The Wall Street Journal reports that, according to people familiar with the investigation, and nearly three months after MF Global Holdings Ltd. collapsed, officials hunting for an estimated 1.2-billion dollars in missing customer money increasingly believe that much of it might never be recovered.

Many officials now believe certain employees at MF Global dipped into the “customer segregated account” that the New York company was supposed to keep separate from its own assets — and then used the money to meet demands for more collateral or to unfreeze assets at banks and other counterparties as they grew more concerned about their financial exposure to MF Global.

As the probe continues, the findings so far suggest that a “significant amount” of the money could have “vaporized” as a result of chaotic trading at MF Global during the week before the company’s October 31 bankruptcy filing.

Courtesy: NAFB News

A language barrier delayed one arraignment Tuesday, but two other men appeared via video from the Buchanan County Jail to face charges of assaulting a cop trying to break up a loud, early-morning party Sunday.

A preliminary hearing was scheduled February 28 for Miguel Villegas, 32. A cousin acted as a translator during the arraignment.

Louis Oliveras, 21, is now scheduled for arraignment Wednesday, when court officials will have an interpreter available. Officials thought an interpreter might also be needed for a third suspect, Jose Rodriguez-Delgado, 22, but later found out he speaks English. Rodriguez-Delgado will apply for a public defender, and is scheduled for preliminary hearing February 17.

Police say Officers Jason Wilhoit and Matt Kneib were surrounded by a hostile crowd as they tried to break up a loud party in the 25-hundred block of Angelique. Wilhoit was hit with a beer bottle and punched several times in the face.

Officer Kneib pushed Wilhoit and his assailant into a bathroom to keep the rest of the crowd away. When backup arrived the crowd dispersed, but as officers left with suspects under arrest, the crowd pelted them with rocks. In all five suspects were arrested, two on a city noise violation. Officer Wilhoit was treated and released for head injuries.

Purdue University Extension economist Chris Hurt says the recent USDA Cattle on Feed report indicates the U.S. Cattle industry is in the very early stages of expansion as beef heifer retention has increased a modest 1 percent. He says the previous liquidation, driven by high feed prices, may be coming to an end. This is because beef supplies have now adjusted downward and cattle prices have adjusted sharply higher. Still, Hurt believes beef supplies will be very short for several more years.

In a review of the USDA report, Hurt says – there have been two dominant drivers of cow numbers in recent years. The first was the dramatic increases in feed prices after calendar year 2007. The beef industry couldn’t pass higher feed costs on to consumers in 2008 and 2009 but instead had to suffer negative margins. Poor returns led to liquidation of beef cows, which has continued into the current report.

Hurt added, – the second large driver was drought in the southern Plains in recent years that caused further liquidation of cows due to lack of pasture and forages. He says – the impact of these two factors resulted in U.S. beef cow numbers dropping 3 million head, or 9 percent, since 2007.

What does this first hint of expansion mean to cattle prices in 2012? Hurt says – because of the reduction in the cow numbers, the calf crop will be down over 2 percent in 2012. If heifer retention continues to grow in 2012 and 2013, beef supplies will not increase until 2015. So the modest heifer retention now is actually a price-enhancing factor in the short run with the bearish implications not occurring until 2015 and beyond.

Courtesy: NAFB News

The Environmental Protection Agency’s Total Maximum Daily Load regulation for the Chesapeake Bay watershed is under-fire from the American Farm Bureau Federation. According to the opening brief for summary judgment, filed by AFBF in the case, “AFBF vs. EPA.”, Farm Bureau states the regulation – establishes new controls on land use that trespass into territory Congress legally reserved for state governments. The brief points out that TMDL proposals are “informational tools” under the Clean Water Act. But, in this action, EPA’s final TMDL goes far beyond traditional and lawful scope and authority.

Farm Bureau says – the TMDL will impact all economic activity in the watershed with potentially devastating impacts for agriculture within the watershed. AFBF President Bob Stallman says – we all want a clean and healthy Chesapeake Bay. This lawsuit is about how we reach that common goal. Farm Bureau believes EPA’s new regulation is unlawful and costly without providing the environmental benefit promised.

According to Farm Bureau, farmers in the watershed have clearly delivered a documented track record of continuous improvement, through conservation and sound stewardship and will continue their dedicated efforts. The TMDL dictates how much nitrogen, phosphorous and sediment can be allowed into the Bay and its tributaries from different areas and sources.

Coutesy: NAFB News

The Federal Reserve Bank of Kansas City reports that strong farm income propelled farmland values to record highs and strengthened loan portfolios at agricultural banks at the end of 2011. Cropland values across the Corn Belt and northern Plains soared to all-time highs with many states posting annual value gains between 20 and 40 percent.

In addition, ranchland values rose sharply compared to last year as high feed costs boosted demand for prime pasture ground. Even drought-stricken areas of the southern Plains posted modest farmland value gains.

The Kansas City Bank also reports agricultural bank profits improved as borrowers repaid farm debts. In the third quarter, the return on assets at agricultural banks rose further and remained stronger than their banking peers. The share of delinquent farm real estate loans fell, and delinquent non-real estate loan volumes hit their lowest level since 2009. Bankers reported fewer loan renewals and extensions, so the downward trend in delinquency rates will likely continue.

Rising farm incomes boosted liquidity in the farm sector and slowed non-real estate lending in 2011. Agricultural bankers reported soft operating loan demand throughout the year. Meanwhile, commercial banks struggled to maintain market share. According to call report data, farm real estate loan volume at commercial banks for the third quarter was up just 0.6 percent compared to last year. In contrast, third quarter financial statements from the Farm Credit System reported 4.4 percent growth in farm mortgage loan volume year-to-date.

Courtesy: NAFB News

Don Hofstrand – Iowa State University emeritus ag economist says world agriculture has been successful in keeping up with world population growth over the last half of the 20th century.  In fact -Hofstrand says agriculture’s food production has increased faster than population during this time period. And the value of food production has increased rapidly during this period – most of which occurred in the developing countries.

Hofstrand notes that although world agricultural production has increased faster than population growth – resulting in an increase in production per capita – the increases have not been distributed evenly across the globe. Still – 37 out of 70 developing countries are considered food insecure nations. Most are located in Sub-Saharan Africa – the same region that has the highest fertility rate.

Hofstrand adds agriculture’s ability to meet the needs of an additional two-billion people during the first half of the 21st century is an open question. The Food and Agriculture Organization estimates food production will need to increase by 70-percent by 2050.

Courtesy: NAFB News