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Program Content
Introduction to the Futures Market and Profit Margin Management
Discussion of the futures market as a price discovery tool and a means to transfer risk between parties. Review contracting alternatives between the cash market and the futures market.
Projecting Margin Requirements
Review of performance bank requirements for futures and options positions, as well as stress testing to determine potential margin requirements.
Understanding Account Statements
Review of brokerage statements to decipher cash and equity positions, open trade equity, net option value, liquidating value and margin requirements.
Introduction to Options and Option Pricing
Types of options, definitions, contract specifications, and terminology; components of option premium.
Core Strategies
Review of basic futures and options positions typically used by crop and livestock producers to protect risk of lower and higher prices.
Group Exercises
Teams will manage a forward profit margin, using features and/or options, and managing those positions over the course of the historical simulation period.
Presenters
Dustin Baker - Commodity & Ingredient Hedging (CIH)
As a manager on the education and research team, Dustin helps market participants gain a better understanding of agricultural margin management concepts and strategies. He also contributes to CIH publications focused on risk management for agriculture producers and buyers.
Scott Gerig - Commodity & Ingredient Hedging (CIH)
As a manager of business development at CIH, Scott introduces agriculture producers and lenders to effective margin management tools and services. His current focus is the crop and ethanol sectors, but he has also worked with the hog, beef, and dairy industries.
Registration Fee
KBA Members: $495 per bank
Producer: $150
Non-Members: $650 per bank/institution
Non-Members: $650 per bank/institution
Add $25 to each registrants fee after November 20, 2020
Logon time: 7:45 a.m.
Program: 8 a.m. - 12 p.m
Bankers are permitted to register one of their ag producers for the virtual workshop at a discounted fee.
