Wireless network developer LightSquared filed for Chapter 11 bankruptcy protection yesterday. The company said this move will give it space to continue pursuing regulatory approval to provide wireless service to rural America. According to court documents, LightSquared lists between $100 million and $500 million in debt. It’s debt is spread out between 50 and 99 unsecured creditors.

The proposal from LightSquared to build a wireless network has drawn opposition from a wide variety of groups. Recently, the Federal Communications Commission revoked a waiver for the company to build a terrestrial telecommunications network because tests confirmed that LightSquared’s network would interfere with GPS systems, including precision-ag applications.

LightSquared said it plans to continue to pursue the project.

Farmland prices in the U.S. Plains states rose 25 to 30 percent from a year ago, reaching record highs as strong farm income raised by higher grain prices heightened demand for farmland, according to the Federal Reserve Bank of Kansas City. The bank just released its 1st Quarter 2012 Agricultural Credit Conditions report.

Last week, representatives of rural lending institutions told a House Ag Subcommittee that they’re concerned that farmland prices have inflated to a point where they face increased risk if rising farmland values suddenly crash. 

In the Kansas City Fed report, the value of non-irrigated crop land is reported jumping 25 percent, while irrigated farm prices jumped more than 30 percent from the first quarter of 2011 to a new high for the bank’s quarterly bankers’ survey. Ranchland values rose 16 percent as high feed costs lifted the demand for pasture.

When the housing market bubble burst several years ago, banks and other lending institutions took a major economic hit, and taxpayers found themselves on the hook for billions of dollars that was needed to bail out lending entities – like Fannie Mae and Freddie Mac.

At the subcommittee hearing, Nebraska Bank of Newman Grove Chairman Jeff Gerhart testified on behalf of the Independent Community Bankers of America.  He was asked by lawmakers whether he sees any similarities between rising farmland values and the housing bubble from a few years back, here’s his response.

Bubble 1

If farmland prices fall like they did in the 1980’s, taxpayer money could be needed to make lenders whole again, but not in amounts nearly as high as the housing lender bailout.

Bubble 2

Gerhart encouraged the committee to keep and eye on the situation.

Bubble 3

The KC Fed surveys 235 bankers in its district, an area that includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, the northern half of New Mexico and the western third of Missouri.

Source: Kansas City Fed, Reuters

The U.S. Farmers & Ranchers Alliance recently held its spring meetings in St. Louis, where significant growth in support of the organization was reported and the greater role farmers and ranchers are playing in our nation’s conversations about food was discussed. The National Corn Growers Association is a founder of USFRA, and NCGA Chairman Bart Schott, a North Dakota Corn Grower, serves as USFRA vice chairman.

“In its first 18 months, USFRA has made a significant impact on the conversation America is having about how its food is produced,” said USFRA Chairman Bob Stallman, president of the American Farm Bureau Federation. “Through our Food Dialogues, U.S. farmers and ranchers are actively engaging in this conversation by telling their personal stories of continuous improvement in the operations.”

With nearly 80 affiliate and industry partner organizations supporting USFRA to-date, Stallman said these meetings allowed representatives from a majority of those organizations to convene and collaborate on activities in which USFRA will be engaging. Seventy individuals discussed USFRA’s movement and the need to continue effective dialogue with top influencers and consumers.

“While there was some discussion of the progress to date, there was definite synergy around the movement USFRA has started, and excitement about the next steps to create more momentum,” said USFRA Communications Advisory Committee Chair Forrest Roberts, CEO of the National Cattlemen’s Beef Association (NCBA). Remaining communications activities for the year were outlined and approved by the board, all tying back to USFRA’s key objectives.

Source: NCGA