In an MF Global and PFG Best world, farmers and ranchers need protection.
In an MF Global and PFG world, farmers and ranchers need protection. The CME Group has established a $100 million Family Farmer and Rancher Protection Fund to provide each individual participant up to $25,000 in case of losses resulting from the future insolvency of a clearing member or other market participant. Farming and ranching cooperatives will be eligible for up to $100,000 per cooperative.
To take advantage of this program, you must register in advance with the CME Group and provide the proper documentation in order to substantiate eligibility. At Daniels Trading, we are able to guide our farming and rancher clients to get registered with this program. Family farmers, ranchers and agricultural co-ops and clearing firms must fill out registration forms as part of the registration process.
Not every broker and clearing firm participates in this program, so it is important to know if you are at the right place. If you need help getting registered or want to talk about the program, please call the Daniels Trading main line at 1-800-800-3840, email Daniels Trading at firstname.lastname@example.org. Or you may call me personally at 1-800-958-9470 or email me at email@example.com. We can get your account at the right clearing firm, send you the correct forms to fill out with the CME Group, confirm the eligible hedging products based on your operation, and assist you along every step of the process.
More than ever, the futures markets are a vital part of the grain and livestock markets. Family farmers and ranchers should be taking advantage of any and all protection available to them. Contact us today and take the first step in this very important program.
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