Menu
Menu
2024 Margin Management for Agricultural Lenders
Sponsored by: Kansas Ag Bankers - A Division of KBA
Details
May 29, 2024 - Hilton Garden Inn, Manhattan
410 S 3rd Street
Manhattan, KS 66502
410 S 3rd Street
Manhattan, KS 66502
Program Agenda
Brochure
Registration - 8:30 a.m.
Program - 9:00 a.m. - 4:00 p.m.
Lunch - 12:00 p.m. - 1:00 p.m.
Program - 9:00 a.m. - 4:00 p.m.
Lunch - 12:00 p.m. - 1:00 p.m.
Brochure
Program Content
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 market.
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.
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 market.
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.
Presented by
Dustin Baker - Director, Education & Research, Commodity & Ingredient Hedging (CIH)
As a director 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.
Pricing
KBA Members: $300 per person
Non KBA Members: $600 per person
*Please add $100 if registering after May 22.
As a director 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.
Pricing
KBA Members: $300 per person
Non KBA Members: $600 per person
*Please add $100 if registering after May 22.
*Cancellations must be received by May 24, 2024.
*Any transmission, retransmission or republishing of the audio or video portion of the seminar is strictly prohibited.
