Firm Name: AG & Investment Services, Inc.
Founded: 1986
Number of Brokers: 3
IB Status: Guaranteed
NIBA Member Since: Since first year of organization, 1991
Address: 644 First Street, Suite 2, Webster City, Iowa 50595
Web: AGandInvestments.com
This month’s featured member is Ag. & Investment Services, Inc. The firm has been an NFA member continuously registered since 1987. The firm's President, Sue Martin was kind enough to provide NIBA with the information you will read below on the firm, its principal, history and operations. Sue has over 25 years of experience in the finance industry. Sue can be heard on a variety of radio and television programs including “Market to Market” on PBS. For more information on Sue or the firm, visit www.AGandInvestments.com
About the Firm:
How did you get started? Do you provide additional services besides brokerage?
In February 1972, I started working in a brokerage office, Professional Traders (branch office of Heinold)as an assistant/secretary. After the first 9 months, the manager of the office, I took my test and passed. The manager had left and I was asked to get licensed to keep the office open. The rest is history. In July 2008, I started a consulting advisory service by subscription called Futures Cash Info.com. AG & Investment Services, Inc., offers consulting to producers and elevators from all states of the Midwest.
What are the biggest challenges your clients face today, and how do you help them?
The largest challenges that our clients face today seems to be finding the confidence to make marketing decisions on the commodities they produce. Rather it is in livestock or grain, we try to guide them towards the best times of the marketing year to pull the trigger. There are seasonal times but every year presents a different story and we try to guide them towards the timing of the market as opposed to just a price target. If a producer gets a price target in his mind, he may miss the opportunity while looking at timing fits into the saying “being at the right place at the right time.”
How has hedging evolved since you first started the business?
For over the first ten years or so of my being involved with the futures, the only hedging tools available was forward cash sales or selling on the futures if a producer. If an end user, it entailed booking through a supplier or buying futures contracts. Now, we have options, hedge-to-arrive contracts, basis contracts, and for the right type of producer and end user, there are derivatives that can be utilized.
What do you believe to be the keys to your success?
First and foremost, I believe having my client’s best interest at heart rather than a commission along with being a good listener has played well into my success. I tend to be analytical in nature and this business fits my personality. I have always been willing to voice the opinion but in a soft way that is not high pressure. I put my clients first and myself last. Being willing to pick up the phone and make the call to the client rather than always waiting for him or her to call me. I made them feel important.
Another key to my success was becoming in front of the public’s eye. I did radio commentary when it was not popular to do so. From there, a syndicated public television show, Market to Market asked me to be an analyst and this show covered over 30 states and into Canada and northern Mexico at the time. That led to my being asked to give comments daily on the University of Illinois Radio, WILL which led to US Farm Report and Ag Day appearances. Through this time I also did radio commentary for the Linder Farm Network with 28 stations in Minnesota, The Brownfield network out of Nebraska, and the radio station KFRM radio out of Clay Center, Ks. (which covers 8 states through the southern Plains and Panhandle)
Bottom line, willing to voice my opinion, and put myself on the line so the public could make a decision on whether or not I knew anything was the catalyst for success. It is like going into an elevator and having the manager or marketing individual voice his opinion on the market of when I should make cash sales and realizing that he was right more than he was wrong. That tends to bring in business.
How does your firm handle the burdens of compliance?
Oh my goodness, compliance has evolved through the years and is so much more today than it used to be. The good old days are gone. I guess I would have to give credit to my clearing affiliate for the help they give me in making sure I am following the rules. My goal is to have a clean honest business so that my focus can be on what the markets are going to do in the futures rather than trying to deceive the NFA or CFTC. I guess my biggest help is the compliance department at RJ Obrien.
One of the unique aspects of your firm is that you are employee-owned. Tell us more about your unique structure.
AG & Investment Services, Inc. is a small company in that we have four individuals working in our office. Three are registered and one assistant. We work as a “team” and try to help each other. Working as a team allows for time off when an individual needs to be gone. We are just like family. We are excited for each other’s successes.
What trends are you most excited about/worried about?
It is almost becoming that we have too much government involvement. The demise of MF Global and PFG created more regulation which only waters down to the brokers. The stealing of client’s funds and causing firms to go bankrupt has caused distrust in our industry. It has also caused some brokers to lose their careers and of course the brokers are the ones that tend to go without reciprocation of monies owed them by the defunct clearing firm.
What do you believe producers are most concerned about today?
The cost of producing a crop is huge these days. Producers want to be able to garner as much as they can and they want to work with an honest firm. I believe most of our clearing firms operate in the honest fashion that the CFTC and NFA requires. Unfortunately, there are those that did not do so but due to their bad behavior/practices the tightening of regulations should make it more difficult for the dishonest to operate.
For more information visit www.AGandInvestments.com
