Price Risk Management

Fluctuations in prices for product inputs or outputs put most companies in the food and agribusiness sector at risk. Effectively managing these risks through hedging techniques is critical for financial success. Some of the more traditional risk techniques include futures, options, swaps, and various types of cash contracts.

Crowe Horwath LLP has a wealth of experience advising our clients about all types of risk management tools.  Not only does Crowe understand the appropriate accounting and income tax issues of these agreements, but we also understand the underlying economic value and potential impact of using these tools.

Our people stay up to date on effective price risk management strategies by attending seminars organized by the Chicago Board of Trade, brokerage houses, and accounting groups on the economic risks and benefits of hedging. We are well versed in Statement of Financial Accounting Standards numbers 133 and 149, “Accounting for Derivative Instruments and Hedging Activities,” as well as the Internal Revenue Code sections 446 and 1221, which deal with tax implications.

Our in-depth understanding of risk management tools, along with the accounting and tax implications, enables us to provide the specialized knowledge you need to protect your business from damaging price fluctuations.