team welcomes your comments, contributions and suggestions. Annual subscriptions for members can be purchased for $25. © 2018 KGFA. View each newsletter online at ksgrainandfeed. org/printnewsletters.
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
President’s Letter: Fighting to Keep Agricultural Clout in Topeka Dear KGFA Members When it comes to rural electorate votes, time is not on our side. However, when it comes to political clout, that is up to us. Let me explain. In 1933, Kansas had eight seats in the United States Congress. We were once a population power broker. Ronald Seeber However, over the last 80 years President & CEO we have seen national population patterns lowering that number to just four Congressional districts in 1992. That is roughly one seat lost every 20 years. While that number of Congressmen will remain after the 2020 U.S. Census, the national trend is set. That pattern is also consistent when we look at the shift from rural representation in the Kansas House and Senate from places like Johnson City to Johnson County. No one knows better than our membership that rural population is migrating in the wrong direction, especially with regard to our collective voice in Washington and Topeka. It is reality, and it is a problem. But with every problem, there is a solution. Your Kansas Grain and Feed Association (KGFA), in conjunction with the Kansas Agribusiness Retailers Association (KARA), has a strong and effective political arm known as the Kansas Agri Business Council (KABC) Political Action Committee. This appendage is our voice and weapon to ensure that friends of agribusiness are elected, not only in places like Wichita County but also in the city of Wichita. The Political Action Committee
(PAC) also helps defeat candidates that don’t see the big picture for the state and only their own personal microcosms and special interests. This political stick that we wield is provided by you. Whether it be a Johnson County republican Senator that wants to tax our customers out of business or a Wichita democrat who would rather support the labor unions over common sense truck weight legislation, our PAC has proven to be a strong and effective voice. By the way, that Johnson County Senator was prematurely retired in 2016. Thanks, in large part, to our PAC. When you receive your KGFA dues renewal request next month, I strongly urge you to consider checking that box to allow an additional 10 percent of your dues be paid to our KABC PAC. It is by your generous support that we keep our powerful election-year voice. In this day and age, money talks and the rest of the crowd can keep on walking. Just because Kansas is losing rural population representation, the agricultural community can still hold political clout. In fact, we can grow that clout. We, again, implore your assistance and support of your Association’s PAC, the Kansas Agri Business Council. Thank you for your time and consideration. Sincerely, Ronald Seeber President and CEO
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ASSOCIATION HAPPENINGS KGFA Participates in Kansas Agricultural Alliance Ag Tour Kansas Grain and Feed Association (KGFA) is a proud member of the Kansas Agricultural Alliance (KAA), a coalition of agriculture organizations in Kansas. KAA is composed of statewide farm, livestock, commodity, cooperative, agri-business and agri-service organizations. KAA’s mission is to promote the general welfare of agriculture and rural communities within Kansas and the U.S., with special emphasis upon legislative activities affecting agriculture, rural areas and cooperative services. To positively promote agriculture and provide a platform for organizations to speak with elected officials, KAA organized a bus tour with members of the House and Senate Agriculture Committees in and around the Manhattan area. Stops included a diversified farming operation, feed yard, the Kansas Wheat Innovation Center, Kansas Department of Agriculture, Kansas State College of Veterinary Medicine and a cooperative grain elevator/ agronomy retailer. Association staff helped facilitate the tour and educated lawmakers on the importance of Kansas agriculture.
Randy Stookey listened to the importance of workplace safety at Mid Kansas Cooperative.
Mid Kansas Cooperative staff explained the chemical and fertilizer portion of their operation to lawmakers. 4 Grain and Feed Report
The first stop on the tour showcased a diversified farming operation at the Mertz Ranch near Wamego.
The Kansas Department of Agriculture hosted a BBQ lunch for the KAA Ag Tour.
The tour exposed lawmakers to many different rural industries in Kansas.
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
INDUSTRY NEWS Fall Protection Recall Notices Two recalls involving fall protection equipment have been issued nationwide. The first recall involves the installation and use of a permanently installed roof mounted fall protection system called the Sala Evolution Horizontal Lifeline System. 3M has received field reports of broken end posts on these systems and has issued an immediate Global Stop Use order along with actions to replace all roof mounted end posts used in this system between 2005 and 2015 (at which time the Evolution HLL System was discontinued). End users and building owners who have these systems installed are asked to stop using this system immediately, lock
it out and contact 3M Fall Protection. These types of fall protection systems are not commonly used in the industry, however, you are encouraged to review the recall to determine if you have this particular fall protection system installed in any of your facilities. The other recall involves the MSA Gravity Welder Harness. Upon investigation, MSA has determined that the leg strap and chest strap used in select MSA Gravity Welder Harnesses are incompatible. Although the harness can be donned, in the event of a fall, the shoulder straps may extend and affect the protection offered by the harness. MSA is
advising all MSA Gravity Welder Harness customers to immediately stop use of affected MSA Gravity Welder Harnesses produced from July 2015 through, and including, January 2018. The harnesses are to be removed from service, marked “UNUSABLE” and destroyed. Review the recall for more details and the steps you need to take to determine which harnesses are affected and how to obtain replacements from MSA. Our thanks to our affiliate Wisconsin Agri-Business Association (WABA) for bringing these recalls to our attention. *Asmark Institute
Driver Shortage is a Top Concern Finding a driver over the past decade has become harder and harder for agribusinesses. There’s the issue of finding a qualified driver who is in the right price range and willing to work the long seasonal hours - and then there is the issue of being able to retain them when the DOT rules constantly eliminate drivers from the pool of availability. Historically, the agribusiness industry has pulled drivers from the farm families they service, typical employment ads and from the trucking industry when their drivers wanted to stay closer to home or be home every night. A recent survey shows that agribusinesses aren’t the only ones facing this problem - and the problem is not likely to ever improve. According to an American Transportation Research Institute (ATRI) survey, driver shortage is the number one concern for the trucking industry too.
Interestingly, driver shortage even tops concerns about the electronic logging device (ELD) mandate. Using CDL Life magazine’s statistics that hit closer to home, a surprising 21% of drivers said they had to quit driving because they no longer qualified for a commercial drivers license (CDL) for medical reasons. According to the CDL Life survey, 24% of drivers said that heavy-handed regulations prompted their desire to work in a less regulated work environment. One other surprising statistic is their survey showed that 7% of the drivers said they weren’t actually leaving the occupation of being a driver which for us downstream recipients of drivers from high profile trucking companies, beware of a driver who walks through your door and seems too good to be true no matter how difficult a time you are having finding *Asmark Institute drivers.
ATRI’s Survey Findings Top 10 Concerns for Trucking Industry
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Driver Shortage ELD Mandate
Hours-of-Service Truck Parking Driver Retention Compliance, Safety, Accountability Cumulative Economic Impacts of Trucking Regulations Driver Distraction
Transportation Infrastructure / Congestion / Funding
Driver Health and Wellness
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ELD Enforcement in Full Swing The Commercial Vehicle Safety Alliance (CVSA) confirms that property-carrying commercial motor vehicle (CMV) drivers operating their vehicle without a required registered electronic logging device (ELD), or a grandfathered automatic on-board recording device (AOBRD), will be placed out of service for 10 hours. In addition, failing to have a required electronic record of duty status will appear on the roadside inspection report and a ticket or civil penalty may be given to the driver. All ELD violations appearing on a roadside inspection report will be counted against a motor carrier’s
Safety Measurement System (SMS) score, which will drive selection for investigation within the Federal Motor Carrier Safety Administration’s (FMCSA) Compliance, Safety, Accountability (CSA) program. FMCSA will determine appropriate action against non-compliant motor carriers. After 10 hours out of service, the driver may continue to their final destination if the driver has accurately documented their hours-of-service requirements using a paper record of duty status and has a copy of the inspection report and/or citation. If the driver is stopped again before reaching their final destination, the
driver must provide the safety official with a copy of the inspection report and proof that they are still on the continuation of the original trip. This may be satisfied using a bill of lading. After reaching their final destination, if the driver is redispatched again without obtaining a compliant ELD, they will again be subject to the out-of-service process, unless the driver is traveling back to the principle place of business or terminal empty to obtain an ELD. Remember, the ELD mandate does not change the underlying hours-ofservice requirements. *Asmark Institute
SAFETY UPDATE: Grain Cooperative Fined After Fatal Silo Engulfment
Iowa OSHA has issued 11 citations and $306,500 in penalties to a grain cooperative in Waterloo, IA for exposing workers to amputation and engulfment hazards. Iowa OSHA inspected the facility following a fatal incident when a worker was engulfed in flowing grain. Inspectors found that the cooperative failed to provide workers entering grain bins with secured body harnesses, install machine guards on grain handling equipment, and train workers on proper grain bin entry conditions. *Asmark Institute
Human Trafficking Awareness Training Approved for CDL Holders A national organization that works closely with the trucking industry has been approved to provide anti-human trafficking training to commercial drivers license holders in Kansas, Attorney General Derek Schmidt said today. The organization, Truckers Against Trafficking (TAT), has submitted training curriculum that has been approved by the attorney general to provide the training for CDL holders in Kansas. Last year, the Legislature adopted a new law requiring all CDL holders to receive human trafficking awareness training approved by the attorney general’s office. The regulations implementing the law, which became permanent earlier this month, include details for how training course 6
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providers may seek approval from the attorney general’s office. Starting July 1, all new CDL applicants will be required to complete the training before receiving their license. Current CDL holders must complete the training before the next regular renewal of their licenses through the Kansas Department of Revenue (KDOR). KDOR will include information about the new requirement in postcard renewal notices that are routinely sent to current CDL holders when their licenses are due for renewal. The training, which involves watching a brief educational film and answering questions about it, takes about 30 minutes. It must be completed only once, not each time a driver renews. It is free of charge.
The required training can be completed individually online either directly from the TAT website, at the Kansas Motor Carriers Association location in Topeka, or at certain KDOR locations across the state. A printed certificate of completion should be presented upon application or renewal of a CDL. Individuals who have previously completed TAT training before the requirement went into effect and who have received certificates of completion through TAT will not be required to take the training again. The approved training curriculum can be accessed on the TAT website at education.truckersagainsttrafficking.org.
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
LEGISLATIVE STEAK COOKOUT KGFA Hosts Legislators for Steaks and Music Steady rain and chillier than usual temperatures on April 25 didn’t detract the attendance at KGFA’s annual steak cookout welcoming back legislators from their spring break period. Instead of holding the event outside in KGFA’s parking lot as in previous years, the festivities were moved across the street into the basement of the Senate Suites apartments. A group effort through and through, KGFA teamed with government affairs staffs from many Topeka-based associations to put on the event. KGFA covered side dishes of potatoes and Legislators enjoyed prime rib during the first Tuesday Night Reception in January. KGFA hosts more green beans, ribeye steaks were than 15 Tuesday Night Receptions each year. donated by Tyson, the Wichita legislative session. Vice president of event planning, Marriott facilitated a margarita machine, K-State provided Shari Bennett, and government affairs professionals, Ron its famous Call Hall ice cream, and Kansas Livestock Seeber, Randy Stookey and Shahira Stafford, help facilitate Association and Capitol Strategies cooked more than 200 approximately 15 Tuesday Night Receptions during the steaks on a grill lent to the event by the Propane Marketers regularly scheduled 90-day legislative session. Association. While patrons enjoyed platefuls of food, the Building relationships with lawmakers at these informal band, Easy Pieces, serenaded the audience with covers of events is vitally important to growing KGFA’s respected hit songs from a plethora of genres. influence at the statehouse. The steak cookout is typically the last big reception for legislators provided by KGFA and 39 other lobbying Vice president of event planning, Shari Bennett (left), with Valerie sponsors to celebrate the beginning of the end of the Lumry of the Wichita Marriott and Wendy Harms of Kansas Livestock Association during the annual steak cookout on April 25.
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KGFA SCHOLARSHIPS Kansas Grain and Feed Association’s (KGFA) scholarship committee met in Wichita at its 122nd Annual Meeting in early April and awarded more than $25,000 in scholarships to Kansas high school graduating seniors for the 2018-19 academic year. The scholarship committee, comprised of KGFA’s membership, received 132 applications and awarded 19 students scholarships to assist in advancing their academic endeavors. “We are very proud of the KGFA scholarship program that has helped so many people throughout the state for so many years,” KGFA’s president and CEO Ron Seeber said. “The association, its board and members take tremendous pride each spring investing in students and helping them pursue their education.” Dub and Inez Johnson Memorial Scholarship – $500 Total Rilee Jordan – Galesburg KGFA Scholarships – $1,500 Total Blake Bouchey – Damar Justin Brown – Caldwell Sage Collins – Chanute Nathan Enns – Inman Emily Glenn – Holcomb Jack Govert – Cunningham Shyanne Jones – Mound Valley Hannah Klusman – Ford Logan Lix – Wright Ashton McGinn – Sedgwick Victoria Reed – Fort Scott Kacie Timmons – Smith Center Jordan Vandervort – Wakarusa Brittney Walt – Collyer KGFA Scholarships – $1,000 Total Evan Bott – Palmer Brody Ditto – Culver Dylan Loos – Udall Jamie Rock – Hope
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SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
CEO emeritus, Tom Tunnell (left), along with his wife, Michele, were presented National Grain and Feed Association’s (NGFA) Lifetime Achievement Award during NGFA’s Annual Convention in March.
Tunnell was awarded a lifetime achievement award by the National Grain and Feed Association in March for his dedication to the grain industry. On March 31, the KGFA office in Topeka played host to nearly 250 guests of Tunnell for his official retirement party. Longtime Industry Professionals Celebrate Retirement Retiring along with Tunnell, Vance Westhusin of Midland Marketing celebrated his retirement on Feb. 21. President and CEO Ron Seeber traveled to the party to thank The beginning of 2018 must have marked the perfect Westhusin, a longtime member and former board member, time to ride off into the sunset into retirement. Several for his commitment to the industry. industry professionals special to Kansas Grain and Feed In mid-March Offerle Coop’s Duane Boyd held his Association (KGFA) formally retired to begin the new year. After serving 38 years as the president and CEO of KGFA, retirement party in Offerle. Tunnell made the four-hour Tom Tunnell announced his intention to retire in November drive from Topeka to be in attendance. Boyd was a decorated member of KGFA, serving as the Board of of last year and move to Florida in 2018. Tunnell began a Directors’ chair from 1995-96 and sitting as the chairman nearly six-month tour of Kansas, and the United States, of the KGFA scholarship committee for more than 20 years. to visit old friends and say goodbye to loyal members.
HAPPY TRAILS
KGFA WISHES YOU THE BEST IN RETIREMENT
President and CEO, Ron Seeber (right), and Midland Marketing’s Vance Westhusin.
CEO emeritus, Tom Tunnell (left), and Offerle Coop’s Duane Boyd.
Nearly all of the KGFA staff pictured with Tom Tunnell on his last day in office. Spring 2018
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The Kansas Legislature adjourned Sine Die its 90-day legislative session on Friday, May 4. Your government affairs staff worked day and night watching for your best interests in Topeka so you didn’t have to. Take a moment to recap on the highlights, victories and a few defeats…
TAX CUTS After days of debate and negotiation between House and Senate leaders during the Veto Session, lawmakers failed to pass a mega tax cut bill that would have returned more than $100 million back to Kansans. The Conference Committee Report on House Bill 2228 died on a 59-59 vote in the House, four votes shy of the 63 needed for passage. The Senate passed it 21-19 just hours before. In short, the bill would have allowed Kansas to decouple from several provisions of the federal Tax Cuts and Jobs Act, returning the “windfall” to both individual and corporate taxpayers rather than the state coffers. The main provisions of the tax cut package were: • Permanent decoupling on repatriated foreign income, which has never been taxed in Kansas before. • One-year decoupling on global intangible low-taxed income, interest expense limitations, capital contributions, and FDIC premiums. • Allowing individual taxpayers the option to itemize on their state tax forms – even if they claim the standard deduction on the federal level – reducing their tax liability. • Restoration of 100% deductions for medical expenses, property taxes, charitable contributions, and mortgage interest deductions.
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*To stay current on the latest news from the Capitol be sure to subscribe to our legislative emails and follow us on Facebook and Twitter. 10 Grain and Feed Report
Staff, along with other interested parties, is continuing discussions with the Governor’s office and the Department of Revenue asking for regulatory guidance on how repatriated income will or won’t be taxed in Kansas this year.
SCHOOL FINANCE The Governor signed into law Senate Bill 423, which spends an additional $525 million on K-12 education over the next five years in response to the Kansas Supreme Court’s ruling that the current school finance formula is constitutionally inadequate. The Court is expected to rule on the Gannon vs. Kansas lawsuit by June 30, potentially forcing Governor Colyer to call a July special session should the judges rule the new money is still not enough. If that is the case, expect to see an organized push toward a constitutional amendment vote, House Concurrent Resolution 5029, which would remove the jurisdiction of the Kansas
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
Supreme Court over whether the legislature has made “suitable financial provision for public education,” while retaining jurisdiction over the issue of equitable distribution of funds, protecting rural schools. A two-thirds majority of both legislative chambers is necessary before the question can be placed on the next state-wide election ballot. KGFA has joined the Kansas Coalition for Fair Funding to support the constitutional amendment. Additional dollars toward K-12 education would most certainly come from an increase in property taxes, which are already burdensome on our industry.
input from an advisory committee – to designate a plant as noxious. Current authority lies with the Legislature, which can be a burdensome and timeconsuming process. It also requires county weed directors to check an online specialty crop database prior to applying pesticides.
period by one year is an easy, small step toward lowering the regulatory burden, reducing cost, and expediting the process of conducting agribusiness in Kansas. It will also put Kansas in compliance with the federal Transportation Security Administration’s hazmat endorsement, which is also renewed every five years.
Staff testified and lobbied strongly in support, successfully amending the bill to ensure certain provisions caused no harm to the grain industry. The bill has been signed into law.
Staff testified and lobbied in support. The bill has been signed into law.
RULES AND REGULATIONS OVERSIGHT The Conference Committee Report on House Bill 2280 creates Ron Seeber Randy Stookey a new requirement for President & CEO Senior VP | General Counsel state agencies to submit an economic impact statement to the State Budget Office when proposing or amending any rule and regulation. The bill requires TRANSPORTATION TASK FORCE the economic impact statement to The Conference Committee Report include a description of businesses that on Senate Bill 391 establishes the would be directly affected, the benefits Joint Legislative Transportation of the proposed rule and regulation, Vision Task Force to put together the and measures taken to minimize the next 10-year transportation plan. impact on businesses and economic Appointees may be affiliated with one development. In addition, if the proposed of several organizations listed in the regulation has an estimated economic bill, including one from the Kansas impact of $3 million over two years, then Grain and Feed Association. A report the agency must hold a public hearing and recommendations are due to the prior to adoption. This legislation is a way Legislature by January 31, 2019. to ensure that agencies are considering Staff monitored the issue closely to ensure agricultural interests were represented on the all actual industry costs before passing committee. The bill is awaiting the Governor’s new regulations.
Advocating for
Staff testified and lobbied strongly in support. The bill is awaiting the Governor’s signature into law.
NOXIOUS WEEDS The Conference Committee Report on House Bill 2583 gives authority to the Secretary of Agriculture – with
BUDGET
The Conference Committee Report on Senate Bill 109 is adjustments to the biennial budget for fiscal years 2018 and 2019 that was approved last year. A few appropriated items of interest were $3.25 Shahira Stafford million toward the State VP Gov. Affairs Water Plan Fund and $100,000 toward hemp crop research, within the Kansas Water Office.
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signature into law.
Staff monitored negotiations closely throughout the session to track funding for the state agencies that regulate our various industries. The bill is awaiting the Governor’s signature into law.
SCRAP METAL DELAY The Conference Committee Report on Senate Bill 261 allows for a one-year extension to implement and fund through the Attorney General’s office the Scrap Metal Theft Reduction Act passed in 2015. It also requires a progress report to the Legislature by February 1, 2019. Staff testified as neutral, understanding that while additional time may be needed, the industry strongly supports fighting scrap metal theft. The bill has been signed into law.
CDL RENEWAL EXTENSION The Conference Committee Report on House Bill 2606 extends from four years to five years the period of time before expiration of a commercial driver’s license. Extending the renewal
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POULTRY EXPANSION Senate Bill 405 allows for expanded poultry production in Kansas by creating an animal unit conversion rate for modern poultry facilities with dry manure systems, which is currently not addressed in statute. Most opposition came from Tonganoxie residents and their protest against Tyson Foods’ proposal to build a $320 million poultry production and processing complex near their community last year. Attempts to require county public vote approval failed in both Chambers. Staff monitored the issue closely. The bill has been signed into law.
BROADBAND TASK FORCE The Conference Committee Report on House Bill 2701 establishes the Statewide Broadband Expansion Planning Task Force to study and identify opportunities and potential funding sources to expand broadband infrastructure and services across Kansas, including rural areas. Final recommendations are due to the Legislature by January 15, 2020. Staff monitored the issue closely in support of expanded broadband in rural Kansas. The bill has been signed into law.
ELEVATOR INSPECTION House Bill 2765 would have established the Elevator Safety Act, empowering the Office of the State Fire Marshal to govern the design, construction, operation, inspection, testing, maintenance, alteration, and repair of elevators, lifts, escalators, moving walkways, and dumbwaiters. The Fire Marshal would have had the authority to establish rules and regulations over the industry and prohibit any inspections of elevators and conveyance equipment unless by a state-licensed inspection company. They would have also been granted civil penalty authority over all inspection companies owners of elevators and conveyance equipment. Similar laws have been passed in recent years in other states, including Colorado, Missouri and Oklahoma. Staff engaged the Chairman of the House Federal and State Affairs Committee, citing unnecessary costs to industry and the already multiple entities that oversee elevator safety procedures. The bill never received a hearing.
AD ASTRA RURAL JOBS ACT The Conference Committee Report on Senate Bill 296 would have allowed tax credits on income, premiums, or privilege taxes for taxpayers who contribute capital to an approved 12
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investment company to fund a “rural business concern” with less than 500 employees, in counties with a population of less than 50,000. Businesses engaging in manufacturing, plant sciences, technology, or agricultural technology would have qualified for the program. Beginning in tax year 2020, 20% of the tax credit could have been claimed annually over a five-year period. The amount of tax credits claimed in any one fiscal year would have been limited to $10 million. Staff testified and lobbied in support. The CCR passed the House 83-36 on the last day of the Veto Session, but the Senate adjourned before taking it up for a vote.
HPIP EXTENSION The Conference Committee Report on Senate Bill 296 would have extended 25% of unused High Performance Incentive Program (HPIP) tax credits beyond the current carryforward limit, from 16 years to 25 years, for those taxpayers who initially claimed an HPIP credit prior to January 1, 2018. In any tax year after the 16th year, the amount of tax credits used would have been limited to 10% of the reduced amount. The HPIP provides a 10% income tax credit for eligible capital investments that exceed either $50 thousand in non-metropolitan counties or $1 million in the five metropolitan counties of Douglas, Johnson, Sedgwick, Shawnee, or Wyandotte. Staff monitored the issue closely. The CCR passed the House 83-36 on the last day of the Veto Session, but the Senate adjourned before taking it up for a vote.
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
KANSAS CORN CHECKOFF Kansas Corn Announces New Refund Voucher Process The Kansas Corn Commission is revising its refund procedure to make refunds easier to track and to provide a more uniform checkoff refund system. The new process is similar to the refund procedure used by the wheat checkoff. Beginning June 1, a grower must request an individually-numbered refund voucher from the Kansas Corn Commission. Voucher requests can be made in writing, on-line or by phone. The commission staff will assign a number to each voucher and send it to the grower who is requesting the refund. The voucher cannot be copied. Like the current procedure, the voucher is a simple two-part form that is filled out by the grower and the first purchaser of the corn. Refund requests using the old vouchers postmarked by May 30, 2018 will be accepted. KANSAS CORN CHECKOFF REFUND PROCESS • Grower contacts Kansas Corn Commission (KCC) to request a refund voucher (by mail, phone, email or online) • KCC mails a numbered voucher to that grower • First purchaser fills out the buyer information; Grower fills out the seller information and mails the voucher to KCC • KCC processes the voucher and mails a refund check to grower The Kansas Corn Commission is made up of farmers elected from each of the nine crop reporting districts in the state. The commission determines how checkoff funds will be invested in the areas of market development,
education, promotion and research. The Kansas Corn Commission continually looks to the future focusing on: • Strengthening and expanding our foreign and domestic markets for “corn in all forms”. This includes building markets for corn, red meat, ethanol, DDGS and other corn products • Building infrastructure and demand for higher blends of ethanol fuels • Investing in youth and young growers through K-12 programs focusing on STEM education; college programs to encourage students to consider careers in corn, and our young grower program that builds a network and provides tools to help young farmers succeed • Sharing positive information about corn farming and agriculture with consumers who are becoming increasingly misinformed and wary of our food system • Supporting research to ensure our growers have access to the most innovative technology and production practices to grow profitable and sustainable corn crops Growers may request the refund forms by phone, mail, email or by filling in an online form at kscorn.com/kcc. For more information, contact the Kansas Corn Commission by phone at 785-410-5009 or by email at refunds@ksgrains. com. Learn more at kscorn.com.
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KGFA Chairman, Glen Hofbauer (right), presented Chuck Elsea with the 2018 Sunflower Award and a photo of Elsea from KGFA’s, “Burning the Mortgage,” celebration. 14
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SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
KGFA
2 12 ANNUAL MEETING
On Monday, April 9, 2018, the grain industry convened in Wichita, Kan., for Kansas Grain and Feed Association’s (KGFA) 122nd Annual Meeting. With membership encompassing 99 percent of the grainhandling and storage industry, KGFA’s annual meetings provide members the opportunity to meet, network and socialize with other agribusiness professionals. The two-day event in celebration of the Kansas grain industry began with meetings for the association’s expo, legislative, membership/training and scholarship committees. KGFA’s board of directors met and ironed Spring 2018 Continued on page 16
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out important association initiatives. When evening arrived, members filled the Wichita Marriott for a prime rib dinner accompanied by traditional side dishes. The remainder of the first day was dedicated to networking and fun. Appetizers lined the outer walls of hospitality suites sponsored by BarnesCo Inc., Cargill/Ardent Mills, Central States Fumigation, Drake Inc., Gavilon Grain LLC, Hammel Scale Co., Inc., KFSA, McPherson Concrete Storage Systems, Norwood & Co., and Rolfes @ Boone. Early the next morning over breakfast, KGFA Chairman Glen Hofbauer thanked the 2018 sponsors and presented the Sunflower Award, the association’s most distinguished
honor, to Chuck Elsea for his outstanding contributions to the grain industry. Elsea worked for The Scoular Company for more than 20 years and served as KGFA’s chairman from 2001-03 and was on its Board of Directors from 19912003. Kansas’ 50th Lt. Governor, Tracey Mann, spoke to a full ballroom about his agriculture background and where the Governor’s office stands on issues. Prior to exiting the hotel for the golf tournament held annually in conjunction with the meeting, American Feed Industry Association’s vice president of public policy, Leah Wilkinson, captivated the crowd with her presentation How to Turn a Cuss-Word into a Plus-Word featuring the Food Safety Modernization Act. Clear skies and non-existent wind gave way to a successful golf tournament. The top-five finishes are below. View the complete photo gallery from KGFA’s 122nd Annual Meeting at: ksgrainandfeed.org/kgfa-holds-122nd-annualmeeting/.
Finish
Foursome
1 2 3 4 5
Doug Story | Joe Griffith | Casey Harbour | PJ Forbes Robert Lightcap | Collin Hulse | Duane Boyd | John Lightcap Mike Schmidt | Russ Ronnebaum | Jerald Kemmerer | Chris Stucky Russ Weaver | Chris Wagner | Craig Bartlett | Eric Sperber EG Herl | Tyler Scifers | Jeremy Girard | Jared Burch LONGEST PUTT MADE
#7
1. Scott Koepplin 2. Russ Ronnebaum 3. Russ Weaver 16
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To Par Gross
CLOSEST TO THE PIN
#9
1. Kevin Miles 2. Dell Princ 3. Ryan Kelleher
Total Gross
-14 -8 -7 -6 -6 CLOSEST TO THE PIN
#17
1. Brent Emch 2. Ryan Jones 3. Tim Landreth 4. Warren McDougal 5. Jeremy Girard
58 64 65 66 66
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
CONTINUING EDUCATION Grain Grading Schools and Elevator Safety and Maintenance With help from the Kansas Grain Inspection Service, KGFA provided valuable information to hundreds of elevator operators, producers, brokers, and grain buyers about grain grades and how to use grain standards in marketing during the 2018 Grain Grading Schools held February 20-22 and March 6-8. Hands-on training was utilized by participants to recognize various types of kernel damage and samples were graded to assist in practical, cost effective procedures for grain inspection.
Welcome New Members Thanks to the reputation of our membership and industry, KGFA continues to grow and provide useful products and services for grain handlers. Please welcome Great Western Bank (Shawnee) and Smithfield Grain (Kansas City).
GREAT WESTERN BANK
Industry experts from McPherson Concrete Products, Inc., Hammel Scale Co. Inc., KFSA, The Essmueller Company and Norwood Contracting recently provided KGFA members with three comprehensive elevator safety and maintenance workshops in Garden City, Wichita and Salina. Attendees were made aware of what to look for when working around concrete grain structures, common moisture meter issues and handling techniques, safe bin entry practices and how to handle an engulfment type situation, drag conveyor and bucket elevator leg preventative maintenance and new “Quick Patch” technologies. Although continuing education credits are not offered at this program, KGFA staff might argue that these annual workshops are the “most important” we offer as the safety of our members is at the top of our priorities.
Shawnee
SMITHFIELD GRAIN Kansas City
Spring 2018
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KANSAS GRAIN AND FEED ASSOCIATION
KEEPING YOU SAFE Published with permission from Grain Journal/Grainnet | Source: Joe Mlynek
Skid-Steer Loader Safety
Skid-steer loaders are useful tools in many industries; however, their use does not come without risk. Skid-steer loaders have caused numerous injuries and fatalities across many types of industries. One of the most common causes of skid-steer-related incidents involve workers being crushed by moving parts. Safety Tips • Familiarize yourself with the information contained within the operator’s manual as well as the equipment’s labels. These labels warn of the location of pinch points, hot components, crushing hazards, and liquids under pressure. • Perform a pre-use inspection to include elements such as tires, cleanliness of the cab, the safety belt or bar, grab handles, steps, footholds, attachment connections, fluid hoses, etc. • Never enter or exit the loader under a raised attachment. • Never start the engine from outside of the cab. • Always fasten the safety belt and lower the safety bar when in the operator seat. • Never climb into the cab with the engine running, as this action may accidentally engage the controls. • Never lean out of the cab while the engine is running; keep your body within the cab at all times. • Never lift attachments over a person because loads may shift, fall, or drop suddenly, placing workers in danger. • Never work under a raised attachment unless the lift arms are secured in the “up” position. Refer to the operators’ manual for information on the equipment’s lift-armsupport devices. • Perform maintenance work with the engine off, key removed and secured, parking brake set, wheels blocked, and attachments lowered or properly supported.
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Grain and Feed Report
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
Important KGFA Dates in 2018 MAY S M T 1 6 7 8 13 14 15 20 21 22 27 28 29
JUNE
W TH F 2 3 4 9 10 11 16 17 18 23 24 25 30 31
S 5 12 19 26
AUGUST S 4 11 18 25
NOVEMBER
S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
DECEMBER S 3 10 17 24
S M T W TH F S 1 6 7 8 2 3 4 5 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
MAY Monday, May 28 Memorial Day (KGFA office closed)
SEPTEMBER Monday, Sept. 3 Memorial Day (KGFA office closed)
JUNE Friday, June 15 Staff Strategic Plan (KGFA office closed)
Friday, Sept. 7 T.A.L. Session III (Wichita)
JULY Wednesday, July 4 Independence Day (KGFA office closed) Sunday, July 22 - Thursday, July 26 T.A.L. Session II (Washington, D.C.) AUGUST Monday, Aug. 6 Cranor Golf Tournament (Firekeeper Golf Course, Mayetta)
S 2 9 16 23 30
SEPTEMBER
S M T W TH F 1 2 3 5 6 7 8 9 10 12 13 14 15 16 17 19 20 21 22 23 24 26 27 28 29 30 31
S M T W TH F 1 2 4 5 6 7 8 9 11 12 13 14 15 16 18 19 20 21 22 23 25 26 27 28 29 30
S M T W TH F 1 3 4 5 6 7 8 10 11 12 13 14 15 17 18 19 20 21 22 24 25 26 27 28 29
JULY
Tuesday, Sept. 18 Regulatory Compliance Seminar with NGFA (Manhattan) NOVEMBER Tuesday, Nov. 13 Sporting Clay Shoot (Wichita) Wednesday, Nov. 14 KGFA Board Meeting (Hyatt Regency, Wichita)
S 1 8 15 22 29
M T 2 3 9 10 16 17 23 24 30 31
W TH F 4 5 6 11 12 13 18 19 20 25 26 27
S 7 14 21 28
OCTOBER S M T 1 2 7 8 9 14 15 16 21 22 23 28 29 30
W TH F 3 4 5 10 11 12 17 18 19 24 25 26 31
2018
S 6 13 20 27
Wednesday, Nov. 14 - Thursday, Nov. 15 Kansas Agri Business Expo (Hyatt Regency, Wichita) Room block opens June 1, 2018 Thursday, Nov. 22 - Friday, Nov. 23 Thanksgiving Holiday (KGFA office closed) DECEMBER Sunday, Dec. 2 - Tuesday, Dec. 4 NGFA Country Elevator Conference & Tradeshow (St. Louis) Thursday, Dec. 6 Grain Handlers Workshop (Hays) Monday, Dec. 24 - Tuesday, Dec. 25 Christmas Holiday (KGFA office closed)
Wednesday, Nov. 14 7B/4 Recertification (Hyatt Regency, Wichita) Spring 2018
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KANSAS GRAIN AND FEED ASSOCIATION
Kansas Grain and Feed Association 816 SW Tyler, Suite 100 Topeka, Kansas 66612
Attend a Safety and Operations Focused Regulatory Compliance Seminar KGFA and National Grain and Feed Association (NGFA) will once again join forces to provide members with a regulatory compliance seminar to address a wide variety of safety and operational related topics – particularly OSHA and FDA issues impacting the grain, feed and processing industry. This seminar will identify recent changes made to the Administration and Congress that have impacted the aforementioned agencies and their agendas. Presentations on specific standards that are either being implemented or heavily enforced by OSHA and topics that are dealt with daily by the industry - everything from employee behavior to project management - will be covered in this comprehensive program with our goal being to have a member of the NGFA Safety, Health and Environmental committee provide an overview of industry best practices to the audience. Keep an eye on the KGFA website and Facebook page for additional agenda information – coming soon! September 18 Kansas Department of Agriculture 1320 Research Park Drive Manhattan, Kansas
Kansas Grain and Feed Association | Spring 2018 Editors Ron Seeber Randy Stookey Staci Storey Shahira Stafford Shari Bennett Samantha Tenpenny Mitzi Dodds Trae Green
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Grain and Feed Report
Photography & Illustrations Cover Photo iStock.com/doranjclark Skid-Steer Photo iStock.com/valio84sl
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