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Relaxing RFS Mandate May Not Have Desired Effect

As the drought continues to take its toll on the corn and soybean crops – the Director of the Center for Agricultural and Rural Development at Iowa State University has taken a look at the economic effects of short corn and soybean crops as well as a potential Renewable Fuel Standard waiver. CARD Director Bruce Babcock used a maximum corn yield of 148-bushels per acre and an average yield of 138-bushels per acre. The lowest yield used was 120-bushels per acre. Babcock says two findings stand out. First – he says the flexibility built into the RFS allowing obligated parties to carry over blending credits from previous years significantly lowers the economic impacts of a short crop. According to Babcock – the 2.4-billion gallon amount of flexibility assumed in the study lowers the corn price impact of the ethanol mandate in the drought year from $1.19 per bushel to 28-cents per bushel. As such – unless corn yields are much lower than assumed in the study – he says relaxing the mandate further would have modest impacts on corn prices. Babcock says the second stand out finding implies that ethanol plants will be a strong competitor for corn even without a mandate.

Babcock says the finding is that if the current price of ethanol relative to gasoline accurately reflects the value of ethanol to blenders – then the price of ethanol will be supported at quite an attractive level as long as ethanol quantities are not pushing up against the blend wall. In the no mandate scenario – Babcock says ethanol production only drops by 600-million gallons when the mandate is waived. According to Babcock – additional flexibility in ethanol mandates may not result in as large a drop in feed costs as livestock groups hoped. Again – the high value of ethanol is only high relative to the price of gasoline. Babcock says a waiver of the mandate would have a larger impact if gasoline prices drop.

ERS Tracking the Impact of Ongoing Drought

USDA’s Economic Research Service says the drought is seriously affecting U.S. agriculture – impacting the crop and livestock sectors and potentially increasing food prices at the retail level.  Almost 40-percent of agricultural land is experiencing severe or greater drought at this point – which means the 2012 drought is more extensive than any drought since the 1950s. ERS will release its next farm income forecast August 28th. They say the drought’s impacts will be reflected – as 62-percent of farms are located in areas experiencing drought. Nine-percent are experiencing extreme or exceptional drought. Based on the 2010 value of production – ERS says about two-thirds of all crops and two-thirds of all livestock are produced in areas experiencing at least moderate drought. ERS says 44-percent of cattle production and nearly 40-percent of corn and soybean production is in areas experiencing at least severe drought.

ERS says the farm price of corn has already increased – with additional increases depending on the extent of the drought. The price of other crops – such as soybeans – and other inputs in the food supply – such as animal feed – will also be affected. The effect on retail prices – ERS notes – will depend on the severity of the drought and will begin to appear on supermarket shelves this fall. ERS suggests the impacts on beef, pork, poultry and dairy will likely be seen within two months.

Farmers in Better Position to Cope with Drought Than in 1988

Thanks to less debt, record-high grain and land prices, greater production and exports – Ag bankers, farm managers and economists say U.S. farmers are facing the current drought in their strongest financial position in history. That’s the big difference from the situation today when compared to the drought of 1988. Stronger crop and livestock insurance programs will also make a difference. All-in-all – Iowa Farm Bureau Director of Commodity Research Dave Miller says the farm economy is much healthier than it was 24 years ago. At that time – farmers were emerging from a farm crisis, there had been an extended period of low prices for grains, there was severe financial stress in the ag economy and land prices had plummeted about 60-percent in many of the Midwest areas. Miller says the picture is much different today. Farmers National Company Chief Executive Jim Farrell says grain farm balance sheets and better crop insurance are keys this time around.

St Joe Raids Part Of “Operation Log Jam”

Raids on at least three businesses in St Joseph and Andrew County were part of a much larger federal investigation into the growing synthetic drug trade across the country.

Scott Collier, a spokesman for the U.S. Drug Enforcement Administration, confirmed that link in an interview Thursday.

“All of the operations conducted Wednesday were part of Operation Log Jam,” Collier said.  A map of operations conducted nationwide Wednesday does not include a marker in St Joseph, but does include one in Kansas City and several across Missouri.

Collier would not speak in specifics about the raids in St Joseph.

Collier is based in St Louis, working for a district that includes Missouri, Iowa, Nebraska, Kansas, South Dakota and part of Illinois. He said in that area agents served 32 search warrants, and searched four other businesses with the permission of the occupants. He says those agents confiscated 115 thousand prepared doses of the synthetic marijuana called “K2” and 95 thousand doses of “bath salts,” another synthetic drug. Collier says, at retail, those seizures would be worth more than eight million dollars.

Agents also seized the raw materials for making the drugs, and $1.4 million in cash.

Nationwide, 90 people were arrested, $36 million in cash was seized and more than 19 million packets of designer synthetic drugs were confiscated.

There have still been no arrests in our area from raids conducted Wednesday at The Pursuit of Happiness on the Belt Highway, The Smokerz Outlet on Frederick, and an undisclosed location in Andrew County.

Collier says we shouldn’t read too much into the fact that no one has been charged.

“The lack of arrests is indicative of nothing,” Collier said. “We’ve been gathering information and collecting evidence, and we will pursue indictments when appropriate.”

 

DEA Announces Massive Synthetic Drug Bust “Operation Log Jam”

The DEA on Thursday announced “Operation Log Jam,” a massive nationwide sweep in which 90 people were arrested, and more than 19 million packets of designer synthetic drugs were seized.

Officials now confirm Wednesday’s raids in St Joe and Andrew County were part of that larger operation.

A spokesman for the US Attorney’s Office for Western Missouri says there have still been no arrests and no charges in yesterday’s operations, and said the federal agents involved joined a nearly year-long probe by the Buchanan County Drug Strike Force.

The U.S. Drug Enforcement Administration on Thursday announced what it called the first nationwide law enforcement action against the synthetic designer drug industry. Agents seized more than $36 million in cash yesterday. Agents seized so-called bath salts, as well as the synthetic drugs K2 and Spice. They also confiscated large amounts of the constituent products used to make the drugs.

Operation Log Jam was conducted jointly by the U.S. Drug Enforcement Administration and U.S. Immigration and Customs Enforcement (ICE), with assistance from the Internal Revenue Service Criminal Investigations, U.S. Postal Inspection Service, U.S. Customs and Border Protection, FBI, Food and Drug Administration’s Office of Criminal Investigations, as well as countless state and local law enforcement members in more than 109 U.S. cities and targeted every level of the synthetic designer drug industry, including retailers, wholesalers, and manufacturers.

Find out more at the DEA’s web site, here.

Nixon to announce more funding to help Mo. farmers

JEFFERSON CITY, Mo. (AP) – Missouri Gov. Jay Nixon is announcing additional funding to help drill or deepen water wells after intense demand from the state’s farmers.

On Tuesday, Nixon announced an emergency program that would cover 90 percent of the cost for a water project with a maximum cost-sharing award of $20,000. Typical state soil and water cost-share programs cover 75 percent of the cost. The state Soil and Water Commission this week approved $2 million for the assistance program.

However, by Thursday, the governor’s office said more than 600 farmers had applied for the funding and that 33 contracts had been awarded.

Nixon was holding a news conference to announce additional funding Thursday at the state Department of Agriculture in Jefferson City.

Saint Joseph Transit Shuffles Service

Bus service in Saint Joseph is about to change. Saint Joseph Transit will stop taking half-hour service breaks at 9:15 and 5:15 weekdays and 11:15 and 3:15 on Saturdays.

To provide full service, including route deviations, the system will drop some schedules on routes that carry the fewest passengers. The changes will take effect next Monday, July 30th. Check the new schedule here.

National Hep-C Probe Extends To Kansas Hospital

The investigation continues into a lab worker accused of stealing drugs and needles, and allegedly infecting dozens of patients with hepatitis C.  The investigation extends to a medical center in Hays, Kansas.

David Kwiatkowski

Health officials in New Hampshire plan a public forum to explain new testing recommendations for people who may have been infected. An outbreak has affected 30 patients of a New Hampshire hospital’s cardiac catheterization lab.

The Kansas Department of Health and Environment and HaysMed in Hays, Kan., are working jointly to notify patients who underwent cardiac catheterization from May 24, 2010, to Sept. 22, 2010.

 

The U.S. Attorney for the District of New Hampshire announced that David Kwiatkowski was arrested and charged with obtaining controlled substances by fraud and tampering with a consumer product. According to an affidavit filed in federal court in New Hampshire, Kwiatkowski allegedly engaged in drug diversion and infected patients with hepatitis C while employed at Exeter Hospital in New Hampshire.

Due to the fact that Kwiatkowski worked as a contract radiology technician in the HaysMed cardiac catheterization laboratory from May 24, 2010, to Sept. 22, 2010, HaysMed and KDHE are working together to notify all patients who were treated there and recommend they receive testing for hepatitis C. Only those patients who underwent cardiac catheterization procedures between May 24, 2010, and Sept. 22, 2010, at HaysMed were potentially put at risk.

“We understand patients and their loved ones may be very concerned about this situation. HaysMed and KDHE are working collaboratively on this investigation,” said KDHE Secretary and State Health Officer Robert Moser, MD. “I would like to reassure the public that we have no reason to be concerned about additional risks to the public. The events in question occurred approximately two years ago.”

Approximately 460 patients had procedures at the HaysMed cardiac catheterization laboratory during this time period. Those patients who were potentially exposed at HaysMed are being contacted by mail with information on how to receive free testing for hepatitis C through KDHE and who to contact to answer questions and address concerns.

A special telephone hotline has been established at HaysMed for patients who are concerned about potential exposure to hepatitis C. Concerned patients can speak with a nurse by calling 877-261-7140.

No Relief From Drought In Overnight Rain

We got a little rain overnight, but not enough to put a dent in the drought. Official measurements for Saint Joseph showed a total of .19 of an inch, with most of that falling between 1 and 2 this morning. It was the first measurable rainfall in 17 days.

So far in the month of July Saint Joseph has received .21 of an inch of rain. Normally, July would have brought us just over 4 inches of rain by now.

Murder Suspect Pleads Guilty

Jered Houston

A man already serving 25-years for robbing nine people at a St Joe birthday party faces an additional 30-years in prison after his guilty plea to murder charges Wednesday.

Jered Houston will be sentenced September 6th for his guilty plea to second degree murder and armed criminal action.

The charges stem from the death of Charley Lonjers at his St Joe home in August of 2010.

 

 

Police found Lonjers’ body behind his home at 924 Sylvanie. Prosecutors charged Houston with the murder after finding trace evidence on the weapon used to kill Lonjers.

Prosecutors are expected to request a 30-year prison term, to be served consecutive to the robbery sentence.

Houston is already in jail, serving 25 years for a 2010 robbery of nine people at a birthday party at the Broadmoor Apartments in St. Joseph.

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