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

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

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

Winter 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 Welcome and congratulate our newest staff members

04 INDUSTRY NEWS Updates on issues affecting you

08 LEGISLATIVE ACTION DAY We were thrilled to be back together in person again for the first time in two years

17 ACES OF AGRIBUSINESS We are featuring a new ace in every issue. Do you know anyone who should be featured?

22 TAL SESSION I The 2022 class of Tomorrow’s Agribusiness Leaders has completed its first session

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

Gary Beachner Ted Behring Doug Biswell Blake Connelly 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’re wrapping up the 2022 legislative session and there have been numerous issues affecting agribusiness in Topeka.

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 In the short time they’ve spent with us I’ve been pleased with their effort and willingness to jump right in and learn about our associations’ functions and our members.

We have a couple of new faces at the association office and one familiar one who has been promoted to a new role. Please help us welcome Clay Fagan, Trisha Fassnacht and congratulate Sidney Storey. Clay joins the association as its director of member investment and training; Trisha as administrative assistant, while Sidney steps into the event planning role vacated by the retirement of longtime association staffer Shari Bennett. I am thrilled to welcome Clay and Trisha to our team. In the short time they’ve spent with us I’ve been pleased with their effort and willingness to jump right in and learn about our associations’ functions and our members. I am also excited about Sidney’s growth into our event planning position. We have been impressed with her ability to step in and fill that role without missing a beat. If you have not already, I invite you to take a moment and learn more about Clay, Trisha and Sidney below. Please send them an email or give them a call welcoming them to the team. Clay Fagan is a native of Burlingame, Kansas. He received a bachelor’s degree in communication from Ottawa University in 2009, followed by an MBA in 2014. Fagan is responsible for the management of the associations’ membership recruitment and retention programs. He is also responsible for the development and coordination of 20-plus training program offerings. In his professional career, Fagan has worked primarily in the fields of recruitment, sales and training. Clay lives in Topeka with his wife Ashley and three children. The family enjoys camping, gardening and raising chickens. Trisha Fassnacht grew up in Muscotah, Kansas.

She is a 2021 graduate, earning a degree in agribusiness from Kansas State University and a bible and leadership degree from Manhattan Christian College. Fassnacht will serve as the association’s administrative assistant, and she looks forward to meeting its members. She enjoys spending time with family and friends, helping on the family farm and taking care of her shih tzu. Sidney Storey, who joined the association in 2019 as its director of administrative services has been promoted to director of event planning. Storey accepted the position following the retirement of Shari Bennett earlier this year. Storey will be responsible for all meeting planning conducted by the association including annual meetings, golf tournaments and the Kansas Agri Business Expo. Again, when you get a chance, take an opportunity to introduce yourself at one of our association functions, by phone or email at 785234-0461 or clay@kansasag.org, trisha@kansasag. org or sidney@kansasag.org. Sincerely,

RONALD C. SEEBER President and CEO

WINTER 2022

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

INDUSTRYnews Increased Cyber-crime Casts Grim Forecast for 2022 Cybersecurity was a trying topic for the year 2021. There were many high-profile breaches, such as Colonial Pipeline and Solar Winds, as well as several others that majorly impacted the economy, supply chains and other critical infrastructures – including agriculture. It’s predicted that 2022 will see similar trends as 2021 endured. The increase in cyber-attacks was across the board in targeting not only bigger businesses but also hitting the small and medium businesses, making it particularly frightening to know that nobody was off limits. A study shows 43% of cyber-attacks were aimed at small businesses, due to the lack of security measures and resources. Of the attacked, only 14% were prepared to defend their assets. Ransomware attacks increased dramatically in 2021, but for smaller businesses other types of attacks were more frequent. The three most common types of attacks were: • Phishing and Social Engineering (data collected from email responses or social media that can be used to gain access within a company) • Compromised or stolen devices (i.e.,

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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Company phone or laptop) • Credential Theft (i.e., usernames and passwords) Awareness and understanding of the types of cyber-attacks can help mitigate these threats. Managing and protecting data should be imperative for any organization. If there’s not already a plan in place, now might be a good time to check on defense procedures that could help mitigate any cyber-attacks; this could include: • Communicating security measures with employees • Installing reliable antivirus software • Managing passwords • Being aware of suspicious emails • Limiting access to critical data • Using a VPN • Securing Wi-Fi network For more information on studies and statistics, and further details of how to protect your company, check out this article.

Cybersecurity was a trying topic for the year 2021. There were many high-profile breaches, such as Colonial Pipeline and Solar Winds, as well as several others that majorly impacted the economy, supply chains and other critical infrastructures – including agriculture. Source: Asmark Institute

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INDUSTRYnews 2021 Dicamba-Related Incident Reports

EPA released a summary of dicamba-related incident reports from the 2021 growing season. Source: Asmark Institute

EPA released a summary of dicamba-related incident reports from the 2021 growing season. Despite the control measures implemented in EPA’s October 2020 dicamba registration decision, the 2021 incident reports show little change in number, severity, or geographic extent of dicamba-related incidents when compared to the reports the Agency received before the 2020 control measures were required. EPA received approximately 3,500 dicamba-related incident reports from the 2021 growing season indicating that: • More than one million acres of nondicamba-tolerant soybean crops were allegedly damaged by off-target movement of dicamba; • A range of non-target agricultural crops were allegedly affected by dicamba, such as sugarbeets, rice, sweet potatoes, peanuts, and grapes; • Dicamba allegedly damaged nonagricultural plants and trees, such as those that grow near homes and in wild areas, including a 160,000-acre wildlife refuge; and • More than 280 incident reports

came from counties where additional restrictions are required to protect endangered species when dicamba is applied to dicamba-tolerant soybean and cotton crops. Based on prior research and numerous stakeholder meetings, EPA has reason to believe the number of incidents reported significantly understates the actual number of incidents related to dicamba use. Given the new information from the 2021 growing season, EPA is reviewing whether over-the-top dicamba can be used in a manner that does not pose unreasonable risks to non-target crops and other plants, or to listed species and their designated critical habitats. EPA is also evaluating all of its options for addressing future dicamba-related incidents. The regulatory tools that the Agency could use to address the extent and severity of the alleged dicamba-related incidents are unlikely to be fully implemented by the 2022 growing season due to the statutory processes the Agency is required to follow.

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 WINTER 2022

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INDUSTRYnews Entry-Level Driver Training Changes

The Entry-Level Driver Training (ELDT) regulation sets the minimum Federal requirements for training entry-level drivers, beginning February 7, 2022. Source: Asmark Institute

The Entry-Level Driver Training (ELDT) regulation sets the minimum Federal requirements for training entry-level drivers, beginning February 7, 2022. The driver must complete the requirements before being permitted to take certain commercial driver’s license (CDL) skills or knowledge tests. The ELDT regulations are not retroactive, so the new requirements do not apply to individuals holding a valid CDL or an S, P, or H endorsement issued prior to February 7, 2022. Drivers applying for their initial CDL,

upgrading their current CDL, or obtaining a passenger, school bus or hazardous materials endorsement for the first time must now be trained by a training provider that is listed on FMCSA’s Training Provider Registry. The rule requires theory instruction in 30 topics for a Class A CDL. Drivers must be assessed on each topic and receive a minimum score of 80%. Behind-the-Wheel training requirements must include both range and public road training in a vehicle of the same type that the driver intends to use for their CDL or endorsement.

Ag-Restricted CDL Report Asmark’s Annual Farm-Related Ag-Restricted CDL Report summarizes each state’s requirements for the Farm-Related/AgRestricted (Seasonal) CDL. The federal government allows states to issue this type of CDL but does not mandate their participation or support. The “seasonal” CDL is beneficial to our industry, especially during peak seasons,

and is only issued to farm-related industries, which include farm retail outlets and suppliers, agrichemical businesses, custom harvesters, and livestock feeders, for Class B or C vehicles. When a driver is using an ag-restricted CDL, they must be included in a random drug test pool and have the appropriate Clearinghouse queries conducted. Asmark’s Annual Farm-Related Ag-Restricted CDL Report summarizes each state’s requirements for the Farm-Related/Ag-Restricted (Seasonal) CDL. Source: Asmark Institute

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SEED to SILO | Encompassing Agribusiness in Kansas

WINTER 2022

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

Association members return to Topeka for first inperson Legislative Action Day since 2020

Kansas Agribusiness Retailers Association (KARA), Kansas Grain and Feed Association (KGFA) and the Kansas Cooperative Council hosted nearly 100 members in Topeka on Jan. 19 for Legislative Action Day. The annual Legislative Action Day presents members an opportunity to meet face-to-face with their legislators in Topeka and advocate for agribusiness. For the first time in two years members of the aforementioned trade associations gathered in Topeka for lunchtime cheeseburgers and a prime rib dinner while advocating for our industry as the associations returned to an in-person Legislative Action Day on Jan. 19, 2022. “The virtual meeting we had to have in 2021 was great, but bringing our members to Topeka and meeting with our elected officials face-to-face is much more valuable,” KARA and KGFA President and CEO Ron Seeber said. “This year, maybe more than any other in recent memory, it was important for our industry to have a strong presence with lawmakers. We strongly encouraged them to join us for this event and we are pleased so many were able to make it.” Attendees were treated to remarks from Kansas House Speaker Pro Tem Blaine Finch (R-Ottawa) and Kansas State Senator Kellie Warren (R-Overland Park). Finch, who has served in the House of Representatives since 2013 discussed the legislative outlook from the House’s perspective. 8

SEED to SILO | Encompassing Agribusiness in Kansas

Warren, who is a strong supporter of agribusiness despite her district being largely urban, has served as a leading voice regarding property tax reform, worked to lower utility bills, reduce the food sales tax and preserve access to quality healthcare. Warren also formally received questions concerning her intention to run for Kansas Attorney General following the departure of longtime Attorney General Derek Schmidt who has embarked on a candidacy for governor in 2022. Prior to members visiting the statehouse to meet with legislators and sit in on committee hearings, the associations’ lead lobbyist Randy Stookey and KCC’s chief lobbyist Shahira Stafford reviewed nearly a dozen issues before agribusiness on this year’s legislative agenda. Stookey and Stafford explained the associations’ position on property taxes; reasonable regulation; infrastructure investment; Kansas seed law; the Kansas grain warehouse program; a proposed elevator safety act, electric rates and workforce development. Courtesy: Kansas Cooperative Council

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2022

ANNUAL MEETING

K G F A

KANSAS GRAIN AND FEED ASSOCIATION APRIL 11 - 12, 2022 Wichita Marriott | Terradyne Country Club

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

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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

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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.

WINTER 2022

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

Statehouse

INSIDER By: Association Government Affairs

In late March we reached the drop-dead point of the 2022 Kansas legislative session, where any non-exempt bill not passed by both chambers may be dead unless it is referred to a conference committee to meet throughout the final week of March to work out differences in bills. Legislators began final work on March 28 prior to taking off most of the month of April. They will then return on Monday, April 25 for a likely brief veto session to consider bills vetoed by Governor Laura Kelly.

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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, 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. NEW WATER LEGISLATION Two new bills have been introduced concerning water and groundwater management districts.

The bills are scheduled for hearing in the Senate Committee on Agriculture and Natural Resources. The first bill, Senate Bill 548, would prohibit groundwater management districts from providing advice and assistance for matters relating to water rights, which Kansas law currently allows for the management of drainage problems, storage, groundwater recharge, surface water management, and all other appropriate matters of concern to the district. SB 548 would also stipulate that recommendations for groundwater must be specifically for irrigation within the district. The second bill, Senate Bill 549, would allow a holder of a water right dedicated to a use other than irrigation to withdraw from a groundwater management district if the point of diversion is located within such district and the authorized place of use is located wholly or partially within such district. These bills are thought to be targeted at groundwater management district number 2 in Southcentral Kansas.

HOUSE PASSES BUDGET In late-March, the House passed its version of the state budget House Sub for Sub SB 267 for fiscal years 2022, 2023, 2024 and 2025. The Senate passed its version of a budget bill (Sub SB 444) last week. The two chambers will meet to finalize the language. Both versions of the budget provide an allotment of $60,000 from state general funds for the KDA grain warehouse program for fiscal years 2023 and 2024. 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. Continued on Page 16

WINTER 2022

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The House Tax Committee amended the bill to add NAICS codes for additional businesses and industries as requested by the Kansas Chamber of Commerce, to include 541690 and 112210. Having gone through the exempt Committee on Taxation, the bill remains alive and has been placed on the House calendar for consideration. The House has held off action on tax bills, but this bill may be considered during tax conference committees between the two chambers. INDUSTRY REGULATIONS House Concurrent Resolution 5014 would propose a constitutional amendment to increase legislative oversight of agency regulations. If approved by two-thirds of the legislature, the amendment would go before Kansas voters in the 2022 election. The House passed the resolution on a vote of 85-39, and the Senate passed the resolution on a vote of 27-12. Having passed both the House and the Senate, the proposal will now be placed as a question on the November 2022 election ballot. Substitute for Senate Bill 34 would require states agencies to review each of its regulations, at least once every five years, to determine if they are still valid and necessary. The bill also allows for a 15-day quick repeal process for outdated regulations. The bill passed the House on a vote of 88-34. The bill now returns to the Senate for a motion to concur with the House Amendments or will be referred to a

House and Senate Federal and State Affairs Conference Committee. House Bill 2087 would amend a law requiring review of economic impact of proposed regulations by the state budget director. The Senate amended the bill to reduce the review threshold from $3 million to, $1 million, to increase the number of regulations reviewed by the state budget director. The bill has been referred to a House and Senate Conference Committee. 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 amended the bill to reduce the maximum civil penalty from $3,000 to $1,000 before voting it out of committee. The bill will be discussed in a House and Senate Agriculture Conference Committee. KDA AGENCY FEES House Bill 2560 would authorize the KS

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Dept. of Agriculture to extend current fees on agribusiness without increasing those fees. The bill would also extend, 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. Governor Laura Kelly has signed the bill into law. SALT (STATE AND LOCAL TAX) PARITY ACT Senate Bill 495 would establish the “salt parity act” to allow 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. The election would only be allowed in a taxable year where there is a limitation on state and local tax deductions allowed to individuals under the federal Internal Revenue Code. An electing pass-through entity would be subject to a tax in an amount equal to 5.7 percent of the sum of each electing pass-through entity owner’s distributive share of the electing pass-through entity’s income attributable to the state. Any excess income tax credit, net operating loss, or other modification would be allowed to be carried forward on the electing passthrough entity’s return but would only be utilized in a year in which the electing pass-through entity has made the election, except that any limitation for an income tax credit, the net operating loss, or any other modification would apply to the electing pass-through entity. The bill would allow the electing pass-through entity owners to not be liable for the income tax in their separate or individual capacities, and the electing pass-through entity’s income attributable to the state would not be taken into account by the electing pass-through entity owners. A nonresident individual or fiduciary whose only source of income from this state is income from an electing pass-through entity under the Salt Parity Act would not be required to file an income tax return. The Senate placed the bill’s contents into Senate Substitute for House Bill 2239 and passed the bill out favorably. The bill Continued on Page 20

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Aces

OF AGRIBUSINESS

Full Name, Age. Alex Gerard, 39

Job title, company, town. Area Manager, Gavilon Grain, Wichita, KS

Alex Gerard VOL: 1 | FEATURE 1

What does your company specialize in? Gavilon connects producers and consumers of feed, food and fuel, linking agricultural supply with demand through its global supply chain network. What services/products does your company provide? We provide origination, storage and handling, transportation and logistics, marketing and distribution, and risk management services to customers and suppliers across the globe. What is something unique about your company/location? Gavilon Wichita is one of the largest single headhouse grain elevators in the U.S.

Kansas Agribusiness Retailers Association (KARA) and Kansas Grain and Feed Association (KGFA) are embarking on a new project - Aces of Agribusiness. We’re proud to be featuring a different person in each issue of Seed to Silo. If you know of any aces who should be featured let us know. For our first Aces of Agribusiness feature we are highlighting Alex Gerard of Wichita’s Gavilon Grain. Gerard grew up in the self-proclaimed jewel of southwest Kansas, Johnson. Prior to his 12 years in the grain business, he graduated from Kansas State University with a degree in agricultural economics and spent five years with UPS. Wanting to get back to his agricultural roots, Gerard contacted multiple agriculture trading companies and received a call back

DO YOU KNOW AN ACE WE SHOULD FEATURE?

trae@kansasag.org

from DeBruce Grain where the rest became history. Gavilon Grain provides origination, storage and handling, transportation and logistics, marketing and distribution and risk management services to customers and suppliers across the globe. Did you know Gavilon Grain’s Wichita location also features one of the largest single headhouse grain elevators in the United States? Learn more about Alex by reading the full interview to the right.

facebook.com/ksagretailers facebook.com/ksgrainandfeed

@ksagretailers @ksgrainandfeed

How long have you been in the grain business? 12 years How did you get started in the grain business? I graduated from Kansas State University with a degree in Agricultural Economics but chose to stay with UPS as a Manager upon receiving my diploma. After five years with UPS I was grateful for the knowledge/ experience I had gained but knew it wasn’t my passion. I decided to brush up my resume and reach out to multiple agriculture trading companies. A company by the name of DeBruce Grain returned my call and the rest is history. Where do you consider your hometown or where you grew up? Johnson, KS (The crown jewel of SW Kansas) What KGFA services are the most valuable to you and your company? Gavilon utilizes almost every training event that KGFA has to offer. We have benefited from grain grading schools, elevator safety and Maintenance workshops, and 7B/4 recertifications to name a few. I appreciate Ron and his team advocating on behalf of the grain industry in the state of Kansas. WINTER 2022

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

INDUSTRYnews Winston Weaver Co. Fertilizer Plant Fire

A fire broke out at the Winston Weaver Company fertilizer plant in Winston-Salem, North Carolina that is estimated to store 600 tons of ammonium nitrate. Source: Asmark Institute

A fire broke out at the Winston Weaver Company fertilizer plant in Winston-Salem, North Carolina that is estimated to store 600 tons of ammonium nitrate. More than 6,000 people were evacuated from their homes due to concerns about a possible explosion. Firefighters were able to keep an eye on conditions with drones until it was safe to cool down what remained and dismantle the

rubble left by the blaze. A berm was built at the site to prevent runoff. The Fertilizer Institute (TFI) and Agricultural Retailers Association (ARA) have created a fact sheet covering safety and security precautions for ammonium nitrate.

FMCSA Updates Medical Forms New versions of the FMCSA Medical Examiner’s Certificate and Medical Examination Report Form have been released. The new versions have an expiration date of 12/31/2024 in the upper-right corner, which was the only change to the forms.

These updated forms are available on the Asmark Institute website. If you have any questions, please give us a call at 270-926-4600. We’ll be happy to help.

New versions of the FMCSA Medical Examiner’s Certificate and Medical Examination Report Form have been released. Source: Asmark Institute

Supreme Court Halts OSHA ETS The US Supreme Court has re-imposed a stay on OSHA’s Emergency Temporary Standard (ETS) COVID-19 vaccination and testing for businesses with 100 or more employees. In the 6-3 ruling, the majority found the mandate oversteps OSHA’s authority by The US Supreme Court has re-imposed a stay on OSHA’s Emergency Temporary Standard (ETS) COVID-19 vaccination and testing for businesses with 100 or more employees. Source: Asmark Institute

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trying to regulate a hazard that is not specific to the workplace. Now the ETS will go back to the 6th Circuit Court to consider the substantive validity of the ETS and this could ultimately return to the US Supreme Court for review.

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INDUSTRYnews ACRC Turns 30

This month, the Ag Container Recycling Council (ACRC) is celebrating its 30th anniversary of agricultural plastic stewardship! Source: Asmark Institute

This month, the Ag Container Recycling Council (ACRC) is celebrating its 30th anniversary of agricultural plastic stewardship! Currently, the ACRC has created recycling programs in 47 states and collects around 11 million pounds of one-way rigid HDPE plastic annually. This plastic is then processed to create sellable, recycled resin which is repurposed into many useful products. Since the program’s formation in 1992, the ACRC has been responsible for recycling 226 million

pounds of agricultural chemical containers. ACRC works with thousands of farmers, retailers, and applicators nationwide to responsibly manage agricultural chemical containers throughout their lifecycle. Their members are crucial to the organization’s success and demonstrate how industry stewardship works in an exemplary manner. To learn more about ACRC, find a recycling location, or get involved, visit the ACRC website.

OSHA Proposes PIT Standard Changes OSHA announced a proposed rule to update the design and construction requirements for Powered Industrial Trucks (PIT), including forklifts, end loaders and powered pallet jacks. The proposal adds references to the latest design and construction requirements published by the American National Standards Institute (ANSI) in conjunction with the Industrial Truck Standards Development Foundation. OSHA proposes allowing employers to use powered industrial trucks not constructed

in accordance with those national consensus standards incorporated by reference in the OSHA standards. If the employer can demonstrate that the truck being used was designed and constructed in a manner that provides employee protection that is at least as effective as the national consensus standards, it can be used. Comments on the changes will be accepted through May 17, 2022.

OSHA announced a proposed rule to update the design and construction requirements for Powered Industrial Trucks (PIT), including forklifts, end loaders and powered pallet jacks. Source: Asmark Institute

NAICS Code Revision

The North American Industry Classification System (NAICS) 2022 Revision includes a new Farm Supply Retailers option under NAICS code 444240. Source: Asmark Institute

The North American Industry Classification System (NAICS) 2022 Revision includes a new Farm Supply Retailers option under NAICS code 444240. This new option, along with the already existing Farm Supplies Merchant Wholesalers under NAICS code 424910, will allow agricultural retailers to select the best option to fit their facility’s needs.

We applaud the Agricultural Retailers Association (ARA) for their efforts to establish a new NAICS code for Farm Supply Retailers.

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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

Continued from Page 16 now goes to the House for consideration of a motion to concur with the Senate amendments. SHORT LINE RAILROAD INVESTMENT TAX CREDIT Senate Bill 326 would provide an 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 bill was amended to limit the transferability of the tax credit to any eligible customer or vendor of the railroad. The tax credit would exist from 2022 through 2031, and the total value of the program could not exceed $8.7 million each year. Having passed the Senate, the bill successfully made it through the House Tax Committee with an amendment excluding Class I railroads from qualifying for the program. The House has held off action on tax bills, but the bill may be considered during tax conference committees between the two chambers. CREDIT AND DEBIT CARD 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. 20

SEED to SILO | Encompassing Agribusiness in Kansas

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 and removed the bills previous contents. The committee passed the bill out as amended. 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 quickly passed through the Senate on a 39-0 vote and was referred to the House Transportation Committee. The bill may be considered during transportation conference committees between the two chambers.

AUTONOMOUS VEHICLES Senate Bill 546 would allow for the use and regulation of autonomous (driverless) motor vehicles in Kansas. Walmart and autonomous vehicle developer Gatik testified in support of the bill which would allow self-driving vehicles to traverse fixed business-to-business routes. The bill would also preempt cities or counties from establishing barriers to deployment of the vehicles. Forty-four 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. The Senate Committee of the Whole passed the bill on a vote of 24-12. The bill now moves to the House for consideration. UNEMPLOYMENT INSURANCE House Bill 2703 would modify the My Reemployment Plan Program and, with certain exceptions, make use of the program mandatory for those receiving unemployment insurance benefits. The Secretary of Commerce would be allowed to require claimants to participate in reemployment services. In addition, the bill would amend solvency and credit rate schedules for the Employment Security Fund. Having passed the House, the Senate Commerce Committee amended the bill

SEED to SILO | Encompassing Agribusiness in Kansas

to clarify which individuals are exempt from participation in the My Reemployment Plan including: claimants on temporary layoff with a return-to-work date, claimants that are currently employed or that no longer reside in Kansas, claimants that are current reemployment services and eligibility assessment participants, claimants that are members of a placement union or claimants that are engaged in a training program. After being amended by the Senate, the bill was passed by the Senate on a unanimous vote. The bill now returns to the House where they may consider a motion to concur with the Senate amendments, or the bill will be referred to a Commerce Conference Committee. TECHNICAL EDUCATION CREDENTIAL AND TRANSITION INCENTIVE House Bill 2631 would enact the Career Technical Education (CTE) Credential and Transition Incentive (CTI) for Employment Success Act. 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. Before sending it to the full House, the Education Committee amended the bill to: Specify reimbursement rates for approved standard CTE credentials and approved highvalue CTE credentials; provide reimbursement for assessments for standard CTE credentials exclusively for students with an IEP, 504 plan, or as identified by the discretion of the school district. The full House passed the bill favorably on a vote of 122-0. PLASTIC REGULATION, STATE LEVEL PREEMPTION 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. The House Commerce

Committee amended the bill slightly to add plastic straws to the definition of “auxiliary container”. Having passed the House Committee of the Whole on a vote of 74-48, the bill now moves to the Senate. WORK-BASED LEARNING PROGRAM LIABILITY In 2021, 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 would 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. A conference committee between the House and the Senate has been appointed to determine final language on the bill. SPECIAL LEGISLATIVE TAX COMMITTEE RECOMMENDATIONS In November of 2021, a Special Committee on Taxation met to review current tax exemptions and abatements in Kansas. The committee made multiple recommendations on, inter alia, the use of state general fund ending balances, constitutional amendment proposals limiting taxes or expenditures, and the taxation of energy production in the state. Senate Concurrent Resolution 1619 would urge the legislature to adopt the recommendations of the Special Committee. The full Senate adopted the resolution on a vote of 28-11. FINISHING STRONG As we round out the 2022 legislative session, your government affairs team will remain vigilant in opposing any effort to balance the state budget on the backs of our industry. Information above reflects a selection of issues as of March 25, 2022. For up-to-date reports on all of the bills we are tracking at the Kansas Statehouse, visit our websites.

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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

2022 TAL CLASS COMPLETES

FIRST SESSION 22

SEED to SILO | Encompassing Agribusiness in Kansas

Leading Off The 2022 class of Tomorrow’s Agribusiness Leaders officially completed their first session of agribusiness’ premier leadership development course in mid-January. The 10 individuals chosen by their peers to complete the 24th class included: Michelle Busch (Syngenta); Garrett Buschjost (Koch Agronomic Services); Adam Butler (MKC); Douglas 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). Associations 101 The class convened for two days at the association office in Topeka where it learned more about each other, the state government and the associations who serve their organizations. Kansas Agribusiness Retailers Association (KARA) and Kansas Grain and Feed Association (KGFA) President and CEO Ron Seeber provided a 30-minute presentation discussing the history of each association and the importance of member input toward the success of the organizations. “I really appreciated the opportunity to meet, network, and brainstorm with peers from across the state,” Zacharias said. “You could tell very quickly that the current class has so much potential to develop into the future leaders of Kansas’ agriculture industry. I believe that one of the greatest opportunities and necessities that we have in this industry is to educate the public.”

Speakers and Experiences The class had the opportunity to converse with several Kansans who hold distinguished spaces in public service. First, Kansas Secretary of Agriculture Mike Beam joined the group for lunch prior to discussing the role the Kansas Dept. of Agriculture plays in implementing and enforcing rules and regulations on agribusiness. Beam also encouraged continued communication between the department and its stakeholders to ensure the regulated entities are aware of rules and regulations and the department is cognizant of how its actions are affecting KARA and KGFA members. Prior to meeting with Kansas legislators, the class was able to discuss an overview of lobbying with three longtime government affairs professionals: Aaron Popelka of the Kansas Livestock Association; Josh Roe of the Kansas Corn Growers Association and Shahira Stafford of Stafford Public Affairs. “Building relationships with and communicating with our representatives are vital parts in helping to shape laws and regulations to our industry,” Letourneau said following meetings. “Sharing our story gives context and depth to the impact of legislative decisions.” Current Kansas Attorney General and 2022 gubernatorial candidate Derek Schmidt joined the

class for breakfast while he discussed the role the attorney general’s office has played in protecting Kansas’ agribusiness interests. Rounding out the speaker slate, the class met with Associated Press reporter John Hanna inside the Kansas Statehouse. Hanna provided valuable insights on fostering productive working relationships with the media. Prior to participating in the associations’ annual legislative action day the class received a tour of the Kansas Statehouse including featured photos inside the House of Representatives, Senate and Governor Laura Kelly’s ceremonial office. The 2022 class of Tomorrow’s Agribusiness Leaders will reconvene in July in Washington, D.C., where class members will lobby the Kansas congressional delegation on issues important to agribusiness.

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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

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