Horizon Pricing

What is Horizon Pricing?

The Horizon Pricing Program is a forward margin pricing program from Ag Hedge Desk that provides consistent forward pricing of margins to dairy producers. The program is based on the successful Revenue Over Feed program offered by Ag Hedge Desk. Horizon Pricing takes the most successful ROF strategies and simplifies them for an even easier and more automated risk management strategy.

Why use Horizon Pricing?

This program has been developed to make hedging costs and risk management as easy as possible for a producer. One key difference between Horizon Pricing and ROF is that producers no longer have to pick a day to place a trade, but let Ag Hedge Desk dynamically work their trades, allowing them to make a few simple choices, then not have to worry about their risk management. Additionally, the Horizon Pricing Program has quite a few benefits overall, such as:

  • It’s a price alternative to the spot
  • Allows diversified pricing strategies
  • Simplifies implementation and decision making
  • Reduces volatility
  • Great way to start consistent risk management month after month

What will Ag Hedge Desk do for the producer?

Ag Hedge Desk will not only dynamically trade and manage the hedge throughout a month, but provide thorough feedback and review to the producer, as well as being present for any consultation or recommendations the producer may desire. Ag Hedge Desk will provide:

  • Summaries of added and changed trades
  • Annual Reviews
  • Monthly HedgeMAPs
  • Premium offset strategies
  • Recommendations

How to get started with Horizon Pricing:

If interested in Horizon Pricing, contact our Risk Management Consultant to develop a strategy that fits your situation. 

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