Agri Trading, LLC understands different producing areas face different levels of production; producers have different risk tolerance; different storage capabilities; and different capital resources. There needs to be more than one approach to price risk management.

For these reasons, Agri Trading, LLC believes in working with each individual producer, to meet their unique individual hedging and price risk management needs. Working closely with customers to help them implement a marketing plan based on:

1. Most probable production from the growing season.
2. Production costs.
3. Federal Crop Insurance Coverage.
4. Hail or other additional crop insurance policy.
5. Level of Farm Services Administration Program payments:

a). Direct Payments
b). Possible Counter-cyclical payments
c). Possible Loan Deficiency Payments.

6. Historical seasonal price patterns.
7. Historical local basis levels.
8. Availability and cost of storage.
9. Level of risk tolerance.
10. Capital requirements and costs of implementing different risk management approaches.
11. Best estimate of long term and seasonal price trends.
(Past performance is not necessarily indicative of future results. The risk of loss exists in futures and options trading.)

As market prices and yield potentials change throughout the growing season, new opportunities can develop. Watching for these opportunities is one of the jobs Agri Trading, LLC will take on; notifying customers:

1. When futures prices allow, use Options to lock in a higher payment level on the production covered by Federal Crop Insurance.
2. When prices are low…below the Farm Service Administration Loan Rate, use Options to protect Loan Deficiency Payments before you have harvested or sold your crop.
3. When prices are high, use Futures or Options attempt to lock in a profitable price on a pre-determined level of crop production.
4. Using Farm Service Administration program payments, Federal Crop Insurance, and Options, attempt to lock in a minimum gross dollars per acre early in the growing season.
5. Use Options attempt to recover any remaining upward movement of prices in the Futures market after production has been sold in the cash market.
6. Store your grain and use Options to hedge against adverse price decreases.

Using price risk management tools is one way to reduce some of the risk inherent in production agriculture. Check with Agri Trading, LLC anytime to discuss the choices you have when it comes to managing price risk.

For more information on price risk management strategies or to open an account:
please call toll free:

1-877-283-6710