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Prof says MF Global failure bigger than Farm Bill
A Kansas State University Ag Economics Professor says the failure of futures firm MF Global is a “big deal” to agriculture. In a paper released last week, Art Barnaby, Junior, called it a “debacle, and probably more important to farmers than the Farm Bill.”
Barnaby says if the regional banks – which are not too big to fail, in his estimation –and the Farm Credit system lose confidence in the marketing system and those hedge accounts from unauthorized use – that spells trouble for the entire marketing chain. He says “elevators need margin money to manage the price risk for stored grain.”
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