Tag: politics

Kansas City Board of Trade


The price of wheat…

Beginning in the earliest years of the Twentieth Century, and carrying onward through 2013, from a trading pit in the heart of Kansas City, Missouri, the price of wheat, first, in the United States, then later, for countries the United States traded with, was influenced. Influenced by Kansas City traders. Traders who barked out “buy” and “sell” orders. Buy and sell orders correlated to futures contracts for Hard Red Winter Wheat.

Hard Red Winter Wheat futures contracts – the Kansas City Board of Trade.

Why was this exchange located Kansas City in the first place?

Soil and climate conditions in the Great Plains are perfect for growing wheat. So the trading operation for Hard Red Winter Wheat contracts was going to be based in the Midwest. 

Wheat requires specific conditions in order to grow. Ample sunlight. Well-drained soil. Sufficient water. One additional requirement needed – with Hard Red Winter Wheat – is, exposure to the cold. To each point, Kansas City’s neighboring state to the west is…ideal.

So…Kansas City?

In the late-19th Century, the, “Why Kansas City?” question had a lot to do with where the wheat the traders were trading was coming from – Kansas.


Known as the “Wheat State,” Kansas as a state -along with North Dakota – consistently leads the United States in wheat production. 

For example…

Last year, Kansas had 7,600,000 acres allocated to the planting of wheat. Coupled to 7,150,00 acres of harvested wheat. That was last year. And one of the things that I personally love most about my home state of Kansas is, Kansas just doesn’t radically swing, from whim to whim, all that much. Well, to be more precise, Kansas doesn’t really swing from whim to whim, at all. Which brings us to the question of, “Why Kansas City?” for the Hard Red Winter Wheat exchange.

While there were 7,150,000 harvested acres of Kansas wheat in 2024, 106 years prior – in 1918 – there were 7,250,000 harvested acres of wheat in Kansas. Pretty much the same acreage total. In 1918. And in 1924. 7,000,000 acres.

Step out of 1918 for a moment. And into 2024. While those small Kansas farm houses (and small Kansas farms) would no longer be. And while you will now see high-tech John Deere Combine Harvesters on those Kansas farms – complete with Wi-Fi…and a John Deere price tag, per Harvester, of between $700,000 and $1,000,000 – the “DNA” of the land from which Hard Red Winter Wheat had been harvested – and is still harvested today -pretty much, stayed the same. 

7,000,000 Kansas acres of harvested wheat in 1918. 7,000,000 Kansas acres of harvested wheat in 2024.


Logistically, an exchange for the trading of Hard Red Winter Wheat contracts -and, for that matter, for a board of trade – which was based in Kansas City, just made sense. Long, long ago. And today as well. Kansas City was (and is) the “big city” for Kansas farmers. Perfect for a Hard Red Winter Wheat exchange. 

The origin of the Kansas City Board of Trade traces back to its founding in the year 1856. Founded by a group of local merchants. Led by one Edward H. Allen.

Elected as the 10th mayor of Kansas City, Missouri, Edward H. Allen held the office in 1867 and 1868.

The idea for an exchange taking hold in Kansas City three years after Kansas City, Missouri itself was incorporated as a city. Which happened in 1853. 

The trading of Hard Red Winter Wheat contracts…

Just as the trading floor at the New York Stock Exchange in Manhattan is no longer a crowded hub of frantic traders, scurrying their trades about, those traders who once roamed the pit at the Kansas City Board of Trade – early in the Twentieth Century, and up through 2013 – have so too been replaced. By automation.

In 2012, the Kansas City Board of Trade was purchased by the CME Group – formerly, the Chicago Mercantile Exchange.


One year later, Kansas City’s trading floor – I.e.: the pit – was merged into the trading floor in Chicago. The trading of Hard Red Winter Wheat futures contracts on a Kansas City trading floor was no more. 


Two years later – in 2015 – CME’s trading floor itself was shut down. Replaced by automation. No pit in Kansas City. No pit in Chicago. The trading of Hard Red Winter Wheat futures contracts became… automated. 

While that old trading floor for Hard Red Winter Wheat in Kansas City – and those busy wheat traders in the pit – is no longer in operation, whenever you add cold cuts and mayonnaise to your sandwich, the price of the wheat – which makes up about 15% of the total cost of the bread you use to surround your cold cuts – is still set in Kansas City at the Kansas City Board of Trade.

In 2025, the Kansas City Board of Trade continues to function as the primary trading platform for Hard Red Winter Wheat futures contracts. Hard Red Winter Wheat futures contracts are a determinant in the price of wheat. Then too, in the price that we ultimately pay a loaf of bread.

Interestingly, the Kansas City Board of Trade had been Kansas City’s original chamber of commerce. So, the origin for the trading of Hard Red Winter Wheat contracts in Kansas City started off as – and in – a chamber of commerce. At 8th and Wyandotte. In Kansas City, Missouri. 

Local growers of Hard Red Winter Wheat. Local traders of Hard Red Winter Wheat. Local buyers of Hard Red Winter Wheat. 

While the local growers of Hard Red Winter wheat are still there – Kansas produces over 300 million bushels of wheat each year…equating to roughly 20% of total wheat production in the United States…there is not much else which is entirely “local” when it comes to the Kansas City Board of Trade. And Hard Red Winter Wheat. 

While 300 million bushels of Hard Red Winter Wheat is produced by 15,000 Kansas farmers each year. While the price of Hard Red Winter Wheat is set in Kansas City at the Kansas City Board of Trade. When it comes to the Kansas City Board of Trade – and Hard Red Winter Wheat – today, it would be wise to substitute the word “global” for “local.”


Local buyers of wheat? Kansas is an exporter. Each year, Kansas exports just about half of the 300 million bushels of Hard Red Winter Wheat harvested in the “Wheat State.”

As the world’s largest contiguous producer of winter wheat – that’s Kansas – having the price of Hard Red Winter Wheat still set in Kansas City is itself, poetic justice.

And establishing the exchange for the trading of wheat contracts in Kansas City – in the late stages of the 19th Century – turned out to be, rather fortuitous…

7,000,0000 acres of harvested wheat in Kansas in 1918. The price of Hard Red Winter Wheat set in Kansas City in 1918.

7,000,000 acres of harvested wheat in Kansas in 2024. The price of Hard Red Winter Wheat set in Kansas City in 2024.

Other than those $1,000,000 John Deere Combine Harvesters that you’ll see on Kansas farms in 2025 – coupled to the fact that Kansas, while a local grower, is really an international exporter – much, does look, feel and operate the same.

Acreage. Crop. Exchange. 1918. 2024. When in comes to American wheat, the more things change the more things stay the same – Kansas City.

The price of wheat in 1918…

The price of wheat in 2025…

The Kansas City Board of Trade.

…how Rutgers University came to be.


Rutgers, The State University of New Jersey was founded – originally as a seminary – in 1766.

Founded by William Franklin. William Franklin, son of Benjamin Franklin.

Although, upon its founding, this college, located in New Brunswick along the Raritan River, was not known as Rutgers.

The name Rutgers was affixed to the New Brunswick college 59 years after its founding. In 1825. “Rutgers,” selected to honor Revolutionary War veteran Colonel Henry Rugers. Between the year of its founding – in 1766 – and the year Rutgers was selected as the college’s name, in the honor of Henry Rutgers – in 1825 – Rutgers had been Queens College. Then, for the next one hundred years, it was Rutgers College.


Henry Rutgers…

Born in New York City in 1745 – and in 1745, that would have been, the Province of New York, British America, as New York was still under British rule when Henry Rutgers was born – Henry Rutgers served as a New York state assemblyman. He was a graduate of Columbia University (then, King’s College),

A prominent New York landowner, Henry Rutgers donated much of his land to local New York City schools, charities, and churches. In Manhattan, if you have ever driven down Henry Street or Rutgers Street, those streets were named after Henry Rutgers.

Rutgers College – then Queens College – adopted Henry Rutgers’ name upon receiving a much needed financial infusion from Henry Rutgers.

Through Henry Rutgers’ generosity, prospects for the then-struggling Queens College to continue on as an institution of higher learning, brightened.

At the time of Henry Rutgers’ financial contribution, Queens College had incurred a multi-year shutdown. Its finances, and its future, cast astray as a byproduct of the challenging economic times the United States went through upon the conclusion of the War of 1812.

The University of Newark joined the Rutgers family in 1946. As Rutgers University-Newark.

The College of South Jersey joined the Rutgers family in 1950. As Rutgers University- Camden.

Rutgers is the second oldest university in New Jersey. Founded 20 years prior to Queens College’s founding, Princeton – which had been the College of New Jersey from 1746 until 1896 – is the oldest New Jersey university.

Rutgers’ Board of Trustees consists of 41 voting members. Rutgers’ Border of Trustees functions in an advisory capacity to Rutgers’ Board of Governors.

Rutgers’ Board of Governors consists of 15 voting members. Rutgers’ president is a non voting Board member.

Three of the 15 members of Rutgers’ Board of Governors are voting members, selected by the Rutgers University Senate. Three representatives – selected by the University Senate – are non voting representatives.

Eight members of Rutgers’ Board of Governors are appointed by the New Jersey governor. Seven members are selected by the Board of Trustees. For the 8 members appointed by the New Jersey Governor, confirmation for each member by the New Jersey Senate is required.

The president of Rutgers is a nonvoting Board of Trustees member. Rutgers’ University Senate selects two members of the faculty – as well as two students – as non voting representatives.

The selection of the 41 voting members of the Board of Trustees is done in accordance with State law.

There are 20 charter members. Three of the 20 charter members must be women.

Sixteen Trustees are Rutgers alumni, each of whom is nominated for Board membership by the Nominating Committee of the Board of Trustees.

Five Trustees are public members, appointed by the governor. The five public members who are appointed by the governor require confirmation by the New Jersey State Senate.

The president of Rutgers is selected by the university’s Board of Governors. The Board of Governors oversees the process of identifying the president, while overseeing the Presidential Search Committee.

Rutgers’ Presidential Search Committee develops a profile of prospective candidates…submitting recommendations of potential university presidents to Rutgers’ Board of Governors.

Rutgers’ Board of Governors, upon receiving recommendations and feedback from the Presidential Search Committee, ultimately selects the university president.

On two separate occasions – resulting from acts taken by the New Jersey Legislature – Rutgers was designated as the official state university of New Jersey. New Jersey’s legislature granted Rutgers this distinction in 1945. And once again, in 1956.

New Brunswick is a city in Middlesex County, New Jersey, United States

Kansas City’s Troost Avenue


There is an interesting, historically significant 10-mile street in Kansas City, Missouri which runs from 4th Street to Bannister. The Kansas City, Missouri street I am referring to here is Troost Avenue.

Among the Kansas City, Missouri neighborhoods which border Troost Avenue are…Beacon Hill, Longfellow, Squier Park, Rockhill and Hyde Park. All are fabulously sought-after KC neighborhoods.

Troost Avenue was named after a doctor – Benoist Troost. Dr. Troost, as well as being a prominent Kansas City physician, had been a civic leader in KC. Troost Avenue.

Troost Avenue was once home to “Millionaire’s Row.” Early in the 20th Century, “Millionaire’s Row” had been a strip of stunning mansions constructed all along Troost Avenue. Those mansions adorned Troost from 31st Street to 34th Street.


Today, Troost Avenue is experiencing keen interest. And a tasteful renaissance of redevelopment. In times past, Troost Avenue experienced a storied history of disinvestment. And decline. Prior to Troost’s renaissance. So what led to Troost’s decline?

Disinvestment. But real estate disinvestment was not the primary catalyst which led to Troost’s
mid-20th Century decline. Real estate disinvestment certainly was one catalyst which led to Troost’s decline. But
real estate disinvestment was not the primary catalyst which led to Troost’s decline.


Disinvestment in public schools east of Troost was the primary catalyst which led to Troost’s decline.

Starting off in the late ‘60’s, the School Board in Kansas City, Missouri consistently requested increases in education funding for Kansas City, Missouri schools located east of Troost Avenue. For this topic, there were in the range of twenty such education funding requests made by the Kansas City School Board during this time. These were funding requests made throughout 1960’s. Throughout the 1970’s. For twenty years.

The additional funds – if approved – would have gone to Kansas City, Missouri public schools east of Troost Avenue. Funding requests were voted down. The result? White flight.

Families – those having the means, that is…meaning, predominantly white families at that time – moved. Families moved outside of the underfunded Kansas City, Missouri School District. Schools east of Troost were underfunded.

White flight. Neighborhood home values decreased. One prominent Kansas City mayor once referred to Troost Avenue as, “…the demarcation line in a war zone.”

The problem – east of Troost – wasn’t the legal segregation of schools. Nor was the problem – east of Troost – the illegal segregation of schools. The problem – east of Troost – was school funding. Or a lack thereof.


Long before round after round after round after round of failed requests were submitted to secure funding for Kansas City, Missouri public schools east of Troost, those same public schools were in fact desegregated. Yet school desegregation didn’t really solve this problem in Kansas City east of Troost. Because while school desegregation based upon race was the national mandate after Brown v. the Board of Education, decisions made which affected education funding were – and are – made at the local level. And therein was the problem for public schools east of Troost. At that time.


In 1954, the United States Supreme Court unanimously ruled in Brown v. the
Board of Education of Topeka, Kansas that state-sanctioned segregation of
public schools was unconstitutional. Prior to this 1954 Supreme Court ruling, in Kansas City, Missouri – east of Troost Avenue – Lincoln High School had once been the only high school providing post-elementary education to Black students.
One high school.


In 1955, one year after Brown v. the Board of Education, the Kansas City School Board kind of enacted a “segregation” of public schools, in a different way. This was like a “de-facto segregation.” Not based upon race. But rather, this was a different form of segregation which was based upon attendance zones. Not race.


Yet, do we recall the aforementioned white flight east of Troost? The white flight which took place as round after round of funding requests for schools was voted down? Which led to panic selling? Which led to block busting? As white families relocated out of the Kansas City, Missouri school district?

Kansas City, Missouri public schools east of Troost were not segregated based upon race after the 1954 Supreme Court decision. But yet, in a practical sense, they
kinda still were.


The city’s expansion…


Beginning in the 1950’s, and extending onwards through the 1960’s, Kansas City,
Missouri – as a city – grew. During this time, Kansas City, Missouri added over
200 square miles to the city’s footprint. Yet, during this same time, what about
Kansas City, Missouri public school sizes? What about Kansas City, Missouri public
school teacher count? What about Kansas City, Missouri public school classroom
sizes? What about Kansas City, Missouri public school classroom capacity?


None of those public school categories grew in a commensurate way – east of
Troost, that is – to Kansas City’s population growth. Nor to Kansas City’s
expanding public school education requirements. During the city’s expansion in the ‘50’s and ‘60’s – east of Troost – Kansas City, Missouri public schools remained overcrowded. And underfunded. The city’s expansion just made it worse.


In real estate, developers often utilize – and benefit from – tax abatements. On Troost Avenue – and east of Troost – there is a genuine renaissance which has taken hold. It’s long overdue. And it’s welcomed.


Let’s go back for a moment to the topic of Kansas City, Missouri public schools, east of Troost. To the underfunding of public schools, east of Troost. To classroom sizes…


The definition of a tax abatement is, the reduction of, or the exemption from, taxes granted by a government for a specific period, usually to encourage certain activities.


Over one six-year period – between 2017 and 2023 – Kansas City, Missouri public schools lost in excess of $200 million in potential education funding which could have gone (but didn’t go) to Kansas City, Missouri public schools. Funds redirected away from Kansas City, Missouri public schools due to development incentives given out. Development incentives coming from tax abatements.


Public schools in Kansas City, Missouri have accrued nearly $400 million in deferred maintenance. Underfunded.


Those of us who love Kansas City applaud the spectacular redevelopment which is taking place on Troost Avenue. Still, it’s not really a stretch for us to take a moment and think about what led to Troost’s decline. It was the schools.


If the #1 goal is redevelopment and private schools…all good.

While panic selling and block busting were two factors which contributed to neighborhood disruption east of Troost long, long ago, neighborhoods east of Troost will experience no such disruptions this time. As the “Troost pendulum”swings all the way…in the other direction.


What we’ll see is, not decreasing property values east of Troost. We’ll see increasing property values east of Troost.

We won’t see panic selling east of Troost. We’ll see home sellers fetching ever-increasing prices for their homes, east of Troost.

We won’t see blockbusting, east
of Troost. We’ll see continued investor interest in homes, east of Troost.

What we’ll also see – east of Troost – is community members being priced out of their neighborhoods. We’ll see gentrification. We’ll see investment. Not
disinvestment. We’ll see tax abatements.

We’ll also see hundreds of millions
of dollars in deferred maintenance which has already been incurred by Kansas City, Missouri public schools.


We’ll see challenges in education. Different education challenges. Not
segregation. Not the same challenges as before. But challenges in education
east of Troost, nonetheless.


If redevelopment on Troost Avenue is the goal, all good.

If there are other topics to consider, maybe we revisit Kansas City history? Focusing on this topic: public schools east of Troost.

Tax Incremental Financing


When you are considering whether to pursue a real estate development project, reaching out to local government officials regarding the availability of tax incremental financing is one step you can take.

Tax incremental financing – TIF –is a development subsidy whereby the municipality diverts future property tax revenue towards economic development. The origin of tax incremental financing traces back to the State of California. And to 1952.

In order to establish a TIF subsidy, an urban renewal district – a TIF district – is first drawn up by the municipality.

With tax incremental financing, the municipality will be diverting increases in property taxes within the urban renewal district from the municipality, to development. It’s a subsidy. With a lifespan of twenty or twenty-five years.

The foundation for TIF? Development leads to increases in property values within the TIF district. As well as in surrounding neighborhoods. The theory? Increasing property values, which lead to an increase in property tax receipts collected by the municipality, offset TIF subsidies.

The council-manager form of local government


Since the 1920’s, Kansas City, Missouri has utilized the council-manager form of government. Phoenix is the largest American city which utilizes the council-manager form of government.

In a council-manager form of government, city council charts how the city functions. An analogy…

In a council-manager form of government, city council could be looked at as being comparable to a corporate board of directors. The council-manager form of government, through its construct, looks somewhat like corporate governance. Using the corporate analogy, a city manager would be the city’s “executive officer.” The city’s “CEO.” The city manager, which is an unelected position, is hired by the city.

The city manager works, in theory (ideally) outside of the scope of the political arena. The city manager executes policy. The city manager implements ordinances…ordinances passed by, using our corporate analogy once again, the city’s “board of directors.” The “board of directors” being…city council.

The city’s “CEO?” City manager. The city’s “board of directors?” City council.

Under the council-manager form of government, the mayor is an elected public official. Elected by voters.

The city manager operates behind the-scenes. Running the city’s day-to-day operations. The mayoral position is a more visible position. Interviews? Newspaper articles? Mayor. 

As executive officer, the city manager is responsible for oversight of city departments. The city manager collaborates with the mayor – and with city council – to enact policy. City policy? That policy emanates from city council.

City planning? City programs? The city budget? These are responsibilities of the city manager.

The position of mayor is a political position. The city manager position is apolitical.

City managers are not out campaigning alongside candidates who are running for public office. The city manager does not publicly promote the interests of Democrats, nor of Republicans.

Campaigning? Part of what it takes to become mayor. Politics? Goes hand-in hand with winning an election and becoming mayor.

Photo ops? Fundraising? TV appearances? Mayor. The city manager may very well attend these events as well. Yet it will be the mayor – moreso than the city manager – who is more likely to show up and make an appearance.