Driest year on record plagues Texas ...

VOA: Weather forecasters and agriculture experts in the southwestern U.S. state of Texas say there is no relief in sight for what already is the worst drought year on record. The searing heat and dry conditions have caused devastating wildfires in the western part of the large state and led to crop losses, cattle deaths and water rationing in areas of east Texas that are normally wet at this time of year.

Driving through the countryside northwest of Houston, one sees dried up fields, dying trees and livestock ponds that are not much more than a puddles of fetid, algae-covered water. In some towns, farmers' markets have been cancelled because local growers have little to offer. Those with wells for irrigation are struggling with the high cost of fuel to run their pumps.

Debbie Cross, who operates a farmers' market near Cypress, Texas, says people are becoming discouraged by the lack of rain and the high temperatures, which are around 40 degrees most days.

“The drought is hurting everything. It is hurting all the crops, the cattle, the hay. There is no grass. The chickens are miserable. I mean everybody is just miserable. We need water,” Cross said.

Cross says local farmers are unable to supply much fruit and vegetables and that she is getting by with produce trucked in from other states where conditions are better.

“We are getting it from the local southern states and southwestern states are kicking in -- Arizona, New Mexico, Louisiana, Oklahoma. Everybody knows that the Texas market is a great consumer market, so they are helping out a lot here,” Cross said.
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One of the hardest hit agricultural sectors is livestock. Texas is the biggest cattle producer in the United States and ships beef to many foreign markets. Earlier this year, ranchers endured one of the worst winters on record, with several days of subzero temperatures in a region where freezes are rare. The drought has made it even harder, driving up the cost of hay and leaving some areas so dry that cattle have died of thirst in their pastures.

One rancher who has managed to get through this crisis with most of her stock in fairly good condition is Dorie Damuth, owner of the Flying D ranch near Magnolia, Texas.

Damuth raises prize-winning Texas Longhorns for breeding and she has managed to find hay and enough water to keep them alive. She says she has seen dry spells before, but nothing that compares to this year.

“The drought is something I, as a cattle woman, and all of my fellow cattlemen and cattlewomen have never experienced before. This is probably the 100-year drought, just like you can have a 100-year flood. It is very devastating for all of us ranchers who work so hard to provide beef for our country as well as for around the world,” Damuth said.

In a dried up lake on her property, there is a Longhorn skull sitting on top of cracked earth that is muddy and soft underneath.

“We have had lakes and stock ponds on the ranch that have dried up because of no rain, no rainfall. They will dry down to a little mucky place in the middle that is still wet and the cattle will sometimes go down and try to get water and they can't. And they step into that mucky mud and it is kind of like quicksand, and they can't get out.”

Lately, there have been beautiful fluffy clouds floating over the area. But ranch hand Chris Quinters is not encouraged by them.

“Those are some nice clouds, but it don't look like they are going to bring any rain,” Quinters said.

Kingwood hiker rescued in Aspen after breaking ankle.

ASPEN — Aspen rescuers were summoned to the West Maroon Trail last Thursday afternoon to aid a Texas hiker who broke his ankle while crossing a stream.

William Sprague, 61, of Kingwood, Texas, was about two miles above Crater Lake, climbing an an embankment after crossing a stream when he fell backward and was injured. He was able to call to nearby hikers for assistance; one of them ran down the trail to Maroon Lake to inform a ranger of the incident, according to the Pitkin County Sheriff's Office.

Authorities were notified at about 2:20 p.m. Eighteen members of Mountain Rescue Aspen responded, reaching the hiker at about 5:30 p.m. He was carried down the trail on a litter, reaching the Maroon Lake parking lot at about 9:30 p.m. Sprague was taken by Aspen Ambulance to Aspen Valley Hospital, where he was recuperating, the Sheriff's Office said.

Kingwood Bank calls it quits ...

By ROBIN SIDEL WSJ

Main Street Bank lends most of its money to small businesses and is earning decent profits. But the Kingwood, Texas, bank is about to get out of the banking business.

In an extreme example of the frustration felt by many bankers as regulators toughen their oversight of the nation's financial institutions, Main Street's chairman, Thomas Depping, is expected to announce Wednesday that the 27-year-old bank will surrender its banking charter and sell its four branches to a nearby bank.

Mr. Depping plans to set up a new lender that will operate beyond the reach of banking regulators—and the deposit-insurance safety net. Backed by the private investment firm of Microsoft Corp. co-founder Paul Allen, the company won't be able to call itself a bank, but it will be able to do business the way Mr. Depping wants.

"The regulatory environment makes it very difficult to do what we do," says Mr. Depping, who last summer saw his bank hit with an enforcement order from the Federal Deposit Insurance Corp.

A spokesman for the FDIC declined to comment on Main Street, a unit of closely held MS Financial Inc. Dan Frasier, director of corporate activities for the Texas Department of Banking, confirmed that Main Street is "working on the process of moving out of the state banking system," but declined to provide details.

Bankers have long complained about their overseers, but it is rare for a bank to basically close its doors aside from an acquisition or failure. Mr. Depping blames the move on a tightening regulatory noose.

Regulators came under fire in the financial crisis for lax oversight that allowed financial institutions to dole out too much credit to unworthy borrowers. Some bank executives now complain that federal and state agencies have swung to the other extreme, poring over minute details of virtually every loan, including those to small businesses.

"The No. 1 complaint that we hear from community bankers is that they feel that regulators have gone one step too far and are choking off lending," says Paul Merski, chief economist at the Independent Community Bankers of America, a trade group that represents small banks.

READ THE REST OF THE STORY AT THE WALL STREET JOURNAL