As shown, when hedging the feed costs, the value becomes much more stable, with a lot lower range of value than when there was no hedging involved.
Another big concern is cost. Both our programs do not have an enrollment fee. A producer selects an option price, quantity, timeline and ceiling/floor for a trade in ROF to begin, and then lets that trade work itself through completion. Horizon Pricing requires a producer to only pick a quantity, a strategy, and a timeline. After selection, Ag Hedge Desk will dynamically manage and hedge this quantity on behalf of the producer. If the market settles outside of their margins, a producer may then be eligible to collect funds owed to protect against loss during that dip. For in depth examples of these occurrences, check out the ROF Case Studies we have posted on the site, but, the payouts have greatly benefit producers in recent years, as shown below