Dairy Margin Management Seminar

This program is designed to help dairy producers identify and protect forward profit margins. Appropriate for all experience levels, this comprehensive two-day seminar includes a thorough review of cash market alternatives and a fundamental background of the futures and options market. The seminar will also focus on how the cash market, in combination with the options market, can help increase flexibility to optimize the profit margin in your operation.

CPE Credits: 12

Day 1

• Identifying Your Exposures
  An introduction to commodity price risk management, focusing on the critical first step of building a risk model for your operation using the futures market to project profit and loss.

• Contracting Alternatives: Tools to Manage Risk
  An overview of cash contacts, an introduction to options, and a detailed discussion of futures, including capital requirements and daily settlement procedures of margin accounts. Effectively integrating insurance such as dairy revenue protection (DRP) with exchange-traded contracts will also be reviewed.

• Adding Flexibility with Options
  Core option strategies, and how they can be used to establish the precise risk/return balance that’s right for your operation. You learn how multiple option positions can protect against higher or lower prices, and how to select the right position(s) for your needs.

• Applying Concepts Learned I
  A price management exercise tests your ability to use futures and a basic options strategy to establish and protect a price for a simulated dairy operation through several decision periods.

Day 2

• Creating a Margin Management Policy
  Best practices in margin management, starting with a strategic approach that includes the creation of an objective margin management policy to guide decision-making.

• Tailoring Your Strategy as Markets Change
  Taking an active approach to margin management to improve long-term outcomes. We explore why and how to make adjustment to initial positions to address risk or take advantage of opportunities to capture attractive margins as commodity prices change.

• Applying Concepts Learned II
  A second, more advanced exercise reinforces your understanding of how to initiate and adjust positions over a marketing period to achieve a margin objective. We conclude by evaluating the choices made at various decision points and the resulting effects on net margins.

Registration Details

Registration fee includes breakfasts, lunches and a Wednesday evening cocktail reception. 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: www.nasba.org

Learning Objective

Participants will be introduced to the futures and options markets, and learn strategies to manage commodity price risk.

Learning Level

Basic

Prerequisites

None

Delivery Method

Live