Greeting from a first-time blogger!
My thoughts yesterday, as Dr Schroeder and web-guru, Amanda Erichsen, were introducing us to the idea (and convincing us of the value!) of a blog were mostly about the idea of what a fantastic time this was to be starting to get involved in the arena of risk management. We’ve heard that before of course – from Jim Bosley of KCBT, Greg Case of Aon, and others.
Consider for a moment some of the “new” or elevated risks we’ve seen in agriculture and agribusiness over the last few years: a) wheat basis – summer 2010 basis at Salina was 1.20 under, almost $1.00/bu below its 5 year average!, b) MF Global (Oct 2011) and Peregrine Financial (July 2012) – before that, money held in margin accounts was thought to be untouchable!, c) LFTB (let’s not use the other word for it!) – but following what can best be described as a “disinformation campaign” by ABC in March 2012 the firm producing a safe and approved beef product almost went bankrupt, d) Hallmark/Westland – in February 2008, after HSUS released a video showing horrible mistreatment of animals at their plant, the company was forced to recall 143 MILLION pounds of beef product, and DID later declare bankruptcy.
There are lots of other examples that many of you are familiar with. Just last week we saw limit down moves in grains following the USDA stock report – does that seem to be occurring more frequently? And you can bet deposit holders in Cypriot banks didn’t have any idea their money was at risk of being confiscated by the government! All in all, a pretty exciting time to be getting involved in a field like this.
So there, my first blog – lousy grammar and all! If i can do it, so can you!