Ag Hedge Desk

What Ag Hedge Desk does

• Designs and manages customer hedging strategies for agricultural markets.
• Provides hedging programs for dairy and livestock producers.
• Develops customized hedge programs for commercial clients.
• Leverages experience as a designated market maker and liquidity provider in certain agricultural futures products.
• Applies expertise in modeling, efficient execution, and risk management to build durable, efficient, and innovative hedging solutions.

Background and experience

• Ag Hedge Desk operates in partnership with CSC Arbitrage Group, LLC, a registered Commodity Trading Advisor connected directly to agricultural futures exchanges in North America and Europe.
• The firm focuses on food and agriculture markets, which can have lower liquidity and require specialized trading and risk management expertise.

Leadership

• President: Kent Horsager
• Trading futures and options in U.S., Canadian, European, Asian, and South American markets since 1984.
• Bachelor of Science in Applied Economics from the University of Minnesota.
• Master of Science in Agricultural Economics from the University of California, Davis, with a focus on futures, options, and hedging.
• Former roles include leadership positions at the Minneapolis Grain Exchange and service on the board and executive committee of the National Futures Association.

For specific service details, see the separate documents on services for producers, livestock insurance tools, Horizon Pricing, and consulting services.

Scope of consulting

Consulting services are tailored to each customer's needs and can include:

• Reinsurance risk assessments.
• Risk management plans.
• Strategy modeling for hedging and risk management.
• Trade execution support.
• Innovative and customized risk solutions.
• Custom analytics and reporting related to agricultural markets and hedging.

Who consulting is for

• Dairy and livestock producers.
• Agricultural businesses and commercials.
• Corporations with exposure to agricultural commodity markets.
• Insurance providers and related institutions seeking risk management expertise.

Engagement and meetings

• Ag Hedge Desk is available for one-on-one consultations to determine whether their services are a good fit for your business.
• Meetings can be arranged at the client's convenience by contacting the team directly.

For details on specific programs such as the Horizon Pricing Program or livestock insurance tools, see the separate knowledge documents on those topics.

Livestock insurance programs and tools

Ag Hedge Desk offers a package of tools designed to support insurance companies, agents, and producers in making livestock insurance coverage decisions.

These tools support:

• Dairy Revenue Protection (DRP)
• Livestock Gross Margin (LGM)
• Livestock Risk Protection (LRP)

Core tools and resources

Decision Tool

• Helps agents advise producers on the best livestock insurance decisions for their operation.
• Designed to be simple to use, clear in its information, and easily accessible.
• Available for producers, agents, and a reasonable number of prospective producers.

Market Updates (text messages)

• Keeps agents and producers informed about current market conditions.
• Aims to increase agent productivity by automating the process of staying up to date on the market.
• Available for agents, producers, and a reasonable number of prospective producers.

HedgeMAP – overview of endorsements

• Provides a simple, easy-to-read, complete picture of livestock insurance endorsements.
• Useful for agents as an information, tracking, and follow-up tool.
• Helps producers and partners in the operation (such as spouses or management teams) see the exact position.
• May also be useful for banking and credit providers.
• Available for producers, agents, and banking and credit.

Historic Analysis

• Shows how livestock insurance endorsements would have settled in past periods.

Bellwether Dairy newsletter

• A newsletter about a fictional farm and its livestock insurance decisions, endorsements, and settlements.

Agent Training

• Training for agents on how to use Ag Hedge Desk tools.
• Supports a consistent process for using the tools so producers can choose optimal coverage.

Producer Education

• Meetings and workshops for producers.
• Provides the information needed to understand and utilize livestock insurance.

Who these tools are for

• Insurance companies and agencies.
• Individual insurance agents.
• Dairy and livestock producers.
• Banking and credit providers who work with agricultural clients.

For consulting related to livestock insurance or additional support, see the separate documents on consulting services and services for producers.

Services for producers

Ag Hedge Desk provides services for dairy and livestock producers and other agricultural clients who want to manage risk and improve margin stability.

Custom hedging programs

• Margin hedging programs designed to fit the specific needs of each producer.
• Focus on agricultural commodities and related risk exposures.
• Programs are designed and managed by Ag Hedge Desk, leveraging its trading and risk management expertise.

Livestock insurance tools through partnered agents

• Decision tools for:
• Dairy Revenue Protection (DRP)
• Livestock Gross Margin (LGM)
• Livestock Risk Protection (LRP)
• Tools are provided through partnered insurance agents.
• Support both agents and producers in making informed livestock insurance decisions.

Full-service consulting

• Risk management consulting for producers and other agricultural businesses.
• Can cover topics such as hedging strategy, risk assessment, and execution.
• Tailored to the customer's situation.

Getting started

• Producers and agricultural businesses can contact Kent Horsager or Justin Siewert to discuss which services or programs are a fit for their operation and risk management goals.

For more detailed information, see the separate documents on livestock insurance tools, consulting services, and the Horizon Pricing Program.

CSC Arbitrage Group, LLC 2125 E Hennepin Avenue Minneapolis, Minnesota 55413 United States

Key contacts

President

Kent Horsager Phone: 612-709-6130 Email: KHorsager@AgHedgeDesk.com

Risk Management Consultant

Justin Siewert Phone: 507-884-4854 Email: JSiewert@AgHedgeDesk.com

How to reach Ag Hedge Desk

• Phone or email one of the listed contacts to discuss services, livestock insurance tools, or hedging programs.
• To arrange a consultation or meeting time, contact the team directly.

Business hours are not listed on the website. For availability or to schedule a meeting, please call or email.

Lists Minneapolis, Appleton, Davis, Hollister, Palo Alto, North Salt Lake, and Kent as a location. Names Minnesota and United States as a service area. Areas beyond these are not published.

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

Why use Horizon Pricing?

The Horizon Pricing Program is designed to make hedging costs and risk management as straightforward as possible for dairy producers.

Key features and benefits include:

• A price alternative to spot pricing.
• Allows diversified pricing strategies.
• Simplifies implementation and decision making.
• Reduces volatility compared to unmanaged pricing.
• Supports consistent, ongoing risk management month after month.

With Horizon Pricing, producers do not need to pick specific days to place trades. Ag Hedge Desk dynamically works trades within the program framework, allowing producers to make a few key choices and then rely on an ongoing, rules-based approach.

What Ag Hedge Desk provides under Horizon Pricing

As part of the Horizon Pricing Program, Ag Hedge Desk will:

• Dynamically trade and manage the hedge positions throughout each month.
• Provide summaries of added and changed trades.
• Conduct annual reviews.
• Provide monthly HedgeMAPs.
• Implement premium offset strategies where appropriate.
• Offer recommendations and be available for consultation.

How to get started

Dairy producers interested in the Horizon Pricing Program can contact Ag Hedge Desk's Risk Management Consultant to develop a strategy that fits their situation.

Use the contact details for Justin Siewert or Kent Horsager to start a discussion about whether Horizon Pricing is appropriate for your operation.

Ask anyway — the agent will say plainly that it is not published rather than guess.