Seed to Silo - Fall 2022

Fall 2022

Kansas Agribusiness Retailers Association

816 SW Tyler Topeka, KS 66612 (785) 234-0463 ksagretailers.org

ASSOCIATION STAFF

Ron Seeber

President & CEO

Randy Stookey

Senior Vice President

General Counsel

Staci Storey

Senior Vice President

Chief Financial Officer

Trae Green

Associate Vice President External Affairs

Lisa Anschutz

Senior Director

Internal Operations

Sidney Storey

Director of Event Planning

Clay Fagan

Director of Member Investment and Training

Trisha Fassnacht

Administrative Assistant

BOARD LEADERSHIP

Dustin Kuntz

Chairman

Kevin Dieckmann

Vice Chairman

Scott Morris

Second Vice Chairman

Lance Nelson

Immediate Past Chairman

Gary Beachner

Bryan Bucl

Yance Farney

Justin Foss

Jim Grilliot

Jeff Holling

Nick Krehbiel

Brian Laverentz

Jami Loecker

Roger Long

Warren Mayberry

Justin Ochs

O.J. Pearl

Dave Spears

Tim Spector Ron Telecky

Dave Tierney

Mark Vance

Mark Wegner

Toby Witthuhn

Fall 2022

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

Trae Green

INDUSTRY NEWS

Associate Vice President External Affairs

Lisa Anschutz

Senior Director

Internal Operations

Sidney Storey

Director of Event Planning

Clay Fagan

Director of Member Investment and Training

Trisha Fassnacht

Administrative Assistant

BOARD LEADERSHIP

Brent Emch

Chairman

Mark Paul Vice Chairman

Andrew Fullerton

Second Vice Chairman

Deb Miller

Immediate Past Chairwoman

Ted Behring

Doug Biswell

Blake Connelly

Alex Gerard

David Helfrich

Dub Johnson

TJ Mandl

Matt Overturf

Troy Presley

Devin Schierling Allen Williams

PRESIDENT’SMESSAGE

RONALD SEEBER

President and CEO

Ron Seeber was hired as president and CEO of Kansas Agribusiness Retailers Association and Kansas Grain and Feed Association in October 2017 after working for the associations since July 2008. An expert in state and federal legislative affairs, Seeber also worked for Senator Bob Dole in policy and political capacities, and has spent his entire career in the regulatory arena.

DEAR KARA and KGFA

MEMBERS

In the year 1998, 25 years ago, a lot of history was being made. The United States had a budget surplus, Jesse “The Body” Ventura was elected Governor of Minnesota, Bill met Monica, and the very first Tomorrow’s Agribusiness Leaders (TAL) class was selected. Of the historical events that year, only one has passed the test of time and continues to flourish. That, of course, would be the TAL program.

As you may know, the TAL program is the combined leadership program of the Kansas Grain and Feed Association (KGFA) and the Kansas Agribusiness Retailers Association (KARA). In 1998, then KARA Chairman, Johnny Schaben, approached a young KGFA/KARA staff member by the name of Doug Wareham with an idea about a leadership program for the Kansas agribusiness industry. The idea was to develop agribusiness leaders in our industry from within, introduce those leaders to the legislative and regulatory process, both on the state and federal level, and teach those individuals the value of the associations to the industry along with honing their own leadership potential.

Doug approached then CEO Tom Tunnell on the feasibility of such a program. Tom replied it was a fine idea and promptly said, “Now find a way to pay for it.” Wareham got on the phone, raised the money, and the first TAL class was born. On a side note, Doug Wareham now runs the Kansas Bankers Association and similarly started the Bank Leadership of Kansas program in 2006. Both the TAL and BLOK program flourish today and are models emulated by other trade associations across the country.

TAL graduates tend to give back to the associations they represent and do so in an impressive way. Since 1998, our TAL program has graduated more than 200 individuals from nearly 100 different companies across the spectrum of

Kansas agribusiness. Of those, 11 TAL graduates currently serve on the KGFA Board. Twelve TAL graduates currently serve on the KARA board and since the program’s beginning, 12 of the 16 KARA Chairmen have been TAL graduates.

Like the industry the TAL graduates represent, the program has shown to be resilient, evolving and a provider of valuable professional tools for the participants. It teaches the importance of volunteer leadership, and I am pleased to report that numerous TAL graduates have, or currently serve, in a variety of government leadership roles. These in include mayors, school board members, city councilmen, water boards and many other positions in public service.

It has been a great 25 years for the Tomorrow’s Agribusiness Leaders program, and it is just getting started. The quality of TAL applicants are the best and the brightest in the industry and the TAL selection committee continually has to make difficult decisions when choosing each year’s class.

Trae Green on our staff, is the current administrator of the program and he is taking it to new levels. If you think you or one of your employees could benefit from participating in TAL, I encourage you to log on to the KARA and/or KGFA websites, learn more, and apply for the 2024 TAL class. If you have any questions the websites don’t answer, give Trae a call at the association office and he will be able to answer any of your questions.

Sincerely, Ronald Seeber President and CEO

“

“

Since 1998, our TAL program has graduated more than 200 individuals from nearly 100 different companies across the spectrum of Kansas agribusiness.

INDUSTRYnews

OSHA’s Severe Violator Enforcement Program Updated

In an effort to increase compliance and mitigate hazards, OSHA expanded its Severe Violator Enforcement Program (SVEP) to include all hazards and OSHA standards, and focus on repeat offenders in all industries.

The old criteria was limited to cases involving fatalities, three or more hospitalizations, high-emphasis hazards, the potential release of a highly hazardous chemical (process safety management), and enforcement actions classified as egregious.

Employers will be placed in the program if OSHA finds at least two willful or repeated violations or issues failure-to-abate notices based on the presence of high gravity serious violations.

Under the old criteria, the focus was on cases concerning a willful or repeated serious violation, or there was a hazard the employer failed to abate, that was directly related to either an employee death or an incident that caused three or more hospitalizations.

Follow-up or referral inspections must be conducted within one year, but not longer than two years, after the final order. Previously, there was no required time frame

in which OSHA would conduct a follow-up inspection after the final order.

The potential for removal from the program begins three years after the date of verification that all SVEP-related hazards have been abated, instead of when final order is issued.

A final order and meeting other conditions are still required for removal from SVEP, but the clock for potential removal starts when the employer fixes the hazard instead of at the end of a highly variable administrative process.

Employers can reduce the amount of time in SVEP to two years if they consent to an enhanced settlement agreement that involves implementing a safety and health management system.

Previously, employers were only eligible for removal from SVEP after three years. These last two changes incentivize employers to fix problems quickly and develop lasting solutions to change their health and safety culture.

In an effort to increase compliance and mitigate hazards, OSHA expanded its Severe Violator Enforcement Program (SVEP) to include all hazards and OSHA standards, and focus on repeat offenders in all industries.

Source: Asmark Institute

KARA sends letter on proposed changes to PSM

Kansas Agribusiness Retailers Association (KARA) filed comments to the United States Occupational Safety and Health Administration (OSHA) on the agency’s proposed changes to Process Safety Management (PSM) regulations.

PSM is a comprehensive set of performance-based standards that were established by OSHA in response to accidents and chemical releases at very large chemical manufacturing and processing facilities.

The standard requires employers to implement safety programs that identify, evaluate, and control highly hazardous chemicals. OSHA is engaging stakeholders to provide comments on a list of proposed modernization topics to PSM, including possible changes to the scope of the longstanding retail facilities exemption, an expansion of the list of covered chemicals (to potentially add ammonium nitrate), and

other proposals.

KARA’s nearly 10-page comment pointed to the agribusiness retail industry’s strong safety record operating under OSHA’s current regulations and explained those regulations have proven sufficient in meeting the agency’s process safety goals.

KARA encouraged OSHA to retain the current PSM standard, and to not adopt any new proposal that would unnecessarily increase the regulatory burden on the agricultural retail industry without increasing occupational safety. Should OSHA deem it necessary to further regulate the NH3 or FGAN retail industry, KARA recommended a review of OSHA standard 1910.111 or other standards more specific to the fertilizer chemical industry.

Kansas Agribusiness Retailers Association (KARA) filed comments to the United States Occupational Safety and Health Administration (OSHA) on the agency’s proposed changes to Process Safety Management (PSM) regulations.

In late September, the Agricultural Retailers Association (ARA) applauds the Federal Motor Carrier Safety Administration (FMCSA) for publishing reforms to the Seasonal Ag CDL program.

Source: Agricultural Retailers Association

KARA

INDUSTRYnews

ARA Commends FMCSA Seasonal Ag CDL Reforms

In late September, the Agricultural Retailers Association (ARA) applauded the Federal Motor Carrier Safety Administration (FMCSA) for publishing reforms to the Seasonal Ag CDL program.

Reforms to the Farm-Related Restricted Commercial Driver’s License (CDL) program, more commonly known as the Seasonal Ag CDL program, go into effect immediately.

ARA Senior Vice President of Public Policy and Counsel Richard Gupton issued the following statement:

“This is a step in the right direction to ensure agricultural retailers are able to provide the level of service their farmer customers require at peak times in the growing and harvest season.

“One of the main reforms impacting ag retailers is the increase to the number of days that the restricted CDL is valid to 210 from 180 days. The second major reform is

sends testimony on EPA’s Registration Review

Kansas Agribusiness Retailers Association (KARA) submitted comments to the United States Environmental Protection Agency (EPA) Thursday concerning the agency’s reevaluation of the current level of concern for atrazine herbicide.

In summary, KARA requested EPA retain the current aquatic level of concern at 15 parts per billion for atrazine, and not adopt the additional proposed label mitigation measures.

On June 30, 2022, EPA announced it has re-evaluated the current atrazine level of concern (LOC), which is 15 ppb, and “determined” in its proposed revised interim registration review decision (IRRD) that the LOC is 3.4 ppb with additional label mitigation measures required for atrazine use.

In comments available to view below, KARA noted EPA’s proposed revision is not based on scientific standards and the label restrictions are ill-advised and unnecessary.

“The proposed label changes reducing

the application rate, banning use 48 hours before “predicted” rain events, and eliminating aerial application, would effectively create a de facto deregistration of this necessary crop protection product.”

KARA also pointed to atrazine’s strong record of safe use, the benefits of the product in Kansas agricultural production and the positive impact it has played on the environment and economy.

“Atrazine’s registration follows more than a decade of scientifically comprehensive reviews that acknowledge atrazine’s safety when used according to the label. Atrazine has also been confirmed safe for use by international standards. The World Health Organization approved for use in 2003, and the United Nations Food and Agriculture Organization approved for use in 2007. Further, Great Britain (2000), Canada (2004) and Australia (2008) have all confirmed atrazine as safe for use.”

Should EPA effectively create a deregistration of this necessary crop

the change to a calendar year rotation for the program to prevent any overlaps from season to season from one year to the next.

“ARA commends its coalition partners along with Senators Jerry Moran and John Thune for their support and effort to get these critical provisions in the bipartisan infrastructure bill. ARA is grateful FMCSA published the Congressionally mandated reforms to allow enough time for states to implement prior to the 2023 planting season.”

ARA and coalition partners sent letters to Congress in May and June of 2021 in support of modernizing this program.

States that allow for the Seasonal Ag CDL exemption will still need to make changes to their existing state rules. Learn more in the Asmark Institute’s report showing 24 states that offer the CDL.

of Atrazine

protection product, a University of Chicago study found that the loss of atrazine could cost farmers as much as $59 per acre. Farmers typically apply atrazine at a cost below $7.50 per acre, as compared to alternative pre-emergent herbicides which can cost closer to $22.00 per acre.

Kansas Agribusiness Retailers Association (KARA) submitted comments to the United States Environmental Protection Agency (EPA) Thursday concerning the agency’s re-evaluation of the current level of concern for atrazine herbicide.

INDUSTRYnews

KARA Comments on Proposed RMP Changes

Kansas Agribusiness Retailers Association (KARA) submitted comments to the United States Environmental Protection Agency (EPA) on Oct. 27 concerning the agency’s proposed changes to Risk Management Program regulations.

Kansas Agribusiness Retailers Association (KARA) submitted comments to the United States Environmental Protection Agency (EPA) on Oct. 27 concerning the agency’s proposed changes to Risk Management Program regulations.

The proposed revisions include several changes and amplifications to the accident prevention program requirements, enhancements to the emergency preparedness requirements, increased public availability of chemical hazard information, and several other changes to certain regulatory definitions or points of clarification.

The comments point to KARA members remaining fully committed to chemical safety and security, however, in general, KARA opposes EPA’s newly proposed amendments to the RMP. Current RMP regulations are working well, and any additional requirements would only serve to needlessly increase operating costs, paperwork burdens, and other compliance costs, such as contracting with regulatory compliance assistance companies, on what are very often small retail operations.

Ways to Reduce Grain Industry Property Taxes Following Supreme Court Decision

Following the Kansas Supreme Court’s decision to deny Gray County’s petition for review of the late-July Kansas Court of Appeals decision in the Dodge City Cooperative Exchange v Board of County Commissioners of Gray County, Kansas case, KGFA held a virtual webinar with property tax attorney Jarrod Kieffer of Stinson LLP on the fallout from the decision and ways to reduce property taxes in the grain industry.

The decision represents a considerable win for the Kansas grain industry. It stands as clear guidance to county appraisers that, under Kansas law, grain elevator commercial and industrial machinery and equipment should be appropriately classified as personal property and not a fixture to the realty. And, if installed after 2006, that machinery and equipment is exempt from ad valorem property taxation.

For at least the last decade, county appraisers across the state have classified grain elevator machinery and equipment as taxable fixtures to the real property. This classification, which was inconsistent with Kansas law, greatly increased the tax burden on our industry. This has been a long and arduous battle for Dodge City Co-op and our industry. KGFA wishes to recognize, and congratulate, Jerald Kemmerer and his team at Dodge City Cooperative Exchange, Pride Ag Resources, as well as Marc Kliewer and Klint Spiller, legal counsel on the appeals.

In 2005, to promote and stimulate new investments in commercial and industrial

machinery and equipment in the state, and to encourage economic expansion and job growth, the Kansas legislature passed legislation exempting all new commercial and industrial machinery and equipment from property taxation. This exemption can be found at K.S.A. 79-223.

While the legislature’s clear intent at exempting new machinery and equipment was expressed in the law, counties soon found a way to retain those tax proceeds by reclassifying all machinery and equipment at grain facilities as fixtures to the realty. In doing so, counties were able to tax otherwise exempt machinery and equipment. Other industries, such as ethanol processing plants, were treated in a similar fashion.

Seven years ago, in 2015, Kemmerer, challenged Gray County’s 2013/2014 property valuation and classification of Dodge City Co-op property. The appeal went to the Kansas Board of Tax Appeals (BOTA) in Topeka. When BOTA released its decision, siding with the county, Dodge City Co-op requested a new hearing before a Kansas District Court. In 2018, the district court released its decision, reversing the BOTA decision and siding with the Co-op. Gray County then appealed the District Court decision to the Kansas Court of Appeals.

On Friday, July 22, 2022, the Kansas Court of Appeals released its opinion finding that “(t)he district court correctly concluded that the various pieces of equipment are not fixtures.”

Scan the code above with a smartphone’s camera to view the slides and re-watch the webinar from Jarrod Kieffer’s presentation to Kansas Grain and Feed Association members on Friday, Dec. 9, 2022.

In making its determination, the Court stated that “the undisputed evidence also showed that the equipment could be easily removed, and removal would not damage the bins. No evidence indicates that removal would be unduly complicated or costly.”

The Court also reflected on the “intent of the property owner” prong of the fixtures test. In its opinion, the Court discussed that “the district court found the same removability aspects of the equipment that we find dispositive in our review of the annexation element also demonstrated that the Co-op did not intend the items to be permanently affixed to the storage bins.” The Court “(found) this analysis persuasive” that the Co-op did not intend for the machinery and equipment to be a permanent fixture to the realty.

Materials from Kieffer’s discussion with KGFA members are available by scanning the QR code above.

TAL PROGRAM NAMES 25th CLASS

The selection committee of TAL alumni chose: Andrew Breese (Kansas Grain Inspection Service); Todd Dingler (ProValue Insurance); Jeff Ellis (Syngenta); Brandi Hartley (Farmers Coop Equity at Isabel); Blake Malcolm (AgMark LLC); Jed Miller (Ag Partners Cooperative Inc.); Kent Nichols (MKC); Todd Schultz (Producer Ag, LLC); Jack Vincent (The Scoular Company); and Ed Zahn (Heartland Ag Systems) to complete the 25th class.

“We are thrilled to welcome our 25th class of Tomorrow’s Agribusiness Leaders,” KARA and KGFA President and CEO Ron Seeber said. “The program’s longevity, a quarter century and more than 200 graduates, is a testament to our members seeing a personal and professional return on their invested time

and referring their peers to apply year-afteryear. I want to congratulate and thank our newest TAL class for making the commitment to learn more about their association, the legislative process and how as graduates of the program we can work together to enhance the future of agribusiness.”

Each class participates in three sessions designed to improve the leadership skills of Kansas agribusiness men and women through increasing their understanding of the association’s mission and activities, teaching the state and federal legislative process, improving leadership and communication skills, and preparing members for possible public service through campaigns or public office.

The program’s longevity, a quarter century and more than 200 graduates, is a testament to our members seeing a personal and professional return on their invested time and referring their peers to apply year-after-year. I want to congratulate and thank our newest TAL class for making the commitment to learn more about their association, the legislative process and how as graduates of the program

can work together to enhance the future of

RON SEEBER

The selection committee for the Tomorrow’s Agribusiness Leaders (TAL) program met in earlyDecember to review applications and select five members of the Kansas Agribusiness Retailers Association and five members of the Kansas Grain and Feed Association to comprise the 25th class of agribusiness’ premier leadership development course.

we

agribusiness

President & CEO

FMCSA has proposed a change to require every Commercial Motor Vehicle (CMV) operating in interstate commerce to be equipped with electronic identification (ID) technology.

Source: Asmark Institute

INDUSTRYnews

Electronic IDs for CMVs Proposed

FMCSA has proposed a change to require every Commercial Motor Vehicle (CMV) operating in interstate commerce to be equipped with electronic identification (ID) technology capable of wirelessly communicating a unique ID number to motor carrier safety enforcement personnel.

The agency is requesting further information regarding various aspects of electronic identification including the

best possible technical and operational concepts along with associated costs, benefits, security, vulnerability, privacy and other relevant deployment and operational implications.

FMCSA claims this change will improve the efficiency and effectiveness of the roadside inspection program by more fully enabling enforcement agencies to focus their efforts on high-risk carriers and drivers.

New EPCRA Fact Sheet for Fertilizer Retailers

EPA has developed a new fact sheet for fertilizer retailers to help ensure compliance with the chemical inventory reporting requirements of the Emergency Planning and Community Right-to-Know Act (EPCRA).

This fact sheet supports the longstanding recommendation from Asmark to report fertilizers on SARA Tier II reports.

The Retail Fertilizer Exemption exempts retailers from reporting requirements under EPCRA sections 311 and 312 when fertilizers are held for sale to the ultimate customer (e.g., the farmer with the intent to apply the fertilizer).

The Retail Fertilizer Exemption does not apply to fertilizers that are mixed or blended and other chemicals that are used or stored on site, such as pesticides or other agricultural or non-agricultural chemicals.

Any fertilizer not covered by the exemption, and all other chemicals (unless covered by other exemptions), must be reported per EPCRA sections 311 and 312 inventory reporting requirements.

Retailers can report the total quantity of fertilizer they held, to include both the eligible (exempt) and the ineligible (nonexempt) portions.

Retailers may find it easier to report the total quantity of the fertilizers that are present on site at any one time above the applicable thresholds.

Although not required to report the fertilizer portions that are eligible for the exemption, it is acceptable and encouraged. This information benefits local emergency planners and responders, so they are aware of hazards that are present at your facility.

Kansas Agribusiness Retailers Association (KARA) joined its national affiliate organizations and sent a letter to congressional leaders Senate Majority Leader Chuck Schumer (D-New York), House Speaker Nancy Pelosi (D-California), Senate Minority Leader Mitch McConnell (R-Kentucky) and House Minority Leader Kevin McCarthy (R-California) encouraging congressional action affirming EPA as the primary, federal authority for making pesticide findings and decisions, and that states may build upon the agency’s findings should they choose.

Some states have begun taking steps to risk limiting access to essential crop protection tools, contradicting EPA’s scientific findings on pesticide safety. Federal law places in EPA the authority to make foundational, science-based decisions on how pesticides can be labeled and used, which states can then build upon.

State-by-state regulations threaten to jeopardize public confidence in EPA’s authority and science-based regulation, as well as the continued availability of individual tools on which there are contradictory claims.

EPA has developed a new fact sheet for fertilizer retailers to help ensure compliance with the chemical inventory reporting requirements of the Emergency Planning and Community Right-to-Know Act (EPCRA).

Source: Asmark Institute

KARA signs coalition letter to congressional leaders on FIFRA reaffirmation

State-by-state regulations threaten to jeopardize public confidence in EPA’s authority and science-based regulation, as well as the continued availability of individual tools on which there are contradictory claims.

THANK YOU, SPONSORS

“Having a strong association and united voice is vital to our industry’s current and future success. Our sponsorship of KGFA helps ensure current and future members will be equipped to meet the needs of the industry through leading-edge training and networking opportunities. We feel our sponsorship dollars make an impact at all levels of our organization.”

DEVIN SCHIERLING

PRODUCER AG, LLC

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 SPONSOR BENEFACTOR SPONSORS

PATRON SPONSORS

BUILDER SPONSORS DONOR SPONSORS

Ag Partners Cooperative Inc.

Bartlett Grain Company

Beachner Grain Inc.

Conestoga Energy Partners LLC

Farmers Cooperative Equity Co.

First National Bank of Hutchinson

Gavilon Grain, LLC

Grain Craft

INTRUST Bank N.A.

Irsik & Doll Feed Service

Morrill Elevator, Inc.

Skyland Grain LLC

GIVER SPONSORS

Agri Trails Coop

B-R-C Bearing Company, Inc. CHS Inc.

D.E. Bondurant Grain Co.

Frisbie Construction Co., Inc.

Korol Financial Group LLC

Midland Marketing Coop Inc.

Midway Coop Assn.

Offerle Coop Grain & Supply Co.

WindRiver Grain LLC

AgTrax

BarnesCo Inc.

CCS Group LLC

Central States Fumigation & Services

Central Valley Ag Cooperative

Marsh McLennan Agency

Cloud Co. Coop Elev. Assn.

Concordia Terminal LLC

Cornerstone Ag LLC

Drake Inc.

Farmers Union Mercantile & Shipping Assoc.

HABCO Inc.

Kansas Coop Council

Kanza Coop Assn.

KC Supply Co. Inc.

Pride Ag Resources

Rolfes @ Boone

Valley Coop, Inc. Wildcat Feeds LLC

UNDERWRITER SPONSOR

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 SPONSORS

BENEFACTOR SPONSORS

PATRON SPONSORS

BUILDER SPONSORS DONOR SPONSORS GIVER SPONSORS

AgBiTech

Beachner Grain Inc.

Interchem

J.B. Pearl Sales and Services

Morrill Elevator, Inc.

Nutrien Skyland Grain LLC

Ag Partners Cooperative Inc. Agrilead Inc.

CHS Inc.

Fairbank Equipment, Inc.

Farmers Cooperative Equity Co. Helm Fertilizer Corp.

Alliance Ag & Grain LLC

American Implement, Inc.

Central Prairie Co-op

Central Valley Ag Cooperative FEI Inc.

Kansas Coop Council

Kanza Coop Assn.

Midwest Laboratories Inc.

Pride Ag Resources

Purple Wave Auction ServiTech

JEFF OCHAMPAUGH

Statehouse INSIDER

By: Association Government Affairs

With November’s elections certified, state lawmakers are turning their attention to next month’s legislative session slated to begin in Topeka on Monday, Jan. 9. Incumbent Governor Laura Kelly begins her second term at the state’s helm, facing a supermajority in both chambers as the House of Representatives turns to new leadership consisting of Speaker Dan Hawkins (R-Wichita), Majority Leader Chris Croft (R-Overland Park) and Minority Leader Vic Miller (D-Topeka).

STATE REVENUES

As state revenues continue to surpass estimates each month, the legislature will need to consider how to smartly spend the estimated $2.3 billion in ending balance for the end of the current fiscal year, on June 30, 2023, and $3.24 billion projected ending balance for fiscal year 2024.

Some of those funds will likely be spent on long overdue state employee wage increases. Also, with this healthy endingbalance, the state will likely fully fund the state highway plan this year and also increase funding for certain education and social service needs.

Last session, the legislature transferred approximately $1 billion from the state general fund into the state employee retirement fund (KPERS) to properly fund the program, and also deposited just under $1 billion into a state rainy-day fund.

PROPERTY TAX REFORM

Governor Kelly has reportedly been involved in pre-session discussions with new Speaker of the House Dan Hawkins on reducing tax burdens related primarily to residential property taxes. Any legislation seeking

to lower residential property taxes could potentially put pressure on commercial and industrial rates.

During the 2022 session, KGFA secured an informational hearing in the Senate Tax Committee on property tax valuations in the Kansas grain industry.

The hearing provided commercial and industrial taxpayers an opportunity to inform the committee members of issues they are experiencing with valuation of their property and the expense of appealing valuations. Your association will monitor this issue and work to ensure property taxes are not increased on our industry.

ELECTRIC RATES

Kansas has the highest energy rates in our region. In previous years the associations have supported legislation aimed at lowering those rates or stemming any increase in the rates.

There may be additional hearings on this issue as Evergy has announced a plan to spend billions in capital expenditures in coming years, which will increase electric energy rates even more.

SHORT LINE RAILROAD FUND PROGRAM

In 2020, the legislature passed the Eisenhower Legacy Transportation Program which included a $15 million, three-year, cost-share grant program (70/30) for maintenance and improvements to short line rail and rail siding.

In 2020, 2021, and 2022 KDOT set aside a percentage of the $5 million program funds specifically for industry rail siding. This funding has greatly benefited Kansas agribusiness.

Final funding for the program was transferred on July 1, 2022. The associations will work with KDOT this legislative session to extend this beneficial program for an additional three to five years.

STATE FUNDING OF THE KDA GRAIN WAREHOUSE PROGRAM

In order to preserve the state grain warehouse inspection program, KGFA secured a provision in the state’s budget bill which transfers $60,000 from state general funds to the KDA grain warehouse inspection program in fiscal years 2023 and 2024.

As part of an agreement with industry last

year, KDA published regulations to increase fees on Kansas licensed commercial grain warehouses. The $60,000 in state general funds for the grain warehouse program will offset half of KDA’s financial need for the program.

WORKFORCE DEVELOPMENT INITIATIVES

During previous sessions, the associations have worked to combat the state’s dwindling workforce by advocating for bills including: business immunity from general liability when participating in work-based student learning programs; state-sponsored scholarships to students attending a Kansas community college, technical college or two-year associate degree program; extension of the Rural Opportunity Zone student loan repayment program; and, the Rural Remote Worker Incentive Act.

The associations will continue to work to pass beneficial workforce development laws during the upcoming session to help increase the available trained labor force in our state.

REGULATORY RELIEF AND REFORM

The associations are working with other industry groups to enhance the regulatory climate in the state of Kansas.

Last year, your association successfully lobbied for passage of multiple bills regarding industry regultions, one of which requires state agencies to review all of their regulations at least once every five years to ensure they are still necessary and relevant.

RETAILER COLLECTION OF CREDIT CARD FEES

Currently, Kansas law prohibits the seller or lessor in any sales or lease transaction or any credit or debit card issuer from imposing a surcharge on a card holder who elects to use a credit or debit card to make the purchase (at retail, and not business-tobusiness).

Last year, a bill was introduced to eliminate this prohibition and allow the imposition of such a surcharge. The associations stood in support of this legislation which will likely be introduced again this session.

WATER QUANTITY AND QUALITY/ FUNDING OF THE STATE WATER PLAN

Last session the associations joined other ag stakeholders in opposing a bill which would have rewritten much of the existing structure of Kansas water law, assessed new fees, and changed GMD board requirements.

The bill did not advance but an interim committee reviewed the issue this summer and we anticipate new legislation being introduced in 2023. Your association will monitor legislation concerning issues of water quantity and quality and will weigh in on any legislation that would affect our industry.

Last year, the legislature fully funded the State Water Plan Fund with $8 million, and we will lobby for full funding next session as well.

INFRASTRUCTURE

Solid infrastructure is necessary for our industry to function.

Kansas was allocated about $1.5 billion in the 2022 federal “bipartisan infrastructure law” to help fix our 1,300 bridges and 2,000 miles of highway that are currently rated in poor condition.

Kansas could receive up to $2.8 billion in federal funds over the next five years, and our state Dept. of Transportation will direct the use of those funds. In addition, your association will lobby for full funding of our state highway program.

AGRICULTURAL INPUT SALES TAX EXEMPTIONS

Late in the 2022 session, lawmakers passed a tax bill phasing out the state’s food sales tax, over the next three years, at an annual cost to the state of around $450-500 million.

Some members of the legislature are

discussing how to cover this new shortfall, and have suggested eliminating existing sales tax exemptions, to include the sales tax exemption on agricultural inputs.

KARA and KGFA will stand alongside other agricultural organizations in opposing any legislation that would repeal the agricultural input sales tax exemption.

STATE LEVEL PREEMPTION OF PESTICIDE REGULATION

The KDA maintains the sole authority to regulate the use and application of agricultural chemicals.

For time to time, however, certain interest groups seek introduction of legislation that would transfer this regulatory authority to local units of government, likely resulting in an unworkable patchwork of regulations across the state.

This form of legislation has been introduced several times in Kansas and was introduced in other Midwest states last year. Fortunately, KARA and KGFA have been able to work with legislative leaders to head off such legislation and will continue to do so.

KANSAS SEED LAW

Last session, KARA and KGFA worked with the Kansas Dept. of Agriculture to pass legislation amending the Kansas seed law, primarily to grant the agency authority to assess small civil penalties for violations of the law rather than take enforcement action against the seed dealer’s license.

The agency is now working to adopt regulations to reflect the changes made by the bill, and KARA and KGFA are working with the agency on those regulations.

LEGAL REFORM

The agricultural industry often finds itself under the threat of spurious litigation concerning ag inputs, and land and water use.

Your association will join with other industry stakeholders in support of legislation to support industry, allow us to continue to operate, and protect our industry from unnecessary tort litigation.

LEGISLATIVE UPDATES

Your association will continue to send legislative updates throughout the six-month session every Monday from January to May. For questions, contact Randy Stookey (randy@kansasag.org).

KANSAS

On September 19, Kansas Agribusiness Retailers Association (KARA) filed comments to EPA on the benefits of organophosphates in Kansas agricultural production.

INDUSTRYnews

KARA files comments on organophosphate uses

On July 12, 2022, the United States Environmental Protection Agency (EPA) issued, for public notice seeking comments on a November 18, 2021, petition requesting that EPA revoke all tolerances and cancel all associated registrations for food uses of certain organophosphate pesticides (OPs).

On September 19, Kansas Agribusiness Retailers Association (KARA) filed comments to EPA on the benefits of organophosphates in Kansas agricultural production.

ELD Removed from FMCSA Registered Devices List

FMCSA has removed ELDorado’s ELDorado ELD from the list of Registered Electronic Logging Devices (ELDs) due to the company’s failure to meet the minimum functional specifications.

Motor carriers and drivers should discontinue using the revoked device(s) and

revert to paper logs or logging software to record the required hours of service data.

Then, replace the revoked device(s) with compliant ELD(s) from the Registered Devices list before November 7, 2022.

KARA noted removal of this crop protection tool would potentially cause great harm to, and loss of, Kansas crops such as corn, sorghum and cotton leading to significant economic loss.

The association urged EPA to deny the petition and allow continued access to this safe and effective crop protection product as OPs serve as an important part of modern production agriculture.

FMCSA has removed ELDorado’s ELDorado ELD from the list of Registered Electronic Logging Devices (ELDs) due to the company’s failure to meet the minimum functional specifications.

Source: Asmark Institute

THE HEROES OF AGRICULTURE

The Kansas Agri Business Expo returned to Wichita on November 16-17 for two full days of access to the latest in agribusiness technology. Attendees and exhibitors celebrated ‘The Heroes of Agriculture,’ showcasing their appreciation for our industry.

As has become a tradition each November, all of Kansas Agribusiness Retailers Association and Kansas Grain and Feed Association’s efforts leading up to the 36th Kansas Agri Business Expo focused on showcasing agribusiness, while emphasizing our appreciation to our industry’s heroes.

More than 120 exhibitors piled booths into the 95,000 squarefoot Century II Convention Center, showing off the newest and best products on the market serving the grain, feed, fertilizer, chemical and seed industry.

Exhibitors spent most of Monday and Tuesday climbing atop their rigs to wipe away any traces of salt and sand grime accumulated during transport. After two full days of preparation, the booths were set up and ready for business by Tuesday night’s annual kick-off party, the final opportunity for everyone to take one large collective deep breath before the break-neck pace of the show began Wednesday morning.

Also held in conjunction with the Kansas Agri Business Expo, this year’s

7B/4 and 1A recertification classes drew large crowds to earn continuing education credits.

Just after Kansas Grain and Feed Association’s Board of Directors meeting at 10 a.m., Chairman Brent Emch and Kansas Agribusiness Retailers Association Chairman, Dustin Kuntz, teamed up to slice the ceremonial ribbon, officially kicking off the 2022 edition of the show.

Attendees who walked the floor weren’t just treated to seeing the best new products and technology in agribusiness, many exhibitors decorated their booths and created interactive games to portray this year’s theme of ‘The Heroes of Agriculture.’

The Tomorrow’s Agribusiness Leaders penny raffle held at Expo Central kept the interest of attendees who were hoping to win a shotgun donated by D.E. Bondurant Grain Company.

As always, the industry came together to help its future workforce by donating and purchasing items from the scholarship auction.

Photography courtesy of Kirkwood Kreations

Attendees and exhibitors helped raise money for high school and college students pursuing degrees in agriculture.

After the auction, everyone headed to the Chairmen’s Reception for a casino party. Everyone in attendance played their hands –and fake currency – at Blackjack, Texas Hold ‘Em, Roulette and slot machines late into the evening for a chance to win an assortment of prizes.

Bright and early Thursday morning the 2022 class of Tomorrow’s Agribusiness Leaders graduated. This intensive leadership program allows members to gain a firsthand look at how the government operates and regulates their industry at both the state and federal level. The 24th class of the association’s premier leadership program included: Michelle Busch (Syngenta); Garrett Buschjost (Koch Agronomic Services); Adam Butler (MKC); Doug Graber (Producers Cooperative Association of Girard); Brandon Legg (Concordia Terminal LLC); Jacob Leis (CoMark Equity Alliance); Stacy Letourneau (Cloud County Cooperative Elevator); Adam Niehues (Jackson Farmers Inc.); Scotty Yerges (Producer Ag, LLC); and Mike Zacharias (MKC).

Rounding out the breakfast, Mark Nutsch,

walked the crowd through his experience as one of the first infantry units into Afghanistan following the events on Sept. 11, 2001.

Nutsch (aka Mitch Nelson), portrayed by actor Chris Hemsworth in the 2018 major motion picture, 12 Strong, shared the now-declassified true-life story of helping lead what is considered the most successful unconventional warfare campaign in modern history. In October 2001, Mark led a heroic 12-man Green Beret team of U.S. Special Forces on a covert mission to Afghanistan, where they would ride to war on horses to fight the enemy, capture the strategic city of Mazar-i-Sharif within a matter of weeks, and successfully overthrow the Taliban.

On the final day of the Expo, cash and prize drawings were awarded and exhibitors had one last chance to pitch business at interested attendees. Shortly after 4 o’clock, the floor was largely de-constructed and exhibitors were packing up before enjoying a relaxed Thursday evening party featuring music trivia and bingo. The party lasted for more than two hours and allowed everyone in attendance to figuratively let their hair down after a long week of celebrating our heroes.

Exhibitors who graciously agreed to

purchase booths this year are listed on the following page. We hope attendees and exhibitors alike were able to establish quality contacts and connections at the 36th Kansas Agri Business Expo.

THANK YOU EXHIBITORS

ADM Fertilizer

AFLAC

Ag 1 Source

Ag BiTech

Ag Spray Equipment

Agra Liners

AgTrax

AgVision

AgWorks, LLC / FieldReveal by McGregor Technologies

Allied Environmental Consultants

Amvac Chemical Co.

B&B Engineered Lube Systems

Barchart

BarnesCo Inc.

BASF Crop Protection

Bayer

C6 Agri Information Systems / QT Information Systems

Capstan Ag

Cen OK Services LLC

Central States Hydroseal CHS, Inc.

Corteva

CTEC AG, Inc.

DAKK Liners

Don’s Tire & Supply

Drake Inc.

Dultmeier Sales

Eastman

EGE Products

Electro-Sensors, Inc.

Essmueller Company

EXTRON

Fairbank Equipment

FarmChem

FEI Inc.

FMC

Frisbie Construction Co., Inc.

Gamet Mfg Inc.

Gavel Roads Online Auctions

Grain Belt Supply Co.

HABCO, Inc.

Hammel Scale - A Mettler Toledo

Brand

Heartland Ag Systems

Heartland Tank Companies

Helena Agri-Enterprises, LLC

Hrvyst

IBT Grain Division

John Deere / Hagie

Kahler Automation

Kansas Grain Commissions (Kansas

Corn and Kansas Soybean)

Kansas Highway Patrol

Kansas Wheat

Kauffman Seeds, Inc.

KC Supply Company

Kansas Grain Inspection Service

Kirkwood Kreations

Koch Agronomic Services & Koch Fertilizer

Korol Financial Group LLC

Kugler Company

LDI

LeafGuard

M&M Specialty Services LLC

MacroSource / MicroSource

Mauser Packaging Solutions

McPherson Concrete Storage Systems

Mears Fertilizer, Inc.

Mid-Continent Industries, Inc.

Midland Scientific, Inc.

Midwest Laboratories

Moeller Engineering

Musselman & Hall Contractors

Northern Ag Suppliers

Nutrien Ag Solutions Wholesale

PlainJans

Precision Tank

ProValue Insurance

Purple Wave Auction

Ranco Fertiservice, Inc.

Razor Tracking

RED Restoration

Rosen’s Inc.

Sackett Waconia

ScanStar, LLC

Soilview LLC

Scotwood Industries LLC

ServiTech, Inc.

Simpson Farm Enterprises

Skinner Tank Company (STC)

Spraytec Fertilizers

Star Seed Inc.

Stueve Construction

Sukup Manufacturing Co.

Sustainable Oils, Inc.

Syngenta

Tessenderlo Kerley Inc

Timac Agro USA

Tri-State Grain Conditioning, Inc.

U.S. Small Business Administration & U.S. Dept. of Ag

Valent USA

Van Diest Supply Company

Viaflex

Western Ag Enterprises

WH Scale Co.

Winfield United

January

February 21

February 22

Sedgwick County Extension Center Wichita

January 12

February 23

Propane Marketers Association Topeka

January

March 7

City Limits Center Colby

January 25 Dodge City Public Schools Dodge City

January

March 8 Garden City Coop Garden City

March 9 Vortex Valves Salina

“We think we’re on the right track to best fulfill our members’ needs with

Seeber

Kansas Grain and Feed Association

816 SW Tyler, Suite 100

Topeka, Kansas 66612

Kansas Agribusiness Retailers Association

816 SW Tyler, Suite 100

Topeka, Kansas 66612

Stay Connected Stay Connected

2023 LEGISLATIVE ACTION DAY

Join us on Wednesday, Jan. 25, 2023 as we travel to the statehouse and meet with legislators to relay the importance of our industry.

Register Today

Point a smartphone’s camera at the QR code to the left to register. Legislative Action Day is a free event to attend.

Register Today

Point a smartphone’s camera at the QR code to the right to register. Legislative Action Day is a free event to attend.