Congressman Jeff Fortenberry today testified before the House Transportation Committee, calling on the U.S. Army Corps of Engineers to reassess and reform its Missouri River flood control practices in light of the devastating 2011 Missouri River flooding.
“Nebraska and other Missouri River Basin states were hit hard by this year’s flooding,” Fortenberry said. “Families’ lives were turned upside down. Nebraskans lost homes, farms, and businesses, communities suffered significant damage to key infrastructure, and our state’s two nuclear power facilities were surrounded by floodwaters.
“Mr. Chairman, it was surreal seeing a boat tied to a nuclear plant,” Fortenberry added. “It is necessary that we now thoroughly examine how existing river management policies played a role in the flooding and its dramatic impacts while determining new strategies for flood control moving forward.”
Fortenberry, whose First Congressional District includes 11 Nebraska counties along the Missouri River, has cosponsored legislation, H.R. 2942, to direct the Chief of the Army Corps of Engineers to revise Missouri River management policies to ensure greater storage capacity and prevent serious downstream flooding. In order to assist restoration of flood-damaged infrastructure, Fortenberry has also introduced H.R. 3347, which would exempt any road, highway, or bridge damaged by a natural disaster from duplicative environmental document reviews if the road, highway, or bridge is reconstructed in the same location.
Texas Drought Visible in New National Groundwater Maps
The record-breaking drought in Texas that has fueled wildfires, decimated crops and forced cattle sales also has reduced levels of groundwater in much of the state to the lowest levels seen in more than 60 years, according to new national maps produced by NASA and distributed by the National Drought Mitigation Center at the University of Nebraska-Lincoln.
The latest groundwater map, released Nov. 29, shows large patches of maroon over eastern Texas, indicating severely depressed groundwater levels. The maps, produced weekly by NASA's Goddard Space Flight Center in Greenbelt, Md., are publicly available on the website of the Drought Center (drought.unl.edu), headquartered at the University of Nebraska-Lincoln.
"Texas groundwater will take months or longer to recharge," said NASA hydrologist Matt Rodell, based in Goddard. "Even if we have a major rainfall event, most of the water runs off. It takes a longer period of sustained greater-than-average precipitation to recharge aquifers significantly."
The maps are based on data from NASA's Gravity Recovery and Climate Experiment (GRACE) satellites, which detect small changes in the Earth's gravity field caused by the redistribution of water on and beneath the land surface. The paired satellites travel about 137 miles (220 km) apart and record small changes in the distance separating them as they encounter variations in Earth’s gravitational field.
To make the maps, scientists used a sophisticated computer model that combines measurements of water storage from GRACE with a long-term meteorological dataset, to generate a continuous record of soil moisture and groundwater that stretches back to 1948. The meteorological data includes precipitation, temperature, solar radiation and other ground- and space-based measurements.
The color-coded maps show how much water is stored now as a probability of occurrence in the 63-year record. The maroon shading over eastern Texas, for example, shows that the level of dryness over the last week occurred less than 2 percent of the time between 1948 and the present.
The groundwater maps aren't the only maps based on GRACE data that the Drought Center publishes each week. It also distributes soil moisture maps that show moisture changes in the root zone down to about three feet (1 meter) below the surface, as well as surface soil moisture maps that show changes within the top inch (2 cm) of the land.
"All of these maps offer policymakers new information into subsurface water fluctuations at regional to national scales that has not been available in the past," said the Drought Center's Brian Wardlow. The maps provide finer resolution or are more consistently available than other similar sources of information, and having the maps for the three different levels should help decision makers distinguish between short-term and long-term droughts.
"These maps would be impossible to generate using only ground-based observations," Rodell said. "There are groundwater wells all around the United States, and the U.S. Geological Survey does keep records from some of those wells, but it's not spatially continuous and there are some big gaps.”
The maps also offer farmers, ranchers, water resource managers and even individual homeowners a new tool to monitor the health of critical groundwater resources. "People rely on groundwater for irrigation, for domestic water supply and for industrial uses, but there's little information available on regional to national scales on groundwater storage variability and how that has responded to a drought," Rodell said. "Over a long-term dry period there will be an effect on groundwater storage and groundwater levels. It's going to drop quite a bit, people's wells could dry out, and it takes time to recover."
The maps are the result of a NASA-funded project at the Drought Center and NASA Goddard to make it easier for the weekly U.S. Drought Monitor to incorporate data from the GRACE satellites. NASA’s Jet Propulsion Laboratory in Pasadena, Calif., developed GRACE and manages the mission for NASA. The groundwater and soil moisture maps are updated each Tuesday.
The maps can be viewed at http://go.unl.edu/mqk.
To learn more about the GRACE mission, go to: http://www.csr.utexas.edu/grace/. Other relevant links: NASA Data Reveal Major Groundwater Loss in California, http://www.jpl.nasa.gov/news/news.cfm?release=2009-194; NASA Satellites Unlock Secret to Northern India's Vanishing Water, http://www.nasa.gov/topics/earth/features/india_water.html.
Upper Big Blue NRD is Hosting the 8th Annual CROP-TIP Field Day
Cornerstone Bank and the Upper Big Blue Natural Resources District will be sponsoring the “8th Annual CROP-TIP Field Day” on December 7, 2011, from 9:00 a.m. to 3:00 p.m. at the York City Auditorium. The public is invited to attend this free event. (Registration will be from 9:00-9:30 a.m.).
The “Cornerstone Resources Observation Plot—Test Irrigation Project” (CROP-TIP) was an idea formulated in January 2004 by Cornerstone Bank and the Upper Big Blue NRD. Similar to an outdoor classroom, the water conservation project is used as a research plot for producers and youth throughout the area. We will share the data and new irrigation systems implemented at CROP-TIP this year. We are expecting a large crowd for this event and a RSVP is required by calling Patty at the Upper Big Blue NRD at (402) 362-6601.
The following speakers are featured and will cover these topics:
Sue Martin, Ag Analyst for the television show “Market to Market”: “Positioning Your Ag Business During These Current Economic Conditions”.
Dr. Al Dutcher, State of Nebraska Climatologist: “La Nina Conditions Will Likely Lead to Production Problems During the 2012 Growing Season”.
Dan Leininger, Upper Big Blue NRD: “CROP-TIP & KROP-TIP Harvest Results”.
Rod DeBuhr, Upper Big Blue NRD: “Groundwater Quality in the Upper Big Blue NRD”.
The Public is welcome and encouraged to attend. There will be a Free Meal and plenty of Door Prizes along with several AG Vendor booths …everyone is invited, but you must RSVP your spot by calling Patty Kyhn, Upper Big Blue NRD at (402) 362-6601. Call now as space is limited! Sponsors include: Cornerstone Bank (York, NE), United Farmers COOP (York, NE), Eco-Drip (Hastings, NE), Great Plains Meter (Aurora, NE), NETAFIM (Salina, KS), Irrometer (Riverdale, CA), John Deere Water (San Marcos, CA), Tri-City Meters (Alda, NE), D & M Enterprises (Stromsburg, NE), Northern Agri-Services (Henderson, NE), and Van Wall Water (Perry, IA).
Attendance at this field day will fulfill the requirements for Zones 5 & 6 water quality management training.
NFB to Honor Bargmans with Silver Eagle Award
Nebraska Farm Bureau will present its highest honor, the Silver Eagle Award, to Eugene Bargman of Beatrice and his late wife Caroline on Dec. 6 at the 2011 Nebraska Farm Bureau Convention in Kearney. The Silver Eagle Award honors outstanding leadership and distinguished service to the agricultural industry.
Eugene Bargman, 87, and Caroline, who died in a car accident in 2006, are widely respected for their commitment to God, Country, Community, Agriculture and Farm Bureau, Nebraska Farm Bureau President Keith Olsen said.
"They were an effective team during their 60 years together and their commitment to their beliefs showed in their actions," he said. "Until Caroline's passing, you always saw them together, working to help agriculture, young people and their community."
The Bargmans were married in January 1946. Eugene completed his service in the Air Force later that year and taught "On the Farm" night classes in agriculture to military veterans. While he studied for his applied agriculture associates degree at the University of Nebraska, the Bargmans were the first house parents for the Lutheran Student House and were involved with campus ministry for more than 60 years.
The Bargmans were early adopters of conservation technology on their diversified farm near Pickrell, where they raised their five children. They were co-operators for on-farm studies with state and federal agencies and both were leaders in Gage County Farm Bureau. Eugene and Caroline both testified numerous times before local governing boards and the Nebraska Legislature on agriculture issues, especially land use and conservation issues.
Eugene has been a Farm Bureau member for 63 years. He has held many offices in Gage County Farm Bureau and continues to serve as its secretary-treasurer. He is known for his enthusiasm for Farm Bureau and his success in recruiting new Farm Bureau members. Both he and Caroline served on Nebraska Farm Bureau's State Legislative Policy Committee and on other committees and task forces.
Eugene served as president of the Gage County Fair Board and of the Federal Land Bank board of directors and was a member of agricultural advisory boards for Nebraska governors, U.S. Senators and Members of Congress.
Caroline was a member of the Nebraska Soybean and Grain Sorghum boards and of the first U.S. Soybean Board. The Bargmans devoted many hours to mentoring their teen-aged hired hands and 4-H and FFA members and were strong supporters of the Agriculture in the Classroom program. They delighted in hosting tour groups and international visitors to their farm.
Both were leaders in St. John's Lutheran Church in Beatrice and Eugene served on the executive committee of the central district of the American Lutheran Church and on the national church's committee on rural ministry.
Today Eugene lives in a Beatrice retirement community, where he enjoys educating his fellow residents about agriculture and serving as a leader for social and educational activities.
The Silver Eagle Award has been presented annually since 1986, when former U.S. Rep. Virginia Smith was the first recipient. Farm Bureau members and County Farm Bureaus may nominate individuals and organizations with Nebraska connections for the award.
NCBA Commends Committee Support of Farm Dust Bill
The U.S. House of Representatives Committee on Energy and Commerce today, Nov. 30, 2011, voted in support of H.R. 1633, the Farm Dust Regulation Prevention Act of 2011. The legislation passed (33-16) through the full committee with bipartisan support and will head to the full House of Representatives for a vote. National Cattlemen’s Beef Association (NCBA) Deputy Environmental Counsel Ashley Lyon said this “commonsense” legislation is gaining momentum and will receive bipartisan support when brought to a vote in the coming days.
“Allowing federal agencies to continue regulating farmers and ranchers to the point of no return is not something we will sit by and allow to happen,” said Lyon. “We have to bring some accountability to regulatory agencies. They must be aware of the economic impact their actions are having on farm and ranch families throughout the country. We commend Congresswoman Kristi Noem (R-S.D.) for introducing this legislation and the original cosponsors Leonard Boswell (D-Iowa), Larry Kissell (D-N.C.) and Robert Hurt (R-Va.). We also commend members of Congress from both sides of the aisle for supporting this commonsense bill.”
The Farm Dust Regulation Prevention Act of 2011 would do multiple things to ensure clean air while also providing regulatory certainty for farm and ranch families, according to Lyon. She said the legislation recognizes that dust from agricultural activities has never been shown to have a health impact at ambient levels. The bill would exempt farm dust from the Clean Air Act unless the administrator of the Environmental Protection Agency can prove it is a significant problem and that applying the standard is worth the costs. It also gives states and localities the rightful authority in regulating dust, which is a local issue.
“It is important that state and local governments determine what regulatory action to take regarding dust. As we all know, dust depends on geography,” Lyon continued. “All regions of the country are very different and local and state governments must be allowed to set policies that make sense. The federal government’s one-size-fits-all mentality is neither practical nor scientific.”
If H.R. 1633 passes the House, it will move to the Senate, where it was introduced by Senators Mike Johanns (R-Neb.) and Charles Grassley (R-Iowa) and has support from 26 bipartisan senators.
Fortenberry Comments on Proposed Federal Rule Affecting Young Detasselers
Congressman Jeff Fortenberry today urged the federal Department of Labor to reconsider a proposed rule that would restrict youth involvement in certain agricultural work, including detasseling.
“It may be a foreign concept in the Beltway, but detasseling is a rite of passage for many Nebraskans,” Fortenberry said. “Thousands of young teenagers earn money each summer working in the fields. In the process, they learn the value of hard work and its rewards. While it is important to ensure worker safety in all circumstances, this uninformed and unnecessary edict from Washington threatens a vital Heartland industry and an important economic opportunity for many Nebraskans.”
Fortenberry, a member of the House Agriculture Committee, also submitted to the Department of Labor his concerns about the proposed rule’s potential impact on family farm operations and agricultural education programs such as 4-H and Future Farmers of America.
Convention Offers Cattlemen's College, Tours, Info Sessions
Iowa cattle producers will have several opportunities for experiencing and learning practical information that can be used immediately on their farms at the Iowa Cattlemen's Association Convention and Annual Meeting Dec. 12-14. The meeting will be at The Meadows Event & Conference Center in Altoona.
"There's no way producers can lose," said ICA convention organizer Trent Wellman. "The theme of our meeting is 'What's in Your Cards?', and ICA is offering many options to draw a winning hand."
"In addition, new ICA members will receive one free hotel night's stay at either of the ICA Convention and Annual Meeting hotels," Wellman said.
On Dec. 12, cattle producers can attend a Cattlemen's College in the morning. The Pfizer-sponsored event features Dr. D. Dee Griffin, Feedlot Production Management Veterinarian at the University of Nebraska's Great Plains Veterinary Educational Center. Dr. Griffin will do an economic review of a cost-effective health program, as well as analyze the cost of mistakes.
In the afternoon, three cattle facilities in Story County will be part of a bus tour. Each farmer's facility shows a different approach that today's feeders can consider. The facilities include a hoop building; a modified hoop, which is an open lot combined with a hoop; and a monoslope building combined with an alternative technology system.
In the evening, building designers will make brief comments before a panel presentation about using crop residues as feed stock. This program has been under development through a collaboration of John Deere, ADM, and Monsanto. Dan Loy, Interim Director of the Iowa Beef Center at Iowa State University will pull together the key issues from the afternoon and evening events.
On Dec. 13, there will be six different Info-Expo sessions held throughout the day. Topics include: Stacking the Deck for the Future Cowherd - Technology and genetics will help the commercial cow-calf operator become more efficient and profitable.
Hedge Your Bets to Control Your Feeding Costs with High Grain Prices -- Speaker Dan Loy, Iowa State University, will discuss common technology and alternative options to manage operational risks.
All In: the NCBA View of National Priorities on Farm Bill and Issues Affecting Iowa -- Kristina Butts, Executive Director of Legislative Affairs for the National Cattlemen's Beef Association, will discuss federal budget issues that are driving decisions at the federal level, how will that impact Iowa cattle producers.
Playing the Rush When it Comes to Adding Value to Feeder Calves -- Kellie Carolan, ICA Seedstock Manager, will review ideas that focus on adding value to your calves from birth to weaning.
Taking the Odds: Being Proactive About Local Water Quality and Your Operation --Gene Tinker, the Coordinator of Animal Feeding Operations for the Iowa Department of Natural Resources, and Shawn Shouse, Iowa State University Extension Ag Engineer, will talk about a self-assessment tool for producers to use on their operation to ensure water quality, and other environmental issues impacting cattle producers.
Determining your Ante When It Comes to Rebuilding the Cow Herd -- Iowa State University Extension Beef Specialists Joe Sellers and Byron Leu will discuss how heifer development and sales will be keys for building back the national and state cow herd.
Also on Dec. 13, the Beef Product, Business Issues, and Cattle Production policy committees will meet to discuss new proposed resolutions, as well as review expiring policies in each of the areas.
Other activities on Dec. 13 are a trade show, awards luncheon, trade show reception, and dinner followed by the Iowa Cattlemen's Foundation Annual Fundraising Auction. The trade show will continue on Dec. 14, and the annual business meetings of the Iowa Beef Industry Council (which is responsible for the use of check-off dollars) and the Iowa Cattlemen's Association will be held.
Early registration for the ICA Convention and Annual Meeting will save attendees $35 per person. Registration is $150. The registration price includes four meals, the trade show, and all educational sessions. The pre-convention event on Dec. 12 is free of charge, but registration is required so meal accomodations can be properly planned.
Get more information or register for the meeting at the ICA website, www.iacattlemen.org.
Corn Caucus Project Presidential Report Card Released
Today, the Iowa Corn Growers Association (ICGA), in partnership with the National Corn Growers Association released the Corn Caucus Project Presidential Report Card, a reference guide to presidential candidates’ positions on agricultural policies.
“The Corn Caucus Project is an initiative to help Iowa’s corn growers compare the candidates on agricultural issues,” said Kevin Ross a farmer from Minden and ICGA President. “We do not make any recommendations or endorsements, we just let the candidates speak for themselves.”
The Corn Caucus Project Presidential Report Card provides information on the eight major candidates’ responses to questions on legislative priorities for corn. Topics on the survey included: ethanol, farm programs, Environmental Protection Agency regulations, trade and transportation.
Based on survey responses submitted by presidential candidates, media and official records, each candidate was scored and graded. If a candidate failed to complete the survey, the committee used published statements, official records or information from the candidate’s website to complete the voter guide. Answers to the survey and issue tracking are available online at www.iowacorn.org/corncaucus.
“If there is a question affecting the corn industry, we want every presidential candidate to know an Iowa corn grower who is ready and willing to provide answers and we want Iowans to know how the candidates stand on issues that are important to Iowa’s corn growers,” said Ross.
Update Your Cropland Cash Rental Rate
Cash rent lease agreements are popular because they are intended to be simple, relieving the owner of making decisions throughout the year and giving tenants the freedom to make their own decisions for raising a crop. Fluctuating markets, the risk and returns from changing prices, yields and costs are all borne by the tenant, making it a challenge for a landowner to decide a fair price for the land.
The Iowa State University (ISU) Extension and Outreach Ag Decision Maker (AgDM) website provides several resources to address that challenge. The Ag Decision Maker leasing page is a portal to all Iowa State resources on improving farm lease contracts. The decision tool, Cash Rental Rate Estimation, is a user friendly spreadsheet to compare different methods for computing a cropland cash rent. It includes inputs for current prices, typical farm yields and estimated production costs to provide answers based on projected returns to the land.
Users can estimate rents based on a share of gross income, yield potential, CSR, land value, tenant's residual or a crop share equivalent. Detailed information on each method is available in the coordinating information file, Computing a Cropland Cash Rental Rate.
According to Tim Eggers, ISU Extension specialist, many lease rates are being negotiated through the winter months. "There is a common misperception that rents are set before the lease termination deadline of Sept. 1," said Eggers. "Landlords or tenants who want to make a change in their existing lease, whether it is oral or written, need to provide a notice of lease termination to the other party prior to Sept. 1. However, the leasing year doesn't begin until March 1. Many lease rates and conditions are negotiated after harvest and even in the winter."
The leasing page, www.extension.iastate.edu/agdm/wdleasing.html, is a portal to rental surveys, lease forms and advice on how to improve farm lease contracts. The cropland cash rent decision tool and information file are available online, at county ISU Extension offices, or by contacting Ag Decision Maker at: agdm@iastate.edu.
AgDM covers a wide range of topics in farm management, agricultural marketing, new business development and renewable energy. It is coordinated by ISU Extension and Outreach economists and farm management specialists.
Ethanol monthly production data for September
According to the Energy Information Administration, ethanol production in September averaged fell to 888,000 barrels per day (b/d) – or 37.3 million gallons. That is the lowest level since April. Through September, ethanol production is averaging 900,000 b/d. That's an annualized rate of 13.8 billion gallons.
Demand for September, as calculated by the Renewable Fuels Association, stood at 871,000 b/d.
Stocks of ethanol rose to 18.4 million barrels. That translates to 21.2 days of supply.
Week of Nov 25 production data
According to EIA data, ethanol production averaged 930,000 b/d – or 39 million gallons daily. That is up 13,000 b/d from the previous week and marks the high for the year. The 4-week average for ethanol production stood at 918,000 b/d for an annualized rate of 14.1 billion gallons.
Stocks of ethanol stood at 17. million barrels.
Gasoline demand for the week averaged 368.3 million gallons daily. Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.61%.
On the co-products side, ethanol producers were using 14.101 million bushels of corn to produce ethanol and 104,670 metric tons of livestock feed, 94,434 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.28 million pounds of corn oil daily.
November Farm Prices Received Index Up 1 Point
The preliminary All Farm Products Index of Prices Received by Farmers in November, at 185 percent, based on 1990-1992=100, is up 1 point (0.5 percent) from October. The Crop Index is up 5 points (2.5 percent) and the Livestock Index increased 2 points (1.3 percent). Producers received higher prices for corn, lettuce, cattle, and broilers and lower prices for soybeans, hogs, apples, and hay. In addition to prices, the overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased monthly movement of milk, cattle, corn, and cotton offset the decreased marketing of soybeans, peanuts, potatoes, and sunflowers.
The preliminary All Farm Products Index is up 31 points (20 percent) from November 2010. The Food Commodities Index, at 171, decreased 2 points (1.2 percent) from last month but increased 22 points (15 percent) from November 2010.
All crops:
The November index, at 208, increased 2.5 percent from October and is 21 percent above November 2010. Index increases for feed grains & hay, oilseeds, commercial vegetables, and potatoes & dry beans more than offset the index decrease for fruits & nuts.
Food grains: The November index, at 237, is unchanged from the previous month but 19 percent above a year ago. The November price for all wheat, at $7.33 per bushel, is up 4 cents from October and $1.23 above November 2010.
Feed grains & hay: The November index, at 259, is up 4.0 percent from last month and 34 percent above a year ago. The corn price, at $6.00 per bushel, is up 29 cents from last month and $1.45 above November 2010. The all hay price, at $176.00 per ton, is down $5.00 from October but $66.00 higher than last November. Sorghum grain, at $11.00 per cwt, is 30 cents above October and up $2.56 from November last year.
Oilseeds: The November index, at 213, is up 3.9 percent from October and 15 percent higher than November 2010. The soybean price, at $11.50 per bushel, decreased 20 cents from October but is 40 cents above November 2010.
Livestock and products:
The November index, at 156, is 1.3 percent above last month and up 16 percent from November 2010. Compared with a year ago, prices are higher for cattle, hogs, milk, calves, and turkeys. Prices for broilers and eggs are lower than last year.
Meat animals: The November index, at 157, is up 0.6 percent from last month and 29 percent higher than last year. The November hog price, at $65.70 per cwt, is down $3.00 from October but $14.20 higher than a year ago. The November beef cattle price of $119.00 per cwt is up $2.00 from last month and $25.00 higher than November 2010.
Dairy products: The November index, at 152, is unchanged from a month ago but 11 percent higher than November last year. The November all milk price of $19.90 per cwt is unchanged from last month but $2.00 higher than November2010.
Poultry & eggs: The November index, at 155, is up 4.0 percent from October but 4.9 percent below a year ago. The November market egg price, at 86.2 cents per dozen, increased 0.5 cent from October but is 15.8 cents below November 2010. The November broiler price, at 45.0 cents per pound, is up 2.0 cents from October but 3.0 cents below a year ago. The November turkey price, at 78.4 cents per pound, is up 1.1 cents from the previous month and 4.8 cents from a year earlier.
Prices Paid Index Unchanged
The November Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 205 percent of the 1990-1992 average. The index is unchanged from October but 18 points above (9.6 percent) November 2010. Higher prices in November for feeder cattle, nitrogen, diesel, and mixed fertilizer offset lower prices for complete feeds, concentrates, supplements, and other services.
MF Global Cuts Ties to Grains
MF Global Holdings Ltd. on Tuesday cut some of its last ties to the grain markets that it once dominated, shedding memberships at the Kansas City exchange and possibly at the Minneapolis exchange.
The bankrupt brokerage unloaded the last of its memberships at the Kansas City Board of Trade, selling two for $480,000 each and one for $500,000, according to the KCBT.
The sales came after MF Global sold three KCBT memberships last week for around the same price, which has been roughly the going rate for memberships this fall.
The Minneapolis Grain Exchange, which trades hard red spring wheat futures, confirmed a membership at the exchange was sold for $106,000 on Tuesday, but said it would take a few days for the identity of the seller to be known.
"MF Global no longer has any Class A memberships," confirmed Shelia Summers, vice president of marketing at the KCBT.
MF Global Trustee Seeks Funds Transfer
The trustee liquidating MF Global Holdings Ltd's broker-dealer unit asked a federal bankruptcy judge to authorize the distribution of as much as $2.1 billion to about 36,000 former commodities customers, roughly doubling the total payout to $4.1 billion.
James Giddens, the trustee for MF Global Inc, said the increased payout should restore at least two-thirds of U.S.-based property to former customers of that unit, where funds were frozen because of the parent's Oct. 31 bankruptcy. That's up from an earlier estimate of a 60 percent payout.
In a court filing, Giddens said the increased payout is "as full and as prompt a distribution" as circumstances and the law allow, and will leave him a sufficient reserve as he assesses customer claims.
The payout could provide further relief for customers whose money has been in limbo for one month. It requires approval by U.S. Bankruptcy Judge Martin Glenn in Manhattan, who has authorized two transfers this month. A hearing is set for Dec. 9, court records show.
Once run by former New Jersey Governor Jon Corzine, MF Global filed for Chapter 11 protection after the New York-based company revealed a $6.3 billion bet on European sovereign debt. That worried investors, credit rating agencies and trading partners, and spurred a liquidity shortfall.
Stabenow Calls Former MF Global CEO to Testify
U.S. Senator Debbie Stabenow, Chairwoman of the Senate Agriculture, Nutrition and Forestry Committee, has called on former MF Global CEO Jon Corzine to testify before the Agriculture Committee at a hearing on Dec. 13. The hearing is the latest step in an ongoing investigation into circumstances surrounding the Oct. 31 bankruptcy of MF Global Holdings Ltd., the eighth largest bankruptcy in U.S. history. The Senate Agriculture Committee has oversight jurisdiction on commodity trading and its regulatory agencies.
"The farmers, small business owners and others who trusted this firm are now facing tremendous hardship and may ultimately never recover all of their money," said Chairwoman Stabenow. "A discovery of this magnitude demonstrates yet again the need for strong oversight and protections for consumers to prevent this sort of abuse from occurring. Anyone engaged in wrongdoing in this matter must be swiftly held accountable, to help bring justice to victims and to prevent further erosion of confidence in the financial system."
Since MF Global declared bankruptcy, huge amounts of the firm's customers' money has gone missing--it is now estimated that approximately $1.2 billion is unaccounted for. The FBI and Department of Justice recently opened criminal investigations into the MF Global bankruptcy.
MF Global customers consisted of many farmers, ranchers, small business owners and other middle class Americans. As a result of the bankruptcy, MF Global customer accounts had been frozen and many customers still cannot access their own money. It is possible that customers will never reclaim all of their money, meaning individual families could lose thousands, and in many cases tens of thousands of dollars.
MF Global customers are also being invited to testify at the December 13 hearing.
As part of an ongoing investigation into this matter, Senator Stabenow has also convened a hearing Dece. 1 to question top officials at the Commodity Futures Trading Commission as well as the Securities and Exchange Commission about their oversight of MF Global and examine whether the protections in place to prevent a catastrophe of this sort are adequate.
CWT Assists with 7.4 Million Pounds of Cheese Exports
Cooperatives Working Together (CWT) has accepted 12 requests for export assistance from Dairy Farmers of America, Darigold and United Dairymen of Arizona to sell a total of 3,336 metric tons (7.355 million pounds) of Cheddar and Monterey Jack cheese to customers in Asia, the Middle East and Central America. The product will be delivered December through April 2012.
In 2011, CWT has assisted members in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 40,071 metric tons (88.3 million pounds) to 25 countries on four continents. That is the equivalent of 880 million pounds of milk, the annual production of 41,900 cows.
The CWT Export Assistance program will continue into 2012 and 2013, having achieved participation equal to 70.1 percent of milk marketings. In total, 33 cooperatives and 177 independent producers will be investing two cents per hundredweight that will fund the program's export efforts over the next two years.
Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by reducing inventories that overhang the market and depress cheese prices. In the long-term, CWT's Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.
CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.
CHS Signs Agreement to Acquire Solbar
CHS Inc., the nation's leading farmer-owned cooperative, announced it has signed an agreement with Solbar Industries Ltd., a global leader in specialty soy proteins and soy isoflavones to acquire 100 percent of the shares of Solbar.
The purchase price reflects an equity value of approximately $133 million.
The parties anticipate closing on the CHS acquisition of Solbar in the first quarter of calendar 2012. Among the required conditions are the approval of the shareholders of Solbar and antitrust approvals in certain jurisdictions outside the United States.
Solbar provides soy protein ingredients to manufacturers in the meat, vegetarian, beverage, bars and crisps, confectionary, bakery, and pharmaceutical manufacturing markets.
Solbar corporate offices are in Ashdod, Israel, with manufacturing and logistics facilities in Ashdod and Ashkelon, Israel; South Sioux City, Nebraska; and Ningbo, China; and a sales office in Oakdale, Minn.
