|By TIM ALEXANDER
SPRINGFIELD, Ill. — A discussion on how increased ethanol production will impact feed prices and the hog market will be discussed at two risk management seminars in late June by the Illinois Pork Producers Assoc. (IPPA).
Tim Maiers, IPPA director of industry and public relations, said the seminars will help producers develop a marketing edge and manage their farm’s overall margin. The seminars, titled Managing Prices for Optimal Pork Returns, will also focus on a review of futures and options contracts as well as marketing strategies that combine feed cost management with the management of hog prices.
“Commodity prices are volatile, unpredictable, and have a significant impact on a producer’s operation,” Maiers said.
“These risk management seminars are powerful and interactive and will offer producers a strategic edge and will help them maintain a winning approach to marketing. The content of these programs is geared to reach a higher level of sophistication leading to effective overall hog margin management.”
Maiers said those who attend the meetings, set for June 22 in Effingham and June 27 at the Starved Rock State Park Lodge and Conference Center near Utica, will learn how managing price risk can help control hog prices and feed costs, and how to evaluate contracting choices, develop a marketing plan, optimize profit margins, improve fiscal planning and supplement packer agreements.
Chris Hurt, an ag economist from Purdue University, will lead the discussion on increased ethanol production and will also discuss other short- and long-term market factors for the grain and hog markets.
Representatives from Commodity & Ingredient Hedging, LLC, will offer a review of futures and options contracts and marketing strategies. Participants will be able to learn from a hands-on realistic margin management simulation exercise, Maiers said.
In addition, a representative from the Illinois Risk Management Agency will discuss details of the Livestock Risk Protection program and ways producers can utilize the program.
Registration for both meetings will begin at 8:30 a.m. with sessions commencing one hour later.
Lunch will be provided as part of the registration fee, which is $15 in advance for IPPA members and $25 for non-members. Late registration fee is $35.
The seminars are partially funded by the USDA Risk Management Agency and the pork checkoff.
Call the IPPA office at 217-529-3100 for more details on the seminars.
This farm news was published in the June 21, 2006 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee.