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February 2018 – Producer Introduction Slide Deck
RPowerD expands the producers opportunity to establish the highest possible minimum revenue. All sales for 2018 crop year must be completed by April 2, 2018 Sales for 2019 crop year start April 2018 February 2018 – Producer Introduction Slide Deck All information believed to be reliable but can not be guaranteed. Watts and Associates, Inc. has developed this proprietary material for the sole use of its recipients and has exclusive ownership rights in part or all of its format and content. The content of this material, regardless of the format in which it is presented, including orally, in print, or electronically, may not be further Disseminated. This material is protected by law. Copyright © 2018 Watts & Associates, Inc. All Rights Reserved. Proprietary Property of Watts & Associates, Inc. (406)
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Goal: Take less risk and make more profit.
Foundational Business Principles: Let’s not lock in a loss Hedging & Forward contracting below cost of production locks in a loss Instead let’s use RPowerD to: lock-out the bottom side now execute on opportunities to cover costs take the most we can out of the markets
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RPowerD Sales Season First Half, Last Half and Full Month Intervals must be purchased by the day of the month specified in the estimator.
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Pricing Alternatives Utility to choose any, all, or none of the additional pricing alternatives below to establish the price that will be used to create your minimum revenue trigger.
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Pricing Alternatives Ability to use the Market Price on any day during the RPowerD sales season with the flexibility of having until midnight the day after the Market Price has been established to create an RPowerD estimate and then have until midnight the day after that to make a final purchase decision.
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Pricing Alternatives Increased probability that one of the Intervals you choose will be among the highest prices available between now and August 2018. Historical Interval Performance Graphs are available in the RPowerD estimator tool on Agent eVantage.
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Pricing Alternatives For those who absolutely have to have a minimum revenue higher than Projected Price provides, Additional Price Coverage (APC) can be used to guarantee a premium to the projected price.
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Flexibility to choose revenue coverage levels:
from 70% - 95% in 1% increments.
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Allows flexibility to insure a portion of liability.
Additional Features Allows flexibility to insure a portion of liability. By accurately selecting the Liability Adjustment Factor when quoting a RPowerD policy producers who have forward marketed, placed in a marketing pool or hedged part of their crop can save money on premium by eliminating the doubling up of revenue protection on bushels that have already been forward contracted, and thus have a price floor. Provides flexible coverage by practice. Coverage is by irrigated/non-irrigated practice so a yield loss on dry land is not offset by a bumper crop on irrigated land.
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Loss Example
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Creating an estimate is as easy as four questions.
Link to Quick Start Post Card suitable for local printing Link to Quick Start Post Card demo video
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Historical Interval Performance
All information believed to be reliable but can not be guaranteed. Watts and Associates, Inc. has developed this proprietary material for the sole use of its recipients and has exclusive ownership rights in part or all of its format and content. The content of this material, regardless of the format in which it is presented, including orally, in print, or electronically, may not be further Disseminated. This material is protected by law. Copyright © 2018 Watts & Associates, Inc. All Rights Reserved. Proprietary Property of Watts & Associates, Inc. (406)
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Historical Interval Performance
All information believed to be reliable but can not be guaranteed. Watts and Associates, Inc. has developed this proprietary material for the sole use of its recipients and has exclusive ownership rights in part or all of its format and content. The content of this material, regardless of the format in which it is presented, including orally, in print, or electronically, may not be further Disseminated. This material is protected by law. Copyright © 2018 Watts & Associates, Inc. All Rights Reserved. Proprietary Property of Watts & Associates, Inc. (406)
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Corn All information believed to be reliable but can not be guaranteed. Watts and Associates, Inc. has developed this proprietary material for the sole use of its recipients and has exclusive ownership rights in part or all of its format and content. The content of this material, regardless of the format in which it is presented, including orally, in print, or electronically, may not be further Disseminated. This material is protected by law. Copyright © 2018 Watts & Associates, Inc. All Rights Reserved. Proprietary Property of Watts & Associates, Inc. (406)
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Historical Interval Performance
All information believed to be reliable but can not be guaranteed. Watts and Associates, Inc. has developed this proprietary material for the sole use of its recipients and has exclusive ownership rights in part or all of its format and content. The content of this material, regardless of the format in which it is presented, including orally, in print, or electronically, may not be further Disseminated. This material is protected by law. Copyright © 2018 Watts & Associates, Inc. All Rights Reserved. Proprietary Property of Watts & Associates, Inc. (406)
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Historical Interval Performance
All information believed to be reliable but can not be guaranteed. Watts and Associates, Inc. has developed this proprietary material for the sole use of its recipients and has exclusive ownership rights in part or all of its format and content. The content of this material, regardless of the format in which it is presented, including orally, in print, or electronically, may not be further Disseminated. This material is protected by law. Copyright © 2018 Watts & Associates, Inc. All Rights Reserved. Proprietary Property of Watts & Associates, Inc. (406)
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Soybeans All information believed to be reliable but can not be guaranteed. Watts and Associates, Inc. has developed this proprietary material for the sole use of its recipients and has exclusive ownership rights in part or all of its format and content. The content of this material, regardless of the format in which it is presented, including orally, in print, or electronically, may not be further Disseminated. This material is protected by law. Copyright © 2018 Watts & Associates, Inc. All Rights Reserved. Proprietary Property of Watts & Associates, Inc. (406)
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1 in 4 producers who are shown RPowerD, buy it
1 in 4 producers who are shown RPowerD, buy it. And they buy a larger number of intervals, locking out a potential downside. Producers purchase RPowerD because it gives them an opportunity to manually or automatically cover costs, plus take the most they can out of the markets. Producers want expanded probability with RPowerD vs just 2 chances with their 2 - RP intervals. Bottom line: Growers who know their cost and have revenue targets use RPowerD to lock in Minimum Revenue and use as many intervals as possible to expand opportunity. RPowerD expands a producers opportunity to establish the highest possible minimum revenue trigger. 18
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RPowerD sales season spans virtually the entire the crop year; 2019 Wheat starts in April 2018 and ends September 30, 2018 2019 Corn and Soybean sales starts April 2018 and ends April 1, 2019 Early purchase provides more intervals; more intervals = greater risk management and history shows higher minimum revenue triggers. RPowerD creates a Minimum Revenue at a lower cost and risk than minimum price contracting or CME brokerage based trading that only manage price risk No margin calls No service or brokerage fees 2-4x less expensive than Put Options Automatically re-sets the Minimum Revenue Guarantee higher when purchased intervals rally with no additional cost or action required by you No requirements to choose a delivery location or set basis at these weak basis levels now. Cash flow friendly - premium due in the fall of the production year All information believed to be reliable but can not be guaranteed. Watts and Associates, Inc. has developed this proprietary material for the sole use of its recipients and has exclusive ownership rights in part or all of its format and content. The content of this material, regardless of the format in which it is presented, including orally, in print, or electronically, may not be further Disseminated. This material is protected by law. Copyright © 2018 Watts & Associates, Inc. All Rights Reserved. Proprietary Property of Watts & Associates, Inc. (406)
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