About Us

It has become apparent there are really only two primary business models when it comes to feeding cattle. One model is trading, which contains a combination of cash, futures and options positions that often vary before or during the feeding period. A grain position is often included in this model but not always. The other business model is one of Arbitrage where opportunities for purchasing inputs and selling out output simultaneously results in a margin. This approach requires a dedicated team that utilizes leading quality production data, accurate basis estimates, and trusted relationships to help you execute and capture margin both in the spot market and in the deferred market. Our team at Compass Ag Solutions has the experience and the tools necessary to support whatever business model fits the desires of your shareholders.


Risk management

Risk Management is the process of determining what potential risks can occur and how they adversely impact the equity of your company. What are the best ways to offset these potential risks? What tools best address the risks we identify? And what combination of tools and what knowledge and level of understanding is best suited for each customer’s risk preference, balance sheet, loan covenants. Our team at Compass Ag Solutions will walk through different strategies such as futures, options, spreads, crushes, and multiple combinations of each strategy. Additionally, we incorporate a tremendous amount of fundamental and technical research supporting every conversation with each customer. Our goal is to provide clarity when it comes to your decision-making process through actionable analysis.


Risk Measurement

The success of any risk management program is highly dependent on the quantification of the actual risk that needs to be managed.  Simply put, one cannot manage what they cannot measure. The first step of any risk management is to qualify your existing position. Is there a physical position and how big? When does it market? Evaluating a physical position, and its relative economic value to the futures will help determine what a successful risk management program includes. Aggregating the physical positions with purchase orders, contracts, futures, and options are imperative in order for a manager to truly know their risk or exposure. This is no easy task, but only then, can a manager expect to be able to manage what they have measured.


Risk Mitigation

If it is determined that the amount of risk being taken by a firm needs to be altered, it is extremely important for the management team to be disciplined in the execution of risk mitigation. Not all risk mitigation is created equally, and there is not a one size fits all approach. Instead, Compass Ag solutions will work with each company to determine what is the best methods for reconstructing the size of their risk. Compass Ag Solutions has a strategic relationship with industry-leading firms, who specialize in executing futures and/or option strategies with technological expertise rarely found in the agriculture sector.


Compass Hedging

Compass Hedging is a Guaranteed Introducing broker that is specialized in executing agriculture futures and options.  Regardless of the complexity of your execution needs, Compass Hedging has the technology and expertise to meet your needs. Compass Hedging services the execution needs for cattle feeders, feedyards, and ag producers within the United States.


RJ O’Brien

Our direct connection with RJ O’Brien allows us to provide the same expert futures and options strategy execution seamlessly for those producers and cattle feeders outside the United States.