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Pride Ag Resources 4th quarter newsletter

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MANAGER’S DESK

Jerald Kemmerer-CEO/GM Another fall harvest is almost in the books with better than average yields. With the exception of a few dry weeks, weather was optimal and would have yielded even better with a timely rain. With the addition of the new bins at the Ford and Gray locations, we were able to handle the volume of the higher yields better than before. As a cooperative, we will continue to improve your locations with speed and storage capacity to keep up with growing needs and potential increases driven by advancements. So far, the fall moisture received has given us a great start for this next year. Before this year’s crops are final, inputs for next year’s crops are a

FOURTH QUARTER 2021

challenge due to the disruption in the supply chain for chemicals and fertilizer. The Capital projects we have completed over the past few years have assisted us in securing the products you will need this fall and spring. Those capital projects consist of the dry fertilizer shed, the liquid fertilizer storage and the chemical shed. We were hoping the supply chain would improve with the nearing of the end of Covid but this has not happened. We feel we will experience these disruptions through 2022 and maybe into the first quarter of 2023. Communication of your needs to our Agronomy department is vital at this time to continue to serve your needs during these supply disruption issues. Although we continue to experience challenges with the

increase in input costs in relationship to the forward contract market, the return per acre continues to thrive. As you look at these inputs, contact our grain marketing team to enhance your marketing program and lock in your profits with the variety of contracts we offer. At the end of October, we hosted several Customer Appreciation lunches throughout our locations. This is in recognition of October being National Cooperative Month. I hope you were able to attend a lunch as we recognize Cooperative month but it is also a great opportunity for us to demonstrate our appreciation to you for your business. As announced at the last annual meeting, we were in discussions with Kanza Coop about what a possible merger would look like. I personally

Inside This Issue 2 Safety – Ace Hardware 3 Grain - Agronomy 4 Feed 5 Turf 6 AV Energy 7 Employee Spot Light–Board of Directors


want to thank your Board of Directors for their due diligence with the studies in assuring that your member needs were to be met. From the visits and studies, it was determined that an agreement could not be reached regarding key issues. Therefore, conversations have ceased at this time but the relationship remains open for future endeavors if opinions change. As I also mentioned at the annual meeting, consolidation is vital for future growth. We will continue to seek opportunities for relationships with other cooperatives. Most importantly, we will continue to remain transparent with you as members. Due to COVID, it has been a challenging year both agriculturally as well as health wise. My hopes are that you and your family stay healthy. Due to mental stresses COVID has caused, I hope you can take time to enjoy the upcoming holidays with family and friends. The Pride Ag Resources Team wants to thank you for your business. Jerald Kemmerer-CEO/GM Pride Ag Resources

Safety Division

Anhydrous Ammonia is one of the most dangerous chemicals we work with. It enters the body in one of three ways. Through breathing it in, through the skin, or in the eyes. It is very cold. In fact, it boils at -28 degrees. Ammonia is a colorless gas with a sharp odor. It resembles water. Its vapor density is .597, making it lighter than air, and it expands 850 X’s its liquid volume.

ACE HARDWARE

Anhydrous means without water. Therefore all Anhydrous is searching for is water, which our bodies have in our eyes, skin, respiratory tract. It is not a poison but it is very corrosive. The only treatment for Anhydrous Ammonia is water, and plenty of it.

November is Craftsman days at Ace. We are having RED HOT BUYS on Craftsman 20 volt drill drivers & impact driver kits, 6-gallon pancake air compressors and a 216 pc. Mechanic’s tool set. All these are available at $99.00 each. Drill bit sets, tool sets or tool bags at $9.99 each. We have a sweet deal on a 12-gallon wet/dry vac for $59.99. Ace is also running specials on selected Milwaukee and Dewalt tools and accessories. We have November specials on Traeger, Weber and Green Egg grills. Stop in and look for all your Holiday gift purchases.

Remember not too take off the clothing of a victim of Anhydrous Ammonia because it causes a freeze-dried effect similar to frostbite on the skin. First aid includes at least 15 minutes holding the eyelids open and flushing the skin with water immediately. After contact and move a person who has inhaled Ammonia to fresh air immediately. A very important part of your safety is your PPE. You should be wearing indirect vented goggles, protective slicker and pants impervious to ammonia, protective boots and gloves, which are also impervious to Ammonia. I hope that this tells you what you need to know about Anhydrous Ammonia. Stay safe!

Jack Lane, ACE Manager

Date 7/6/21 8/6/21 8/23/21 9/17/21

Wheat 5.64 6.86 6.84 6.78

Last Year –Aug. 2020 AVG. 4.05

Corn 6.37 6.30 5.93 5.47

Milo 6.07 5.90 5.68 5.42

Soybean 13.14 13.37 12.83 11.99

3.39 3.49 8.14

Roger Maple Safety Director

Anhydrous Ammonia 2


GRAIN DIVISION

Mike Schmidt Grain Division/ Operations Manager Fall harvest is not finished yet, but it is getting closer every day. This year has been good for yields and prices for you, the producer. Looking at some comparisons to last year, your cooperative took its second biggest wheat harvest in history, with a price of around $2.00 more than this time last year. Your coop will handle more corn with a price of $1.30 higher than last year. There will be more soybeans this year, with the price being around $1.50 higher over last year. The milo crop is not complete yet, but more bushels are expected with the price being only .35 cents higher than last year. This is because of a very high basis that we had last year making the price not as high in relationship to other commodities. With all this said, we have already started dumping milo on the ground at four locations, Kingsdown, Ford, Jetmore, and Howell. The new bin at Ford is now complete and is already full of milo. The new ground pile spout has been completed and almost full of milo as well. The new bin at Gray is complete and half full of corn. The remaining harvest should fill it, With the extra space at Gray, we were

able to have a bin for milo which is currently almost full. As harvest comes to an end, all the employees at Pride Ag Resources would like to say thank you for your patronage and your continued support. I would also like to say thank you to all the employees that spent long hours at the elevator getting your trucks dumped and back to the field as quick as possible.

January deferred grain checks will be printed and ready for pickup January 3rd, 2022 at the Main Office. If you cannot pick up your check in Dodge City, you can sign up for direct deposit or the check will be mailed. AGRONOMY

Tim Spector Agronomy Manager Fertilizer– NH3: Supplies are extremely tight and allocated, markets have risen dramatically since my last article due to energy cost globally and demands in

upgrade materials such as Urea and UAN. In October, the retail values were 3-X of the prior year cost and going forward it still has room to increase in value. Agriculture consumes approximately 35% of the annual production. Industrial markets are currently paying an average a $200 premium to the Ag sector. Koch and CF Industries have yet to post spring contract options and I anticipate it will be December before we will have a spring 2022 value to offer our customers. Urea: Urea is the global choice for Nitrogen and its value is impacted by international demand. Currently, the US Urea market based on New Orleans is trading at an $80 discount to world markets. Thus, we do not foresee a lineup of vessels destined for US ports. In addition, CF & Koch are exporting for additional dollars of which is affecting the inventory levels in the US. Urea will stay firm through the fall. The issues today is supply, your cooperative has physical product in inventory with an additional train to arrive in November. We are offering prepay options with delivery terms through March 2022. UAN: CF Industries filed suit against Russia, Trinidad and Tobago for dumping UAN into the U.S. Market. They witnessed the success of Mosaic’s suit last year on phosphates and believe they have a firm case. The ITC ruled in August to accept for review, with a final ruling to occur in mid-November. How does that affect our members? Anticipate UAN to remain firmly priced for the 2022 crop year if CF is awarded in the case. Without the imports, we will be at the mercy of domestic supply. Koch, CF, N7 and other 3


UAN producers have their inventories at the lowest levels in many years waiting for the August ruling. UAN is bullish through the fall. The largest driver today is lack of supply, your cooperative has positioned physical product so when you prepay you can rest assured you will have the supply. Phosphates: MAP – Firm to higher, Mosaic controls 85% of the U.S. market and as long as China is not exporting I do not anticipate any price decline in the nearfuture. Supplies are very tight and 80% of our market is supplied via the terminals in Inola, Oklahoma. Supply availability will be the issue, therefore work with your Pride Ag Agronomist to lock in tons. Firm through Fall and Spring Liquid Phosphates – No surprise that the acid market is following the Map/Dap market. Higher values for the 2022 crop year vs. 2021 crop year. In summary, if the forward grain prices are attractive and you are able to contract those bushels then look at contracting the inputs today to lock in your production margins. The CF and Koch’s of the world are only looking at their respective bottom lines. In response, we have created the Advantage GFI program for our members to contract grain as payment for 2022 fertilizer inputs. Your Pride Ag Agronomist can share the details about using less bushels to purchase inputs. Crop Protection – Volatile Market Glyphosate and other products have switched the purchase parameters. Historically, I would place an order knowing the value prior to delivery. Today, we do not

know our final cost until the product delivers and that makes it difficult to price the customers wanting to prepay. Over the past several weeks, costing across the board has risen on 80% of the products we offer. The driving factor is due-to the lack of transportation from overseas. China reduced production, decreased availability in packaging and the increase in raw material cost. Your cooperative is in good shape from a supply standpoint, the investment the company made in the Ensign complex has been very beneficial in being able to store and position large amounts of products in a timely fashion. Seed – Thank you for your continued support as we continue to grow our seed business. Croplan Genetics announced yesterday that they now have Milo seed in the portfolio for 2022 crop year. We are analyzing the varieties that will fit our area and they will have Imiflex hybrids in the lineup. Our front line supply partners are NK Seeds, Brevant Seeds, Croplan Seeds, LG Seeds and Sorghum partners. We have a robust offering of proven genetics to fit your farming needs. Corn – now is the time to start considering your planting intentions for 2022 and book your seed or utilize the Advantage Program options to finalize your purchase via Secure Finance or Advantage GFI. Finance: We offer finance options under the Advantage program via CFA inputs program and Secure and the GFI program. Secure starts a new 17- month cycle on September 1st payable

February of 2023 (Fertilizer, Chemical, Seed and Application)

Agronomy Sales Team Base Location: Dodge City Main Office Dave Seymore 620-338-5553 dseymore@prideag.com Base Location: Ingalls South Lawrence Baxa 620-789-1484 lbaxa@prideag.com Base Location: Garden City Darren Watson 620-290-2146 dwatson@prideag.com Dillon Gipson 620-805-2401 dgipson@prideag.com Base Location: Offerle / RV Darryl Roane 620-682-2399 droane@prideag.com

FEED DIVISION

Zach Brewer Dodge City Feed Division Manager Five Feed Tips for Weaning Calves Calves are on pasture with their dams where life is good. Suddenly, they are faced with a plethora of stressors and challenges. Weaning calves typically includes the weaning itself, shipping, commingling, 4


processing, a change in nutrition and – to top it off – potential swings in weather. Weaning calves are often hungry, meaning they tend to bawl for their dam. Bawling for extended periods can irritate a calf’s throat and potentially lead to respiratory challenges. These stressors, paired with a still-developing immune system, can ultimately lead to reduced disease resistance. But, if you can get calves eating quickly, they’re more likely to overcome stress and sickness. Here are some tips to get freshly weaned calves eating quickly: 1. Use Cattle Lick Tubs When Weaning Calves. Cattle lick tubs can be used as a free-choice supplement in calf receiving pens. For operations using supplement tubs in the cow herd, calves will be familiar with the tub and more likely to start eating quickly. Cattle lick tubs have two primary benefits for the calf. First, the licking action produces saliva to help ease throat irritation from bawling. Second, licking stimulates weaning calves’ appetites, prompting them to look for feed and water. 2. Offer Palatable Calf Starter Feed. When calves search for feed, make sure there’s a palatable feed in the bunk. If calves like the feed, they will start eating and continue coming back to the bunk. A worst-case scenario is when a calf comes to the bunk for the first time and finds an unpalatable feed. It’s hard to get the calf back to the

bunk after experience.

an

initial

bad

Use a weaning ration for beef calves with proper nutrition and palatable ingredients. A calf starter feed with intake control properties, can help stimulate consumption. 3. Select a Feed That Supports the Immune System of Weaning Calves. It’s critical to support the immune system of weaning calves during high stress. Select a feed that addresses stressors and respiratory challenges headon. The Purina® starter line with RX3® Immune Support Technology prepares a calf’s natural defenses, so it’s better equipped to fight off stress and respiratory challenges. The technology is specifically formulated to support calves’ overall health, reduce costs and set calves up for a healthy future.1 4. Find the Right Feed Form. The physical feed form can influence consumption. Bigger pellets tend to work best for calf starter feeds because they are softer. Bigger pellets also allow calves to get more with every mouthful, which is essential for less aggressive calves standing at the bunk. Avoid mealy feeds, which often separate and become less appealing to weaning calves. 5. Prioritize Quality.

Starter

Feed

Evaluate your feed quality and don’t settle for the least expensive option – it might be cheaper up front, but it could also be less palatable. A quality,

palatable starter feed will get calves eating quickly during the first 10 to 14 days post-weaning and help them stay healthy. Does your cattle nutrition program stack up? Find out with a Proof Pays feeding trial.

Pride Ag Resources“Pride Turf” “Turf Talk” Tim Schiffelbein tschiffelbein@prideag,com As we see fall coming to the end and winter months just around the corner, the Holiday Season will soon be here. This fall application is one of the most beneficial applications you can do, as it will promote a good root growth, which is needed for a healthy plant. A winterizer application of fertilizer applied in late fall helps prepare your lawn to get through a long and cold winter and will help minimize damage. Some of the benefits of applying a winterizer in late fall include: • Reduces risks of winter kill • Promotes deep rooting in late fall and early spring • Prolongs dark green turf color into early winter • Ensures good winter survival • Enhances the storage of carbohydrates • Increases shoot density • Provides early spring green up In general, try your best to apply fertilizer between Sept. 15 and Nov.1. The goal is to have at least 1 month of active grass growing weather remaining 5


before the cold weather takes its grip. Optimal timing for fall fertilizer would be when the shoot growth of the turf stops and before the ground freezes. As we move from Winterizers to Ice Melt be sure and get stocked up so you are ready for the winter months. Our “Green Melter “is a combo product 97% Sodium Chloride and 3% Calcium Carbonate. It is dyed a light green for easy indication. This product is great for large or small applications, and has an anti-slip material added in. It has melting capabilities from 20 degrees to 15 degrees. Our fertilizers and Ice Melt products are available in • 18lb. bags • 50lb. bags • Re-useable Totes up to 2000lbs. In addition, something to think about for next spring would be to apply Gypsum along areas of high applications of ice melt such as sidewalks and driveways. Therefore, if next spring you notice these areas are struggling a little, you might try applying some Gypsum to these areas. Gypsum helps flush the salts from the soil. I would like to wish everyone a safe and happy holiday season. Remember Ace is the place for all of your lawn and garden needs. Visit one of our locations in Dodge City, Meade, Maize, or Lyons. For any questions or concerns, please contact me at E-mail: tschiffelbein@prideag.com Office phone: 620-225-4193 Cell: 620-338-5678

AV Energy

customer and lockout the system until the leak is fixed. Once the leak is fixed, we will do a follow up inspection and safety check to make sure everything is safe. The following is a list of instances when we will have to do a safety check:

Chris Klein AV Energy Manager As we all prepare for the busy Holiday season I would like to take some time to talk about AV Energy’s propane delivery and propane safety programs. AV Energy has 5 full time delivery drivers and 18 propane bulk plants in and around Southwest Kansas to serve your propane needs. All AV Energy drivers are highly trained to deliver and inspect propane systems. They receive on-going training several times a year to keep updated of changes in the propane industry. All propane delivery companies in Kansas are required by the State Fire Marshal to perform propane safety checks. When AV Energy does a safety check, an adult is required to be present since we have to enter the residence to get manufacture information from the appliances and relight pilot lights. When we perform the safety check, your propane system is shut down. Then it is pressured back up to check the complete propane system from the regulator to the pilot lights. If pressure is held for at least three minutes without a drop in pressure we will then put the system back into service. If a leak is found in the system the technician will inform the

New Customer: Any new customer is required to have a safety check performed and documented before AV Energy will be allowed to deliver propane. Out of Gas: Any customer who runs out of gas is required to have a safety check done before we can deliver propane. Change of Tenant: Anytime a tenant moves and another tenant moves in we are required to perform a safety check even if there is plenty of propane left in the tank. Change of Appliance: We ask that anytime customers change out a propane appliance that they notify us so we can perform a safety check. This allows us to make sure there are no leaks after the new appliance has been installed. Five Year Safety Check: We are required to perform a five year check on all the propane systems we supply. If you are a route customer there is no charge for this service. Change of Supplier: Anytime a customer changes propane suppliers we are required to perform a safety check. Every propane delivery company in the State of Kansas is required by the Kansas State Fire Marshal to perform safety checks. If your current supplier is not doing a safety check then 6


they could be putting you and your family at risk.

events, cooking and baking, as well as exercising.

Wishing you a happy and safe holiday season, Chris Klein AV Energy

Pride Ag Employee Spot Light

Name: Erin Hodgkinson Resides: Garden City, Kansas Location: Corporate Office Position: Grain Originator, and Accounting Erin has been employed with Pride Ag for just over 4 months. Erin is married to Donny Hodgkinson. Erin grew up in Pueblo, Colorado, along with her two sisters. She is a graduate of Colorado State University Fort Collins with a Bachelors in Soil and Crop Science, and is working on her second Bachelors in Agribusiness, which she will complete May of 2022. Her hobbies are reading, baking, photography, and hunting.

Name: Kelly Carmona Resides: Dodge City, Ks Location: Corporate Office Position: Credit Manager, Accounts Receivable and Collections. Kelly has been employed with Pride Ag for 7 1/2 yrs. She is married to Shawn, and they have two children, Roman and Paris, along with 3 dogs. Her hobbies are playing with her dogs, reading, facebook, laughing – she loves anything funny, movies, thrifting and garage sales!

BOARD OF DIRECTORS Tony Bleumer ........................... Chairman Toby Whipple………..... .. Vice-Chairman Clint Hamilton .......... Secretary-Treasurer Butch Irsik.................................... Director Brian Pinkney .............................. Director Jacob Tarman ............................. Director Weston Vogel .............................. Director Levi Salmans.…........Associate Director Jerald Kemmerer………………CEO/GM Debby Kennedy….......Newsletter Editor

Name: Stephanie Kippes Resides: Dodge City, Kansas Location: Corporate Office Position: Accounting Dept. Stephanie grew up in Hugoton KS. She attended college at Friends University, in Wichita KS., where she met Jeff Kippes her husband. They have three children, Riley, Connor and Cooper along with their black lab Maggie. Stephanie loves spending time with her family, attending her children’s sporting 7


Pride Ag Resources

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4th Quarter 2021

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