Margin Management for Lenders

This program is designed to help credit analysts, loan officers and bank managers understand the risk management strategies of their agricultural producer clients.

CPE Credits: 16

Day One – Topics Covered

  • Margin Management Fundamentals
    An introduction to modeling forward profitability in the agriculture industry. We will explore how producers can use the full range of contracting alternatives in both the cash and futures markets to secure favorable margins.

  • Cash Market vs. Futures Market
    The risks and benefits of physical (spot) market contracts compared to exchange-traded contracts, and how the two types can complement each other.

  • Margin Requirements and Projections
    Understanding performance bond requirements and their potential impacts on cash flow and credit lines.

  • Hedging Relationships and Risks
    The requirements of the various parties involved in the hedging process, including futures commission merchant (FCM) clearing and account control agreements, trade execution and account funding.

  • Position Reconciliation
    Matching open and closed position P&L to physical purchases and sales, and determining net exposure.

Day Two – Topics Covered

  • Core Strategies
    Basic exchange-traded structures that complement existing physical contracts to manage the risk of both higher and lower prices.

  • Managing Strategies Over Time
    Position adjustments that can help producers address risk and margin exposure, and take advantage of opportunities as prices change.

  • Applying Concepts Learned
    An interactive price management simulation to reinforce and test new skills. Participants will make several price management decisions over a marketing period and evaluate the resulting effect on net margins.

Registration fee includes breakfasts, lunches, a Tuesday evening cocktail reception and all seminar materials. For more information, please call 1.866.299.9333.

NASBA Continuing Education Credits

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. Web site:

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.

Learning Level




Delivery Method




Dates & Time


Learn More

Please call 1.866.299.9333 or submit the following form for more information.

  1. Name
  2. Phone or Email
  3. Comment/Question

Return Top

There is a risk of loss in futures trading. Past performance is not indicative of future results. The information contained in this publication is taken from sources believed to be reliable, but is not guaranteed by Commodity & Ingredient Hedging, LLC, nor any other affiliates, subsidiary, or employee, collectively referred to as CIH, as to accuracy or completeness, and is intended for purposes of information and education only. Nothing therein should be considered as a trading recommendation by CIH. The rules and regulations of the individual exchanges should be consulted as the authoritative source on all contract specifications and regulations. Information provided herein is not a substitute for periodic account statements delivered in accordance with CFTC Regulation 1.33. CIH is an equal opportunity provider and employer.

Testimonials are not indicative of future success. Individuals providing testimonials were not compensated. The information contained in this publication was created by Commodity & Ingredient Hedging, LLC and should not be copied or redistributed without its consent.

Copyright © 2023 Commodity & Ingredient Hedging, LLC. All rights reserved.