Seed to Silo - Spring 2022 by Kansas Grain and Feed Association | Kansas Agribusiness Retailers Association

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

Spring 2022 Kansas Agribusiness Retailers Association 816 SW Tyler Topeka, KS 66612 (785) 234-0463 ksagretailers.org

Spring 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 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

TABLE OF

CONTENTS 03 PRESIDENT’S LETTER Judgement day is coming for local politicians

04 INDUSTRY NEWS Updates on issues affecting you

08 KGFA ANNUAL MEETING The 2022 KGFA annual meeting included great speakers and windy golf

17 SCHOLARSHIP AWARDS KARA and KGFA announced nearly $30,000 in financial aid to deserving students from across the state

22 NEBRASKA NEIGHBORS Our golf tournament in Nebraska hosting members of the former Nebraska Grain and Feed Association

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 Brent Emch Chairman Mark Paul Vice Chairman Andrew Fullerton Second Vice Chairman Deb Miller Immediate Past Chairwoman

BOARD OF DIRECTORS

Gary Beachner Bryan Bucl Troy Coon Yance Farney Justin Foss Jim Grilliot Jeff Holling Rachel Hurley Nick Krehbiel Brian Laverentz Jami Loecker

Ted Behring Doug Biswell Blake Connelly Alex Gerard David Helfrich Dub Johnson TJ Mandl Matt Overturf Troy Presley Devin Schierling Allen Williams

Warren Mayberry Kevin Mears Justin Ochs O.J. Pearl Dave Spears Mark Vance Mark Wegner Toby Witthuhn

Editors: KARA & KGFA staff

14 KANSAS STATEHOUSE INSIDER We’ve wrapped up the 2022 legislative session and there were numerous issues affecting agribusiness in Topeka this year

Advertising does not influence editorial decisions or content. Kansas Agribusiness Retailers Association and Kansas Grain and Feed Association reserve the right to refuse, reject, or cancel any ad for any reason at any time without liability.

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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 Judgement Day is coming.

All you need to do is look at some recent elections results and gain an understanding many elections are decided by just a handful of votes.

No. Not that judgement day. However, if you have an inside scoop on the rapture, please let your association staff know. I am talking about the August 2, 2022 primary and the subsequent November 8 general election. These are the judgment days where you can make a difference by voting. All you need to do is look at some recent elections results and gain an understanding many elections are decided by just a handful of votes. This election year is unique because it follows a redrawing of the district boundaries on both state and federal races. All 125 Kansas House of Representatives seats, five state school board seats, four Congressional seats, and one U.S. Senate seat will be on the ballot. Newly drawn maps, coupled with a multitude of retirements in Topeka, indicate you will have a good chance to elect many new folks to set policies for our state and nation. To prepare for the August and November judgement days your association staff takes a close look at the voting records of those state-level policy makers seeking reelection, while simultaneously checking the views of newcomers seeking office for the first time. We then share our intelligence reports with the Kansas Agri-Business Council (KABC) Political Action Committee Board. The primary objective of the KABC is to promote and protect the grain, feed, and agribusiness industries by supporting pro-industry legislative policies and candidates. The KABC is made up of appointed members of the Kansas Agribusiness Retailers Association, Kansas Grain and Feed Association and the Kansas Cooperate Council. If a candidate has a good voting or background supporting of agribusiness, the KABC will endorse

their candidacy and send financial support to their campaign. If a candidate has a poor voting record or is hostile to agribusiness, the KABC will take the proper action to see that they are not elected. This often entails supporting their opponent. The KABC PAC is funded by you, the members of KARA and KGFA. This summer, we sent out 2023 dues renewal letters. Included in your organization’s renewal is a section where you can voluntarily support the KABC PAC with a “check off” allowing 10 percent of your dues to go toward the KABC PAC. This money will be spent electing proagribusiness candidates and defeating those who want to put you out of business. So how can you prepare for the judgement days? Find out who is running in your part of the state and check out their website. You could also simply give them a call or touch base with your association staff. We will be able to share what intelligence (or lack of) we have gathered on each race. Once you find out where they stand on the issues ... vote accordingly. The other way to prepare for judgement day is to support the KABC when you renew your dues. Your generous contributions to the KABC PAC are vital to our industry maintaining a strong voice and effective lobbying presence in the legislative process. Thank you for listening to my political sermon on the upcoming judgement days. Sincerely,

RONALD C. SEEBER President and CEO

SPRING 2022

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

INDUSTRYnews EPA Increases Enforcement at Chemical Warehouses After visiting numerous chemical warehouses and distribution facilities, EPA found that many facilities are not developing safety precautions, instituting maintenance, monitoring, and employee training measures and preparing risk management plans. EPA has taken enforcement actions and assessed penalties against several chemical warehouses and distribution facilities across the country, sometimes pursuing criminal enforcement actions.

Chemical warehouse and distribution facilities must ensure that their chemicals are managed safely, securely and in compliance with the federal laws enforced by EPA, Occupational Safety and Health Administration (OSHA), and Department of Homeland Security (DHS). Certain case studies from across the nation show enforcement actions up to $950,000. After visiting numerous chemical warehouses and distribution facilities, EPA found that many facilities are not preparing risk management plans. Source: Asmark Institute

CISA Launches ChemLock

The Cybersecurity and Infrastructure Security Agency (CISA) has launched a new chemical security program, ChemLock. Source: Asmark Institute

EXPAND YOUR AUDIENCE Advertise with KGFA Would you like to reach more than 900 businesses involved in the Kansas grain industry? Call the association office 785.234.0461 or email membership@kansasag.org to learn more about our advertising opportunities.

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The Cybersecurity and Infrastructure Security Agency (CISA) has launched a new chemical security program, ChemLock. ChemLock is a completely voluntary program that provides facilities that possess dangerous chemicals no-cost services and tools to help them better understand the risks they face and improve their chemical security posture in a way that works for their business model. Based on expertise acquired from more than a decade of helping high-risk facilities enhance their chemical security, the ChemLock program is open to all facilities with chemicals, regardless of sector.

ChemLock’s current offerings include on-site chemical security assessments and assistance; resources (guidance documents, templates, best practices, and awareness); exercises and drills; and training courses. Participation in any portion of CISA’s ChemLock program does not replace any reporting or compliance requirements under the Chemical Facility Anti-Terrorism Standards (CFATS) regulation. Some ChemLock activities may fulfill CFATS requirements, depending on your specific security plan.

SEED to SILO | Encompassing Agribusiness in Kansas

INDUSTRYnews DOT Proposal - Oral Fluid for Drug Testing

DOT is proposing to amend drug testing regulations to allow oral fluid testing. Source: Asmark Institute

DOT is proposing to amend drug testing regulations to allow oral fluid testing. This would give employers a choice to help combat cheating on urine drug tests and provide a more economical, less intrusive means of achieving their safety goals. The proposal also updates other provisions and is intended to harmonize mandatory oral fluid testing guidelines established in 2020 by the US Department of Health and Human Services.

One advantage of oral fluid collection is that it will be directly observed, as opposed to most urine collections, which are unobserved. Also, there is no need to find a local lab since oral fluid testing can be administered in-house by a trained individual. Likewise, the turnaround time for oral fluid test results is much less than a urine test.

FBI issues industry notice for agricultural cooperatives Ransomware actors may be more likely to attack agricultural cooperatives during critical planting and harvest seasons, notes the Federal Bureau of Investigation (FBI) in a new Private Industry Notification issued April 20. “Cyber actors may perceive cooperatives as lucrative targets with a willingness to pay due to the time sensitive role they play in agricultural production,” FBI states. Ransomware attacks against six grain cooperatives during the fall 2021 harvest disrupted the food supply chain and two attacks in early 2022 could impact the planting season by disrupting the supply of

seeds and fertilizer. “Although ransomware attacks against the entire farm-to-table spectrum of the (food and agriculture) sector occur on a regular basis, the number of cyberattacks against agricultural cooperatives during key seasons is notable,” the notice states. The document lists several steps that can be implemented to mitigate the threat and protect against ransomware attacks. Access the “Ransomware Attacks on Agricultural Cooperatives Potentially Timed to Critical Seasons” notice or on the FBI’s Internet Crime Complaint Center website: www.ic3. gov.

Ransomware actors may be more likely to attack agricultural cooperatives during critical planting and harvest seasons. Source: National Grain and Feed Association

Providing Kansas Agribusiness Professional Environmental Engineering Services since 1989

We provide: EXPAND YOUR AUDIENCE Advertise with KARA We know Kansas agribusiness. Our publications touch every aspect of Kansas ag retail. Call the association office 785.234.0463 or email membership@kansasag.org to learn more about our advertising opportunities.

Environmental Site Assessments (Phase I & II) ● Spill Prevention Control & Countermeasure (SPCC) Plans ● Stormwater Management ● Containment Engineering ● Groundwater Investigations ● Regulatory Audits, Compliance & Permitting 214 N Saint Francis ● Wichita, KS 67202-2610 ● 316.262.5698 aec@alliedaec.com ● www.alliedenvironmental.com SPRING 2022

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

INDUSTRYnews OSHA Proposes Electronic Reporting Changes OSHA has announced it is proposing amendments to its occupational injury and illness recordkeeping regulation. In addition to reporting their Annual Summary of WorkRelated Injuries and Illnesses, the proposed rule would require certain establishments in certain high-hazard industries to electronically submit additional information from their Log of Work-Related Injuries and Illnesses, as well as their Injury and Illness Incident Report. Establishments with 20 or more employees in certain high-hazard industries would continue to be required to electronically submit information from their OSHA Form 300A annual summary to OSHA annually. The proposed rule would:

• Require establishments with 100 or more employees in certain high-hazard industries to electronically submit information from their OSHA Forms 300, 301 and 300A to OSHA once a year. • Update the classification system used to determine the list of industries covered by the electronic submission requirement • Remove the current requirement for establishments with 250 or more employees not in a designated industry to electronically submit information from their Form 300A to OSHA annually. • Require establishments to include their company name when making electronic submissions to OSHA.

OSHA has announced it is proposing amendments to its occupational injury and illness recordkeeping regulation. Source: Asmark Institute

We’ve expanded our resources to help you elevate your business. Cline Wood, a Marsh McLennan Agency, has added a new Agribusiness Risk Consultant to assist its agribusiness clients build and enhance their safety cultures and design and implement various industry-specific risk management solutions. We are excited to announce the addition of Jim Seibert to our team. Jim’s career in the Ag Safety segment began over a decade ago. In his most recent role as the NGFA’s director of safety, education and training, Jim was responsible for developing new education and training materials to assist NGFA members in complying with safety, health and other regulatory requirements. He was also involved in reviewing and updating the NGFA’s extensive inventory of employee safety education, training, and information materials, as well as addressing grain, feed and processing facility operations issues. Jim’s passion for coaching others, along with his extensive knowledge of the agriculture industry, position him well to serve and support our clients. You already built something incredible. When you’re ready to elevate your business even higher, you need a partner who can give you a platform for scale and even greater success. A partner with the strength and resources of the world’s largest risk management, strategy, and benefits firm. A partner like Marsh McLennan Agency. See how we can help your business go further at MarshMMA.com Contact us: info@clinewood.com | (913) 451-3900

SEED to SILO | Encompassing Agribusiness in Kansas

SPRING 2022

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

SEED to SILO | Encompassing Agribusiness in Kansas

2022 KGFA

ANNUAL MEETING Highlighted by hours of networking, valuable speakers and a windy afternoon on the golf course, Kansas Grain and Feed Association (KGFA) celebrated its 126th annual meeting April 11 – 12, 2022 in Wichita. The annual event attracted nearly 150 of KGFA’s active capacity and associate members in 2022 to learn from Kansas’ Fourth District Congressman Ron Estes and Federal Reserve Bank of Kansas City Senior Economist Dr. Cortney Cowley. “We were fortunate to book such timely, knowledgeable speakers to address our members this year,” KGFA President and CEO Ron Seeber said. “Congressman Estes and Dr. Cowley did a wonderful job of updating us on the current issues facing agriculture domestically and abroad, as well as breaking down the economy and painting a pretty clear picture as to what we should prepare for moving forward.” Cowley’s current research focuses on agricultural finance, commodity markets, farm management, and natural resource economics and policy. Her responsibilities also include writing for the Tenth District Survey of Agricultural Credit Conditions and Agricultural Finance Updates. Estes is a 5th generation Kansan and serves Kansas’ 4th Congressional District in the U.S. House of Representatives. Since being sworn into office in 2017, Congressman Estes has been a leader on passing landmark tax reform, rolling back burdensome regulations and implementing trade agreements with some of Kansas’ biggest trading partners. KGFA also bestowed its most prestigious honor, the Sunflower Award, to longtime association supporter, Gary Beachner. Beachner has spent more than three decades in the grain business and has worked tirelessly to oversee more than 30 grain elevator and agricultural retail operations in Kansas and Oklahoma. He also served two stints on KGFA’s board of directors, first spanning from 1992 to 2001, holding the title of Chairman from 1997-98. Beachner was re-elected to the KGFA board of directors in 2013 and completed his second nine-year term at the annual meeting in 2022. The association also completed its annual business including a report on membership activities, board of director elections and

financial status. KGFA membership re-elected Troy Presley (CoMark Equity Alliance), Devin Schierling (Producer Ag, LLC) and Allen Williams (ADM) to its board of directors, while Alex Gerard of Gavilon Grain joined the board as a new nominee. Throughout the event, members enjoyed networking inside hospitality suites sponsored by: AgTrax; Ardent Mills; Cargill Inc.; ProValue Insurance; BarnesCo; Central States Fumigation; Drake, Inc.; Hammel Scale a Mettler Toledo Brand; McPherson Concrete Storage Systems; Norwood Contracting LLC; and Rolfes @ Boone. The event wrapped up with a windy outing to Terradyne Country Club where more than 85 golfers participated in a tournament.

SPRING 2022

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

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

SEED to SILO | Encompassing Agribusiness in Kansas

UNDERWRITER SPONSOR

COMMODITY PARTNERS

$20,000+

K A N S A S

C RN C O M M I S S I O N

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.

KANSAS W H E A T

Rediscover Wheat

FOUNDER SPONSOR

BENEFACTOR SPONSORS

$7,500

$5,000

PATRON SPONSORS $3,500

BUILDER SPONSORS $2,000 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

DONOR SPONSORS $1,250 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

GIVER SPONSORS $750 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 $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 SPONSORS $7,500

BENEFACTOR SPONSORS $5,000

PATRON SPONSORS $3,500

BUILDER SPONSORS $2,000 AgBiTech Beachner Grain Inc. Interchem J.B. Pearl Sales and Services Morrill Elevator, Inc. Nutrien Skyland Grain LLC

DONOR SPONSORS $1,250 Ag Partners Cooperative Inc. Agrilead Inc. CHS Inc. Fairbank Equipment, Inc. Farmers Cooperative Equity Co. Helm Fertilizer Corp.

GIVER SPONSORS $750 Alliance Ag & Grain LLC Kansas Coop Council American Implement, Inc. Kanza Coop Assn. Central Prairie Co-op Midwest Laboratories Inc. Central Valley Ag Pride Ag Resources Cooperative Purple Wave Auction FEI Inc. ServiTech

SEED to SILO | Encompassing Agribusiness in Kansas

THANK YOU, SPONSORS The work of KARA advocating on behalf of Kansas agriculture and providing services to educate, develop, and network brings great value to the members and beyond. Further, the TAL program producing class after class of professional agribusiness leaders represents a strategic long-term commitment to professional development while strengthening the collective base of Kansas Ag leadership that is and will continue to valuably serve our industry and state. KARA sponsorship is a way our small company can support all the big things accomplished through KARA and the great staff that represents it

JEFF OCHAMPAUGH AGRILEAD INC.

SPRING 2022

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

Statehouse

INSIDER By: Association Government Affairs

The Kansas Legislature adjourned on May 23. The work was completed quickly following a ruling by the Kansas Supreme Court upholding the legislature’s new map of Kansas’ four Congressional districts. All focus now shifts over to election season where all 125 seats in the House chamber are open for election, not to mention statewide races including a pivotal governor’s race between incumbent Laura Kelly and Republican current attorney general Derek Schmidt. The Kansas Agri-Business Council is meeting June 30 to determine candidate contributions on behalf of your associations. 14

SEED to SILO | Encompassing Agribusiness in Kansas

KDA GRAIN WAREHOUSE PROGRAM BUDGET ENHANCEMENT In 2021, as part of an agreement with KDA to allow for increased fees on Kansas licensed commercial grain warehouses, Kansas Grain and Feed Association (KGFA) requested, and received $60,000 in state general funds for KDA’s grain warehouse inspection program to pay for an additional inspector. This funding was half the amount KDA indicated it needed to meet its grain warehouse program budget. Because KDA did not request this funding for its 2023 budget, your association requested a $60,000 budget enhancement to the KDA budget for fiscal years 2023 and 2024, to be directed to the agency’s grain warehouse program. The grain warehouse budget enhancement was adopted by the House Appropriations Committee to be placed into the fiscal year 2023 budget bill. KANSAS SEED LAW House Bill 2563 was introduced at the request of the Kansas Dept. of Agriculture

(KDA) to make comprehensive changes to the Kansas Seed law, including authorizing the agency civil penalty authority over the seed industry. Last fall, Kansas Agribusiness Retailers Association (KARA) worked closely with the agency to amend the proposed language that would appear in the bill. The House Agriculture Committee adopted an amendment requested by KARA to remove language allowing the agency authority to assess a new penalty each day for a continuing violation. The Senate Committee on Agriculture and Natural Resources further amended the bill to reduce the maximum civil penalty from $3,000 to $1,000. Contents of the bill were placed into Conference Committee Report on HB 2559 which was passed by both chambers and signed into law by Governor Kelly. INCOME AND SALES TAX BUNDLE BILLS During the Veto Session, the legislature passed CCR on House Bill 2136, a multi-

part tax bill that eliminates the requirement for retailers to remit an accelerated sales tax payment to the state; creates a sales tax exemption on separately stated delivery charges beginning July of 2023; and includes a $56 million fund for rebates of property taxes levied against small businesses which were ordered closed as “non-essential” during the COVID-19 pandemic response (a maximum of $5,000 rebate per storefront). The measure now goes to Governor Kelly for consideration. SALES TAX CUT ON FOOD CCR on House Bill 2106 will phase out the state’s 6.5 percent sales tax on groceries by cutting the tax to 4 percent on Jan. 1, 2023, 2 percent on 2024, and 0 percent on 2025. The cost of the tax cut to the state estimated at $250 million in 2024, and $400 million in 2025 and each year thereafter - would be paid for by increases in internet sales tax remitted to the state. The tax cut does not apply to most prepared foods at restaurants or grocery Continued on Page 16

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stores. The bill overwhelmingly passed the House and the Senate before being signed into law by Governor Laura Kelly. CORPORATE INCOME TAX APPORTIONMENT Kansas currently uses a three-factor system for apportioning income between states for corporate income tax purposes. House Bill 2186 would allow corporate taxpayers the option to elect which methodology to use when apportioning their corporate income between Kansas and other states in which it operates. The legislation would allow certain taxpayers, based on NAICS codes, to elect to use a single-factor apportionment formula based on sales to determine corporate income tax liability. The House Tax Committee amended the bill to add NAICS codes 541690 and 112210. The Legislature but did not consider this bill for further action this year. CREDIT AND DEBIT CARD SURCHARGE FEES 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 in lieu of payment by cash, check or similar means. A surcharge is defined as any additional amount imposed at the time of the sales or lease transaction by the merchant, seller or lessor that increases the charge to the buyer

or lessee for the privilege of using a credit or debit card. House Bill 2316 was introduced to eliminate this prohibition and allow the imposition of a surcharge. The Senate Tax Committee placed the contents of HB 2316 into Sub SB 462. During the veto session, the Tax Conference Committee placed the contents of SB 462 into Conference Committee Report on Senate Bill 331. The House passed CCR SB 331, but the Senate did not take the bill up for action. AUTONOMOUS VEHICLES Senate Bill 546 would allow for the use and regulation of autonomous (driverless) motor vehicles in Kansas. Walmart and an autonomous vehicle developer testified in support of the bill which would allow selfdriving vehicles to traverse fixed business-tobusiness routes. The bill would also preempt cities or counties from prohibiting the vehicles. Fortyfour states have created a framework for regulating autonomous vehicles, but Kansas, Missouri and Oklahoma are among six states without such laws. The bill would create a statewide policy for the regulation of autonomous vehicles and would restrict use of automated vehicles to movement between fixed points along repeatable routes. During the veto session, a Transportation Conference Committee placed contents of SB 546 into Conference Committee Report on SB 313. The conference committee report was

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passed by the House and Senate before being signed into law by Governor Kelly. MOTOR CARRIER INDEPENDENT CONTRACTOR STATUS Senate Bill 494 would prohibit altering the employment status of a driver of a motor carrier (as an independent motor carrier) for requiring safety improvements on a vehicle. The bill did not receive further action during the veto session. CAREER TECHNICAL EDUCATION CREDENTIAL AND TRANSITION PILOT PROGRAM House Bill 2631 would enact the Career Technical Education (CTE) Credential and Transition Incentive (CTI) pilot program. The bill would provide a new category of state aid to school districts for students obtaining a CTE credential. In addition, a school district that offers CTE and has students that obtain a CTE credential would receive state aid payments subject to the availability of appropriations. During the veto session, an Education Conference Committee placed contents of HB 2631 into Conference Committee Report on Sub HB 2466. The conference committee report was passed by the House and Senate before being signed into law by Governor Kelly. WORKFORCE DEVELOPMENT SCHOLARSHIP Last year, Governor Kelly signed into law a workforce development bill creating the Kansas Promise Scholarship Act which provides educational scholarships to students attending a Kansas community college, technical college, or two-year associate degree program or career and technical education programs. The scholarship would be eligible for students pursing certain fields of study, including manufacturing, construction, and others. This year, Senate Bill 340 was introduced to authorize additional programs and fields of study. During the veto session, an Education Conference Committee placed contents of SB 340 into Conference Committee Report on S Sub for HB 2567. The conference committee report was passed by the House and Senate before being signed into law by Governor Kelly. RURAL HOUSING INCENTIVE AND CHILD CARE TAX CREDIT Conference Committee Report on HB 2237 Continued on Page 20

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Dub & Inez Johnson Memorial - $500 LeNae Knight – Jewell Jim Lee Memorial - $500 Greta Rosenhagen – Cheney Dr. David Whitney Agronomy - $1,500 Leah Hudson – Topeka

The KARA and KGFA scholarship committees have separately announced and awarded nearly $30,000 total in scholarships to 25 Kansas high school graduating seniors and college students for the 2022-23 academic year. The scholarship committees, comprised of KARA and KGFA’s membership, received nearly 300 applications combined and awarded financial aid based on equitable geographic locations throughout the state to students to assist in advancing their academic endeavors. “Our boards of directors and scholarship committees understand the importance of introducing the next generation to our industry and associations as early as possible,” KARA and KGFA’s president and CEO Ron Seeber said. “We are proud to support the education of our future workforce’s emerging leaders and we wish them the best of luck in their studies.” KGFA annually awards 18 scholarships worth $1,500 and administers the Dub and Inez Johnson $500 memorial scholarship fund. KARA annually awards six scholarships four $1,500 awards, one $1,500 Dr. David Whitney Agronomy scholarship to a K-State student and one $500 Jim Lee Memorial scholarship. Students must be a self-starter with excellent academic credentials, good school and community citizens and show a strong desire to continue their education.

RON SEEBER President & CEO

“

$1,500 WINNERS Tyler Adams – Hutchinson Timothy Biggs – Topeka Madison Bruna – Barnes Korben Clawson – Meade Carissa Dalquest – Wilsey Caleb Dechant – Goodland Kate Ferguson – Ottawa Kaidan Frederick – Chanute Adison George – Holcomb Geoffrey Holloway – Kingman Dayton Lantz – Osborne Tate McGinn – Sedgwick Cassidy Paz – Jetmore Timothy Pearce – Ottawa Kaitlyn Peters – Lakin Weston Schrader – Wells Addison Sherer – Mullinville Coy Stamm – Washington Dylan Van Laeys – Logan Madison Warner – Kingman Hailey Wurtz – Seneca Grace Young – Osawatomie

Associations Award Nearly $30,000 Combined in Scholarships

Our boards of directors and scholarship committees understand the importance of introducing the next generation to our industry and associations as early as possible.

SPRING 2022

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

INDUSTRYnews OSHA Announces Heat Hazards NEP

For the first time, OSHA has launched a National Emphasis Program (NEP) to protect workers from indoor and outdoor heat hazards. Source: Asmark Institute

For the first time, OSHA has launched a National Emphasis Program (NEP) to protect workers from indoor and outdoor heat hazards. Heat illness affects thousands of indoor and outdoor workers each year and can tragically lead to death. The NEP is a way to immediately improve enforcement and compliance efforts, while continuing long-term work to establish a heat illness prevention rule. The NEP encourages employers to protect workers from heat hazards by providing

employee access to water, rest, shade, adequate training, and implementing acclimatization procedures for new or returning employees. OSHA will conduct pre-planned inspections in targeted high-risk industries, including agriculture, on any day that the National Weather Service has announced a heat warning or advisory for the local area. The NEP will remain in effect until April 8, 2025 unless canceled, extended or replaced by a superseding NEP.

EPA Revises List of Lists EPA has posted a revised version of the consolidated List of Lists dated April 2022 on its website. The List of Lists is used as a reference for many regulatory requirements, but most importantly spill reporting. This revised version replaces the old version dated September 2021. The List of Lists is a consolidated list of chemicals subject to: • Emergency Planning and Community Right-to-Know Act (EPCRA), • Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), and

• Section 112(r) of the Clean Air Act (CAA). It was prepared to help facilities handling chemicals determine, for a specific chemical, whether they may be subject to certain reporting requirements. These lists should be used as a reference tool, not as a definitive source of compliance information. EPA has posted a revised version of the consolidated List of Lists dated April 2022 on their website. Source: Asmark Institute

Driver’s Record of Violations Requirement Removed

Driver’s record of violations requirement removed by FMCSA after finding duplicative information in regulations. Source: Asmark Institute

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FMCSA has amended its regulations to eliminate the requirement that drivers operating commercial motor vehicles (CMVs) in interstate commerce prepare and submit a list of their convictions for traffic violations to their employers annually. This requirement was duplicative of a separate rule that requires each motor carrier to make an annual inquiry to

obtain the motor vehicle record (MVR) for each driver it employs from every State in which the driver holds or has held a CMV operator’s license or permit in the past year. The final rule, became effective May 9.

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INDUSTRYnews Purdue Releases 2021 Entrapment Report

Seven grain dust explosions resulting in one fatal and seven non-fatal injuries were documented. Source: Asmark Institute

Since the 1970’s, Purdue University’s Agricultural Safety and Health Program has been documenting and investigating incidents involving grain storage and handling facilities at both commercial and on-farm locations. Highlights from the 2021 Summary of US Agricultural Confined Space-Related Injuries and Fatalities Report show there were no fewer than 29 grain storage and handling

related entrapments in 2021, representing a 17.1 percent decrease over 2020. Seven grain dust explosions resulting in one fatal and seven non-fatal injuries were documented. Illinois reported the most grainentrapment cases in 2021 with five.

Top 10 Most Cited OSHA Violations OSHA’s list of the top 10 most frequently cited standards for fiscal year 2021 has been finalized. Federal OSHA publishes this list to alert employers about these commonly cited standards so they can take steps to find and fix recognized hazards addressed in these and other standards before OSHA shows up. Fall protection continues to top the list with other standards swapping positions. 1. Fall Protection - General Requirements (1926.501)

2. Respiratory Protection (1910.134) 3. Ladders (1926.1053) 4. Hazard Communication (1910.1200) 5. Scaffolding (1926.451) 6. Fall Protection - Training Requirements (1926.503) 7. Lockout/Tagout (1910.147) 8. Eye and Face Protection (1926.102) 9. Powered Industrial Trucks (1910.178) 10. Machine Guarding (1910.212) OSHA’s list of the top 10 most frequently cited standards for fiscal year 2021 has been finalized. Source: Asmark Institute

EPA Proposes New Plan for Spills

EPA has proposed a new regulation that would require certain facilities to submit a facility response plan for a worst-case discharge of Clean Water Act.

EPA has proposed a new regulation that would require certain facilities to develop and submit a facility response plan for a worst-case discharge of Clean Water Act (CWA) hazardous substances. A worst case discharge is the largest foreseeable discharge in adverse weather conditions. The facility response plan requirements would apply to onshore, non-transportationrelated facilities that could reasonably be expected to cause substantial harm to the

environment, based on their location. These include facilities with a maximum onsite capacity of a CWA hazardous substance that meets or exceeds threshold quantities and are located within a 0.5-mile radius of navigable water or conveyance to navigable water. Facilities must also meet one or more of four substantial harm criteria.

Source: Asmark Institute

SPRING 2022

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

Continued from Page 16 includes multiple economic development provisions. It would enact the Kansas Housing Investor Tax Credit, and the Kansas Affordable Housing Tax Credit, to incentive rural and urban housing construction. The bill would also enact the Kansas Rural Home Loan Guarantee Act. In addition, the bill would authorize appraisers to exclude the sales comparison approach in rural county mortgage financing appraisals if the property is unique in style or square footage and if there exists a lack of available comparable sales. The bill also creates an income tax credit for child day care services. The conference committee report was passed by the House and Senate before being signed into law by Governor Kelly. STATE LEVEL PREEMPTION OF PLASTIC REGULATION Senate Bill 493 would prohibit cities and counties from regulating plastic and other containers designed for the consumption, transportation or protection of merchandise, food, or beverages. After receiving a veto by Governor Kelly, the Senate overrode the veto on a vote 2712. However, the House did not take action to override, and the veto was sustained. MEDICAL MARIJUANA Factions within the Legislature are eager to see recreational and medicinal use of marijuana be legalized in the state and various bills were introduced this year for that purpose. Marijuana is now a Schedule 1 Controlled Substance under federal law, which makes illegal the interstate transportation of most forms of medical marijuana. The Senate Federal and State Affairs Committee deliberated on SB 560, a bill regulating medical marijuana, and 20

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on House Sub for SB 158, a bill that would have created the Kansas Medical Marijuana Regulation Act. During the veto session, a Federal and State Affairs Conference Committee worked to combine provision of the two bills. However, the Legislature did not take this legislation up for action this year. INDUSTRY REGULATIONS House Concurrent Resolution 5014 proposes an amendment to the Kansas Constitution that would increase legislative oversight of agency regulations. Having been approved by two-thirds of the legislature, the amendment will now go before Kansas voters as a ballot question during the November 2022 election. In addition, House Bill 2087 amends current law by requiring the state budget director to review any proposed agency regulation with an economic impact of $1 million or more over a two-year period. The legislature amended the bill to include the original contents of Senate Bill 34, a requiring each state agency to review its regulations at least once every five years to determine if they are still necessary. The bill also allows for a 15-day quick repeal process for outdated regulations. The bill was passed by both chambers and signed into law by Governor Kelly. MULTI-PROVISION TAX BILL CCR on House Bill 2239 contains myriad provisions concerning income taxes, property taxes, and sales taxes, and was the only bill to be passed by the legislature during the regular session. The bill, which was signed into law by Governor Kelly, contains inter alia the following: 1. Short Line Railroad Investment Tax Credit

This provision provides a transferable income tax credit for qualified railroad track maintenance expenditures of short line railroads and associated rail siding owners or lessees. Short line rail investments would qualify for a tax credit of $5,000 per mile of rail, up to 50 percent of the railroad’s annual total income tax bill. Rail siding would qualify for $5,000 per rail project. The tax credit exists from 2022 through 2031. 2. Sales Tax Exemption for Delivery Services. This provision excludes separately stated delivery charges from sales and compensating use tax. 3. Rural Opportunity Zones (ROZ) Program This provision extends the sunset on the ROZ student loan repayment program to July 1, 2026, and extends the sunset on the income tax credit to January 1, 2027. 4. Property Tax Abatement for DisasterDestroyed Property This provision grants county commissions the authority to abate property taxes for all buildings and agricultural improvements listed as real property in situations where such property has been damaged in a gubernatorial-declared disaster, and restoration costs would equal or exceed 50 percent of the pre-damage market value. The bill would be retroactive to tax year 2019, and applications would be permitted until December 20, 2022, for natural disasters occurring in 2019 or 2020. 5. Salt (State And Local Tax) Parity Act This provision allows a S corporation or partnership to annually elect to be subject to income tax at the entity level for the taxable period beginning in tax year 2022. The S corporation or partnership would make the election on the return filed by the S corporation or partnership. The filing of the return would be binding on all electing passthrough entity owners. Find more information Here. 6. Research and Development Income Tax Credit This provision establishes a research and development tax credit from 6.5 percent to 10.0 percent for LLCs and small businesses. Currently, Kansas law provides this tax credit for corporations only, and has a one-time, non-refundable transferability. 7. Agricultural Fencing Sales Tax Exemption This provision allows for a sales tax exemption for purchases to reconstruct, repair or replace fencing used to enclose

SEED to SILO | Encompassing Agribusiness in Kansas

agricultural land that was damaged or destroyed by wildfire or other natural disaster occurring on or after January 1, 2021. To be eligible for the exemption, the property containing the fence would be required to be located within an area declared to be a disaster by the federal, state, or local government and the purchases would be required to be made within two years of the date of the applicable disaster declaration. For applicable purchases already made, taxpayers would be entitled to a refund of sales tax upon provision of appropriate documentation. In addition, beginning July 1, 2022, the bill exempts from sales tax all sales of tangible personal property and services necessary to construct, reconstruct, repair, or replace any fence used to enclose agricultural land. ELEVATOR SAFETY ACT Senate Bill 181 creates the Elevator Safety Act - establishing a new state level regulatory scheme for all elevators, manlifts, and conveyance systems. The bill grants state inspectors the authority to adopt regulations over the elevator inspection industry and prohibits any inspection of elevators and conveyance equipment unless by a state-licensed company. The bill was amended to specifically exempt grain elevators, feed mills, and biofuel facilities from the act. In addition, elevator inspection companies that are currently certified in another state would not be regulated by the act. Kansas Grain and Feed Association and Renew Kansas Biofuels Association testified neutral on the bill so long as those industries were exempt. Contents of the bill were placed into Conference Committee Report on House Bill 2005. The bill was passed by both chambers and signed into law by Governor Kelly.

passed the bill out favorably, but the bill did not advance further this year. KDA AGENCY FEES House Bill 2560 authorizes the KS Dept. of Agriculture to extend current fees on agribusiness without increasing those fees. The bill also extends, to 2030, the existing water right transition assistance program (WTAP) administered by the agency. The agribusiness industry testified neutral on the bill and explained that fees on agribusiness are currently higher than most neighboring states and the associations would oppose any attempt to increase the fees. The bill was signed into law by Governor Kelly. BILL OPPOSING SANCTUARY CITIES House Bill 2717 prohibits any Kansas municipality from preventing the enforcement of federal immigration laws, requiring municipal law enforcement agencies to provide written notice to each law enforcement officer of the officer’s duty to cooperate with state and federal agencies in the enforcement of immigration laws and requiring any municipal identification card to state on its face that it is not valid for state identification. The bill was signed into law by Governor Kelly. AG PIPELINES IN COUNTY RIGHT OF WAY House Bill 2531 would permit, upon approval of the county commission, any person engaged in an agriculture activity

to construct and operate pipelines in pursuit of an agricultural activity along a rightof-way of any county or township road in conformity with the laws and regulations of the State of Kansas and the county in which the pipeline is located. The bill would authorize all priorpermitted pipelines in county rights of way. The House Committee on Agriculture amended the bill to require the owner of the pipeline to remove the pipeline, or contract directly with the landowner, if the county or township closes the road and vacates its right of way. The amendment also authorizes a board of county commissioners to require the owner of a pipeline to place a bond or liability insurance to cover the costs of any pipeline removal upon abandonment. The bill did not advance. STUDENT WORK-BASED LEARNING PROGRAM LIABILITY House Sub for SB 91 was introduced with the purpose of providing businesses with immunity from general liability for participating in work-based learning programs with students. Under the bill, schools will be able to insure against this liability in the same way that they insure students during field trips and sporting events. This reasonable legislation is beneficial for businesses as they seek to increase the Kansas workforce. Both chambers passed Conference Committee Report on SB 91 and the bill was signed into law by Governor Kelly.

RETAILER TAX CREDIT FOR COLLECTION OF STATE SALES TAX Senate Bill 463 would allow retailers to retain 1.5 percent of the retail sales and compensating use tax that they collect each month up to $300. Any retailer that files a consolidated return for reporting retail sales and compensating use tax prior to January 1, 2022, would be subject to the $300 per retailer limitation. The bill would decrease sales tax revenue to the state by an estimated $50 million in fiscal year 2023. The Senate Tax Committee SPRING 2022

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

NEBRASKA NEIGHBORS

GOLF OUTING

JUNE 03, 2022 | ASHLAND, NE. | ASHLAND GOLF CLUB

Kansas Grain and Feed Association (KGFA), along with support from the Nebraska Trucking Association, invited former members of the Nebraska Grain and Feed Association to golf and learn more about KGFA’s Nebraska Neighbors program on June 3 in Ashland, Nebraska. 22

SEED to SILO | Encompassing Agribusiness in Kansas

Nearly 70 golfers, a few of whom made the trek north from Kansas, participated with their Nebraska counterparts. The weather couldn’t have cooperated any better as temperatures stayed below 80 degrees with a mild wind. Following golf and an awards banquet,

those in attendance enjoyed a steak dinner as well as an evening of invaluable networking. To learn more about KGFA’s Nebraska Neighbors program, visit ksgrainandfeed. org/nebraska-neighbors.

SEED to SILO | Encompassing Agribusiness in Kansas

Courtesy of Agricultural Retailers Association: Clarification on EPA’s Chlorpyrifos Ban For Food Use All tolerances for chlorpyrifos expired on Feb. 28, 2022. These tolerances were established in 40 CFR §180.342 (“Chlorpyrifos; tolerances for residues” ) as required by 21 U.S.C. § 346a (“Tolerances and exemptions for pesticide chemical residues”). Since the chlorpyrifos tolerances have expired, chlorpyrifos products with food uses (including products with both food uses and non-food uses) are currently misbranded, and it is a violation of FIFRA to sell and distribute misbranded pesticides.

EPA published a frequently asked questions page to provide clarification. See information below for what applicators and distributors should do if they have chlorpyrifos products for use on food now that tolerances have expired:

https://www.epa.gov/safepestcontrol/ storing-pesticides-safely https://www.epa.gov/pesticide-workersafety/requirements-pesticide-storage

TRANSPORT: To transport products for the purposes of facilitating relabeling constitutes distribution, and thus may not occur unless the U.S. Environmental Protection Agency (EPA) provides authorization for the movement of those pesticide products, even between registered establishments. This can be done with the issuance of either a cancelation order, if products are being cancelled, or a Stop Sale, Use, and Removal Order (SSURO) with some additional information on the locations and quantities of those products. Transporting for other purposes can be handled as it usually is for pesticide products. Transportation of the product for disposal is allowed; however, do NOT take the label off when transporting for disposal. EPA currently working with some registrants to discuss return programs and have not yet authorized any return programs.

USE Anyone in possession of chlorpyrifos products for use on food should discontinue use on food. If the product’s label allows for non-food uses, you may continue to use the product for those non-food purposes. OTHER OPTIONS If other options become available (e.g., SALE AND DISTRIBUTION disposal or product returns), the agency will Products with food uses (including products provide updates on its website and to state with both food uses and non-food uses) are lead agencies. currently misbranded and may be not sold or distributed. Registrants must submit label amendments to reflect the appropriate subset of uses that are still permitted.

DISPOSAL Refer to product labels and contact your state waste regulators for guidance regarding proper disposal. Appropriately dispose of these products as specified by their state. Please see this site for contact information.

STORAGE Store chlorpyrifos products until there is an opportunity for appropriate disposal. Details on proper storage can be found using the following links: SPRING 2022

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

KARA’S KSU FIELD DAYS | 1A & CCA CREDITS DATES: Session I: July 12 - 13 | Session II: July 14 - 15 TIME: 8:30 a.m. - 3:30 p.m. CITY: Manhattan PRICE: $210 or $125

To register, fill out and return the bottom portion via fax 785-234-2930, or via email to lisa@kansasag.org. To pay by check or be billed please return this form and payment to Lisa Anschutz, 816 SW Tyler, Topeka, KS 66612. Cancellations must be made 72 hours in advance for a full refund.