Time of challenge for farmers

Roy Applequist’s roots are in agriculture. His father, who grew up on a farm south of Salina, went on to start his own business, Roberts Industries, Inc., an ag equipment manufacturer.

The business proved the perfect environment for Applequist, who started working summers there when he was just 11. The job was good training for the young boy, who learned firsthand how the company fit together.

After college, Applequist returned to Salina, where he served as a member of the U.S. Army Reserves and managed the Roberts Industries foundry division until the company was sold in 1975.

The next year, Applequist opened his own company, Great Plains Manufacturing, in the same building his father’s business had occupied. For nearly three years, the company remained in the small shop before moving operations to Assaria in 1979.

After starting with just one tool — a 30-foot folding grain drill — the business soon gained momentum. Over time, the manufacturer became increasingly successful, opening eight other locations throughout central Kansas, including Ellsworth. Manufacturing facilities were also located overseas.

He eventually sold the business to the Kubota Corp. in 2016 after nearly 40 years in business.

Applequist admits he purposefully put his manufacturing plants in rural Kansas towns because those smaller communities needed jobs.

In January 2017, Applequist partnered with two other individuals to form Concordia Technologies. Needing a location, the business purchased the former Arvos facility on the east edge of Concordia which formerly manufactured material-handling, crushing, heavy industrial and energyrelated items. The facility operated for a half-century under various names until it closed in December 2016. Most recently, Applequist purchased a vacant manufacturing facility in Smith Center. Once the facility is completely remodeled, it will likely produce ag equipment.

“That’s what I know,” he said. “They need jobs, and I enjoy doing this.”

Politics, Farmers and a Trade War

A seasoned, successful businessman, Applequist entered uncharted territory in August 2018 when he formed a Super PAC called the Kansas Farmers Fund.

The Kansas Farmers Fund actively campaigned against Congressman Roger Marshall, (R-Kansas), who was seeking reelection in the state’s 1st District. Marshall’s seat was challenged by Democratic candidate Alan LaPolice, of Clyde. The Kansas Farmers Fund financed political advertising, including mailings, digital and cable advertisements, accusing the incumbent, who supported Trump’s trade policy, of turning his back on Kansas farmers.

But when it was over, Marshall was re-elected after a decisive victory over LaPolice in the November 2018 general election.

But just months after the election, Marshall’s name is being tossed around again. But this time, it’s as a possible replacement for longtime Kansas Sen. Pat Roberts’ seat. Roberts announced in January he wouldn’t pursue another run for U.S. Senate, a decision that’s left some to speculate whether Marshall may throw his hat in the ring.

Roberts’ congressional career spanned a half-century, including 12 years as an aide on Capitol Hill.

While his Super PAC opposed Marshall last year, Applequist won’t say publicly whether or not he will once again get involved in another similar election campaign.

However, Applequist is frank when it comes to his concerns about how a trade war could cause problems for the state’s farmers.

Last year, President Trump announced his intentions of making good on his campaign promises, by imposing a lengthy list of tariffs, including a 25 percent tax on steel and 10 percent on aluminum exported from the United States. Initially, the tariffs were widely applied. The reaction from the affected countries was swift and severe, as they saw the move as an insult and retaliated by levying tariffs of their own.

Tariffs are a tax on imported products. Similar to sales tax, the buyer pays a percentage of the purchase price to the seller. Sometimes, the U.S. imposes additional tariffs or duties on foreign imports being sold at unbelievably low prices or supported by foreign governments.

Trump introduced tariffs as a means of helping the U.S. economy by gaining leverage in trade negotiations. Instead, tariffs have ignited trade wars with some of the country’s biggest customers.

While tariffs are designed to decrease demand on the nation’s farm products in the international market place, Barry Flinchbaugh, professor emeritus in agriculture economics at Kansas State University, said they also increase the farmers’ production costs.

“For example, the imposed tariff on steel imports started the Trump trade wars,” he said.“This will increase the cost of farm machinery. In the long-run, nobody wins a trade war because it promotes inefficiency. The policy question is very straight-forward. Would you rather leave the decisions on who trades what with whom up to the efficiency of the marketplace or to the whims of the politicians?”

Increasing prices for steel and aluminum are adversely affecting farm equipment, resulting in higher prices, Applequist said, adding the cost of agricultural equipment will continue to increase.

“It’s not going to get any cheaper,” he said.

He’s also concerned about the United States’ position in the international grain market.

“I’m afraid we’re losing our grip on grain markets, especially soybeans,” he said. “China is our biggest customer, but since there’s so much competition out there. Countries like Argentina, Brazil and Russia, and even Africa, are expanding their production and are starting to grow soybeans there.”

“Many of our foreign customers think we’re an unreliable source,” he said.“There are a lot of options out there.”