KANSAS GRAIN AND FEED ASSOCIATION
Winter 2020 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 Senior Vice President Chief Financial Officer Shari Bennett Vice President Event Planning Samantha Tenpenny Director of Member Services Lisa Anschutz Senior Director Internal Operations Sidney Storey Administrative Assistant Trae Green Associate Vice President External Affairs & Creative Services BOARD OF DIRECTORS Deb Miller Chairwoman
Kansas Grain and Feed Association (KGFA) and Kansas Agribusiness Retailers Association (KARA) board of directors officers annually fly out to Washington, D.C., to meet in a small group setting with the Kansas congressional delegation. From left, KGFA president and CEO Ron Seeber, KARA vice chairman Dustin Kuntz, Congressman Ron Estes, KGFA chairwoman Deb Miller, KGFA second vice chairman Brent Emch, Farm Journal vice president Doug Catt and KARA chairman Lance Nelson.
TABLE OF
CONTENTS 03 PRESIDENT’S LETTER Officers march Capitol Hill and meet with Congressional Delegation
15 KANSAS DEPT. OF AG NEWS KDA to host regional agribusiness development workshops in March
04 INDUSTRY NEWS Updates on state, federal and industry news affecting your business
16 KGFA SCHOLARSHIP DEADLINE March 6 is the last day for students to turn in their scholarship applications
14 TAL COMPLETES SESSION I The 23rd class of Tomorrow’s Agribusiness Leaders completed their first session
18 GRAIN GRADING & ELEVATOR MAINTENANCE KGFA will host its 90th annual grain grading schools followed by elevator workshops
06 KANSAS STATEHOUSE INSIDER A look at what’s happened during the 2020 Kansas Legislature since the session began in January.
13 2020 LEGISLATIVE ACTION DAY Despite the threat of severe inclement weather in Topeka, members showed up and advocated for agribusiness.
Bob Tempel Vice Chairman Brent Emch Second Vice Chairman Glen Hofbauer Immediate Past Chairman Gary Beachner Ted Behring Brad Cowan Andrew Fullerton David Helfrich James Jirak Dub Johnson Mark Paul Troy Presley Devin Schierling Clark Wenger Allen Williams Editors: KGFA staff Cover Photo: Cover (iStock.com/EJ-J)
2
Grain and Feed Report
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. Annual subscriptions for members can be purchased for $25. © 2020 KGFA. View each newsletter online at ksgrainandfeed.org/printnewsletters. Advertising does not influence editorial decisions or content. KGFA reserves the right to refuse, reject, or cancel any ad for any reason at any time without liability.
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
PRESIDENT’SMESSAGE RONALD SEEBER
President and CEO
Ronald Seeber became the sixth president and CEO in the 124-year history of Kansas Grain and Feed Association in 2017. Seeber has more than 30 years of association management and government affairs experience working in Washington, D.C., and his home state of Kansas. PHONE 785.234.0461 785.224.1848
ADDRESS 816 SW Tyler Street Topeka, KS 66612
EMAIL ron@kansasag.org
DEAR KGFA
MEMBERS
“
Our message was clear to our members of Congress. The power of the federal government can make or break our industry.
My first job out of college was as a hill staffer in Washington, D.C., in the early 1990s. A lot has changed since then, but one thing has remained the same, overworked and underpaid 25 year olds run our country. I was reminded of this in February when KGFA’s Chairwoman Deb Miller, Second Vice Chairman, Brent Emch and Kansas Agribusiness Retailers Association (KARA) officers traveled to our nation’s capital to meet with our congressional delegation where we shared the concerns facing our industry. We spent one full day traveling to each of their House and Senate offices and believe me, they got an earful. While we met with our elected officials, their young worker bees kept a transcript of everything we said, as we said it, to make sure our issues were followed up on. We started by thanking them for their support of the passage of the United States Mexico Canada Agreement (USMCA), or otherwise known as NAFTA 2.0. We reminded them that by putting partisan politics aside the United States and Kansas are open for business to the world and that everyone gains. While we had their ear, we also urged them to try and maintain an attitude of regulatory certainty and stability. We explained by knowing what to expect from our government, we and our customers are better prepared to plan for the upcoming growing year and know the rules won’t be changed midway through the game. We shared stories from our customers about their difficulties to find viable lending options and how they are seeing a tightening of credit in rural Kansas. We reminded them that while the rest of the country has a vibrant economy, rural Kansas still struggles
and finds itself the sharp tip of the spear on trade disputes. We also let them know of the workforce shortages – particularly CDL drivers, and the exodus of young people leaving home and not returning is very real. As you can see, our message was clear to our members of Congress that the power of the federal government can make or break our industry. We used the example of the importance of a one-year federal intervention reprieve with regard to the Quivira National Wildlife Refuge. How one decision to hold off for just one planting season cooled boiling tempers and gave a little more time to find a viable solution. We reminded our leaders that actions or inactions have consequences – good and bad. While we enjoyed face time with our elected officials, we followed up with their staff later at an industry hosted reception where our 25 year old staffers recited their notes verbatim and enjoyed a dinner of egg rolls, bite-size pigs in a blanket and beer. I firmly believe that it is just as important to maintain a relationship with these young worker bees as their member of Congress bosses. Keep in mind that these young folks actually get the work accomplished and their bosses get the headlines. Sincerely,
Winter 2020
3
“
KANSAS GRAIN AND FEED ASSOCIATION
INDUSTRYnews Feature Focus: myPPE Hazard Assessment Program
If at any time the scope of assessment is changed (i.e. worksite to individual), the previous data is removed and the assessment must be completed again in its entirety. Be cautious when changing the scope.
The myPPE Personal Protective Equipment (PPE) Hazard Assessment Program is a comprehensive solution for managing and tracking your PPE program that orginally debuted in 2012. OSHA developed regulations regarding PPE to ensure employees are adequately protected while on the job. Employers must periodically assess the hazards that are present and could pose harm to their employees. For each task, the employer needs to choose personal protective gear that will properly protect the employee from the hazards identified in the hazard assessment. The myPPE Hazard Assessment tool helps define, organize and document the personal protective equipment required for an individual, category of employees or worksite. This unique tool leads you through
the process of identifying hazards, selecting the appropriate PPE and documenting the exercise. Once completed, your Hazard Assessment will populate as Snapshots updates hourly, creating an electronic copy for easy access and for periodic review and updates. In addition to the electronic copy, the person completing the assessment should print off and sign the file copy and file in the facility’s Compliance Filing System binder. NOTE: If at any time the scope of assessment is changed (i.e. worksite to individual), the previous data is removed and the assessment must be completed again in its entirety. Be cautious when changing the scope. Source: Asmark Institute
Navigable Waters Protection Rule - A New Definition of WOTUS EPA and the Department of the Army finalized the Navigable Waters Protection Rule to define “Waters of the United States” and establish federal regulatory authority under the Clean Water Act. Congress, in the Clean Water Act, directed the Agencies to protect “navigable waters.” The Navigable Waters Protection Rule regulates these waters and the core 4
Grain and Feed Report
tributary systems that provide perennial or intermittent flow into them. The revised definition identifies four clear categories of waters that are federally regulated under the Clean Water Act: the territorial seas and traditional navigable waters; perennial and intermittent tributaries; certain lakes, ponds, and impoundments; and wetlands that are adjacent to
jurisdictional waters. The final rule also details 12 categories of exclusions, features that are not “Waters of the United States,” such as features that only contain water in direct response to rainfall, groundwater, many ditches, prior converted cropland, and waste treatment systems.
The Navigable Waters Protection Rule adds muchneeded clarity to WOTUS for agricultural retailers and their farmer customers.
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
INDUSTRYnews 2020 Outlooks for DOT, EPA and OSHA DOT, EPA and OSHA have all published regulatory agendas with target dates through the end of the fiscal year. We have reviewed the lists and identified upcoming regulatory and deregulatory actions that could impact our clients. All in all, there are plenty of proposals on the horizon for 2020.
Occupational Safety & Health Administration Technical Corrections to 27 OSHA Standards and Regulations Lock-Out/Tag-Out Update Powered Industrial Trucks Design Standard Update Update to the Hazard Communication Standard Walking Working Surfaces
12/2019 12/2019 1/2020 1/2020 4/2020
Final Rule Pre-proposal Proposal Proposal Proposal
Department of Transportation Record of Violations 11/2019 Proposal Fees for the Unified Carrier Registration Plan and Agreement 12/2019 Final Rule Rulemaking Procedures Update 12/2019 Final Rule Controlled Substances and Alcohol Testing: State Driver’s Licensing Agency Downgrade of Commercial Driver’s License 1/2020 Proposal Driver Qualifications; Revising the Vision Standard 1/2020 Proposal Extension of Compliance Date for Entry Level Driver Training 1/2020 Interim Final Rule Extension of Compliance Date for States’ Query of the Drug and Alcohol Clearinghouse 1/2020 Proposal Hazardous Materials: Modal Regulatory Reform Initiatives 3/2020 Proposal Preservation of Records 4/2020 Proposal Hazardous Materials Safety Permits 2020; NA Standard Out-of-Service Criteria 6/2020 Proposal Hazardous Materials: Adoption of Miscellaneous Petitions to Reduce Regulatory Burdens 8/2020 Final Rule Hazardous Materials: Petition to Reduce Regulatory Burden for Cylinder Requalification Requirements 8/2020 Final Rule General Technical Amendments 9/2020 Proposal Hours of Service of Drivers TBD Final Rule
Environmental Protection Agency Risk Management Programs Under the Clean Air Act: Reconsideration of Amendments 11/2019 Final Rule Adding Aerosol Cans to the Universal Waste Regulations 11/2019 Final Rule Revised Definition of “Waters of the United States” (Step 2) 1/2020 Final Rule Worker Protection Standard; Revision of the Application Exclusion Zone Requirements 1/2020 Proposal Pesticides: Modification to the Minimum Risk Pesticide Listing Program 2/2020 Pre-proposal Modernizing Ignitable Liquids Determinations 3/2020 Final Rule Pesticides: Administrative Corrections and Removal of Obsolete Information 3/2020 Proposal Expansion of Crop Grouping Program 4/2020 Proposal Microorganisms: General Exemptions from Reporting Requirements 5/2020 Proposal Control of Air Pollution from New Motor Vehicles: Heavy-Duty Engine Standards 6/2020 Proposal Financial Responsibility Requirements Under CERCLA Section 108(b) for the Chemical Manufacturing Industry 12/2022 Proposal Source: Asmark Institute
OSHA Form 300A Deadlines It’s time to complete your 2019 injury and illness recordkeeping obligations by posting the Summary of Work-Related Injuries and Illnesses (OSHA Form 300A). OSHA requires that the notice be displayed from February 1st to April 30th of each year in a conspicuous place where employee notices are customarily posted. Businesses with no injuries or illnesses for the year must still post the form. A company official must certify the information in Form 300A was examined and is believed to be correct and complete. All establishments with 250 or more employees in industries covered by the
recordkeeping regulation must electronically submit Form 300A no later than March 2nd, as well as establishments between 20-249 employees in certain industries, including “warehousing and storage.” Covered employers must now provide their Employer Identification Number (EIN). OSHA began accepting submissions on January 2, 2020. Source: Asmark Institute
Photo courtesy: Flickr.com/NCinDC
Covered employers must now provide their Employer Identification Number (EIN). OSHA began accepting submissions on January 2, 2020.
Winter 2020
5
KANSAS GRAIN AND FEED ASSOCIATION
Statehouse
INSIDER By: Randy Stookey
Heading into the 2020 Kansas legislative session, much activity and attention was focused on such things as approving the next 10year highway plan, property tax reform, adding a tax on internet sales, Medicaid expansion and social issues. Tax increases in 2017 increased State General Fund receipts, which are now projected to be $1.2 billion above receipts in 2018. As tax receipts have increased, the state budget has also increased, with the legislature passing the largest ever budget last year at $7.85 billion. 6
Grain and Feed Report
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
Governor Kelly Sets Forth Her Priorities In her State of the State address, Governor Kelly presented her priorities for the year which included, inter alia, the passage of Medicaid expansion, the next 10-year transportation plan, passage of an internet sales tax, the lowering of food sales tax ($53 million proposal), and addressing high property taxes. In order to pay for these budget priorities, the Governor has once again proposed reamortization of the state’s pension plan (Kansas Public Employee Retirement System, or “KPERS”) – a move which would free up approximately $130 million for the annual budget, but would cost taxpayers approximately $4.4 billion in additional long-term interest payments. Republican leadership in the House and Senate have already stated their objections to this proposal. Don’t Look Too Far Down the Road Due to significant tax increases in 2017, receipts to the State General Fund are projected to be $1.2 billion over receipts in 2018, and $550 million ahead of
projections for the end of the current fiscal year. However, even with this increased tax revenue, budget projections are once again in the red again in just two years. This is due, in large part, to hefty mandatory payments to KPERS, budgeted spending increases on K-12 education, increased spending on healthcare and social services and the movement away from borrowing from the state transportation fund. Going forward, the legislature will need to either make significant budget cuts or raise taxes to cover the shortfall.
transportation infrastructure; the need for a larger labor force; and more adequate housing in rural areas.
Kansas House Leadership Rolls Out “Make Kansas Work” Plan House leadership outlined a “Make Kansas Work” plan that is intended to benefit rural economies, health care, encourage homeownership, and boosts to $100,000 the tax floor for Social Security recipients. Bills will be introduced shortly on this five point plan, including: 1. Rural Hospital Innovation Act: $30 million Lieutenant Governor Briefs Committee in grants to 100 counties of the 105 counties on 2019 Rural Prosperity Listening Tour to respond to health-care needs. The Senate Committee on Agriculture 2. A first-time homebuyer savings account: received a presentation from Lieutenant allows tax-deductible contributions by Governor Lynn Rogers on his 2019 Rural parents and grandparents to savings Prosperity Listening Tour across Kansas. The accounts for their children to buy homes Lt. Governor stated that, during his tour, high in Kansas. The accounts could shelter from property taxes were the number one issue. taxes up to $24,000 per person or $48,000 Other issues stressed were: the importance of per couple. rural healthcare (30 percent of rural hospitals 3. Targeted Employment Act: allows business are financially insecure); the need for better to contract with integrated workshops where internet accessibility; the importance of rural people with disabilities who work alongside Continued on Page 10
Winter 2020
7
KANSAS GRAIN AND FEED ASSOCIATION
INDUSTRYnews DOT Hits the Brakes on ELDT Rule The Department of Transportation (DOT) has issued an interim final rule amending the “Minimum Training Requirements for EntryLevel Commercial Motor Vehicle Operators” (ELDT final rule), by extending the compliance date for the rule from February 7, 2020, to February 7, 2022. This will provide DOT additional time to complete development of the Training Provider Registry. The registry will allow training providers to self-certify that they meet the training requirements and will provide the electronic interface that will receive and store entry-level driver training certification information from training
providers and transmit that information to the State Driver Licensing Agencies (SDLAs). The extension also provides SDLAs with time to modify their information technology systems and procedures, as necessary, to accommodate their receipt of driverspecific ELDT data. The 2-year extension applies to all requirements established in the ELDT final rule including the date by which drivers seeking a CDL or endorsement must complete the required training. Source: Asmark Institute
The extension also provides SDLAs with time to modify their information technology systems and procedures, as necessary, to accommodate their receipt of driverspecific ELDT data.
Extension of Compliance Date for Entry-Level Driver Training FMCSA is amending its December 8, 2016, final rule, “Minimum Training Requirements for Entry-Level Commercial Motor Vehicle Operators” (ELDT final rule), by extending the compliance date for the rule from February 7, 2020, to February 7, 2022. This action will provide FMCSA additional time to complete development of the Training
Provider Registry (TPR). The TPR will allow training providers to self-certify that they meet the training requirements and will provide the electronic interface that will receive and store entry-level driver training (ELDT) certification information from training providers and transmit that information to the State Driver Licensing Agencies (SDLAs). The extension also provides SDLAs with time
to modify their information technology (IT) systems and procedures, as necessary, to accommodate their receipt of driver-specific ELDT data from the TPR. FMCSA is delaying the entire ELDT final rule, as opposed to a partial delay as proposed, due to delays in implementation of the TPR that were not foreseen when the proposed rule was published.
Story courtesy Federal Motor Carrier Safety Administration. For questions, please contact Mr. Richard Clemente, Driver and Carrier Operations Division, Federal Motor Carrier Safety Administration, 1200 New Jersey Ave, SE., Washington, D.C., 205900001, (202) 366-4325, mcpsd@dot.gov.
8
Grain and Feed Report
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
Winter 2020
9
KANSAS GRAIN AND FEED ASSOCIATION
Statehouse
INSIDER
Continued from Page 7
welfare recipients could receive a tax credit for those contracts. 4. Raising the current $75,000 exemption from state income tax to $100,000 for Social Security recipients in an effort to allow those Social Security recipients to continue working while avoiding state income taxes. 5. The “Kansas Promise Act”: offer scholarships to Kansans who complete certification or two-year job programs in high-need areas for skilled labor. Recipients would have to work part time or perform community service and commit to remaining in Kansas at least two years after certification/graduation. KDA Ag Marketing Division Transferred to Dept. of Commerce Committees are reviewing the Governor’s proposed budget for the Kansas Department of Commerce which would transfer $650,000 (6.5 FTE’s) from the Agricultural Marketing Division of the Kansas Dept. of Agriculture (KDA) to the Kansas Department of Commerce. This transfer represents 60 percent of the KDA’s Ag Marketing budget. KDA testified that these positions are currently unfilled, and that they will back fill two of the positions internally so the transfer will create a net loss of 4.5 positions within KDA’s Division of Ag Marketing. KDOC staff testified that the Ag Marketing Division will not be leaving KDA, but KDA would only lose those positions that are dedicated to agricultural business development. Corporate Taxation Last year, Governor Kelly vetoed Senate Bill 22 related to corporate income tax. The bill would have exempted certain types of foreign corporate income (repatriated income and GILTI) that is now taxable at the state level following passage of the federal tax cuts and jobs at the end of 2017. New legislation (House Bill 2553) on this issue has been introduced this session, but Governor Kelly has openly stated that she is not in favor of corporate income tax legislation at this time. Property Tax Focus Increased commercial and residential 10
Grain and Feed Report
property taxes across the state have resulted in dozens of bills on the issue being filed, and heard, in the House and Senate Tax Committees. Your association participated in stakeholder discussions over the summer which resulted in the introduction of many of those bills. We will testify in support of these measures, and will support additional legislation intended to strengthen the rights of Kansas property tax payers. Property Tax -- Escrow of Increase in Valuation When Appealed Last session, House Bill 2340 was passed out of the House Committee on Taxation. This bill would prohibit county treasurers from distributing the portion of property taxes that are in dispute for certain residential and commercial property (above a certain threshold), when the property tax is paid under protest, until the appeal process is final. Your association lobbied in support of the bill last year, and met with opponents of the bill over the summer interim to seek compromise language to amend the bill to address their concerns. Your association will continue to work toward the successful passage of this legislation.
Short Line Railroad’s Income Tax Credit Bill The House Tax Committee held a hearing on House Bill 2460, a bill which would provide for an income tax credit for qualified railroad track maintenance expenditures of short line railroads. Your association testified as a proponent if the bill were amended to extend the tax credit to owners/lessees of rail siding located on or adjacent to a Class II or Class III rail. Your association proposed an amendment to the bill and are working with stakeholders in passage of the bill. Net Operating Loss Carried Forward The House Committee on Taxation recommended that HB 2490 be passed out of committee and be placed on the Consent Calendar. The bill would extend the net operating loss carried forward period to 20 years beginning in tax year 2018. Currently, net operating losses can be carried forward for 10 years. Pesticide Waste Disposal Program Your association helped draft and introduce House Bill 2432 in the House Committee on Agriculture. The bill will amend the
Elastomeric Roof Coatings Metal Roofs Built-Up Roofs TPO Shingles Industrial & Agricultural Painting Media Blasting High Heat Power Washing In-Shop and Mobile Equipment Commercial, Agricultural and Residential Services
602 N. DeFonte St. Kingman, KS 67068
Fully Insured & Licensed
FREE ESTIMATES
Office: 620-532-1076 Fax: 620-955-6114
aparsons@aproofing.org aproofingandspecialtycoatings.com
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
misdemeanors. Your association submitted testimony agreeing that a violation for failing to securely cover a load of grain would be more appropriately cited as a traffic infraction, and should not be cited as the (higher) category of a misdemeanor driving offense. The bill was intended to address the hauling of silage and ag commodities, but as drafted would, apply to all loads of all kinds, not just ag commodities. During the hearing, there was discussion about limiting the bill to just ag commodities, or just silage.
agricultural and specialty chemical remediation act (known as the ‘KARB’ program). The bill will allow up to $50,000 from the remediation fund each year to be used to fund a Pesticide Waste Disposal Program which will be managed by the Kansas Department of Agriculture. The bill was recently passed by the full House and awaits action in the Senate. Senate Utility Committee Receives Phase I of Electricity Rate Study Last session, following multiple hearings on the high cost of Kansas utility rates, the legislature passed Substitute for Senate Bill 69, a bill which required a comprehensive study of Kansas public electric rates, in order to assist the legislature in finding ways to lower rates and make Kansas more competitive. Members of the House and Senate Utilities Committees have received Phase One of the study, and are now considering actions to take in response to the study, such as Senate Bill 126. This bill would exempt certain public utilities from paying an income tax and require the savings to be passed to rate payers. Your association is closely following the issue and meeting with a coalition of industrial energy stakeholders. Kansas Attorney General Requests Introduction of “Public Litigation Coordination Act” Kansas Attorney General Derek Schmidt introduced House Bill 2461 in the House Committee on Judiciary that would require local units of government to coordinate with the Attorney General in order to enter into a contract for legal services on a contingency fee basis. The bill is intended to allow for the state to exercise greater control over
large suits such where the state – or local units of government – are the plaintiffs, rather than allowing each subordinate unit of government to enter into independent lawsuits. Your association testified in support of this legislation as good public policy for both the state and for industry. KDHE to Move Forward with Hazardous Chemical Spill Reporting Bill During the 2019 legislative session, the Kansas Department of Health and Environment (KDHE) introduced Senate Bill 153, which would allow the Secretary of Health and Environment the authority to define, in regulation, reportable quantities and timelines for reporting spills of hazardous chemicals, and to harmonize those quantities and timelines with federal standards. The bill directs the Secretary to create a one-call system for spill notification. In addition, however, the bill would have granted KDHE the authority to assess civil penalties for failing to timely report spills of hazardous chemicals. Your association opposed portions of the bill, and over the summer interim worked with KDHE on an agreed amendment to the bill. The amendment was adopted, and your association will support the bill moving forward. Unsecured Ag Silage Senator John Doll introduced Senate Bill 267, a bill which would clarify that a violation of a statute requiring secured vehicle loads would be a “traffic infraction” rather than a “class C misdemeanor”. The purpose of the bill is to ensure that drivers of unsecured loads of silage grain are cited with traffic infractions rather than class C
New Transportation Plan “FORWARD” Introduced The Kansas Department of Transportation Secretary Julie Lorenz introduced a state transportation plan for the next decade. The plan, called “Forward,” is set forth in House Bill 2588 and in Senate Bill 375. The plan replaces the now-expired T-Works program with a series of two-year reassessments of the state’s transportation and communication needs, including: maintenance and preservation projects, state highways, bridges, broadband and other communications and transportation systems. The initial phase of the program will include completion of the $435 million in T-Works projects that had been delayed due to budget shortfalls. The new program will be re-evaluated/restructured every two years to maintain flexibility and relevance with the needs of state/community/industry groups. In recent years, KDOT received $2 billion less than expected for T–WORKS, resulting in 21 delayed projects across the state, as those funds were used to cover general state budgetary needs. Governor Kelly has stated her intention to no longer use money from the state highway fund to balance the state budget, but to use those funds only for transportation infrastructure. Your association will support this plan which focuses on maintenance of state roads and bridges. Underground Storage Tank Funds The Senate Committee on Agriculture held hearings and passed out three bills favorably for passage concerning the state’s underground storage tank (UST) redevelopments funds which are managed by the Kansas Dept. of Health and Environment. SB 285 would extend the existence of the UST redevelopment fund and compensation advisory board to 2032. SB 286 would amend the Kansas storage tank act by extending Continued on Page 17 Winter 2020
11
KANSAS GRAIN AND FEED ASSOCIATION
without our sponsors NONE OF THIS IS POSSIBLE UNDERWRITER $20,000+ ProValue Insurance is an independent agency providing comprehensive insurance products and business services to organizations in need of risk protection. Delivering unparalleled knowledge and experience, ProValue helps protect against more than organizational risk, offering coverages for personal assets to individuals throughout Mid-America.
FOUNDER $7,500
BENEFACTOR $5,000
COMMODITY PARTNERS K A N S A S
C RN C O M M I S S I O N
KANSAS W H E A T
®
Rediscover Wheat
PATRON $3,500
BUILDER $2,000 Bartlett Grain Company Beachner Grain Inc. CHS Inc. First National Bank of Hutchinson Gavilon Grain, LLC Grain Craft Hannebaum Grain Co. Inc. Irsik & Doll Feed Services, Inc. Louis Dreyfus Company Morrill Elevator, Inc. Offerle Coop The Cooperative Finance Association The Scoular Company Vicam, A Waters Business
12
Grain and Feed Report
DONOR $1,250 Agri Trails Coop B-R-C Bearing Co., Inc. Central States Fumigation & Services, LLC Conestoga Energy Partners LLC D.E. Bondurant Grain Co., Inc. Farmers Coop Equity Co., Isabel Frisbie Construction Co., Inc. Frontier Ag, Inc. Korol Financial Group LLC LeRoy Cooperative Assn., Inc. Midland Marketing Coop Inc. Midway Coop Assn. Skyland Grain LLC
GIVER $750 BarnesCo Inc. CCS Group, LLC Central Valley Ag, Beloit Cline Wood, A Marsh & McLennan Agency LLC Company Cloud County Coop Elevator Assn. Concordia Terminal LLC Cornerstone Ag LLC Drake Inc Farmers Cooperative, Dorchester Farmers Union Merc. & Shpg. Assn., Stockton Gamet Manufacturing Inc HABCO, Inc. IBT Industrial Solutions INTRUST Bank, N.A. Kansas Cooperative Council Kanza Coop Assn. KC Supply Co. Inc. Pride Ag Resources Rolfes @ Boone The Ottawa Cooperative Assn. Valley Coop, Inc. Wildcat Feeds LLC WindRiver Grain, L.L.C.
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
Agribusiness Associations host Legislative Action Day Kansas Grain and Feed Association (KGFA) hosted nearly 100 members in Topeka on Jan. 22 for Legislative Action Day. The annual Legislative Action Day presents members an opportunity to meet face-to-face with their legislators in Topeka and advocate for agribusiness. KGFA, Kansas Agribusiness Retailers Association (KARA) and Kansas Cooperative Council (KCC) welcomed nearly 100 of their shared members to Topeka for the group’s annual joint Legislative Action Day on Wednesday, Jan. 22. The annual lunch and evening reception allows members of the agribusiness industry to see government in action and meet with elected officials. “The Legislative Action Day is one of the best programs offered by KGFA, KARA and the KCC,” Kanza Cooperative chief operations officer Nick Krehbiel said. “We believe that engaging with our political representation is an important part of how our cooperative continues to provide value to our membership. We’ve been attending this for a number of years now and we deeply appreciate our industry associations providing us with a valuable forum to help foster those relationships.”
Those in attendance at the Topeka Country Club enjoyed hearing lunch-hour speeches from Governor Laura Kelly and Attorney General Derek Schmidt. Both Kelly and Schmidt promoted their office’s work positively affecting agribusiness. In the evening, members also had the opportunity to eat dinner with their legislators and get to know them in a stress-free environment. “I had a chance to visit with my representative, which was the first time I’ve met him,” McPherson Concrete Storage Systems Inc., sales manager Dub Johnson said. “I really enjoyed visiting and getting to know him while letting him know what issues are affecting agribusiness.”
Governor Laura Kelly and Attorney General Derek Schmidt delivered the keynote address over cheeseburgers at the Topeka Country Club.
Below, (L-R): KGFA’s Randy Stookey facilitated a meeting with Sen. John Doll (R-Garden City) and KGFA board member David Helfrich of Irsik & Doll during Legislative Action Day.
Winter 2020
13
KANSAS GRAIN AND FEED ASSOCIATION
TAL Class Completes Session I The 23rd class of Tomorrow’s Agribusiness Leaders completed their first of three sessions on Jan. 21. The course, in existence since 1998, is designed EST. 1998
CLASS OF 1998
CLASS OF 2008
CLASS OF 2018
14
Grain and Feed Report
to teach members the state and federal regulatory/legislative process and hone their leadership skills in their profession. The convenient timing of Legislative Action Day also allowed KGFA’s 23rd Tomorrow’s Agribusiness Leaders (TAL) class to learn about state-level government firsthand. “Every January, I look forward to the TAL class coming to Topeka for Session I eager to learn about the legislative process and their association,” KGFA President and CEO Ron Seeber said. “It’s one of the most satisfying parts of my profession to see graduation in November where they walk away with a wealth of experience on both the state and federal government and when we call on them to contact their legislator about a proposed law, they answer the call every time.” This year’s class includes Aaron Anderson (Nutrien Ag Solutions), Hillary Birtell (CoMark Equity Alliance), Kalen Cromwell (Farmers Cooperative Grain Association), Kiley DeDonder (WinField United), Micala Dummit (The Scoular Company), Brice Elnicki (Producers Cooperative Association of Girard), Amy Fairchild (ProValue Insurance), Scott Moseley (KC Supply Company), Tyler Peterson (Pride Ag Resources) and Spencer Reames (MKC).
“I learned that our voice really does matter,” Cromwell said. “Taking the time to talk to your legislators can have an impact. If there is an issue that affects you or your company, the legislators are there to listen and try to help.” The TAL class completed its first of three sessions with the culmination of Legislative Action Day and will meet again in July to travel to Washington, D.C., to meet with Kansas’ congressional delegation and national associations. The Tomorrow’s Agribusiness Leaders Program – a jointly sponsored initiative of the Kansas Grain and Feed Association and the Kansas Agribusiness Retailers Association – is an intensive leadership development program designed to teach members of the association, about the state and federal legislative and regulatory process and how to be a better leader within the industry.
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
KDA to Host Regional Agribusiness Development Workshops in March
The Kansas Department of Agriculture will host four Regional Agribusiness Development Workshops in March 2020 to provide Kansas rural communities with resources and current business development and organizational contacts to assist with recruiting, retaining, and growing ag businesses in their communities. will run from 6:00 p.m. to 8:00 p.m., and will include a meal. There is no charge to attend, but registration is required to ensure sufficient food and materials. Find out more information and register at agriculture. ks.gov/BusinessDevelopment. The KDA Division of Agriculture Marketing received a U.S. Department of Agriculture Rural Business Development Grant to help fund these statewide workshops. Established in the 2014 Farm Bill, USDA’s Rural Business Development Grant is a program intended to help with technical assistance, training and other activities to allow small businesses in rural areas to expand. KDA is committed to providing an environment that enhances and encourages economic growth of the agriculture industry and the Kansas economy. These workshops will provide support and assistance to help make Kansas rural communities more successful.
MIKE BEAM Kansas Secretary of Agriculture
“
“
Workshops will be held in the following locations: • Wednesday, March 4 — Colby Community College Student Union, Colby • Wednesday, March 11 — Municipal Building, Parsons • Wednesday, March 18 — Stockgrowers State Bank, Ashland • Wednesday, March 25 — Kansas Department of Agriculture building, Manhattan “Economic development in Kansas is tied to agriculture, which makes up $47 billion of the state’s economy,” said Kansas Secretary of Agriculture Mike Beam. “These workshops will help communities consider the unique needs associated with agricultural opportunities in Kansas which will create an environment that facilitates growth.” Beam added that expanding resources and education will make Kansas’ rural communities better prepared to serve as economic engines for rural Kansas. Featured speakers at the events will represent the Kansas Department of Agriculture, Kansas Department of Commerce, and local economic development organizations. The workshops
Economic development in Kansas is tied to agriculture, which makes up $47 billion of the state’s economy. These workshops will help communities consider the unique needs
associated
with
agricultural
opportunities in Kansas which will create an environment that facilitates growth.
Winter 2020
15
ABOUT THE
WHAT WE
Our scholarship program has awarded countless deserving high school and college students pursue agriculture-related fields of study since its inception in 1976.
14 - $1,500 Scholarships ($750/semester) 4 - $1,000 Scholarships ($500/semester) 1 - $500 Dub & Inez Johnson Memorial
OUR
HOW TO
Graduating Kansas high school senior
**NEW THIS YEAR** We are only accepting online applications. Fill out an application by clicking the button below. Absolutely no applications will be reviewed that are submitted electronically after 5:00 p.m., on Friday, March 6, 2020. Visit www. ksgrainandfeed.org/scholarship-program/ to apply.
SCHOLARSHIP
REQUIREMENTS
Self-starter, excellent academic credentials, good school and community citizens, strong desire to continue education Planning to attend any Kansas four-year university, community college or technical school
OFFER
APPLY
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
Continued from Page 11 the sunset of the aboveground fund and the underground fund and increasing the maximum reimbursement from the fund. SB 287 would amend the Kansas storage tank act by extending the expiration of certain reimbursement provisions to 2030 and increasing the underground storage tank replacement reimbursement maximum. Your association testified in support of these bills. Scrap Metal Theft Reduction Act Following many meetings and hearings over the scrap metal theft reduction act last session, the legislature finally passed a bill which created the scrap metal data repository fund, and authorized the Kansas Bureau of Investigation to administer the scrap metal theft program. Your association joined a group of interested stakeholders in supporting passage of the bill. This year, the Senate Committee on Judiciary held a hearing on SB 344, a bill which would seek to remove the photograph requirement for all customers seeking to recycle certain types of metal listed within the scrap metal theft reduction act. A scrap metal recycling company proponent stated that they wanted these changes because they were concerned with the privacy of their customers, and stated that the photograph requirement was overly burdensome. Your association will monitor this closely to ensure the act remains intact.
Audit. KDA testified that large truck scales are found out of tolerance during about 50 percent of all inspections. The agency indicated that there are approximately 20 large scale inspection companies licensed to operate in Kansas. KDA indicated that they generally do not assume malicious behavior unless a problem is cited during an inspection and then was not corrected before a follow-up inspection. State Water Plan Fund Each year, the agricultural industry through pesticide registration fees and fertilizer tonnage inspection fees – pay approximately $6 million into the state water plan fund. Local water districts also submit about $6 million annually into the fund through fees on water users. State law requires $6 million in matching funds from the state general fund, but the full statutory amount has not been funded since 2009. In 2019, the legislature increased state general funds to the state water plan, but still below what is required by Kansas law. Bills are routinely introduced to increase the size of the SWPF by increasing fees on our industry. Your association will continue to oppose any legislation seeking to increase fees on our industry for the state water plan fund. We will also seek inclusion of the full statutory $6 million transfer into the state water plan fund from the state general fund.
New Air Quality Funding Fees Proposed by KDHE Your association joined with other industry stakeholders in testifying before the Senate Ways and Means Subcommittee on a funding need for the Kansas Department of Health and Environment’s Bureau of Air Quality. Industry asked the committee to review the Bureau’s budgetary needs after the Bureau informed industry stakeholders that it intends to increase air quality emission fees on Class I and Class II emitters by approximately $1.5 million in 2020 and every year thereafter. KDA Scale Inspection Program Challenged The House Committee on Agriculture received a briefing from the Kansas Dept. of Agriculture’s (KDA) Division of Weights and Measures on its weights and measures inspection programs following an audit of the program by the Legislative Division of Post
Going Forward State budget projections show the state will be underfunded by 2023. The legislature will need to cover these budgetary shortfalls, caused by the state retirement system (KPERS), the state highway plan, Medicaid expansion, school funding, and increased funding for social services. In order to cover these expenses, the legislature may look to add new funding mechanisms on the ag sector through such things as: sales taxes on ag services, utilities, and red-dyed diesel fuel; eliminating sales tax exemptions on farm machinery and equipment; creating other forms of excise taxes; removing barriers to property tax increases, and, increasing income taxes on corporations and other businesses. Following the 2020 census, and the resulting reapportionment, the agricultural industry and rural Kansas will likely lose legislative seats to more urban areas of the state. As a result, the agricultural industry could increasingly become a target of various tax increases. Kansas Agri-Business Council (KABC) Your government affairs team will remain vigilant in opposing any effort to balance the state budget on the backs of our industry. Thank you for your contributions to the KABC, which are vital to Your association maintaining a strong voice in the legislative process.
a Marsh & McLennan Agency LLC company
Winter 2020
17
KANSAS GRAIN AND FEED ASSOCIATION
Stay up-to-date with all of our trainings by downloading the official KGFA mobile app from the Apple App Store or Google Play.
GRAIN GRADING & ELEVATOR MAINTENANCE SCHOOLS ON TAP Beginning in late-February, Kansas Grain and Feed Association, and Kansas Grain Inspection Service will be traveling the state offering grain grading schools, while elevator maintenance workshops aren’t far behind. Scan the QR codes next to the photos with a QR scanner or point your smartphone’s built-in camera at the QR code for more information and registration abilities.
CDL Exam Prep Schools These one-day courses will walk attendees through the Kansas CDL Manual with the goal of obtaining their Commercial Learners Permit (CLP). These courses are capped at 25 attendees per location. March 26 Manhattan Kansas Dept. of Agriculture 1320 Research Park Drive April 16 Hays KSU Ag Research Center 1232 240th Avenue Aug. 4 Hutchinson Encampment Building 2000 N. Poplar Street
18
Grain and Feed Report
Led by the instruction of Kansas Grain Inspection Service Inc. (KGIS), KGFA will celebrate 90 years of grain grading beginning in Topeka in late-February. KGFA and KGIS will once again be traversing the state holding grain grading schools informing participants about grain grades and how to use grain standards in marketing, as well as how to recognize various types of kernel damage while grading a representative sample. “We’re incredibly proud of the longevity of our grain grading schools and don’t plan to stop offering them any time soon,” KGFA President and CEO Ron Seeber said. “We’re also always looking for new training opportunities and welcoming feedback on what we can do to diversify our training portfolio. We think this year we’re on the right track to best fulfill our members’ needs
with practical, useful courses.” Grain grading schools will be held Feb. 25 in Topeka, Feb. 26 in Parsons, Feb. 27 in Wichita, March 10 in Colby, March 11 in Dodge City and March 12 in Salina. KGFA is now offering ‘house-call’ training sessions where for a guaranteed number of participants, the association will travel anywhere in the state to provide any of the following training programs at an agreed upon rate. With safety at the forefront of KGFA’s trainings, the association is offering Elevator Safety and Maintenance workshops to offer practical lessons in elevator maintenance, everything from the basics to new technologies. “As an association, we always look to create training programs emphasizing safety for our membership and the public in
LEARN MORE Visit our website by pointing your smartphone’s built-in camera at the QR code or by entering www.ksgrainandfeed.org/eventsand-trainings in your search engine to see full agendas, speaker information and much more for each one of our training programs.
SERVING THE GRAIN HANDLING INDUSTRY IN KANSAS SINCE 1896
Full 7B/4 Recertification This is one of the few places you can go to gain full certification in 7B/4 Seed Treatment and Fumigation. Nov. 18 Wichita Kansas Agri Business Expo Hyatt Hotel 400 W. Waterman
“
“
We think this year we’re on the right track to best fulfill our members’ needs with practical, useful courses.
Grain Grading Schools We’ve been offering Grain Grading Schools for nearly 90 years. You won’t find better training on grain standards anywhere in the country.
general,” Seeber said. “Grain elevators are valuable tools for our members and if we can assist them in staying on top of the latest technologies and methods to maintain them, we’re doing our job.” With presentations provided by ProValue Insurance, Custom Concrete Specialists,
Essmueller, Norwood Contracting, LLC, Rolfes @ Boone, Electro-Sensors, Inc., and McPherson Concrete Storage Systems, KGFA will hold its elevator maintenance workshops May 5 - 7 in Garden City, Wichita and Salina.
Feb. 25 Topeka Propane Marketers Assn. 540 NW Broad Street Feb. 26 Parsons Commercial Bank 1901 Main Street Feb. 27 Wichita Sedgwick Co. Extension 7001 W. 21st Street
March 10 Colby City Limits Center 2227 S. Range Ave. March 11 Dodge City Knights of Columbus 800 W. Frontview Street March 12 Salina Hilton Garden Inn 3320 S. 9th Street
Elevator Safety & Maintenance Our Elevator Safety and Maintenance training offers practical lessons in elevator maintenance, everything from the basics to new technologies. May 5 Garden City Garden City Coop 106 N. 6th Street
May 7 Salina Visit Salina Annex 120 W. Ash
May 6 Wichita Sedgwick Co. Extension 7001 W. 21st Street Winter 2020
19
KANSAS GRAIN AND FEED ASSOCIATION
Kansas Grain and Feed Association 816 SW Tyler, Suite 100 Topeka, Kansas 66612
Stay Connected
KGFA
ANNUAL MEETING 2020 KGFA Annual Meeting
April 13 - 14, 2020
Join us April 13 - 14, 2020 at the Wichita Marriott for our 124th annual meeting. Registration information will be hitting your inbox soon. If you have any questions regarding our 2020 annual meeting please call the association office (785) 234-0461 or email Shari Bennett (shari@kansasag.org). We have booked Congressman Ron Estes and Delaney Howell of the agribusiness show “Market to Market.” Point your smartphone’s camera at the QR code to the right to register. If you would like to register on the computer, visit www. ksgrainandfeed.org/annual-meeting/.
Wichita Marriott