1 / 10

A Lender’s Perspective on Managing Risk

A Lender’s Perspective on Managing Risk. Ryan D. Castle, Ag Industry Specialist Adam G. Hartmann, Sr. Ag Industry Specialist Wells Fargo Bank, N.A. December 2013. Bank’s Role in Your Operation. Part of Your ‘Team’ Banker Agronomist Farm Business Instructor Grain Merchandiser

mercury
Download Presentation

A Lender’s Perspective on Managing Risk

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A Lender’s Perspective on Managing Risk Ryan D. Castle, Ag Industry Specialist Adam G. Hartmann, Sr. Ag Industry Specialist Wells Fargo Bank, N.A. December 2013

  2. Bank’s Role in Your Operation • Part of Your ‘Team’ • Banker • Agronomist • Farm Business Instructor • Grain Merchandiser • Responsibilities • Managing/Mitigating Risk vs. Avoiding Risk • Interest Rates • Where are Rates Headed?

  3. The Lender’s Perspective:Inputs & Outputs • Input Costs: Cost of Production • Rent Increases • Seed Cost • Fertilizer/Chemical Costs • What is your Cost Of Production? • Outputs: When to Sell • Developing a Sound Marketing Plan • Does your Lender Understand Your Marketing Plan?

  4. Mitigating Risk: Tools of the Trade • What Should Lenders Look For? • Marketing Plan: Grain Contracts • Cash Contracts • HTA’s • Futures • Options • Crop/Hail Insurance • Determining the Appropriate Type/Coverage Level • Example: • 2013 Spring MPCI Corn Price: $5.65/bu • Fall Harvest Price: $4.39/bu • 185APH x 85% RP Coverage: $888.46/ac in coverage • 175bu/ac harvest w/Harvest Price: $768.25/ac • Indemnity Payment: $120.21/ac

  5. Switching Gears: Something to Think About…

  6. Global Impact:Who’s in the Driver’s Seat? Shanghai1990 Shanghai 2010

  7. China’s Impact on Net Trade

  8. Where is the Money Going?

  9. Future Outlook

  10. Questions? • Ryan Castle • Regional Ag Industry Specialist • Ryan.D.Castle@wellsfargo.com • PH. (507) 316-8109 (Cell) • Adam Hartmann • Regional Senior Ag Industry Specialist • Adam.G.Hartmann@wellsfargo.com • PH. (507) 951-5417 (Cell)

More Related