DEVELOP THE RIGHT PLAN FOR YOU.

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DEVELOP THE RIGHT PLAN FOR YOU. The Agricultural Risk Consulting Group LLC Developing and Implementing Sound Risk Management Solutions (866) 574-2724 agriskconsulting.net

What should you look for in a risk management consultant? Independence The freedom to market your grain to any end user and leverage better prices and terms by combining bushels with other growers. Trust This may seem obvious, but it is at the heart of any relationship. Experience/Background Our consultants have the background and experience to successfully execute a comprehensive strategy. Local Cash Grain Presence We will negotiate and trade physical cash grain sales to your local end users. Consistency Our approach to futures management is consistent, clear, and concise. Results Our success is based on a sound and disciplined plan consistent across the entire company. Who We Are The Agricultural Risk Consulting Group LLC is a commodity consulting firm comprised of former grain merchandisers and risk managers specializing in managing the risks inherent in agriculture. We are completely aligned with your best interests by having a risk management and grain merchandising strategy independent of all end users. What We Offer Hedging Specialized Over-the-Counter hedging products Marginless hedging programs Farm Plan Statements

The ARC Group is dedicated to serving producers in the western cornbelt and we have earned our reputation as a trusted partner; one client at a time. We understand that not all farms manage risk the same. We focus on implementing and executing a consistent plan that aligns with your risk management goals. We feel this approach creates long-term success for our clients. What is risk management? In the world of agribusiness there are many risks and uncertainties. Successful producers have a production game plan utilizing the best technology including seed, chemicals, fertilizer, and equipment to manage the agronomic challenges they face. However, many producers fail to implement and execute a consistent, long-term risk management plan for their crop which leads to procrastination, emotional decision making and frustration. Agribusinesses that are profitable over time implement sound and consistent risk management programs. They have no special insight or ability to predict where the market is going; however, they do use a set of consistent principles which guide their decision making. The ARC Group helps producers professionally merchandise their grain by following a disciplined risk management program which focuses on three key principles: futures, carry, and basis. All three need to be maximized to have a successful marketing plan. The ARC Group is an independent local company. Our consultants have the experience and expertise to help you implement and execute a merchandising plan tailored to your operation. We are completely aligned with your best interests by having a risk management strategy independent of all end users. Three important questions to ask: 1 2 3 Do I have a grain marketing strategy in place? Do I have the time and discipline to execute this strategy? Do I have a trusted, independent expert to assist in this process?

Our Strategy: Risk Management Plan What tools? Futures Options Over-the-Counter Trades ARC Edge Program (Marginless) When to pull the trigger? We stick to a tried and true plan of selling incrementally during a pre-harvest seasonal time frame. Have a PLAN so you don t have to worry about the day-to-day headlines! Merchandising Now that your futures price is protected we need to look at BASIS and CARRY. Using our tools you are able to manage risk while staying INDEPENDENT of commercial grain companies. BASIS and CARRY We will evaluate basis in your area and trade your physical bushels when most advantageous. Carry dictates if you should store your grain or move it. Cash Grain Presence The ARC Group has developed trusted relationships with grain companies in your area and will be able to help evaluate your best bid. Many ARC team members have commercial grain trading experience. Allow us to put that experience to work for you. Futures, basis and carry work separately to maximize value on your operation. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Over-the-Counter Trades Daily Swap Average (DSA) An averaging contract of the futures closing price through a specific averaging period. Daily Swap Average-High (DSA-High) An averaging contract of the futures high tick of the day session through a specific averaging period. Enhanced Average (EA) This allows you to establish a minimum price, or floor, on a set amount of bushels and participate in market rallies. A strike price is established at the market any time before the averaging period. During the averaging period, the customer receives either the futures closing price or the strike price, whichever is higher that day. Other We have our own OTC desk and have the flexibility to offer almost any product our customers want. Many grain companies are getting more creative in their offerings to procure more bushels. If you like a product that is out there, but don t want to commit your bushels to anyone, let us know! We will execute it for you, independent of end users. Averaging Period We use February through June. Historically, this is the best time to sell grain. We can also adjust the averaging period. ARC Edge ARC EDGE is our hedge-to-arrive (HTA) program. We can tie any of our risk management tools to an HTA. Since the contract is with The ARC Group, you are not locked in to where you sell your grain. It allows you to manage risk without worrying about margin and keeps you INDEPENDENT. $3.96 Dec 215 $3.94 Dec 216 $3.9 Dec 217 $4.3 Dec 218 Corn Seasonal Average Results Benefits Removes emotion and stress from marketing grain Allows customers to capitalize on seasonal market trends Sell incrementally over an extended period of time Ability to price out at any time EA s are cheaper than CBOT Puts and minimum price contracts No bushels are priced below your EA strike price Reduces price volatility

THE ARC EXPERIENCE Learn about your operation: Crops Acres and Yield Insurance level Preferred delivery locations Preferred risk management tools (futures, options, OTC, HTA) 1 Percentage to Percentage you 2 protect pre-harvest % of futures % of options % of DSA s % of EA s 3 Put trades in your own account or in ARC EDGE Look at carry and basis. If favorable, look for best basis location, look for best bid into that location, and see if we can get volume into that location to make the bid more competitive. 5 Adjust plan as necessary. The backbone of our strategy is still hedge incrementally during the seasonal time frame. What may change is the tool you are comfortable using as unexpected events occur. It is important to stick with a consistent plan year after year. It will reduce volatility and increase profitability over the long run. 4

FARM PLAN Your Farm GENERAL INFORMATION PRICE PROTECTION SNAPSHOT CURRENT MARKET POSITION Total Cash & Futures Sales Dryland Irrigated Seed 16,26 Estimated Prod. Committed % Acres 39 321 394 81.6% Pre Harvest Hedge % Est. Yield 14 255 276 18.8% Remaining Cash to Commit Est. Prod 5,46 81,855 18,744 51,33 Removed 145,26 Basis Committed Amount 196,59 Hedged Total Prod. 81.6% 75% OTC Futures Insurance (level %) 147,44 ADMIS Futures Pre-Har Hedge 15, Cash Committed Storage 145,26 ACCOUNTING SNAPSHOT HTAs Locked HTAs Unlocked PRICES AND CARRIES Hedged w/ Upside Unsold Cash Value 193,658.4.% Month Contract Price Carry OTC Hedged w/ Upside Closed ADMIS Positions 16,437.4 March 219 CH219 3.8425 ADMIS Hedged w/ Upside Closed OTC Positions 22,479.32 May 219 CK219 3.9125.7 Unhedged OTC Account -- 18.4% July 219 CN219 3.975.1325 OTC Unhedged ADMIS Account -2,62.5 December 219 CZ219 4.225.18 Unhedged/Uncommitted Settled HTA Sales -- 36,33 March 22 CH22 4.11.2675 Open HTA Sales -- May 22 CK22 4.1625.32 Basis Value -- CURRENT CASH AVERAGE PRICE July 22 CN22 4.275.365 Cash Sales 549,231.68 3.97 December 22 CZ22 4.15.375 Current Value of Total Producation 779,744.41 Futures Price: 3.84 Default Basis:. Know your average price at a glance CASH SALES Activity Outside Cash Contract Outside Cash Contract Outside Cash Contract ARC Cash Contract ARC Cash Contract ARC Cash Contract Trade ID 12345 23456 34567 45678 56789 6789 Total Cash Value: 549,231.68 External ID Trade Date Location Delivery Period Quantity Futures Price Basis / Net Price Cash Value 3/9/218 Location 1 3/1/219-3/31/219 23, 4.17 -.7 / 4.1 94,3. 5/21/218 Location 2 5/1/219-5/31/219 18,513 4.22 / 4.22 78,217.42 6/8/218 Location 2 5/1/219-5/31/219 18,513 4.31 -.7 / 4.24 78,541.4 11/23/218 Location 3 12/1/218-12/31/218 14,167 3.61 -.22 / 3.39 48,61.54 11/23/218 Location 3 1/1/219-3/31/219 42,5 3.72 -.22 / 3.5 148,75. 11/23/218 Location 3 4/1/219-5/31/219 28,333 3.79 -.22 / 3.57 11,361.3 ADMIS ACCOUNT Futures Date Location Type Contract Buy or Sell Call or Put Strike Amount Initial Trade Price 11/26/218 ADMIS Futures CH219 Sell -- 15, 3.7 Current Premium/Future Price 3.84 Total Open Trade Equity: -2,137.5 Open Trade Equity -2,137.5 CLOSED ADMIS TRADES Enter Date Exit Date Location Type Contract Strike Initial Action Amount Enter Price Exit Price Total Gain/Loss: 16,437.5 Gain/Loss 4/11/217 1/12/217 ADMIS Futures CZ218 -- Sold 2, 4.4 3.93 2,2. 1/25/218 11/23/218 ADMIS Futures CZ218 -- Sold 2, 3.9 78,. 11/23/218 11/23/218 ADMIS Futures CZ218 -- Bought 25, 3.6125-9,312.5 2/28/218 11/26/218 ADMIS Futures CZ218 -- Sold 15, 4.2 3.59 6,45. 2/28/218 11/23/218 ADMIS Futures CZ218 -- Sold 5, 4.2 2,1. CLOSED OTC POSITIONS Trade ID Activity Trade Date Closed Amount Futures Month Buy/Sell Call/Put Exit Date Option Strike Enter Price Exit Price 15671 OTC Enhanced Average 1/29/218 Z218 Buy Put 3.9.23 EA Swap Offset 25, 11/23/218 4.4 3.61 EA Enter Price 25,.23 168 OTC Daily Swap Average 1/31/218 Z218 Buy Put --.3 DSA Swap Offset 35, 11/23/218 4.3 3.61 DSA Enter Price 35,.3 15691 OTC Option 1/29/218 Z218 Sell Call 4.2.15 Option Liquidation Offset 25, 11/27/218 Total Gain/Loss: 22,479.32 Gain/Loss 5,33.65 1,98.65-5,875. 13,633.17 14,683.17-1,5. 3,812.5 3,812.5

(866) 574-2724 agriskconsulting.net Futures trading involves risk and is not necessarily appropriate for all investors. The information contained herein does not constitute a solicitation to buy or sell commodity futures or options. Past performance results of a particular trading strategy or program are not necessarily indicative of future results.