Keystone Agricultural Producers (KAP) in conjunction with Western Union Business Solutions announces a new foreign exchange risk management program to protect farmers against adverse foreign exchange currency movements that occurs from the time a producer signs a contract until the time he delivers product and receives payment.
The solutions offered by Western Union Business Solutions offices in Winnipeg provide an analysis of a KAP member’s foreign exchange business risk and development of a strategy to reduce the adverse effects on the farmers’ bottom line due to foreign exchange movement.
In addition, Western Union Business Solutions is offering to waive their foreign exchange transaction fees for the first 3 months to allow members to see how managing foreign exchange risk helps their bottom line.
“As farmers, we are becoming more and more exposed to foreign exchange risk” said Doug Chorney, President of KAP. “Grain farmers have not had the same level of foreign exchange risk as other commodities like pork; however, this is changing as more and more special crops are sold into the US and the changes with the CWB may further accelerate the need on some grain operations to be more cognizant of the risks associated with foreign exchange currency movement.”
“We are very pleased to be working with KAP and bringing our expertise in managing foreign exchange risk for businesses to the farming community” says Mark Kelly, Sr. Business Development Executive for Manitoba. “Although the accountants translate assets and liabilities on business operations into Canadian dollars at the businesses year-end exchange rate, the reality is that currency markets never sleep, and exchange rates fluctuate by the second. Market volatility when not managed with a foreign exchange risk management program, can pose significant risks to a farmer’s bottom line. Ironically this same fluctuation, when managed through a foreign exchange program can present excellent opportunities for businesses.”
“We are offering the foreign exchange program through KAP’s Member Benefits because we see value in lowering farmers’ foreign exchange risk and improving their bottom line” said Kyle Foster, Chairman of KAP’s Member Benefits Committee.
To help farmers plan this spring, Western Union Business Solutions will be hosting a webinar on how to manage foreign exchange risk for farm products on Thursday, April 12th, 2012 at 10 AM CT. KAP members can register for the webinar by going online.
For more information, KAP Members are encouraged to call 204-987-1584 or 1-877-475-2226.
