NCBA10 - Be a Risk Manager and Not a Forecaster - Larry Hicks

Larry Hicks is the founder of CattleHedging.com and specializes in helping clients manage risk in Canada and the United States.  The cattle market has been just as viscous as any other market in agricultural commodities.  Larry has always been a proponent for making sure that customers protect their equity and assets and reduce the amount of exposure you face in your cattle operation.

I see this is as one of the biggest changes to the cattle markets in the last decade.  In the 1990’s you could make money ranching or feeding cattle strictly by buying the animals and feeding them.  Today’s cattle business environment is about managing costs and risks to protect yourself on the downside.  Buying feeder cattle on the forecast the market will rise is nothing more than a money losing proposition at this point.

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