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First Scorched, Then Soaked: Weather Whiplash Confounds Farmers

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First Scorched, Then Soaked: Weather Whiplash Confounds Farmers

This single field, just 160 acres of Kansas dirt, tells the story of a torturous wheat season.

One side is a drought-scorched graveyard for grain that never made it to harvest.

Near the center, combines plod through chest-high weeds and underwhelming patches of beige wheat, just enough of it to make a harvest worthwhile.

And over by the tree line, the most tantalizing wheat beckons like a desert mirage. The grain there is flourishing, the beneficiary of a late-season shift from dry to drenching. But it will never be collected: The ground is too waterlogged to support the weight of harvesting equipment.

“It really doesn’t get any crazier than right here, right now,” the farmer of that land, Jason Ochs, said last week as he salvaged what he could from the field.

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At a time when the global grain market has been scrambled by a war between two major wheat producers, Ukraine and Russia, farmers in Kansas are bringing in the state’s smallest wheat crop in more than half a century.

The main culprit is the extreme drought that, as recently as late April, had ensnared almost the entire western half of the state, and forced many farmers to abandon their crops. More recently, intense rain has eased the drought, but it came too late for much of Kansas’ winter wheat, which was planted in the fall for harvest in late spring and early summer.

The dueling weather extremes have confounded farmers and raised long-term climate questions about the future of the Great Plains wheat crop.

On the Plains, “precipitation and temperature are projected to trend in opposite directions in the future,” said Xiaomao Lin, the state climatologist of Kansas and a professor at Kansas State University. “Specifically, temperatures are expected to rise while rainfall decreases. Both of these changes are detrimental to wheat crops.”

A study Dr. Lin co-wrote last year in the journal Nature Communications linked yield loss in Great Plains winter wheat since the 1980s to periods of intense heat, stiff winds and little moisture, hallmarks of climate change.

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Dr. Lin said the early part of the 2022-23 wheat-growing season was the driest on the Plains in 128 years — even drier than during the Dust Bowl of the 1930s — though he cautioned that it was too soon to say precisely what role climate change played in this year’s particular conditions.

Wheat is more than just a crop in Kansas, where “The Wheat State” was once stamped on license plates and where University of Kansas sports fans “wave the wheat” to celebrate a score. Though Kansas farmers plant far fewer acres of wheat now than they did a generation ago — they can often make more money growing corn or soybeans — the state remains one of the country’s leading producers of wheat. The crop is sold for flour on the domestic market and exported in large quantities to Latin America, among other places.

The importance of the Plains wheat crop has only become clearer over the last year, as Russia’s invasion of Ukraine created uncertainty around the global supply of the staple crop, a major source of nutrition in developing countries. Large harvests in other parts of the world have helped limit the instability, but fresh fears of shortages have arisen after Russia stepped up its attacks on key grain-shipping ports and suspended an agreement that had allowed Ukrainian wheat to be transported across the Black Sea.

On the Plains, the war has made for volatile commodity prices, fast-changing market conditions and, among some farmers, a sense that their work matters more than before. Wheat prices have shot up, in part because of the turmoil in Europe, but many American farmers have still struggled because the yields are so small.

“We try to remind people that you won’t get that price if you don’t have wheat to sell,” said Aaron Harries, the vice president of research and operations for the Kansas Wheat Commission.

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Some farmers’ wheat is so scraggly that it is not worth harvesting, leaving them to rely on crop insurance.

About halfway between Kansas City and Denver in west-central Kansas, where Mike McClellan farms, the drought has persisted. And for the first time in the decades he has been farming, Mr. McClellan did not harvest any of his winter wheat.

“We had to get the crop adjusters out there to look and it and get it destroyed,” Mr. McClellan said.

In other parts of Kansas, like Mr. Ochs’s land near Syracuse, by the Colorado state line, a wheat crop that once seemed doomed by a lack of rain ended up being challenged by too much moisture.

Syracuse had 12 days in June with one-tenth of an inch or more of rain, the most in a single month since 1951, according to federal data. By the end of July, Hamilton County, which includes Syracuse, was completely out of the drought.

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The rain was a boon for crops that were planted in the spring, like corn and grain sorghum, and in some places it gave a last-minute boost to the wheat. But the showers forced weeks of delays in the wheat harvest, and left some soil so soggy that no crop could be collected on it.

“For me, it’s mind-boggling,” said Mr. Ochs, adding that though his winter wheat withered, his spring crops were as strong as any he had ever grown. “I talked to what I call old-timers and they’re the same way — they’ve never seen anything like this.”

Such intense, rapidly changing weather has not been limited to Kansas.

In California, years of drought were washed away this spring with so much water that a long-dormant lake re-emerged over a huge stretch of cropland. In Nebraska, the governor reached out to federal officials for help last week after a brief period of extreme humidity and high temperatures led to widespread cattle deaths. In Georgia, a warm winter followed by a series of hard freezes in March wiped out most of the state’s peach crop.

Globally, July was the earth’s warmest month on record, according to the European Union’s Copernicus Climate Change Service. Ocean temperatures have soared this year to new highs.

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The planet has warmed about 2 degrees Fahrenheit since the 19th century, and will continue to grow hotter until humans essentially stop burning oil, gas and coal, scientists say. The warmer overall temperatures contribute to extreme-weather events and help make periods of extreme heat more frequent, longer and more intense.

Doug Kluck, a regional climate services director at the National Oceanic and Atmospheric Administration, said the rapid changes on the Plains this year resulted from “a confusing set of variables” that scientists are still working to understand.

But while there might be historical precedent for the local extremes of weather that were seen this year, he said, a broader view suggested something unique was afoot.

“People like to like to look back at the past and say, ‘Oh, you know, it’s just as hot as 1936’ or, ‘It was just as wet,’” said Mr. Kluck, whose work focuses on the Central United States.

“It’s the big picture of not just looking at your backyard,” he added, but rather “looking at North America as a whole, looking at the world as a whole, and saying, ‘No, this is not what happened in 1930. We’ve never experienced this.’”

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John Keefe contributed reporting.

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Cookies, Cocktails and Mushrooms on the Menu as Justices Hear Bank Fraud Case

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Cookies, Cocktails and Mushrooms on the Menu as Justices Hear Bank Fraud Case

In a lively Supreme Court argument on Tuesday that included references to cookies, cocktails and toxic mushrooms, the justices tried to find the line between misleading statements and outright lies in the case of a Chicago politician convicted of making false statements to bank regulators.

The case concerned Patrick Daley Thompson, a former Chicago alderman who is the grandson of one former mayor, Richard J. Daley, and the nephew of another, Richard M. Daley. He conceded that he had misled the regulators but said his statements fell short of the outright falsehoods he said were required to make them criminal.

The justices peppered the lawyers with colorful questions that tried to tease out the difference between false and misleading statements.

Chief Justice John G. Roberts Jr. asked whether a motorist pulled over on suspicion of driving while impaired said something false by stating that he had had one cocktail while omitting that he had also drunk four glasses of wine.

Caroline A. Flynn, a lawyer for the federal government, said that a jury could find the statement to be false because “the officer was asking for a complete account of how much the person had had to drink.”

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Justice Ketanji Brown Jackson asked about a child who admitted to eating three cookies when she had consumed 10.

Ms. Flynn said context mattered.

“If the mom had said, ‘Did you eat all the cookies,’ or ‘how many cookies did you eat,’ and the child says, ‘I ate three cookies’ when she ate 10, that’s a false statement,” Ms. Flynn said. “But, if the mom says, ‘Did you eat any cookies,’ and the child says three, that’s not an understatement in response to a specific numerical inquiry.”

Justice Sonia Sotomayor asked whether it was false to label toxic mushrooms as “a hundred percent natural.” Ms. Flynn did not give a direct response.

The case before the court, Thompson v. United States, No. 23-1095, started when Mr. Thompson took out three loans from Washington Federal Bank for Savings between 2011 and 2014. He used the first, for $110,000, to finance a law firm. He used the next loan, for $20,000, to pay a tax bill. He used the third, for $89,000, to repay a debt to another bank.

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He made a single payment on the loans, for $390 in 2012. The bank, which did not press him for further payments, went under in 2017.

When the Federal Deposit Insurance Corporation and a loan servicer it had hired sought repayment of the loans plus interest, amounting to about $270,000, Mr. Thompson told them he had borrowed $110,000, which was true in a narrow sense but incomplete.

After negotiations, Mr. Thompson in 2018 paid back the principal but not the interest. More than two years later, federal prosecutors charged him with violating a law making it a crime to give “any false statement or report” to influence the F.D.I.C.

He was convicted and ordered to repay the interest, amounting to about $50,000. He served four months in prison.

Chris C. Gair, a lawyer for Mr. Thompson, said his client’s statements were accurate in context, an assertion that met with skepticism. Justice Elena Kagan noted that the jury had found the statements were false and that a ruling in Mr. Thompson’s favor would require a court to rule that no reasonable juror could have come to that conclusion.

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Justices Neil M. Gorsuch and Brett M. Kavanaugh said that issue was not before the court, which had agreed to decide the legal question of whether the federal law, as a general matter, covered misleading statements. Lower courts, they said, could decide whether Mr. Thompson had been properly convicted.

Justice Samuel A. Alito Jr. asked for an example of a misleading statement that was not false. Mr. Gair, who was presenting his first Supreme Court argument, responded by talking about himself.

“If I go back and change my website and say ‘40 years of litigation experience’ and then in bold caps say ‘Supreme Court advocate,’” he said, “that would be, after today, a true statement. It would be misleading to anybody who was thinking about whether to hire me.”

Justice Alito said such a statement was, at most, mildly misleading. But Justice Kagan was impressed.

“Well, it is, though, the humblest answer I’ve ever heard from the Supreme Court podium,” she said, to laughter. “So good show on that one.”

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SEC probes B. Riley loan to founder, deals with franchise group

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SEC probes B. Riley loan to founder, deals with franchise group

B. Riley Financial Inc. received more demands for information from federal regulators about its dealings with now-bankrupt Franchise Group as well as a personal loan for Chairman and co-founder Bryant Riley.

The Los Angeles-based investment firm and Riley each received additional subpoenas in November from the U.S. Securities and Exchange Commission seeking documents and information about Franchise Group, or FRG, the retail company that was once one of its biggest investments before its collapse last year, according to a long-delayed quarterly filing. The agency also wants to know more about Riley’s pledge of B. Riley shares as collateral for a personal loan, the filing shows.

B. Riley previously received SEC subpoenas in July for information about its dealings with ex-FRG chief executive Brian Kahn, part of a long-running probe that has rocked B. Riley and helped push its shares to their lowest in more than a decade. Bryant Riley, who founded the company in 1997 and built it into one of the biggest U.S. investment firms beyond Wall Street, has been forced to sell assets and raise cash to ease creditors’ concerns.

The firm and Riley “are responding to the subpoenas and are fully cooperating with the SEC,” according to the filing. The company said the subpoenas don’t mean the SEC has determined any violations of law have occurred.

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Shares in B. Riley jumped more than 25% in New York trading after the company’s overdue quarterly filing gave investors their first formal look at the firm’s performance in more than half a year. The data included a net loss of more than $435 million for the three months ended June 30. The shares through Monday had plunged more than 80% in the past 12 months, trading for less than $4 each.

B. Riley and Kahn — a longstanding client and friend of Riley’s — teamed up in 2023 to take FRG private in a $2.8-billion deal. The transaction soon came under pressure when Kahn was tagged as an unindicted co-conspirator by authorities in the collapse of an unrelated hedge fund called Prophecy Asset Management, which led to a fraud conviction for one of the fund’s executives.

Kahn has said he didn’t do anything wrong, that he wasn’t aware of any fraud at Prophecy and that he was among those who lost money in the collapse. But federal investigations into his role have spilled over into his dealings with B. Riley and its chairman, who have said internal probes found they “had no involvement with, or knowledge of, any alleged misconduct concerning Mr. Kahn or any of his affiliates.”

FRG filed for Chapter 11 bankruptcy in November, a move that led to hundreds of millions of dollars of losses for B. Riley. The collapse made Riley “personally sick,” he said at the time.

One of the biggest financial problems to arise from the FRG deal was a loan that B. Riley made to Kahn for about $200 million, which was secured against FRG shares. With that company’s collapse into bankruptcy in November wiping out equity holders, the value of the remaining collateral for this debt has now dwindled to only about $2 million, the filing shows.

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Griffin writes for Bloomberg.

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Starbucks Reverses Its Open-Door Policy for Bathroom Use and Lounging

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Starbucks Reverses Its Open-Door Policy for Bathroom Use and Lounging

Starbucks will require people visiting its coffee shops to buy something in order to stay or to use its bathrooms, the company announced in a letter sent to store managers on Monday.

The new policy, outlined in a Code of Conduct, will be enacted later this month and applies to the company’s cafes, patios and bathrooms.

“Implementing a Coffeehouse Code of Conduct is something most retailers already have and is a practical step that helps us prioritize our paying customers who want to sit and enjoy our cafes or need to use the restroom during their visit,” Jaci Anderson, a Starbucks spokeswoman, said in an emailed statement.

Ms. Anderson said that by outlining expectations for customers the company “can create a better environment for everyone.”

The Code of Conduct will be displayed in every store and prohibit behaviors including discrimination, harassment, smoking and panhandling.

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People who violate the rules will be asked to leave the store, and employees may call law enforcement, the policy says.

Before implementation of the new policy begins on Jan. 27, store managers will be given 40 hours to prepare stores and workers, according to the company. There will also be training sessions for staff.

This training time will be used to prepare for other new practices, too, including asking customers if they want their drink to stay or to go and offering unlimited free refills of hot or iced coffee to customers who order a drink to stay.

The changes are part of an attempt by the company to prioritize customers and make the stores more inviting, Sara Trilling, the president of Starbucks North America, said in a letter to store managers.

“We know from customers that access to comfortable seating and a clean, safe environment is critical to the Starbucks experience they love,” she wrote. “We’ve also heard from you, our partners, that there is a need to reset expectations for how our spaces should be used, and who uses them.”

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The changes come as the company responds to declining sales, falling stock prices and grumbling from activist investors. In August, the company appointed a new chief executive, Brian Niccol.

Mr. Niccol outlined changes the company needed to make in a video in October. “We will simplify our overly complex menu, fix our pricing architecture and ensure that every customer feels Starbucks is worth it every single time they visit,” he said.

The new purchase requirement reverses a policy Starbucks instituted in 2018 that said people could use its cafes and bathrooms even if they had not bought something.

The earlier policy was introduced a month after two Black men were arrested in a Philadelphia Starbucks while waiting to meet another man for a business meeting.

Officials said that the men had asked to use the bathroom, but that an employee had refused the request because they had not purchased anything. An employee then called the police, and part of the ensuing encounter was recorded on video and viewed by millions of people online, prompting boycotts and protests.

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In 2022, Howard Schultz, the Starbucks chief executive at the time, said that the company was reconsidering the open-bathroom policy.

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