1. Risk Management Solutions
FBM Agronomy Workshop
November
© 2007 Wells Fargo Bank, N.A. All rights reserved. The entire presentation is confidential.  Distributing or sharing this presentation in any form to anyone who is not a Wells Fargo team member is prohibited.

2. Products to Differentiate Wells Fargo
Grain Inventory Loans
Over The Counter Hedges
Crop Insurance to Enhance Marketing Plans
Grain Storage Lease Financing

3. POST HARVEST GRAIN MARKETING Questions Producers Need to Ask
What are my costs of production?
What is the carrying charge in the market?
Is basis strong or weak?
Are market prices high or low?
What are my storage costs?
What is my appetite for risk?

4. Corn Cost of Production.xls Soybean Cost of Production.xls
UTILIZE NASS DATA TO ESTABLISH COST OF PRODUCTION Uniform Format recognized National Wide Utilized by Risk Management Association Establishes a True Cost of Production
Corn Cost of Production.xls
Soybean Cost of Production.xls

5. Analyze the Current & Future Market
What is the current Futures Price?
Is there carry in the market?
What is the current cost of money?
What does it cost to move grain in and out of my storage?
What is the current cost of commercial storage?
What is current basis?
Marketing Plan Oct 2007.xls

6. Product Solution For Market Carry

7. Product Solution To Meet Grain Contract Requirements For Stored Grain
Wells Fargo Commodity Products (WFCP)
Basic, structured and customized solutions
Swaps
Caps/Floors/Collars
Customized structures

10. Solutions To Help Market 2008 Crop
Multi Peril Crop Insurance
Over The Counter Wells Fargo Hedge
First – Cost of Production
Break even
Marketing Plan Oct 2007.xls

11. RA/CRC Multi Peril Crop Insurance Solution
The Revenue Guarantee allows for forward pricing grain up to the bushel guarantee
MPCI marketing worksheet10-07.xls
The Wells Fargo OTC Hedge (Swap) allows for the execution of a Pre-Harvest Marketing Plan without price risk in conjunction with the Harvest Option on Revenue Insurance.
A Good MPCI plan will also mitigate revolving line of credit risk to Wells Fargo Bank.

12. RCIS Risk Management Tool (RMT)
Stand alone Computer Program to help guide producers with Crop Insurance Coverage decisions.
Combines Cost of Production, Crop Insurance Options, and Marketing Plans
Available only to RCIS Agents

17. Product Solution for Grain Storage