Winter 2015, GRAIN AND FEED REPORT
Kansas Agri Business Expo Attracts Nearly 1,200 Attendees...3-4 Your Voice Counts in Topeka...5
President & CEO Tom R. Tunnell
KGFA Hosts Grain Handlers Training Program...5
Senior Vice President, Government Affairs Ron Seeber
Register for 2016 Grain Grading Schools...5 Auction Raises Money for Scholarships...6 Accepting Scholarship Applications for 2016-2017 School Year...6
Senior Vice President, Chief Financial Officer Stephanie Jensen Vice President, General Counsel Randy Stookey
Welcome 2016 TAL Class...6
Vice President of Event Planning Shari Bennett
AG Schmidt Backs Supreme Court Review of EPA Runoff Regulations...7
Vice President of Member Services Mauri Ann Domer
OSHA Hazard Communication Standard (HCS) - Compliance Deadline...7-8 Carbon Monoxide Safety...9 Fire Protection Self-Audit Checklist...9 KGFA’s 2016 Legislative Agenda...10
2016 Sponsorship Commitment Deadline Extended to January 1...11 KGFA Welcomes New Member...11 Trade Talk...11
Vice President of Mktg. & Communications Shahira Stafford Senior Director of Internal Operations Lisa Anschutz Executive Assistant to the President Julie Stueve The Kansas Grain and Feed Report is published quarterly for the members, friends and affiliates of the Kansas Grain and Feed Association. Mail contributions to KGFA, Attention: Shahira Stafford, 816 SW Tyler, Topeka, KS 66612. The KGFA team welcomes your comments, contributions and suggestions. Annual subscriptions for members can be purchased for $25.00. Š 2015 KGFA Read this newsletter online at www.ksgrainandfeed.org/printnewsletters. ...............................................................................
2
GRAIN AND FEED REPORT, Winter 2015
Thanks to the 1,169 attendees of the 2015 Kansas Agri Business Expo on November 18-19 in Wichita. From exhibitors to general managers to recertification attendees, the Century II Convention Center was filled with agribusiness men and women learning about the latest technology and services available today. A special thank you to the following exhibitors: Adams Fertilizer Equipment ADM Fertilizer AFLAC Ag 1 Source, LLC Ag Ads Ag Growth International Ag Spray Equipment Agra Liners, LLC Agrilead, Inc. Agrium U.S., Inc. AgTrax AgVision Agribusiness Software Agworks, Inc. Allied Environmental Consultants Inc. American Vanguard Corporation (AMVAC) Ameritrack Rail ASM Engineering Consultants, LLC ASMARK INSTITUTE BarnesCo Inc. BASF Corporation Bayer CropScience Ben Trei Fertilizer Co., LLC Bolivar Contracting, Inc. Brehmer Mfg. Brothers Equipment, Inc. Bulk Conveyors, Inc. Bunge North America CCS Group LLC Cen-OK Services LLC Central Life Sciences Central States Hydroseal CGB Fertilizer Charm Sciences CHS, Inc. CP Products Company, Inc. CPS Wholesale CrustBuster/Speed King Inc. CTEC, Inc. Dome Corporation of North America Don's Tire Dow AgroSciences Doyle Equipment Mfg. Co. Drake, Inc. Dultmeier Sales DuPont Crop Protection EGE Products Electro-Sensors, Inc. Environmental Tillage Systems Ernest-Spencer Essmueller Company Evans Enterprises, LLC
Fairbank Equipment FARMCHEM Farmers Oil Company, Inc. FarmLink FMC Corporation Frisbie Construction Co., Inc. Gamet Mfg. Inc. GAN-AG Gavilon Fertilizer Gowan USA, LLC Grain Belt Supply Co. Inc. GSI Engineering Gypsoil Brand Gypsum HABCO, Inc. Hammel Scale Co., Inc. Heartland Ag Inc. Heartland Tank Companies Helena Chemical Co. High Plains Journal IBT Industrial Solutions INAalert InterOceanic Corp. Intersystems J. R. Simplot Company Jade Millwrights Inc. John Deere Kansas Corn Kansas Dept. of Agriculture Kansas Grain Inspection Service Inc. Kansas Highway Patrol Kansas Soybean Commission Kansas Wheat KBH Corporation KC Supply Co. Inc. Ken Babcock Sales, Inc. Kennedy/Jenks Consultants KFSA Koch Ag & Energy Solutions, LLC Korol Financial Group LLC KSU - Department of Agronomy KSU - Grain Science and Industry Kugler Company La Crosse Forage & Turf Seed Lang Diesel, Inc. Larson Engineering, Inc. Lewis Goetz Liftco LLC M & M Specialty Services, LLC Manhattan Data Systems Inc. Marcus Construction McPherson Concrete Storage Systems
MFA Incorporated MFS-York-Stormor Microsource Mid-Continent Industries Mid-West Fertilizer Inc. Midwest Laboratories Inc. MK Minerals, Inc. Moeller Engineering Monsanto Mosaic NACHURS National Billing Nutrients for Life Painters USA, Inc. Parks Motors-BusinessLink Pepper Maintenance Systems, Inc. Perten Instruments, Inc. Plain Jan's Purple Wave Auction Riggins R-Co. LLC Rosen's Inc. RSM US LLP Seedburo Equipment Co. Sieker Sales Simpson Farm Enterprises, Inc. Sioux Steel Company Skinner Tank Company Sorghum the Smart Choice Star Seed Stueve Construction Company Sure Fire Ag Systems Syngenta Terracon Consultants, Inc. Trammo, Inc. Travis Scale TSGC, Inc. TTS-Adams Testing Service, LLC United Suppliers, Inc. United Wind Valent USA Corporation Valleywide Sales, Inc. Van Diest Supply Company Verdesian Life Sciences Vertical Software Inc. Waconia Mfg., Inc. Westheffer Co. Inc. WinField Woofter Construction Irrigation, Inc. WT Contractors Yargus Mfg.
Winter 2015, GRAIN AND FEED REPORT
3
Over 110 ag professionals attend the Recertification Training program and obtain all CEUs needed to recertify their 7B license.
Vendors offering the latest products and services available in the industry exhibit at the sold-out tradeshow.
(l-r) Kevin Brady, Kansas Agribusiness Retailers Association Chairman; Tom Tunnell, KGFA President; and Pete Goetzmann, KGFA Chairman.
Vendors and attendees network during the exhibition.
Tyler Schultz, Korol Financial Group, and Joyce Schultz provide custom “casino” cookies to attendees.
(l-r) Jerald Kemmerer, Pride Ag Resources; Mike Schaffter, Kansas Grain Inspection Service; and Ryan Bourne, Pride Ag Resources.
Tom Meyer, Kansas Grain Inspection Service, greets visitors to his booth,
Devin Henderson (middle), Comedic Magician, entertains guests at the Chairmen’s Reception.
Attendees enjoy “Casino Night” at the Chairmen’s Reception.
Tom Tunnell, KGFA President, is recognized for his 35th work anniversary as leader of the Association.
Keni Thomas, former U.S. Ranger, is the keynote speaker and shares his story from the Black Hawk Down mission.
A packed room listens intently to keynote speaker, Keni Thomas.
4
GRAIN AND FEED REPORT, Winter 2015
Register now for Legislative Action Day! KGFA, KARA and the Kansas Cooperative Council are joining forces to host the 2016 Legislative Action Day on January 27 in Topeka. Attendance is free for members. The day will begin at the Topeka Country Club with a briefing on legislative issues affecting Kansas agribusinesses, as well as a sneak-peak from statehouse leaders on the 2016 Kansas Legislative Session. After lunch, attendees will head to the Statehouse for committee hearings and personal legislator visits followed by a reception with legislators back at the Topeka Country Club. Join us for this excellent opportunity to have your voice heard in Topeka and make a difference in the laws that KGFA and Kansas Grain Inspection Service will be offering valuable information to elevator operators, govern your business. See enclosed form to register. producers, brokers, and grain buyers about grades and Please note that the hotel reservation deadline is January how to use grain standards in marketing during Grain Grading Schools on February 16-18 and March 1-3. 12. Call the Capitol Plaza Hotel at (800) 579-7937. Rooms are blocked for this event at $92.00/night. Hands-on training will be given to recognize various types of kernel damage and samples will be graded to assist in practical, cost effective procedures for grain inspection. See enclosed form to register. KGFA members from Kansas and Oklahoma gathered at the Garden City Coop on December 1 for the KGFA Grain Handlers Program to take a unique look at the challenges grain handlers faced for harvest 2015. This KGFA is proud to announce that the Scholarship day-long training evaluated various crop quality issues Auction at the Expo raised $11,908 jointly toward the and provided practical lessons for future harvests. KGFA and Kansas Agribusiness Retailers Association scholarship programs. Thank you to the following companies that made a donation to the Auction:
Kevin Miles, Rolfes at Boone in Iowa, speaks on “"Why, How, When to Aerate Stored Commodities� at the KGFA Grain Handlers Training Program in Garden City on December 1.
Ag 1 Source AgTrax Amvac Beachner Grain Don's Tire & Supply Inc. DowAgro Sciences Dupont FarmChem FC Stone Harveyville Seed Heartland Ag Hooker Equity Exchange J.R. Simplot Co.
John Deere Co. Kansas CCA Program KS Grain Inspection Serv. KS Soybean Commission Korol Financial Group KSU Grain Science Dept. Lang Diesel MK Minerals Midwest Mgmt. Service Norwood & Co. PlainJan's Pro-Ag Marketing KSU Agronomy Club
Winter 2015, GRAIN AND FEED REPORT
5
Congratulations to the applicants chosen If you know of a student in your community that wants to be part of the 2016 Tomorrow’s to continue their education in Kansas and could benefit Agribusiness Leaders (TAL) class. The TAL program is the premier leadership from one of KGFA’s college scholarships, please program for agribusiness leaders in the encourage them to apply. See the enclosed flier. Applications can be found at ksgrainandfeed.org and are nation, and KGFA is proud to welcome these individuals to the group: due no later than March 2. Each year, KGFA awards $10,500 in scholarships to deserving high school students to help relieve the financial burden on their families. Thirteen scholarships are offered: one $500 Dub & Inez Johnson Memorial Scholarship, one $1,000 John Cranor Memorial Scholarship (chosen by KSU), seven $1,000 KGFA Scholarships, and four $500 KGFA Scholarships.
Matt Case, Farmer’s Cooperative Assn., Baxter Springs Blake Connelly, Southern Plains Cooperative, Lewis Tatum Couture, AgMark, LLC, Beloit Valerie LaPean, Cargill, Overland Park Barbara Padgett, Pride Ag Resources, Dodge City Jonathan Person, Dow AgroSciences, Olathe Christopher Stevens, Farmers Coop Grain, Conway Springs Samantha Tenpenny, ADM Fertilizer, Overland Park Derrick Tice, Pinnacle Ag Holdings, St. Francis Kristin Williams, Randall Farmers Coop Union, Randall If you would like to invest in a bright future for the industry, please consider becoming a sponsor of the TAL program. Your sponsorship will significantly reduce the financial burden on these students and will ensure a top-quality educational experience.
Bob McBride, Purple Wave, auctioneers the Scholarship Auction at the Expo and helps raise over $11,000 toward the associations’ scholarship programs.
6
GRAIN AND FEED REPORT, Winter 2015
Kansas Attorney General Derek Schmidt on December 9 asked the U.S. Supreme Court to review a lower court decision regarding the Environmental Protection Agency’s efforts to dictate how states regulate runoff from sources such as farmland, construction sites, and urban areas.
National Grain and Feed Association In February 2015, OSHA issued a memorandum outlining how OSHA intends to enforce the new Hazard Communication Standard (HCS) for chemical manufacturers, importers, and distributors. An updated OSHA HCS compliance directive, on July 9, 2015, specifically states that "operators" of grain elevators meet the definition of a “chemical manufacturer.”
Schmidt led a bipartisan group of 22 state attorneys general in filing a brief asking the Court to take up the case after the U.S. Court of Appeals for the 3rd Circuit upheld the EPA's effort to impose detailed nutrient and sediment runoff limits on states in the Chesapeake Bay In response to OSHA’s new Hazard Communication region under the guise of setting the total maximum Standard, the National Grain and Feed Association daily load (TMDL) for those pollutants. (NGFA), American Feed Industry Association (AFIA), Corn Refiners Association, and the North American “This case has never been about one geographic region Millers Association released a Hazard Communication or one particular plan to manage runoff,” Schmidt said. Compliance Program Guide for the grain handling, feed, “The issue is whether the EPA can expand its authority ingredient, and processing facilities. The guide was under the Clean Water Act to micromanage how states created to ensure the grain, feed, processing and milling meet federal water-quality standards. Ultimately, this is industries were prepared to comply with the new about whether a federal agency has the authority to standard. upend state and local economies by telling states – and ultimately landowners – how to use their land and As of December 1, 2015, compliance to the new natural resources. We believe the EPA has exceeded its HCS labeling and SDS provisions is required. By authority and our nation’s highest court should be the June 1, 2016, employers must have fully updated their one to ultimately decide this case.” hazard communication programs and provided employee training for any newly identified health or Kansas filed the brief in American Farm Bureau Federation, physical hazards under the standard. et al., v. United States Environmental Protection Agency, et al., Case No. 15-599. Kansas is supporting the plaintiffs – The primary implication of the newly revised OSHA the American Farm Bureau Federation and others – in standard is that shipped raw grains and oilseeds, as well asking the Supreme Court to hear the case and reverse as some feeds and ingredients, must now comply with the 3rd Circuit’s decision. OSHA's requirement to issue a revised safety data sheet (SDS). For this reason, the Hazard Communication States joining the Kansas-led brief were Indiana, Compliance Program Guide provides sample SDS Missouri, Alabama, Arizona, Arkansas, Colorado, language, explains labeling requirements, summarizes Georgia, Kentucky, Michigan, Montana, Nebraska, the changes and answers frequently asked questions on: Nevada, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Utah, Wisconsin and Combustible dust; Wyoming. SDS and labeling requirements; Transportation; Bulk or bagged feed sold to dealers or farms; and EPA requirements.
Winter 2015, GRAIN AND FEED REPORT
7
Background The newly revised standard, updated by OSHA to conform to the United Nations' Globally Harmonized Standard for Classification of Chemicals, requires chemical manufacturers and importers to evaluate the chemicals they produce or import, and provide hazard information to employers and workers by putting labels on containers and preparing safety data sheets. The modified standard provides a single set of harmonized criteria for classifying chemicals according to their health and physical hazards, and specifies hazard communication elements for labeling and SDS. Major changes to the standard that are primary focuses of the guidance include:
Hazard classification: Chemical manufacturers and importers are required to determine the hazards of the chemicals. Hazard classification under the new, updated standard provides specific criteria to address health and physical hazards, as well as classification of chemical mixtures. Labels: Chemical manufacturers and importers must provide labels that include signal words, pictograms, hazard statements, and precautionary statements for each hazard class and category. Safety Data Sheets: The new format (which replaces the former material safety data sheet) requires 16 specific sections. As of June 1, 2015, the standard requires the SDSs to be sent using the new uniform format.
(l-r) Jeff Adkisson, Grain and Feed Association of Illinois; Bob Zelenka, Minnesota Grain and Feed Association; Tom Tunnell, KGFA; Bobby Frederick and Randy Gordon, National Grain and Feed Association; at the NGFA Country Elevator Conference in Kansas City on December 5.
8
GRAIN AND FEED REPORT, Winter 2015
The following is from Grain Journal’s Safety Tip of the Week, December 7, 2015: Carbon monoxide is called the "silent killer," because it is colorless, odorless, tasteless, and nonirritating. If the early signs of CO poisoning are ignored, a person may lose consciousness and be unable to escape the danger. Unfortunately, many people do not recover from the unconscious phase. To reduce the chances of CO poisoning in your workplace, you should take the following actions:
Source: Dave Nelson, Safety and Health Director, North Dakota Grain Dealers Association, Grainmen's Mirror , October 2015.
The following is from Grain Journal’s Safety Tip of the Week, November 30, 2015:
Install an effective ventilation system that will remove CO from work areas. Maintain equipment and appliances (e.g., water heaters, space heaters, cooking ranges) that can produce CO in good working order to promote their safe operation and to reduce CO formation. Consider switching from gasoline-powered equipment to equipment powered by electricity, batteries, or compressed air, if it can be used safely. Prohibit the use of gasoline-powered engines or tools in poorly-ventilated areas. Provide personal CO monitors with audible alarms if potential exposure to CO exists. Test air regularly in areas where CO may be present, including confined spaces. Install CO monitors with audible alarms. Educate workers about the sources and conditions that may result in CO poisoning as well as the symptoms and control of CO exposure. Report any situation to your employer that might cause CO to accumulate. Be alert to ventilation problems - especially in enclosed areas, where gases from burning fuels may be released. Promptly report complaints of dizziness, drowsiness, or nausea. Avoid overexertion, if you suspect CO poisoning, and leave the contaminated area. Avoid the use of gas-powered engines, such as those in powered washers as well as heaters and forklifts, while working in enclosed spaces.
Is your local fire department familiar with your facility, its location and specific hazards? If you have a fire alarm system, is it certified as required and tested annually? If you have interior standpipes and valves, are they inspected regularly? If you have outside private fire hydrants, are they flushed at least once a year and on a routine preventive maintenance schedule? Are fire doors and shutters in good operating condition? Are fire doors and shutters unobstructed and protected against obstructions, including their counterweights? Are fire door and shutter fusible links in place? Are automatic sprinkler system water control valves, air and water pressure checked periodically as required? Is the maintenance of automatic sprinkler systems assigned to responsible persons or to a sprinkler contractor? Are sprinkler heads protected by metal guards if exposed to potential physical damage? Is proper clearance maintained below sprinkler heads? Are portable fire extinguishers provided in adequate number and type and mounted in readily accessible locations? Are fire extinguishers recharged regularly with this noted on the inspection tag? Are employees periodically instructed in the use of fire extinguishers and fire protection procedures?
Source: OSHA Handbook for Small Businesses.
Winter 2015, GRAIN AND FEED REPORT
9
The 2016 Kansas Legislative Session is scheduled to begin on Monday, January 11. The KGFA lobbying team is ready to work day and night watching out for the best interests of agriculture and the grain handling industry in Kansas. With the help of the KGFA Legislative Committee and Board of Directors, the below agenda items have been approved and will direct KGFA’s lobbying efforts this Session. Be looking out for KGFA’s weekly Legislative Update emails every Monday to stay up-to-date with the latest status of bills moving through the legislature. If you’d like to make sure you’re added to that email distribution list, please email lisa@kansasag.org. Budget Shortfall Consensus revenue estimates recently show that the state is down $159 million than previously predicted. The Governor immediately announced a series of budget cuts and sweeps to fill $124 million – including $47.9 from KDOT. Even with the Governors actions, revenue estimators forecast the state will need to raise $175 million before June 30, 2016. This short fall will have to be accomplished either by additional cuts, sweeps or tax increases. Ag Tax Policy Several bills were introduced last session that targeted agribusiness. These included bills imposing sales tax on sales of Ag utilities, eliminating sales tax exemption for farm machinery and equipment, increasing the statewide assessed valuation of agricultural land in Kansas, and imposing an excise tax on ethanol. The ag sector has been asked directly and repeatedly in Tax committees what they are willing to contribute to balancing the budget whenever we speak in opposition to any of the proposed tax increases on the Ag industry. We have and will continue to defend ag tax policies. Property Tax Lid Acceleration Last session, a bill was signed into law that mandates, beginning in 2018, cities and counties are prohibited from adopting, absent mandatory elections, portions of their budgets funded with revenues from certain property tax increases. Generally, cities and counties will be authorized to increase property taxes at the rate of inflation and for a number of exempt purposes prior to the triggering of the election mandate. Legislation will be introduced that will move the date of implementation to 2016. This is to prevent counties from raising property taxes prior to the 2018 implementation of the law. Grain Warehouse Funding KGFA will ask that the Governor to include in his budget ($75,000) to keep the Grain Warehouse program solvent. Our concern is that the State Grain Warehouse program may be eliminated or severely compromised if not fully funded. This would force all licensees to enroll with the federal inspection program. State Led Immigration Legislation Several controversial immigration bills have been introduced the last few years and may again this session. KGFA will continue working with a coalition of 27 other business and farm organizations to make sure that any immigration reform legislation protects businesses and does not unfairly shift the burden of enforcement from the government to employers. KGFA’s position is that this should remain a federal issue.
10
GRAIN AND FEED REPORT, Winter 2015
Chairman Pete Goetzmann
Don't get left off the list. Commitments are due by January 1! Representing over 150 grain companies, KGFA proudly represents 98 percent of the Kansas federal and state licensed grain storage capacity. Sponsorship is fundamental to the events, membership services and special projects that those members enjoy. Because KGFA values and appreciates partners and key stakeholders, the annual sponsorship program is designed to provide the best value for KGFA supporters. Visit www.ksgrainandfeed.org to learn more about the 2016 KGFA Sponsorship Program. This program will enhance your company exposure and allow you to support a plethora of KGFA programs.
ADM Grain Co., Overland Park Vice-Chairman Glen Hofbauer The Scoular Company, Kansas City Second Vice-Chairman Jeremy Girard Hannebaum Grain Co. Inc., Salina Immediate Past Chairman Ted Schultz Team Mktg. Alliance, Moundridge Directors
Once your team has determined your sponsorship commitment, please return the form no later than January 1.
Rich Arpin Beattie Farmers Union Coop, Blue Rapids Gary Beachner
Thanks to the reputation of our membership and industry, KGFA continues to grow and provide useful products and services for grain handlers in the region. Please welcome Rick Connell AGRI-SEARCH, Inc. in Arthur, Illinois to KGFA.
Beachner Grain, Parsons Brad Cowan Frontier Ag, Goodland Brent Emch Cargill, Kansas City Joe Griffith
If you have a short business announcement you’d like to share with fellow members, email shahira@kansasag.org.
Bartlett Grain Company, L.P., Kansas City James Jirak Pro-Ag Marketing, Kensington
Congratulations to Duane Simpson who has been named U.S. State & Local Government Affairs Lead for Monsanto. Simpson is replacing Lisa Drake who is retiring in January 2016. Simpson was the Chief Operating Officer for KGFA from 2004 to 2008.
Ryan McCoy Co-Mark Grain, Cheney Deb Miller Farmers Union Merc. & Shpg., Stockton Jerry Murphy
Bunge North America, Emporia Russ Ronnebaum Hammel Scale, Wichita Bob Temple WindRiver Grain, Garden City John Van Meter Hooker Equity Exchange, Hooker, OK
Winter 2015, GRAIN AND FEED REPORT
11
PRSRT STD U.S. Postage
PAID TOPEKA, KS Permit No. 545
816 SW Tyler Topeka, Kansas 66612
Visit our website for up-to-the-minute association news by scanning this QR Code with your smartphone, or going to www.ksgrainandfeed.org.
Commodity Partner Kansas Corn Commission Kansas Grain Sorghum Commission Kansas Soybean Commission Kansas Wheat Sorghum the Smart Choice Underwriter $15,000+ KFSA Founder $7,000 Kansas Grain Inspection Service Inc. Benefactor $5,000 ADM Companies Watco Companies
12
Patron $3,000 BNSF Railway Company Cargill CHS Inc. CoBank ACB Frisbie Construction Co., Inc. Hammel Scale Co. Inc. Hannebaum GrainREPORT, Co. Inc. Winter 2015 GRAIN AND FEED
(Patron $3,000 continued) Industrial Maintenance Inc. Korol Financial Group LLC Union Pacific Railroad Builder $1,500 Bartlett Grain Company Beachner Grain Bunge North America C-TEC, Inc. First National Bank of Hutchinson Frontier Ag Inc. Gavilon Grain, LLC HABCO INTRUST Bank Irsik & Doll Feed Service KC Supply Co. Inc. Louis Dreyfus Commodities McPherson Concrete Storage Systems Morrill Elevator Inc. RBH Mill & Elevator, a Lewis Goetz Co. Team Marketing Alliance The Cooperative Finance Association The Scoular Company Tri-States Grain Conditioning Inc.
Donor $500 Aflac AgMark LLC Andale Farmers Coop Bank of the West BarnesCo Inc. Central States Fumigation Cline Wood Agency CoMark Grain Marketing, LLC Conestoga Energy Partners LLC Cornerstone Ag LLC D.E. Bondurant Grain Co. Drake Inc. Equity Marketing Alliance, LLC Ernest-Spencer Farmers Coop Equity, Isabel Gamet Mfg. Inc. Hooker Equity Exchange Kansas Coop Council Midway Coop Assn. Murdock Companies Inc. Palmer Grain Inc. Riada Trading Co., Inc. Rolfes @ Boone WindRiver Grain LLC