A Risk Solution Grounded in Results
Our Six POINT Plan
Since 1995, American producers have employed our Six Point Plan to guide their marketing efforts.
With a proven track record, the program has allowed farm managers to take the guesswork out of difficult marketing decisions. Thousands of producers with over two decades of results prove our effectiveness. Our Plan allows producers the peace of mind found in protecting themselves from downside risk while keeping their upside potential.
We will deliver and coach clients
through the following Six Point Plan:
Buy Put Options on 100% of your expected production
Sell cash grain on rallies
Offset (sell) Put Options equal to bushels sold in the cash market (as market allows)
Roll Put Options up or down to manage equity and opportunity
Bring cash sales to a minimum of 25% of expected production if Option roll up is allowed
Consider re-owning bushels sold in the cash market, with Call Options
Six Point Plan FAQs
The best time to start is immediately after you have identified what you will be producing. We recommend that this activity be initiated by March 1st.
You can hedge corn, soybeans, wheat, cotton, rice, milk, cattle, and hogs. We recommend that you use the program to cover only that production which has price risk on your operation. In most cases, that is 100%.
Market observations have allowed us to use prescribed increments for each commodity to best manage your risk, your equity, and your position relative to the marketplace. As we approach those times when a roll-up or a roll-down is required, we will be in contact with you in preparation for taking action.
We suggest making cash sales on rallies and on option roll-ups. At that time, the purchase of calls on those sold bushels may be a viable compliment to the sales you make.
When you know your production numbers or if your yield will be significantly reduced, we will need to assess how this impacts your previous marketing efforts. You may need to sell a corresponding amount of the options that you previously purchased, and move aggressively or address prior contract commitments on/for physical product.
One of the greatest privileges is coaching our clients through their use of the Six Point Plan and making sure they feel comfortable. We will work with you on an individual basis until you have a commanding understanding of the program and are comfortable with your success.
Absolutely! First Capitol Ag has strong relationships with bankers and ag lenders across the country. We will explain all the details and benefits to both you and your banker. It has been our experience that lenders are more willing to lend after gaining an understanding of the program.