Pub. 9 2020 Issue 4

Margin Management for Agricultural Lenders This program is designed to help bankers better understand the risk associated with lending to agricultural producers looking to protect their profit margins. Virtual | October 14, 2020 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. Dustin Baker Commodity & Ingredient Hedging (CIH) 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. Recommended 6.5 hours CPE Credit. 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. Bankers are permitted to register one of their ag producers for the virtual workshop at a discounted fee. Banker: $245 | Producer: $150 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. Scott Gerig Commodity & Ingredient Hedging (CIH) Presenters Sponsored by