Crop Margin Management Seminar – Larchwood, IA

With MPCI integration – learn how to combine crop insurance with exchange traded tools to maximize your bottom line.

Day 1 Topics Covered

• Welcome and Introductions
• Introduction to the Futures Market and Profit Margin Management:

Identifying forward profit margins using the futures market as a price discovery tool with a review of the futures market and industry.

• Introduction to Price Risk Management:

Price risk versus basis risk, contracting choices: MPCI, cash market, futures market.

• Lunch
• Introduction to Options:

Definitions, contract specifications, components of premium, terminology, expiration versus offset and assignment/exercise, as well as a discussion of volatility.

• Group Exercise:

Using futures and a basic option strategy, teams will manage a historical profit margin by initiating and directing coverage adjustments over the course of the simulation.

• Adjourn

Day 2 Topics Covered

• Coffee & Continental Breakfast – Review previous day with Q&A
• Core Strategies:

Review of basic futures and options positions typically used by crop producers to protect the risk of both lower and higher prices, as well as discussion of option margining.

• MPCI Advanced Concepts & Hedge Policy:

Discussion of putting it all together to leverage crop insurance with exchange-traded tools. Examples include protecting gaps in coverage, limiting costs of coverage, and indemnity protection. We conclude with a discussion on creating a Margin Management policy to keep producers on track with marketing goals.

• Price Management Simulation:

Integrated online simulation incorporating both futures and options strategies to manage the risk of a crop producer’s profit margin through a historical market.

• Lunch
• Closing Remarks

Seminar Details

June 23

1pm – 4pm

June 24

8am – 4pm

Location

Grand Falls Casino & Golf Resort
1415 Grand Falls Blvd, Larchwood, IA 51241

Call 712.777.7777 and mention “CIH Training” for the room block.

Registration fee includes continental breakfasts, lunches, an optional dinner following Day 1, and all seminar materials. For more information or enroll by phone, please call 312.596.7755.

NASBA Continuing Education Credits

CPE Credits: 12

Commodity & Ingredient Hedging, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Website: www.nasba.org.

Learning Objective

Participants will be introduced to the mechanics of the futures and options markets and the terminology related to the futures industry. Participants will also learn how to utilize risk management strategies to manage commodity price risk.

Prerequisites

None

Delivery Method

Live