Advanced Managing Risk

Between one week and 2 months

 

·         Advanced Managing Risk workshops can be accessed on-line from the Farm Leadership Council. 

·         Each session is recorded so registrants can review the content of each day at their convenience as often as they require.

·         Between each session FLC has created a forum for FLC and the instructor to respond to registrants’ questions to ensure thorough understanding of the workshop content.

·         Registrants will be able to access the recorded version for a minimum of six months after the course is completed.

·         Each individual registration allows two parties to participate in the course (husband/wife, father/son, father/daughter, brothers, etc.) as long as they are farming together.

 

On-line Advanced Managing Risk workshop will be offered on January 17, 2012 and March 20, 2012.  Each workshop will include:

·         6 sessions

·         Each session is 90 minutes

·         Starting time is 10:30 a.m. CST

·         Workshop days are Tuesday, Wednesday and Thursday.

 

January workshop dates are: January 17, 18, 19, 24, 25, 26.

 

March workshop dates are: March 20, 21, 22, 27, 28, 29.

 

Producers must understand their cost of production by commodity and have completed Intermediate Managing Risk workshop or have at least 2 years’ experience of active involvement in using options in their risk management program.

 

The instructor is Paul Cassidy, Mitcon Inc., from Lethbridge, AB who has been involved in the grain industry for more than 25 years.  Mr. Cassidy has worked for line companies and Government of Alberta and then created his own company that sells and consults for individuals and companies and provides training.

 

Using futures tools such as puts and calls or options can provide a farmer with more income by allowing them to deliver their product earlier to avoid product deterioration and to obtain a higher price in future months, again through the futures market.  Farmers can avoid selling their product in order to meet immediate cash commitments when other farmers are also selling at the same time and therefore depressing prices. 

 

This workshop will:

·         Uncover more of the terminology of options

·         Processes and mechanics of how to develop or write an option

·         Hedging strategy using options

·         Various price signals and how to interpret

An in-depth understanding of fundamental and technical analysis.

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Over the course of 6 sessions, the following topics will be covered.

 

Market Risk

·         Understanding market risk and its various components.

 

Futures Market

·         Quick review of margin process, terminology, the futures contract, the margin process, long and short positions, importance of arbitrage, types of orders and managing the futures position, EFP’s and basis integrity.

·         Terminology of such issues as notice day, delivery day, standardization of the contract, long, short, spreads, rollovers will be explained throughout the course.

 

Strategic Hedging Strategies

·         A quick review of hedging and the mechanics of hedging using futures. In depth look at managing the hedge desk and balancing positions and hedge placement strategies based on analysis of carrying charges vs. current market structure and technical and fundamental outlooks. Hedge roll strategies.

 

Options on Futures

·         A quick review of options terminology and exercising options. Main focus will be on writing options and understanding the Greeks (Delta, Theta, Gamma and Vega).

·         Options volatility measures, historical and implied volatility and theoretical values will also be discussed ( Black-Scholes Model). Option hedging strategies will be looked at in detail including writing of options and the risk/reward analysis of such.

 

Fundamental Analysis

·         The study of supply and demand basics and their influences on price direction.

·         How to analyse a market - what’s important, what’s not.

 

Technical Analysis

·         This section looks further into some of the concepts of technical analysis such as trends, support and resistance, gaps, reversals and various types of moving averages.

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$925.00 ($825.00 for FLC members/subscribers)

Workshop is being provided online and therefore registration cost includes:

·         Workshop

·         Course manual

·         Access to archives to review Advanced Managing Risk sessions for a minimum of 6 months following completion of the workshop.

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Primary target audience is farming couples/partners – those individuals who are involved in marketing their crops or livestock.  FLC has provided intermediate Managing Risk workshops (face to face and on line) for 5 years and found that more than one individual is involved in marketing for the farm.  Each registration allows 2 parties to participate when involved in the same operation (husband/wife, father/son, father/daughter, partners, etc.).

 

During the course of those initial (intermediate managing risk) workshops, FLC noted a need among registrants to explore, in more detail, options from a practical and theoretical perspective.  This workshop will reveal to all registrants how to write, exercise and predict, with more accuracy, the potential price expectations.   

 

Secondary audience is any individual who is servicing the agriculture industry (e.g. feedlot operator/owner, feed mill, etc.).

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Certificate

Upon completion of the course, a certificate will be sent to the registrants.  Attendance will be tracked for each session as well as monitoring access to the archives.

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Internet
Workshops

Advanced Managing Risk will be provided:

·         On-line

·         Paul Cassidy will be the instructor for all sessions

·         Mr. Cassidy will use PowerPoint, online whiteboard and appropriate website locations for the information relevant to the topic being covered in each session.

·         Registrants can interact by phone, computer microphone or by posing questions through their keyboard that all individuals (registrants, Mr. Cassidy, FLC) can see.

·         On-line forum will be established to answer questions between each session.

·         Mr. Cassidy provides questions during each session to ensure registrants understand the topic being covered

Each registrant has the ability to access the archives to review any or all sessions at a time convenient for the registrants and as often as they require.

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Seasonal
Daytime

Advanced Managing Risk will be provided during the winter months as farmers have a little more time to be involved in a course or workshop. 

 

Registrants can access the archives during and after the workshop has been completed.

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Crops
Swine
Cattle

Business Planning, Strategy and Structure
Financial Management (includes production economics)
Marketing (includes value added)

 

Goal: Educating producers to understand the difference between price speculation and price management, to learn how to use the tools to lower their price risk on commodities (crops and cattle) produced on their farms, and thereby enhance their final realized prices in the marketplace.

 

Objective 1: More in-depth understanding of futures terminology to creating a working knowledge, developing or writing, and utilizing futures.

 

Objective 2: To be able to track, document and interpret technical prices and understand the implications for current and future prices through understanding what is happening in the global supply and demand situation, to develop a reasoned future price expectation, and how to utilize that information to realize a profitable price.

 

Objective 3: Create a working knowledge on exercising options, options volatility and options strategies.

 

Objective 4: In-depth review of fundamental and technical analysis to determine critical information, their source and how to interpret charts and graphs to maximize final commodity returns.

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English

1-888-569-4566
306-522-3194
Visit the program Web site
Don Ross, Manager