Risk Management has become more and more important in the cattle feeding industry.  The market is still appreciating, but our input costs and fat cattle prices are more volatile than ever.  It creates more opportunity and more risk for a debilitating loss at the same time.  We take great pride in trying to put as much effort as possible into an effective marketing strategy for ourselves and our customers.  Our ever evolving market education and experience helps us reduce the risk of enormous losses while trying to capture the risk that is in our favor.  After all, being a good marketer and hedger doesnt always mean being short 110% of inventory.  A very successful cattleman once told me "you can go broke being hedged all the time, the market doesnt pay you without risk." Option strategies and a "risk on" "risk off" approach to the cattle crush can help us all capture profits and limit losses.  We offer hedging to our customers on the feedlot account to be deducted or added to your cattle closeout at the end of the feeding period.  This frees our customers from unwanted equity swings and margin calls while still allowing them the ability to limit their risk. Be sure to talk to Todd Schroeder or myself about your options as a customer.

Sincerely,

Blake Albers