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The FutureTrak
Program
is best described as a management methodology, which allows the producer
to make marketing decisions without fear of adverse future events.
It addresses the two primary realities of his rather unique
business: the need to manage crop inventory for maximum returns and an
ongoing decision-making process with little or no knowledge of what lies
ahead. Applying the FutureTrak
concept, the producer gains affordable
protection against unexpected price movements.
Armed with a marketing tool that looks and feels like an insurance
policy, he can confidently make decisions based on known facts at any
given moment, not on assumptions or speculation as to future events.
Responding to basis issues, wide or narrow, or weather-market
opportunities, for example, is no longer a difficult challenge.
When dealing with operational constraints such as storage issues,
logistics, or cash-flow, additional alternatives can only add to a
manager’s potential for success. To emulate the insurance concept, FutureTrak
is first and foremost a “cost based” program, employing futures options. It
addresses the reality that perceived cost, or risk, greatly influences
marketing decisions. The cost
must be affordable, because no other price is acceptable. It follows that cost is a function of compromise, which is
the foundation of the FutureTrak
program. Properly designed option strategies, reflecting
market conditions and operational constraints (such as debt levels),
are the key to cost control. Catching most of the advance or
avoiding most of the decline, consistent with your needs, is the program objective. As
conditions change (for example, weather or getting past the crop
reproductive period), protection levels and cost may be adjusted
accordingly. You may have all
the protection you desire, but you should avoid paying for it before it is
needed. With
low-cost choices at your disposal, you will be much better equipped to
respond to the opportunities that the markets infrequently offer. Luck or fate will no longer be the primary factor in
determining the net returns of your operation.
While you cannot predict the future, you can certainly participate
in it. To put things in perspective, the wisdom of today’s decision won’t typically
be known for months, perhaps…many months.
Having some assurance that future adverse events won’t nullify
today’s efforts can put the fun back into running your business.
Simply said, recognize the opportunity as it is presented,
determine the most effective course of action, (with assistance) design
the appropriate strategy which shall allow you to make that decision and
execute that strategy as late as practical for the lowest possible cost. Let’s
enumerate what FutureTrak may do for you:
Make difficult decisions less difficultAffordable recourse offers important marketing choices Net income depends less on luck and fateThe impact of adverse future events is diminished Decisions are based on known facts, not assumptions Optimize
management of your individual operation Take advantage of basis opportunities
A basis opportunity need not change your market
position Reduce storage costsAvoid interest, elevator, and other costs associated
with long-term storage Eliminate storage issuesAvoiding storage, when practical, avoids predictable
problems Take advantage of early season market rallies Confidently
take advantage of a known opportunity Gain greater control over your minimum level of income Knowing
the downside allows for planning ahead Adjust market risk to needs More
closely align market risk with changing conditions Avoid market declines
As with
expense, the nemesis of all
Keep more control over your destiny
Reduce
exposures to the vagaries of weather, politics and
other market influences
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To be eligible, you must be a qualified hedger employing concepts and principles advocated in THE TOTAL FARM MANAGER PROGRAM. Trading investors are not eligible. The 30 day period starts upon employment of your initial program strategy. Only fees and commissions associated with your initial strategy, (including delayed position entries) will be refunded. Fees and commissions incurred in market positions entered subsequent to the initial program strategy are not eligible for refund. Any option premium paid, or market loss resulting from such transactions, is the sole responsibility of the client. Alliance Marketing and Trading Co., LLC guarantees your satisfaction with the service provided including the concepts and principles as applied to your individual business. No other guarantee is herein implied. Determination of eligibility shall be at the discretion of Alliance Marketing and Trading Co., LLC. REQUEST FOR REFUND MUST BE RECEIVED IN WRITING (FAX ACCEPTED) WITHIN 30 DAYS OF THE DATE OF EMPLOYMENT OF A MARKET STRATEGY OR ANY COMPONENT THEREOF. |
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| Certain trading methodologies and/or concepts employed by Alliance Marketing and Trading Co., LLC are designed to address the financial exposure represented by an entire farming operation, where appropriate. As such, actual positions and/or strategies recommended may not have a profit motive, if viewed as separate investments. Strategies employed, and subsequent adjustments thereof, are often highly sophisticated and require the investor to make various trading compromises. The benefits of such compromises as well as limitations should be reviewed and understood prior to initiation. Trading futures and options on futures is inherently risky, given that market conditions can and often do change. Strategies and/or positions recommended by Alliance Marketing and Trading Co., LLC are based on known and anticipated market inputs and are subject to change at any time. In addition, strategies and/or positions recommended are based on information provided by the producer, or investor, regarding the business of same as well as his or her personal objectives. Seemingly similar business operations may, therefore, receive somewhat different trading recommendations at any given time. Trading futures and options on futures is not appropriate for all persons as the risk of loss is substantial. Since there is no level of certainty associated with futures and options on futures, a purchaser may lose the entire amount committed in a relatively short period of time. Market comments contained herein represent the opinions of the writer alone and are intended for information purposes only. Such comments are based on information provided by sources believed to be reliable, but which is not guaranteed as to accuracy. Options on futures involve special tax considerations that should be reviewed with a professional tax advisor prior to trading. Alliance Marketing and Trading Co., LLC and/or its principles may maintain positions in commodities addressed here-in. Due to varying trading objectives, those positions may or may not be consistent with information and/or recommendations contained here-in. | |||
