KGFA Spring 2012 Newsletter

Spring 2012, GRAIN AND FEED REPORT

Spring 2012

2012 Annual Meeting Speakers Martin Hawver, Dean, Kansas Statehouse Press Corps Todd Kemp, Directory of Marketing/Treasurer, National Grain and Feed Association Mike Smith, Senior Vice President, AccuWeather Enterprise Solutions

A N O F F I C I A L P U B L I C A T I O N O F T H E K A N S A S G R A I N A N D F E E D A S S O C I A T I O N

K S G R A I N A N D F E E D . O R G

2 GRAIN AND FEED REPORT, Spring 2012

President & CEO Tom R. Tunnell Senior Vice President, Government Affairs Ron Seeber Senior VP and Chief Financial Officer Stephanie Jensen Vice President and General Counsel Randy Stookey Vice President of Event Planning Shari Bennett VP of Member Services & External Operations Sarah Sexton-Bowser VP of Marketing & Communications Shahira Stafford Senior Director of Internal Operations Lisa Anschutz Executive Assistant to the President Julie Stueve

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CONTENTS

President’s Report...3 Join us for the 2012 Annual Meeting...4 Grain Grading Schools benefit grain trade...4 TAL class gets direct access to Governor...5 Members lobby state lawmakers at Legislative Action Day...5 Association leaders visit Washington D.C....6 KGFA hosts Tuesday Night Receptions...6 KGFA speaks to KFB members on mycotoxins...7 Water conservation bills signed into law...7 KU elevator training trailer nears completion...7 Update on sorghum odor developments...7 KGIS fee increase, new moisture meters...8 Feed Ingredient Buyer’s Mission in June...9 KGFA sponsors FFA Agronomy Career Development Event...9 Nearly 200 apply for scholarships...9 Mark your calendars now...9 Committee volunteers needed...9 Online advertising opportunity...10 KGFA welcomes new members...10 Trade Talk...10 Are you taking full advantage of your KGFA membership?...11

Spring 2012, GRAIN AND FEED REPORT 3

PRESIDENT’S REPORT

“I would challenge you to find another industry in Kansas that has increased pro-

duction to the extent that Kansas agriculture has had in recent decades.” Tom R. Tunnell, KGFA President and CEO

...........................................................................................................................

W ith the racing pace of today’s grain industry, it is easy to become short-sighted. In 2011, Kansas felt the disappointment of poor yields at the hand of Mother Nature. Despite this disappointment, I would challenge you to find another industry in Kansas that has increased production to the extent that

Kansas agriculture has had in recent decades. This graph looks at the top four produc-ing Kansas commodities: corn, grain sor-ghum, soybeans and wheat. It also pro-vides a comparative look at KGFA-member licensed capacity in light of Kansas crop production. The KGFA membership currently represents 98% of licensed grain capacity in Kansas and has been in the high 90’s throughout the graphed time period. With the upcoming presidential election, there is a lot of rhetoric about needing to maintain the “American dream.” With-out a doubt, KGFA members are a vital part of that dream. The productivity, in-novation and adaptation represented in our industry are an excellent example for others to emulate. On another note, I’m pleased to have had the opportunity this month to spend

a morning in Kansas City with several KGFA member companies and visit about the issues they wrestle with in the industry. Thank you for welcoming me and taking time out of your busy day to share what’s going on in your business. The insight truly helps your staff do our job better as we strive to represent the industry with excellence.

Larry Kittoe, Mike Barrett and

Jon Ingebretson with Gavilon.

Scott McWilliams with Bartlett

Grain.

Glen Hofbauer with The Scoular

Company.

Pete Goetzmann and Dave

Warrington with ADM.


EDUCATION, TRAINING

Join us for the 2012 Annual Meeting KGFA is pleased to invite you to the 2012 Annual Meeting, which will be held April 9-10 in Wichita at the Marriott Hotel. Our goal is to provide members with opportunities to network with industry colleagues and customers, as well as provide valuable education you and your employees can use in running your business. We’ve tailored this meeting to accomplish just that. Join us Monday evening for the popular Steak Fry that begins at 6pm, followed by hospitality receptions that evening. Tuesday morning, we have Martin Hawver, dean of the Kansas Statehouse press corps, to provide a humorous, insider’s look into the 2012 legislative ses-sion. After breakfast, you will be briefed on the Associa-tion’s accomplishments from 2011 and the financial re-port. We will also hold board of director elections at this time. We then have two educational sessions that are guaran-teed to provide new insight into our country’s agricul-tural landscape. Todd Kemp, Director of Marketing/Treasurer of the National Grain and Feed Association, will discuss the affects the industry is seeing and will continue to see from the MF Global bankruptcy. Mike Smith, Senior Vice President of AccuWeather Enter-prise Solutions, will then talk about climate change and how to weatherproof your business. We hope that you leave this meeting with greater knowledge on the battles that face the industry and how you can best fight them. Following the meeting, join us for golf at Wichita’s treasured Terradyne Country Club Tuesday afternoon before you travel home. Please join your fellow members for the 2012 Annual Meeting. Visit www.ksgrainandfeed.org to register.

Grain Grading Schools benefit grain trade The 2012 Grain Grading Schools have come to a close. These programs provided training to 302 grain handlers across Kansas. Attendees were able to learn hands-on skills that will assist them in swiftly identifying grain quality issues. Leonard Hicks of Kansas Grain Inspection Service (KGIS) was a featured trainer throughout the program and enlightened attendees on his experiences ranging from the true smell of boot-pit to the various grading requirements established by the Federal Grain Inspec-tion Service. Allen Trower, also with KGIS, arranged for samples to be provided for attendees to gain experience in identify-ing damages. Thanks to all of the supporters and KGIS employees that made this training possible. If you missed the Grain Grading road show, stay tuned as KGFA will be announcing one more school in 2012. A special thanks to our supporters: Kansas Grain Inspection Service Kansas Corn Commission Kansas Grain Sorghum Commission Kansas Soybean Commission Kansas Wheat Commission Seedburo Equipment Company

Leonard Hicks, Kansas Grain Inspection Service, trains attendees how

to detect damage in grain samples at the 2012 Grain Grading Schools.


LEGISLATIVE ADVOCACY

TAL class gets direct access to Governor The 2012 Tomorrow’s Agribusiness Leaders (TAL) class traveled to Topeka for two days and completed session I. During which, the class enjoyed a detailed policy briefing from Governor Sam Brownback and a private breakfast with

Attorney General Derek Schmidt. During these meet-ings they learned of many challenges facing the state and how our top leaders’ plans to move Kansas forward.

In addition to meetings with Associated Press Bureau Chief John Hanna and Deputy Secretary of Agriculture Chris Wilson, the class learned exactly how a bill moves through the legislature to become state law and how lobbyists aid in the process.

Members lobby state lawmakers at

Legislative Action Day On January 25, members of KGFA, the Kansas Agri-business Retailers Association and the Kansas Coopera-tive Council came to the capitol city to learn about the issues being debated at the Statehouse that will directly affect their industry and for a chance to have their voices heard by state lawmakers.

After lunch, members had the chance to personally visit with their legislators at the Capitol Building and spread the industry’s message on key agribusiness issues. Sev-eral also had the chance to see first-hand how the com-mittee process and Senate floor debate works in Kansas. The event concluded with a dinner reception at the Topeka Country Club where nearly 200 legislators and members were in attendance.

Governor Sam Brownback spends time visiting one-on-one with the

2012 TAL class during their Session I in Topeka.

KGFA Chairman Stan Stark (left) visits with Representative Ponka-We

Victors (D-Wichita) and KGFA VP & General Counsel Randy Stookey

at the Legislative Action Day reception.

Over 100 members attend the 2012 Legislative Action Day in Topeka.

TAL class members participate in an “I’m Just a Bill” exercise during

TAL Session I and walk through the process of how a bill becomes law.


LEGISLATIVE ADVOCACY

Association leaders visit Washington D.C. KGFA Chairman Stan Stark, Farmers Coop in Haviland; Vice Chairman Ted Schultz, Team Marketing Alliance in Moundridge; and President Tom Tunnell were in Washington D.C. on February 13-15 to discuss issues with Federal officials.

While there, the group visited Kansas elected members of Congress as well as Commodity Trading Commis-sioner Jill Sommers. Issues discussed included the MF Global bankruptcy, 2012 Farm Bill, agricultural trans-portation and international trade issues, and grain han-dling safety.

KGFA greatly appreciates the assistance given while on Capitol Hill by National Grain and Feed Association’s Ryan Bennett and Todd Kemp.

KGFA hosts Tuesday Night Receptions During the months of January – May, the capitol city is buzzing with state lawmakers here for the legislative ses-sion. Every year, KGFA is always at the heart of this activity, hosting the longest-standing weekly hospitality event for the Kansas Legislature. On January 9, over 150 state legislators, leaders and lob-byists attended the first reception of the session at the KGFA office. KGFA has been hosting Tuesday Night Receptions for over 25 years, along with 40 other lobby-ing organizations. Legislators are invited to relax and enjoy a catered dinner each week while they're in Topeka. These receptions are an excellent opportunity for KGFA to gain recognition and for your staff lobby-ists to visit with lawmakers on a personal level. KGFA, along with every other advocacy organization in Kansas, is facing serious legislative challenges this year. KGFA lobbyists are working hard, day and night, to ad-vocate on your behalf on issues that include: immigra-tion reform, taxes, water conservation and many more. Please watch for the weekly Legislative Update emailed every Monday to members. This electronic news update is a great way to stay abreast on important bills working their way through the session and how they may affect your business.

KGFA officers meet Mike Seifert, Senator Roberts’ Senate Agriculture

Committee Chief of Staff, during a trip to Washington D.C.

(l-r) Tom Tunnell, KGFA President; Todd Kemp, National Grain and

Feed Association Director of Marketing/Treasurer; Stan Stark, KGFA

Chairman; Jill Sommers, Commodity Futures Trading Commissioner;

and Ted Schultz, KGFA Vice Chairman.

KGFA officers meet personally Senator Jerry Moran with during a trip

to Washington D.C.


INDUSTRY NEWS

KGFA speaks to KFB members on mycotoxins Randy Stookey, KGFA VP and General Counsel partici-pated in a 3-person panel discussion to approximately 100 KS Farm Bureau members at the their annual Ag Advisory Committee Meeting in Manhattan on February 9. Stookey discussed the grain elevators’ perspective on handling mycotoxins in grain, including sampling, test-ing, storage, marketing, and discounting grains with my-cotoxins. Following the presentation, the panel answered ques-tions, which were mostly directed at KGFA. Other pan-elists included Allen Trower with Kansas Grain Inspec-tion Service, and Lon Burke with RMA Insurance.

Water conservation bills signed into law The Governor signed into law two KGFA-backed bills key to water conservation in western Kansas in Garden City this month. John McClelland, with Garden City Coop and Bob Tempel with WindRiver Grain were in attendance to represent KGFA. The Governor signed House Bill 2451 which eliminates the state’s “use it or lose it” water policy and gives land-owners incentive to conserve water because they won’t feel that they must use their maximum amount of water when they don’t need to just so they don’t lose water rights. He also signed into law Senate Bill 272 which amends multi-year flex accounts to expand irrigators’ capabilities and options so they can manage their crop water without increasing long-term water use under their water right.

KU elevator training trailer nears completion KGFA members joined KFSA and KCC in donating $90,000 to KU Fire and Rescue for the completion of a joint firefighter and elevator personnel training program. This mobile trailer is in the process of completion, and KGFA looks forward to seeing the finished product this summer.

Update on sorghum odor developments According to the Grain Inspection Packers and Stock-yard Administration (GIPSA), a reference storage musty sorghum odor sample will be available this month. The chemical (Geosmine and 1,2,4 Trimethoxybenzene) compound reference sample will be utilized by officials to assist in determining whether sorghum has storage musty odor. The effectiveness of this reference sample is especially important to Kansas. The Kansas Grain Inspection Ser-vice (KGIS) inspects approximately 60% of the domes-tic sorghum market, and the Kansas Grain and Feed Association (KGFA) has been actively involved in this issue. In April 2011, KGFA hosted GIPSA Deputy Adminis-trator Randall Jones at their board meeting and ex-pressed the need to have consistent grades and consid-eration of sorghum end-users. In June, several KGFA Board members and staff attended a stakeholder meet-ing at GIPSA’s Kansas City office. During this stake-holder meeting, a variety of odor samples were provided to obtain feedback in determining the line for sorghum storage musty odor.

Governor Sam Brownback signs two bills into law at a ceremony in

Garden City. KGFA testified in support of both bills that will help con-

serve water in western Kansas.

The KU Fire & Rescue grain engulfment training module is expected to

be complete this summer.


INDUSTRY NEWS

After the anticipated March release, GIPSA intends to continue efforts to evaluate this sample. GIPSA’s offi-cial timeline includes training through 2012 on the sam-ple usage, training quality assurance specialists and addi-tional BAR monitoring samples. As this sample is util-ized over time, questions such as shelf-life, who has ac-cess to the sample and quality assurance concerns will have to be addressed. Sorghum is an important crop for Kansas agriculture, and it is important that this new tool in grading will lead to better marketing consistency. GIPSA’s Timeline August 2011 - GIPSA selected a reference sample for “storage musty” sorghum. The reference sample is a mixture of the chemical compounds Geosmine and 1, 2, 4 – Trimethoxybenzene added to a base sample of old storage sorghum which has an okay odor. October 2011 - Dr. Edgar Chambers, Sensory Analysis Center, Kansas State University started conducting a new shelf-life study for the reference sample at room temperature and refrigeration. This study will be more realistic of how often the reference sample will be used in the field. On the original study, the samples were taken and set out every day for an extended time period. November 2011 - The Board of Appeals & Review (BAR) started training official inspection personnel for calibrating “storage musty” sorghum odors to the refer-ence sample. Training was conducted for the BAR, Grading Services Lab, and Kansas Grain Inspection. January 2012 - Training will be conducted for the sor-ghum inspectors in Oklahoma and Texas. The BAR will travel to Enid Grain Inspection and the League City Field Office. Training for the League City Field Office will be conducted at the service points in Galveston, League City, Beaumont, and Corpus Christi, Texas. February 2012 - The BAR will travel to the New Or-leans Field Office to conduct training for the sorghum inspectors from their circuit. February 2012 - GIPSA will evaluate the new shelf-life study for the reference sample.

March 2012 - GIPSA will issue instructions to the field concerning the reference sample. March 2012 - GIPSA will prepare and distribute the ref-erence sample. March-June 2012 - The BAR will conduct follow-up training at the Quality Assurance Specialists seminars. March-December 2012 - The BAR will request addi-tional opinion samples and monitoring samples for sor-ghum odors when deemed necessary. March-December 2012 - If necessary, the BAR will travel to official service points for additional training.

KGIS fee increase, new moisture meters The Kansas Grain Inspection Service (KGIS) Board of Directors, along with the Federal Grain Inspection Ser-vice, have approved the following fee increase, effective June 1, 2012. They were last increased in 2001 (submits & IDK) and 2004 (proteins). Submits $7.50 Proteins $5.00 IDK $4.00 Additionally, the transition to a new official moisture meter is expected to begin in August 2012. The Grain Inspection Packers and Stockyards Administration (GIPSA) has worked on this project for several years and developed the Unified Grain Moisture Algorithm. There are many advantages to this new technology. Me-ters with this technology provide readings that align more closely with the official reference method and will provide an accurate reading at lower temperatures. KGIS will utilize this technology once an implementa-tion date is determined. Customers with on-site labs re-ceiving official grading services will also need to utilize these new meters. KGIS will keep the KGFA and their customers updated with the meter selection and imple-mentation timeline.


ASSOCIATION HAPPENINGS

Feed Ingredient Buyer’s Mission in June The Kansas Department of Agriculture and Food Ex-port Midwest are holding their Feed Ingredient Buyers Mission at World Pork Expo on June 6-8, in Des Moines, IA. Open to all feed ingredient producers, the Feed Ingredi-ent Buyer’s Mission is an opportunity to meet one-on-one with potential buyers that are matched based on product and needs. Producers will only meet with buyers that have an interest in their product. Each meeting will last 30 minutes. To learn more and register, click here. If you have ques-tions please contact JJ Jones from the Kansas Depart-ment of Agriculture at [email protected].

KGFA sponsors FFA Agronomy Career

Development Event KGFA is proud to be a sponsor of the Kansas FFA Agronomy Career Development Event that encourages students to build and improve their skills in agronomic sciences. At the competition, participants complete a 50-question written exam; identify seeds, insects, soils and crops; demon-strate knowledge of agronomic man-

agement and solve a practical problem. They also give oral reasons explaining their placing of various classes. The sponsorship also supports the winning Kansas team in competing in the national FFA convention in the fall.

Nearly 200 apply for scholarships KGFA received 199 scholarship applications from stu-dents across Kansas hoping to receive one of the asso-ciation’s $1,000 scholarships for the 2012-2013 school year. The KGFA Scholarship Committee will meet on April 9 in Wichita to choose the winners, and announce-ments will be made shortly thereafter. Each year, KGFA awards $5,500 in scholarships to high school students wanting to pursue an education in Kan-sas. Six scholarships are offered: one Dub and Inez Johnson $500 Memorial Scholarship, and five KGFA $1,000 Scholarships.

Mark your calendars now The John Cranor Memorial Golf Tournament is scheduled for August 13 at Prairie Band Casino and Re-sort’s Firekeeper Golf Course in Hiawatha. Watch for registration information coming soon. The Kansas Agri Business Expo is scheduled for No-vember 14-15 at Century II Convention Center in Wich-ita. Vendor registration will begin in June and attendees may register shortly thereafter. Visit www.ksabe.org of-ten for updates. 7B Recertification Training is scheduled for Novem-ber 14 at Century II Convention Center in Wichita, in conjunction with the Kansas Agri Business Expo. Get all your hours to recertify in one day. Watch for regis-tration information coming soon.

Committee volunteers needed KGFA is looking for volunteers to serve on one or more of our many committees for 2012-2013. The 16-member board of directors governs the association with input from many special and standing committees. Our committee volunteers shape some of the most im-portant decisions KGFA makes. If you are interested in getting more involved in your association and want to have a voice in KGFA affairs, we have a place for you. The Board Chairman will be making committee assign-ments soon, so fill out the enclosed form and return to KGFA no later than May 4.

Congratulations to Ron

Seeber, KGFA Senior Vice

President, for successfully

completing his term as

President of the Kansas

Agricultural Alliance

(KAA).

The KAA is an organization

of several agricultural

groups who meet weekly

during the legislative ses-

sion to collaborate on policy

initiatives important to

Kansas agriculture.


MEMBER CORNER

Online advertising opportunity If you are an advertiser in the 2012 Kansas Official Di-rectory, KGFA is offering your company a 20% dis-count on website advertising purchased through Decem-ber 31, 2012. Each month, hundreds of people visit KGFA’s website for access to agribusiness industry knowledge and re-sources. By having your company logo featured on the homepage as a “KGFA Partner”, you can increase your company’s online presence, attract business and further your brand among professionals in the grain handling industry. See the enclosed form for details.

KGFA welcomes new members Thanks to the reputation of our membership and indus-try, KGFA continues to grow and provide useful prod-ucts and services for grain handlers in Kansas. Please welcome these companies should you come in contact with them in your business. Hutchinson/Mayrath, Clay Center, KS VICAM, Milford, MA

Trade Talk If you have a short business announcement you’d like included in the newsletter, email [email protected]. Congratulations to Dennis Blick, who will be retiring as CoBank’s Regional Vice President effective June 30, 2012. Alan Woodward will be assuming this new role effective April 1. Congratulations to Gaylord Sanneman, who retired as Sublette Coop’s General Manager. Kendall Poland as-sumed this new role effective February 1, 2012. Mr. Carlos Campabadal joined KSU faculty as the new International Grains Program Specialist and In-structor in Feed Manufacturing and Grain Storage. Ms. Cassandra Jones will join the KSU Grain Science department as the new Assistant Professor in Feed Technology. Brian Linin, Frontier Ag CFO and past TAL Graduate, was elected to serve on the Kansas Wheat Commission.

Car for Sale. KGFA is selling one of its company vehi-cles. 2008 Chevy Impala LT, Flex Fuel. 60k miles. $11,500. Call (785) 234-0461 if interested.

Job Opening. The Andale Farmers Cooperative Com-pany is accepting applications for Location Manager in Colwich, Kansas. The Location Manager will be respon-sible for supervising all daily activities of this branch which include grain, agronomy (dry fertilizer, NH3), and a full service farm store. This position will supervise 3 full-time employees and seasonal help as needed. The Location Manager will solicit new business, ensure cus-tomer satisfaction by consistent delivery of both quality products and services to members, and maintain a posi-tive image of Andale Coop within the community. Send resume with cover letter to: The Andale Farmers Cooperative Company, Attn: Steve Shaver, General Manager, PO Box 18, Andale, KS 67001. You may also upload your resume online at www.provaluellc.com.

2012 Membership

Directories were mailed.

Additional copies:

$50/member

$100/non-member


Chairman

Stan Stark

Farmers Coop Co., Haviland

First Vice-Chairman

Ted Schultz

Team Mktg. Alliance, Moundridge

Second Vice-Chairman

Pete Goetzmann

ADM Grain Co., Overland Park

Immediate Past Chair

Gary Gantz

D.E. Bondurant Grain Co., Ness City

Directors

Mike Barrett

Gavilon Grain LLC, Kansas City

Brad Cowan

Frontier Ag, Goodland

Jeremy Girard

Hannebaum Grain Co. Inc., Salina

Glen Hofbauer

The Scoular Company, Kansas City

Scott McWilliams

Bartlett Grain Co., Kansas City, MO

Deb Miller

Farmers Union Merc. & Shpg., Stockton

Jerry Murphy

Bunge North America, Emporia

Rob Nordmeyer

Cargill Inc., Overland Park

Russ Ronnebaum

Hammel Scale, Wichita

Steve Shaver

Andale Farmers Coop, Andale

Bob Temple

WindRiver Grain, Garden City

Vance Westhusin

Midland Marketing, Hays

Are you taking full advantage

of your KGFA membership?

For details on the following benefits, please visit www.ksgrainandfeed.org or call (785) 234-0461. A comprehensive hospital and medical, group life, dental, salary continuation, acci-dental death and a property/casualty pro-gram are offered through KFSA at a rate which is considerably less than could be en-joyed by an individual firm. Exclusively through KGFA, you can have your employee benefit programs customized and tailored to meet your budget and needs through Harrington Health. Whether it is COBRA, HIPAA, FMLA, FSA, Harrington Health has the answers. In today’s competitive business climate, it is essential that you engage your customer base, and KGFA and Agri-Services Agency has just the program for you. As many of your producers struggle to find health insur-ance, ASA lets you extend insurance to your customers at no cost to you. Does your company need new apparel? Looking for appreciation gift ideas for your customers? Get 10% off Cabela's merchan-dise and 5% off Cabela's gift cards just for being a KGFA member. Turn waiting callers into customers. AMS On Hold Solutions is giving KGFA mem-bers a 25% discount on monthly rates. Pro-mote specials, decrease caller agitation, re-duce hang-ups and enhance your company's image for only $75/month. A 30-day trial is also available. KGFA and Purple Wave are working to-gether to provide members with the best re-source to liquidate your unused assets through an online auction service. Purple Wave will make a donation to KGFA every time a member utilizes their services.


816 SW Tyler Topeka, Kansas 66612

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Documents

KGFA Spring 2012 Newsletter