RAM (Risk Assessed Marketing) Workshops

None currently scheduled. 

The RAM workshop is a timely education program that will provide farmers with new ideas and risk skills to survive this market down turn.  In addition to low commodity prices, the lack of convergences in the futures contracts will impact the results from short hedges-forward contracts and crop revenue insurance that pays based on a zero basis.  Storage is one method for dealing with the lack of convergence in the futures market, but that will open a new set of risks.

The workshop will also explain why many farmers didn’t receive a commodity program payment while the farm across the road in the next county received the maximum payment.  As a result, in many counties crop insurance will provide most or all of the government’s risk protection.  Therefore it is important to select the right type and level of crop insurance coverage. This workshop utilizes a case study, with participant’s managing a typical grain farm.  Participants working the case problem will improve their understanding of the different marketing strategies, crop insurance coverages and how to make the best use of the “free” protection in the FSA commodity program.

Workshop Description

Current grain prices are often below the cost of production.  Surviving this market down turn, that may last for the next 2 years or more, will be the focus of this updated RAM workshop.  The RAM workshop is a timely education program that will provide farmers with new ideas and risk skills to survive this market down turn.  In addition to low commodity prices, the lack of convergences in the futures contracts will impact the results from short hedges-forward contracts and crop revenue insurance that pays based on a zero basis.  Storage is one method for dealing with the lack of convergence in the futures market, but that will open a new set of risks.

The workshop will also explain why many farmers didn’t receive a commodity program payment while the farm across the road in the next county received the maximum payment.  As a result, in many counties crop insurance will provide most or all of the government’s risk protection.  Therefore it is important to select the right type and level of crop insurance coverage.

This workshop utilizes a case study, with participant’s managing a typical grain farm.  Participants working the case problem will improve their understanding of the different marketing strategies, crop insurance coverages and how to make the best use of the “free” protection in the FSA commodity program. 

Prepare ahead of time. The CME Group provides the “Self Study Guide to Hedging with Grain and Oilseed Futures and Options" at the CME Group website:
http://www.cmegroup.com/trading/agricultural/self-study-guide-to-hedging-with-grain-and-oilseed-futures-and-options.html

A second publication: "Managing Price Risk With Grain and Oilseed Futures and Options" can be found at:
http://www.cmegroup.com/trading/agricultural/managing-price-risk-with-grain-and-oilseed-futures-and-options.html

For more information, contact Rich Llewelyn at the phone or email below:
Phone: 785-532-1504  Email: rvl@ksu.edu