Land O'Lakes Risk Management

MEET THE TEAM

Your dairy operation isn’t just a business, it’s your legacy and way of life. Our dedicated risk management team was built to be your trusted partner to help plan for tomorrow, by analyzing your risk strategies today.

The Land O’Lakes Risk Management team offers a holistic, relationship-focused and education-based approach to risk management. We can’t change the uncertainties of the dairy industry, but through comprehensive risk strategy insights and planning, we offer services and products with the goal of long-term operational success for your future.

CONTACT YOUR LOCAL DAIRY BUSINESS ADVISOR TODAY

Mark Halbakken
Western MN, IA, ND, SD
MlHalbakken@landolakes.com
Cell: (218) 849-2954

Tim Patchin
Southeast MN and WI
TJPatchin@landolakes.com
Cell: (715) 350-9309 

Jacob Thompson
East & West region
JTThompson@landolakes.com
Cell: (717) 205-5457

MORE RISK TEAM MEMBERS

Greg Squires
Dairy Enterprise Services
JGSquires@landolakes.com
Cell: (419) 282-6244

Adam Cardwell
Senior Sourcing & Merchandising Manager
ARCardwell@landolakes.com

Justin Potts
Senior Manager - Risk Management Team
JCPotts@landolakes.com

RISK MANAGEMENT OFFERINGS

TOOLS & SERVICES
•  Risk margin insights (RMI): Cost of production (COP) analysis and Milk sales planning
•  Dairy Revenue Protection (DRP) insurance
•  Forward-contracting
•  Business/financial analysis and planning (Dairy Enterprise Services (DES))

FEED INCENTIVE PROGRAMS
•  Return-over-feed (ROF) margin protection
•  Feed Cap program
•  Member premium program

INSIGHTS & EXPERTISE
•  Milk, feed and macro market commodity drivers
•  Industry changes and trends

EDUCATION & SUPPORT
•  Federal Milk Marketing Order (FMMO) pricing
•  Milk risk management education
•  Enterprise margin management

Dairy Revenue Protection

Land O’Lakes is proud to offer Dairy Revenue Protection Insurance to our Dairy Members. DRP is an area-based revenue product backed by the Risk Management Association (RMA) designed to insure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage floor level.

Contact your local dairy business advisor to request a quote today!

FORWARD-CONTRACTING

A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date. Land O’Lakes, Inc. can trade futures and options with the CME through a broker.  A Land O’Lakes member can place forward contracting orders with Land O’Lakes, Inc.

Log-on to MPOL to place a forward-contracting order today.

Process: 

1. Log-on to MPOL or create an account 
2. Complete participation agreement locate on the MPOL website under 'contracting' 

Order types:

DAY ONLY ORDERS
• Class III: Can contract full 200,000 pounds or less than full in 25,000-pound increments
• Cheese: Full contracts only in 20,000 pounds
• Monthly, quarterly or semi-annual
• 15 months forward
• Monthly offer price is previous day’s closing price
• Member will allow Land O’Lakes to sell down a maximum of $0.10/cwt.
• Orders will expire at the end of day unless accepted
• Transaction fee of $0.12/cwt.
• Settled on final milk check

OPEN ORDERS
• Available in class III, class IV and cheese
• Open orders are full contracts only
• Allows members the ability to set a “target price”
• Open orders remain open until filled, cancelled or expire on the 15th day of the delivery month
• Transaction fee of $0.12/cwt.

FLOOR/CEILING OPEN ORDERS
• Sell at market price and buy (ceiling) milk back at higher price
• Use this strategy if current market price is favorable and strong potential for higher prices
• Floor option: Use DRP since it is subsidized
• Include class III, class IV and cheese
• Available for floor only, floor and ceiling or ceiling only
• Orders will expire the 15th of the delivery month
• Administration fee is $0.14/cwt. for both floor and ceiling open orders, $0.06 for floor or ceiling separately

A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date. Land O’Lakes, Inc. can trade futures and options with the CME through a broker.  A Land O’Lakes member can place forward contracting orders with Land O’Lakes, Inc.

Log-on to MPOL to place a forward-contracting order today.

Process: 

1. Log-on to MPOL or create an account 
2. Complete participation agreement locate on the MPOL website under 'contracting' 

Order types:

DAY ONLY ORDERS
• Class III: Can contract full 200,000 pounds or less than full in 25,000-pound increments
• Cheese: Full contracts only in 20,000 pounds
• Monthly, quarterly or semi-annual
• 15 months forward
• Monthly offer price is previous day’s closing price
• Member will allow Land O’Lakes to sell down a maximum of $0.10/cwt.
• Orders will expire at the end of day unless accepted
• Transaction fee of $0.12/cwt.
• Settled on final milk check

OPEN ORDERS
• Available in class III, class IV and cheese
• Open orders are full contracts only
• Allows members the ability to set a “target price”
• Open orders remain open until filled, cancelled or expire on the 15th day of the delivery month
• Transaction fee of $0.12/cwt.

FLOOR/CEILING OPEN ORDERS
• Sell at market price and buy (ceiling) milk back at higher price
• Use this strategy if current market price is favorable and strong potential for higher prices
• Floor option: Use DRP since it is subsidized
• Include class III, class IV and cheese
• Available for floor only, floor and ceiling or ceiling only
• Orders will expire the 15th of the delivery month
• Administration fee is $0.14/cwt. for both floor and ceiling open orders, $0.06 for floor or ceiling separately