Learning more about risk management – Market Watch

Reading Time: 2 minutes

Published: November 7, 2002

Often when we run a story giving suggestions about marketing tools such

as options, we get calls from farmers wanting to learn more about

futures markets.

That is good because risk management using futures markets is as

important a tool in modern farming as knowing how deep to seed canola.

Learning the tools of risk management is not brain surgery, but it

requires study and practice.

Here are a few suggestions on how you can learn more.

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First, contact your local provincial agriculture extension office and

ask for material such as booklets or videos on the subject.

Talk with your neighbours and if enough are interested, approach

extension staff about the possibility of arranging a seminar on risk

management. It is usually more informative and fun to learn in a group

so search for a marketing club in your area and become a member.

The Winnipeg Commodity Exchange hosts a two-day introductory level

course that provides participants with a basic understanding of

agricultural cash, futures and options markets. As part of the course

you get to see the trading floor in action.

The next class will be held next spring. Enrollment is limited to 20

people. For more information, call 204-925-5000 Ext. 5041.

The Canadian Securities Institute has a home study course called

Agricultural Markets – Risk Management.

It covers hedging, agricultural options, currency considerations,

commodity futures, spread trading, commodity risk management and

regulatory implications.

To learn more, call the CSI in Calgary at 403-262-1791.

CSI also provides agricultural market risk management seminars for

groups. For more information, call 403-260-4077.

You can also learn more about CSI through its website, accessible at

www.producer.com under news links.

If you are interested in an in-depth course that will help develop

customized risk management for your operation, the George Morris Centre

and the University of Guelph have a web delivered program.

It is costly and requires a serious time commitment, but in addition to

learning about risk management tools, it provides hands-on experience

in developing a risk management strategy with feedback from experts.

Our news links will also lead you to more information on this program.

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