Agricultural Financial Risk Management Services

CIH provides various financial institutions industry-leading, customizable tools and services to better understand the exposure to direct or indirect risk from their clients in commodity markets. We assist banks, agricultural lenders, insurers, reinsurance firms, and agricultural finance institutions to manage some of their most common pain points. With our expertise and support on their side, our clients can navigate portfolio exposure, underwriting risk, and loan default risk in volatile commodity markets.

Leveraging over 20 years of commodity risk management technology development, customer education, and consulting, CIH provides financial entities the ability to identify, monitor, analyze, and manage risk at the institutional level in ways that previously did not exist.

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Customers:

  • Banks and Lenders - We monitor collateralized commodity exposure and support risk-adjusted credit decisions.

  • Insurance and Reinsurance - Our team works with these institutions to model payout risk and volatility and price levels.

  • Specialty Finance - Our expertise helps these businesses price their products with commodity-informed lending logic.


Portfolio & Credit Risk Modeling

CIH works hard to help financial institutions quantify their exposure to commodity markets across their ag lending or insurance portfolios. We accomplish this through forward margin models, historical price simulations, and hedge overlays that assess downside risk, forecast potential losses, and identify high-risk profiles. Integrate internal reporting structures to create a centralized, real-time view of exposure across producers, commodities, and regions.

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Customized Risk Management and Consulting

Every operation is unique, and we believe your financial risk management plan should be as well. We create frameworks that evaluate risk across multiple products or clients, not just individual operators. Our skillful consulting team guides you through the process, creating a valuable resource for your operation to develop and track a customized agricultural risk management plan tailored to the organization’s goals, risk/return tolerance, and capital availability. Our consulting provides significant value for credit, insurance, and investment-specific needs. Common use cases include:

  • Portfolio stress testing

  • Historical margin benchmarking

  • Market shock scenario planning

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Brokerage

Utilizing CIH’s affiliate brokerage service streamlines execution of the risk management strategy without friction. Simplify your agricultural risk management plan by leveraging our investment in technology to provide you with clear, concise snapshots of your risk and offsetting hedge positions. Additionally, clients of CIH’s brokerage services benefit from near real-time position tracking and monitoring in our centralized software platform. Although this service may not apply directly to all institutions, the principles behind it can be used for modeling, client program support, or internal risk balancing. Working with CIH also means you can experience:

  • Execution transparency

  • Monitoring of hedge position performance

  • Integration with centralized risk dashboard

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Technology

CIH’s proprietary technology allows clients to set, track, analyze, and monitor their risk in real time. By automating data collection, overlaying risk analytics, and developing customized institutional reports, CIH creates a centralized risk dashboard for all stakeholders that offers exceptional visibility. Tedious, error-prone reports that historically were already outdated once complete are now seamlessly delivered in real time to allow for meaningful evaluation to make better, more informed decisions. Some of the many features our platform offers include:

  • Alerts on margin erosion or high-risk client activity

  • Data aggregation across multiple producers or business units

  • Extensive educational resources


Institutional Training & Education

We offer training programs tailored to financial professionals who want to understand commodity-driven risk. Our offerings include public seminars, private workshops, and custom modules for institutions. Benefits include:

  • Training lending teams on how to interpret margin data

  • Teaching underwriters how hedging affects payout profiles

  • Providing boards and leadership with commodity market analysis

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What Our Clients Say About Us

In the videos below, you can hear directly from our clients about how CIH helps agriculture producers gain control over their commodity price risk.

Testimonials are not indicative of future success. Individuals providing testimonials were not compensated.

It shouldn't matter if markets go up or down the next day.

Mike Paustian, Part 1

Paustian Enterprises

February 20, 2020

It's just a really streamlined experience for me.

Mike Paustian, Part 2

Paustian Enterprises

February 20, 2020

That’s one of the things I really appreciate about CIH, they’re not ...

Mike Paustian, Part 3

Paustian Enterprises

February 20, 2020

Having CIH gives me more confidence in executing.

Joe Dykhuis, President

Dykhuis Farms

April 11, 2023

The strategy helps me sleep better.

Ken Qualls, CFO

House of Raeford Farms

February 06, 2018

It’s made my risk management more efficient.

Greg Bell, President

Feedport USA

February 06, 2018
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    Market information offered by Commodity & Ingredient Hedging, LLC, a commodity trading advisor registered with the CFTC and a Member of NFA. Insurance services provided by CIH Insurance Services, LLC. 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 affiliates, 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 Commodity & Ingredient Hedging, LLC. There is a risk of loss in futures and option trading. Past performance is not indicative of future results.

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