Northwest Kansas Seminar – Class XVI

Northwest Kansas Day One
Wednesday, December 7, 2022
Submitted by: Sarah Henry

We kicked off our Goodland seminar at Northwest Kansas Technical College where our Chair for the day, Megan Hobbs, welcomed the KARL Class to Goodland. Megan set a challenge to the class to explore Kansas together while on long road trips and experience what Kansas has to offer. Jeff Deeds from KARL Class III welcomed Class XVI to Goodland and shared some facts about Northwest Kansas, including that Goodland used to have a sugar beet facility which has now been purchased by Scoular.

President of Northwest Kansas Technical College, Ben Schears, spoke to the class on all the amazing things that the technical college is doing for northwest Kansas. There are presently 325-370 students on campus with 400 students total including online and high school students. President Schears shared Northwest Tech has Excel in CTE, a satellite campus in Quinter, that provides welding classes for students in six area high schools. Northwest Technical college is helping give high school students the ability to take classes that match their interest and career plans following high school. The college provides a half day Jr./Sr. program in engineer, diesel mechanics, early childhood education, precision agriculture, cosmetology, and welding.

After Ben’s very enlightening presentation, former NCBA CEO Kendal Frazier, spoke to the class on being Kings and Kingmakers. Kendal opened his presentation talking about Dr. Barry Flinchbaugh and his important role in Kansas agriculture. It’s widely known that Dr. Flinchbaugh was the originator of the Kings and Kingmakers talk. Kendal then discussed that laws are made by a public problem looking facts, myths, and values. We then discussed the five categories of people who make laws:

1. Kingmakers: Influencers – not easy to identify; technology changes kingmakers; don’t represent status quo

2. Kings: Elected officials – state legislators; school board; like publicity

3. Actives: Engaged citizens – civic clubs; churches; primary voters; working to be Kings

4. Interested Citizens: Votes in general elections; gossip; found in coffee shops; typically has moderate political views

5. Apathetic citizens: motivated only if something grabs them

Kendal answered numerous questions from the group on how this might apply to KARL and class members as we return home to our rural communities. He closed out his presentation sharing with the class to not miss the good stuff.

We finished up the first part of our day with a panel of community influencers in Goodland made up of Ben Coumerilh from Goodland Tech, Ben Schears of Northwest Kansas Technical College, and Gennifer Golden House from the Greater Northwest Kansas Community Foundation. Ben Coumerilh shared that Goodland Tech is beginning to specialize in blockchain and cryptocurrency while hiring students who have recently been trained at Northwest KansasTech. There are currently 33 students enrolled in the cloud and crypto program at Northwest Kansas Tech. The panel shared about the importance of creating jobs that will keep students in northwest Kansas instead of losing students to Denver and Kansas City. Creating new jobs like Goodland Tech, they are diversifying the economy. Gennifer shared about the challenge of a housing shortage in rural areas and not being able to keep up with the housing demands. While there are lots of construction workers, there is only one builder in the Goodland area. The Community Foundation is identified vacant lots to develop housing for jobs created by Goodland Tech and Northwest Kansas Tech.

We finished up the afternoon at 21st Century Bean where board members Alan Townsend and Brian Linin gave the class a tour of the packaging facility in Goodland. 50% of the dry beans provided to food banks and USDA food assistance programs in the country come through their facility in Goodland. Annually, over 100 million meals are provided through 21st Century Bean. The Goodland plant partners with farmers in Nebraska, North Dakota, South Dakota, Minnesota, Montana, Colorado, and Kansas to package beans into small bags for distribution. Class members left the tour at 21st Century Bean with an appreciation of knowing how Kansas farmers are continuing to feed the world in innovative ways.

We finished the day with a dinner and reception hosted by Jeff and Jill Deeds in Goodland. The evening was filled with fellowship and a place to get to know our class members even better. Conversations at the tables were filled with reflections on the day and hearing about class members Holiday traditions.

Class X member, Matt Wolters from Surepoint (formerly Surefire) Ag Solutions joined the class for dinner and provided a brief keynote address on misfit leadership. Matt shared the definition of a misfit is: a person whose behavior or attitude sets them apart in a conspicuous way. To stand out or be clearly visible. He shared the beginning story of Surepoint starting in an old farmhouse to growing to the point where they were able to work with John Deere on a joint venture. Matt and his partners have created a company and an atmosphere at Surepoint that is invested in their rural community and the people who call it home. The Surepoint mission statement even states: to be an economic engine in Rawlins County. Matt closed out his presentation by saying that “you have to have a belief that what the naysayers say is wrong”.

Matt’s presentation to the class was an excellent precursor to the tour of the Surepoint facilities that Class XVI will take the following day.

Following Matt’s motivating presentation, class members continued to take time to spend in fellowship and getting to know one another and the Deed’s family. Our first day in Goodland was enlightening and motivating to say the least and it was made even better with hospitality that was second to none.

Northwest Kansas Day Two
Thursday, December 8, 2022
Submitted by: Andrea Krauss

We started out Day 2 of the Northwest Kansas seminar by hopping on the bus and heading for Bird City, where we spent the morning at the recently renovated American Legion Post 352. The topic for the morning session was “Building Capacity and Improving Quality of Life”.

Betsy Wearing, Coordinator of Communications, Programs and New Initiatives for the Dane G. Hansen Foundation started off the session with a presentation about the programs offered by the Foundation. Their mission statement is as follows: “The Dane G. Hansen Foundation is committed to providing opportunities for the people of Northwest Kansas to enjoy the highest possible quality of life.” The Foundation, located in Logan, has been making grants to communities in the 26 counties in Northwest Kansas since 1965. Their Board of Trustees review 20 to 40 requests every month and make annual grant distributions of approximately $25 Million.

The Hansen Foundation has three main areas of focus:

1) Strengthening and supporting communities,

2) Creating an environment for growth, and

3) Increasing economic opportunities.

They hope to accomplish these goals through seven program areas: 1) NW Kansas READS, 2) NW Kansas LEARNS, 3) NW Kansas ARTS, 4) NW Kansas CARES for kids, 5) NW Kansas LEADS, 6) NW Kansas SERVES, and 7) NW Kansas GIVES.

The Foundation also supports other initiatives designed to enrich quality of life in Northwest Kansas. This includes the quarterly publication of the Northwest Kansas Today magazine, which is delivered, free of charge, to every household in the Foundation’s service area; the provision of scholarships, internships, and externships for college students from Northwest Kansas; support for the Northwest Kansas Economic Innovation Center; funding for housing development in rural communities; and Strategic Doing initiatives designed to help communities work collaboratively to be more effective in achieving measurable positive outcomes.

Following Betsy’s presentation, we heard from Darci Schields, Executive Director and CEO of the Greater Northwest Kansas Community Foundation, based in Bird City. The mission of the GNKCF is “To revitalize our communities and enhance the well-being of present and future generations.” Its vision is “Bringing rural communities together for growth and success.” It was established in 2009, and its service area includes the 12 counties in the far northwest corner of the state plus Russell County.

The GNKCF provides support to the local foundations in those 13 counties by providing the following services: 1) Back-office support, 2) IRS due diligence, 3) Regional marketing efforts, 4) Investment options and strategies, 5) Shared knowledge and resources, 6) Board and staff support and education, 7) Accounting and auditing services, and 8) Pooling of assets for higher returns on investment.

To round out the discussion, we heard from Scott Sproul, President and CEO of the Northwest Kansas Economic Innovation Center, Inc., located in Norton. The NWKEICI was started six years ago by the Dane G. Hansen Foundation. The mission of NWKEICI is to “Provide economic and entrepreneurial assistance to businesses in rural Northwest Kansas.” The NWKEICI serves the 26 counties in the Dane G. Hansen coverage area, working with existing businesses and entrepreneurs throughout the area to try to reverse the outflow of people and business from Northwest Kansas. Their goal is to increase population and to foster economic innovation in Northwest Kansas. Its programs include: 1) Business finance, 2) Childcare support, 3) Rural & Remote initiatives, and 4) Connect NWK job board, offering hiring incentives of $60,000 per county.

The remainder of the morning was dedicated to a discussion of the Kansas dairy industry. We were joined by Janet Bailey, CEO of the Kansas Dairy Commission and the Kansas Dairy Association, and Ole Johnson, owner of J7 Dairy in Tribune. We learned that the Kansas Dairy Association was formed in 1994, and the Kansas Dairy Commission was legislated into existence in 1995 as a check-off program.

Ole Johnson shared his story of becoming a dairy farmer and moving to Tribune in 2014 to start J7 Dairy (named for his seven sons) with 1,800 cows. The dairy now has 3,600 cows with 9,000 total head of cattle, farms 3,200 acres, and has 35 employees.

At J7, they strive to reduce waste and increase sustainability. They produce all of their feed on their farm, compost the manure for fertilizer, use lagoon water for irrigation, and utilize an open corral system. They A.I. all of their cows with beef cattle semen, in order to produce steers which are more desirable to feedlot operators.

All of the milk produced by the dairy is sold on contract. However, the four largest dairy processors in Kansas are all currently at capacity, which limits J7’s ability to expand and take on larger contracts. Ole emphasized that, in the operation of their dairy, they always strive to be good stewards of the land.

We then traveled to SurePoint Ag Systems in Atwood, where we had lunch. SurePoint specializes in providing solutions for the control and application of liquid and dry fertilizer, seed, and chemical. The company began in 2007 and was employee-owned. It entered into a joint venture with John Deere in 2022, retaining 20% ownership in the JV.

After lunch, we were given a tour of the SurePoint facility. In the engineering department, we learned that approximately 70% of the products sold are used for liquid fertilizer applications on planters, with the remaining 30% being the QuickDraw system for precision chemical application. Most of the application systems sold are customized systems, ordered by implement dealers for specific planter models, fertilizer products, and rates of application. The technology utilized is known as liqui-shift, which varies the rate of application based on the speed of the implement.

In the warehouse, we saw employees assembling various components of the applicator systems. We heard about how SurePoint’s success has come from their ability to adapt and innovate. Their sales growth has averaged 30% year over year.

Nicolas Bowles, OEM & International Sales Manager, has been with SurePoint since the beginning, when they only had 7 employees. He visited with us about their sales and support functions. SurePoint Ag Systems and its sister company, SurePoint Electronics, now employ a combined total of over 100 people. There are 10 territory sales managers and 12 inside sales managers. 95% of sales are made to implement dealers, with only 5% of sales in the retail market.

While at the SurePoint headquarters, we heard from a panel of Atwood community members who talked about community development and the efforts undertaken there to strengthen the local community. We heard about the 510 Main Youth Center, which provides a place for local youth to hang out and have fun. We also heard about efforts around housing development through 2 Homes, LLC. They buy dilapidated houses in tax sales and demolish them, using the vacant lots for the construction of new homes. To date, they have built 12 homes ranging in price from $160,000 to $300,000. They plan to continue to build 3-4 new homes per year.

Following the panel discussion, we headed back to Goodland for the evening. The evening’s events were held at the Price Convention Center, formerly the Elks Lodge, which was purchased by NW Tech with a grant from the Dane G. Hansen Foundation. A major $1.2 Million renovation is planned for the building.

The keynote speaker for the evening was Tanner Ehmke, Lead Economist for CoBank’s Knowledge Exchange research team. The topic of his presentation was the “Agricultural Economic Outlook” for 2023. One of the first points he made is that “Inside every risk is an opportunity.” Highlights from his presentation are:

· World economic growth is positive, but slowing. Energy prices signal a slowing economy, and as such, inflation is expected to slow in 2023.

· The good news is that U.S. inflation has likely peaked.

· However, labor is still extremely tight and will likely remain so because many workers (especially baby boomers) permanently left the workforce during COVID, women left the workforce to take care of the kids, the labor force has stopped growing due to falling fertility rates, net migration is down, and the Fed printed too much money during the pandemic.

· The Fed is making up for lost time by making their sharpest rate increases of all time.

· Although ag exports have remained strong, they will decrease in 2023 and imports will increase.

· Net farm income is at an historically high level, allowing producers to pay down debt.

· Land values will continue to increase in early 2023 and are then expected to plateau.

The day’s activities came to a conclusion around 9:00 that night. It was a long and exhausting day, but one that left us with a feeling of optimism and new ideas we can take back to our own communities.

Northwest Kansas Day Three
Friday, December 9, 2022
Submitted by: Jennifer Smith

The final day of the Northwest Kansas tour kicked off with Class XVI reconvening at Northwest Kansas Technical College.

Session 1 –

Jack Polifka, an instructor at the college specializing in precision agriculture technology, gave an overview of the precision ag program. He and 2 other instructors manage the program and strive to give students skills to be successful in farming regardless of prior experience.

Polifka says precision ag is about collecting, storing, and analyzing data to make farming decisions. Data comes from farm machinery, remote sensors, soil sensors, weather monitors, GIS, and other sources. This data can help with fertilizer and crop protection applications, water use, and other operating decisions to reduce input costs and maximize production. Precision ag technology can also be used anywhere and thus further helps students account for regional climatic differences when needed.

The Precision Ag program is advised and guided by a 13-member board.

Polifka says precision ag expertise is also a pathway for first generation farmers and those who want to enter the agriculture workforce. There are opportunities to work with aging farmers who desire assistance with data analysis and technology. He also notes technology is not out of reach for any type of farmer. There are multiple types of technology that can be fitted with older or newer equipment.

Students must complete a capstone project in the program where they make decisions from collected data and must be able to justify their decisions. Polifka says the decision process is key as there are still different options from which to choose based on any data set. “If you’d ask 10 different agronomists, you’d get 10 different answers.”

The college operates a water technology farm north of Goodland to provide students with real-world experience. The farm has 225 farmable acres where they grow corn, sorghum, and soybeans. One section includes subsurface drip irrigation which is very efficient for water use but has many other issues.

Polifka says that while they are doing research and education on the farm, they avoid stepping into any of the work of the land grant universities and are not doing replicated trials or anything of that nature.

KARL associates were invited to tour the shop area, view various types of equipment including drones, and see a small greenhouse space with a controlled environment cover crop trial. For the drones, the instructors are certified to fly. Certification is also recommended but not required for students.

Panel discussion 1 –

Area farmers: Mike Cochran (who also runs an auction service), Korey Schulte, John Windle, and Adam Dwell.

The panel described the biggest challenges of farming in the Goodland area as precipitation and irrigation issues, supply chain issues, labor, and increasing input costs. They talked about diversifying to adapt, for example if fertilizer costs go up, farmers look at ways to reduce use.

One of the panelists notes that drug use in the rural areas is an under-addressed issue and affects labor availability.

There was also discussion about the difference between working for a farmer and learning how to be a farmer. Sometimes younger workers are interested in agriculture because they hope to farm on their own, while older farmers may only be interested in having employees and are not considering succession planning. Farmers who are willing to mentor young people are hard to find.

Session 2 –

Shannon Kenyon was the next presenter. Kenyon manages the Groundwater Management District and spoke on the hydrology of the aquifer. She discussed the geological formations of the Ogallala and High Plains Aquifers and showed maps from the Kansas Geological Survey.

Kenyon gave an overview of water rights, their long history, and their importance in the region. The Ogallala is overappropriated and declining, making water use restrictions eminent without other change. Groundwater Management Districts (GMDs), which started in 1972, are an opportunity for local control and management. Local Enhanced Management Areas (LEMAs) were added in 2012 to offer further opportunities to help with water conservation and must be managed through a GMD.

Kenyon says local economies are dependent on the water supply. If the aquifer is depleted, farmers will be reduced to dryland farming which significantly reduces production.

Conservation is highly dependent on agriculture because more than 98 percent of water use in the GMD is from agricultural irrigation. One percent of water use is for stock water and less than 1 percent is municipal water use. Community-driven water conservation programs will not significantly affect the aquifer or set off agricultural use.

One of the major goals of the GMD is to open doors of communication between farmers and get them to share ideas, methods, etc. Getting farmers (especially the ones who need the information the most) to meetings, field days, and other events can be a challenge.

Panel discussion 2 –

Jeff Deeds, Mitchell Baalman, Brett Oelke, Scott Foote, and Brent Rogers

Deeds says that continued awareness of water issues is critical and panelists discussed the idea that water conservation is about the generations to come. This makes it harder for some people to see the benefit.

The LEMA gives some power back to the local producers for decision making in water use.

Panelists discussed how technology has made water conservation easier and efficient. In some cases the LEMA was the extra encouragement some farmers needed to use technology they could have been using previously. They have also started a foundation to help with cost share for technology and the Department of Conservation has helped support it.

While some farmers have been resistant to making changes, others have found their farms to be more profitable after implementing technology because they made other changes to improve efficiency.

The LEMA has been more successful than hoped.

The panel concluded with a short discussion about the positive intent and nature of the LEMA and reminds us of the saying “A problem without a solution is just a complaint.”

Conclusion

The tour wrapped up with a discussion of takeaways over lunch. Many class members were impressed by the positivity and adaptability displayed by panelists and speakers over the course of the sessions. There is a strong shared interest in looking to the future and investment in community vitality. Farmers are embracing technology and making changes. Seeing KARL Fellows come to the events and help with sessions is also inspiring.

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