by Amber Schmitz, Sumner Newscow — The future of agriculture is about to change in Sumner County. By next summer, farmers, not just grain elevator operators, will be able to ship grain by rail.

MKC and partner CHS plan to open a Producer Ag, LLC state of the art receiving and rail shipping grain terminal at U.S. 160 and Ryan Road in Milan next June. Construction began 10 days ago with dirt work to ready the site for building.

“Things like this take lots of time, but the decision was not difficult,” said MKC President and CEO Dave Christiansen. “It’s critical when you take a look at rural America.”

Groundbreaking ceremony was held in Wellington.

MKC gave a public presentation and held a ground breaking ceremony at the Sumner County Extension Office/Raymond Frye Complex on Friday, May 27 with a good turn out. Due to the amount of rain received in the area recently, the ground breaking could not take place on the future site.

“We understand the cause, and if it’s going to benefit farmers, we are going to do it,” Christiansen said. “We believe this project is going to do just that.”

MKC is a cooperative based out of Moundridge, Kan., with a territory that covers over 19,500 square miles, stretching 200 miles north and 130 miles south. With 81 current facilities, they employ 349 people.

Erik Lange, Vice President of Southern Operations, said that risk management is a core business unit unique to their company.

“Risk management helps farmers take control of crop production risks,” Lange said. “We offer crop insurance and crop input financing.”

The cooperative’s core business units include grain, egronomy, energy, feed and risk management.

CHS is a global cooperative partner with MKC.

“We chose them as a partner because they have an excellent relationship with the railroad and access to world markets, meaning grain can be shipped from Sumner County across the United States and overseas,” Lange said.

When built, the facility will have a capacity to hold 100,000 bushels of grain. Separate bins will be able to hold 25,000 bushels of grain. There will be a total storage space for 4.5 million bushels of grain. The circle track surrounding the facility will hold 120 rail cars.

Senior Location Manager Jeff Jones said the facility will be similar to one they built in Canton, Kans.

“The need for growth brought to that facility was immediate,” Jones said.

There will be an investment of $43,000,000 in costs to build the facility. Grain payroll will be a total of $720,000, with each of twelve full time employees making about $60,000 annually, with benefits.

During the 14 month construction process, 280 people will be employed to build the facility. They are hoping to draw business from surrounding counties.

Producer Ag, LLC will be a cooperative owned facility, creating value for farmers. Members will share earning through patronage. There will be a Section 199 deduction and members cooperative governance.

“The shuttle train will provide new basis for the area,” Jones said. “There are lots of opportunities out there, and we are glad to bring them here.”

The cooperative plans on a June 1, 2017 completion date.

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