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Hedging Topics for Ag Lenders

Hedging Topics for Ag Lenders

 

Who Should Participate

Presidents, vice presidents, CEOs, beginner/advanced ag lenders, anyone interested in agriculture and/or ag lending.

Make your attendance count towards your continuing professional education credits! The MBA will provide a certificate of attendance that you may submit to the appropriate advisory board.

Program Overview

8:30 AM

Welcome and Introductions: Scott Gerig, Manager, Business Development, Commodity & Ingredient Hedging, LLC

8:45 AM Introduction to the Futures Market and Price Risk Management:  Understanding the role of the futures market as a price discovery tool and providing a means to transfer risk between parties. Review contracting alternatives between the cash market and the futures market, and understanding the definition of basis and how it fluctuates.
10:15 AM Break
10:30 AM Projecting Margin Requirements: Review of the performance bond requirements for both futures and options positions as well as stress-testing to determine potential maintenance margin requirements.
11:15 AM Understanding Account Statements: Review of statements provided by a brokerage firm to decipher cash and equity position, liquidating value, margin requirement, and open trade equity of futures and options positions.
12:00 PM Lunch
1:00 PM Introduction to Options and Option Pricing: Types of options, definitions, contract specifications and terminology; components of option premium, basic review of delta and volatility.
2:15 PM Break
2:30 PM Core Strategies: Review of basic futures and options positions typically used by crop and livestock producers to protect the risk of both higher and lower prices.
4:00 PM Group Exercise: Using futures and/or a basic option strategy, teams will manage a historical forward profit margin by initiating coverage and managing those positions over the course of the simulation period.
5:00 PM Adjourn

Presenter

Dave O’Donoghue is a manager on the education and research team at CIH and is responsible for conducting and disseminating in-depth research on the crop and livestock markets. He writes research reports for agriculture producers and their lenders, and provides regular updates to the firm’s account executives. In addition, he teaches educational seminars on managing commodity price risk. Dave has more than 25 years of experience in the commodities industry, including 17 years as a market maker on the Chicago Board Options Exchange (CBOE). Dave holds a degree in agricultural economics from the University of Illinois and a Series 3 (National Commodities Futures Examination) License.

Registration Fee (This fee includes materials, lunch, and refreshments)

Member: $199.00

2nd person from same bank: $175.00   
Qualified non-member bank:
$398/00

Note:  You will be given the option to pay by credit card or to invoice your company during the checkout process.

Dates & Times

August 21, 2018
Check in:  8:00 AM
Program:  8:30 AM - 5:00 PM

Location

Minnesota Bankers Association
8050 Washington Avenue South
Eden Prairie, MN 55344
952-835-3900
Click here for directions

Lodging

Lodging arrangements can be made at: Hyatt Place, Eden Prairie. Click here to make an online reservation, or call
952-944-9700 - dial “0” for the front desk, (Ask for the Minnesota Bankers Association rate of $148.00, plus tax)

Cancellation Policy

The MBA reserves the right to cancel programs due to insufficient enrollment, instructor illness, or other reasons. Participants wishing to cancel must inform the MBA in writing prior to the event. Send cancellation notices to maryh@minnbankers.com. A cancellation fee of 25% of the program cost will be charged for withdrawing, or you may send a substitute. The full program fee will be charged for withdrawing after the event has taken place or a no-show.

Non-Members

Qualified non-members are encouraged to apply. Please call our office for further information.

Special Needs

If you have a disability that may affect your participation in this program - or any dietary issues - please send a statement regarding any special needs at least two weeks prior to the program. We will contact you to discuss accommodations.
When:
8/21/2018 8:30 AM - 8/21/2018 5:00 PM
Where:
Minnesota Bankers Association
8050 Washington Avenue South
Eden Prairie, MN 55344

Please note that you must be logged in to register online