Margin Management for Agricultural Lenders - May 24, 2022
Bluemont Hotel, Manhattan

Agenda
Registration: 8:30 a.m.
Program: 9:00 a.m. - 4:00 p.m.
Lunch: 12:00 p.m.
 
Brochure
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This program is designed to help bankers better understand the risk associated with lending to agricultural producers looking to protect their profit margins.
 
Introduction to the Future 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 markets.
 
Projecting Margin Requirements
Review of performance bond 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 both lower and higher prices.
 
Group Exercise
Teams will manage a forward profit margin, using futures and/or options, and managing those positions over the course of the historical simulation period.
 
Program Presenters
Dustin Baker - Manager, Education & Research, 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 and Sustainable Growth models.
 
Scott Gerig - Manager, Business Development, Commodity & Ingredient Hedging (CIH)
As a manager of business development at CIH, Scott introduces agricultural 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.
 

Pricing
KBA Members - $295
Non KBA Members - $590
*Please add $100 to the fee if registering after May 17, 2022.