Commodity & Ingredient Hedging

What Commodity & Ingredient Hedging does

Commodity & Ingredient Hedging (CIH), founded in 1999 and headquartered in Chicago, is a privately held risk management firm focused on commodity price exposure for the agricultural sector. The company serves over 1,000 agricultural producers and commercial buyers across hog, cattle, dairy, grains and oilseeds, metals, and renewables markets, providing futures, options, insurance, and swaps execution supported by an in-house education and research function.

CIH's core technology asset is a proprietary risk management platform developed over 20 years, complemented by a mobile app, MPCI analysis tools, a Risk Manager tool, and the recently launched GrainOS module for grains and oilseeds. The platform aggregates consulting, brokerage, and insurance execution (including MPCI, LRP, LGM, DRP, and PRF products) into a single interface, with reporting and scenario modeling accessible via web and mobile. CIH Insurance Services, LLC operates as a licensed insurance agency subsidiary.

The company generates revenue through subscription-based consulting services (sold quarterly), transaction-based brokerage commissions acting as an introducing broker, insurance brokerage commissions, and fee-based education seminars priced from $49 for individual simulations to USD 1,000 per attendee for international workshops; seminars are free for existing clients. CIH also conducts a multi-channel marketing program (blog, newsletter, LinkedIn, Twitter, seminars, simulations, video tutorials) and operates through direct consulting engagements at its Chicago headquarters and Clive, Iowa office, with sector-dedicated business development teams for cattle, hog, dairy, and crop producers. In March 2025 CIH acquired Advance Trading (ATI) to expand its grain footprint, and in November 2025 Tokio Marine Holdings signed a definitive agreement to acquire CIH from Falfurrias Capital Partners for $970 million, expected to close in Q1 2026.

Name

Commodity & Ingredient Hedging

Legal name

Commodity & Ingredient Hedging, LLC

Website

https://cihedging.com

Company type

Private

Founded year

1999

Operating status

Operating

Headcount range

101–250 employees

Short description

Commodity & Ingredient Hedging (CIH) is a Chicago-based risk management firm providing commodity hedging consulting, brokerage, and insurance services to over 1,000 agricultural producers and commercial buyers across hog, cattle, dairy, grains, metals, and renewables markets via a proprietary technology platform.

Ownership category

akta.pro rank

Product category

Agricultural Commodity Risk Management

NAICS

Commodity Contracts Intermediation (52316), Securities and Commodity Contracts Intermediation and Brokerage (5231)

SIC

Commodity Contracts Brokers & Dealers (6221), Security & Commodity Brokers, Dealers, Exchanges & Services (6200)

akta.pro primary industry

Commodity Risk Management, Hedging & Brokerage (Food) (AFAIAKAK)

akta.pro secondary industry

Commodity Market Data, Pricing & Benchmark Administrators (Commodity Indices/Assessments) (FSAFAMAJ)

Keywords

• Agricultural commodity hedging
• Commodity risk management
• Margin management consulting
• Futures options brokerage
• Crop insurance services

Headquarters

HQ city

Chicago

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Marketing or Sales, Operations, Infrastructure

Revenue model

1. Consulting Services: Ongoing advisory and consulting engagements providing regular consultation and customized risk management strategies for agricultural producers and commercial buyers. Delivered via weekly education-driven sessions combined with personalized plan development.
2. Brokerage Services: Execution of futures and options contracts on behalf of clients, earning commissions on transactions. CIH acts as introducing broker routing orders to exchanges.
3. Insurance Services: Insurance brokerage and advisory services for agricultural insurance products including MPCI, LRP, LGM, DRP, PRF. CIH Insurance Services, LLC is a licensed insurance agency earning commissions from insurance companies.
4. Education and Seminars: Fee-based seminars and educational programs for agricultural commodity market participants. Pricing ranges from free for existing clients to $85-$1,000 per person for public attendees.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels8 records

Core offering

Commodity & Ingredient Hedging provides integrated agricultural commodity risk management services combining consulting, brokerage, and insurance brokerage across hogs, cattle, dairy, grains/oilseeds, metals, renewables, and financial commodities. The firm delivers subscription-based consulting, executes futures and options as an introducing broker, and brokers crop and livestock insurance products (MPCI, LRP, LGM, DRP, PRF) through its subsidiary CIH Insurance Services, LLC. Clients access a proprietary web and mobile technology platform developed over 20 years for real-time position monitoring, margin analysis, scenario modeling, and contract benchmarking.

Product overview

CIH is a technology-focused risk management firm offering an integrated platform combining consulting, brokerage, and insurance services for agricultural commodity markets. The core CIH Risk Management Platform enables clients to view, model, and manage exposure through futures, options, insurance, and swaps in a single interface. CIH serves multiple commodity sectors including hogs, cattle, dairy, grains/oilseeds, metals, and renewables. Insurance offerings include Multi-Peril Crop Insurance (MPCI) with SCO/ECO endorsements, Livestock Risk Protection (LRP) for cattle and swine, Livestock Gross Margin (LGM), Dairy Revenue Protection (DRP), and Pasture/Rangeland/Forage (PRF) coverage. Education services encompass seminars, strategy simulations, and tutorials covering margin management across all sectors. CIH acquired Advance Trading (ATI) in March 2025 to expand its grain industry footprint.

Differentiator

Problem solved

Functional benefit

Brands

• CIH Insurance Services, LLC: Insurance services division of Commodity & Ingredient Hedging providing crop insurance and other insurance products

Products and services

• CIH Risk Management Platform Proprietary web-based platform enabling clients to view, model, and manage commodity price exposure across futures, options, insurance, and swaps positions through a single interface, with real-time position monitoring, margin analysis, capital monitors, contract analysis, automated reporting, and scenario modeling.
• Risk Management Consulting Services Ongoing advisory and consulting engagements providing regular consultation, weekly education-driven sessions, and customized risk management strategies for agricultural producers and commercial buyers. Delivered via dedicated industry teams (cattle, hog, dairy, grains).
• Commodity Brokerage Services Execution of futures and options contracts on behalf of clients across hogs, cattle, dairy, grains, metals, renewables, and financial commodity markets. CIH acts as introducing broker routing orders to exchanges, earning commissions on transactions.
• Multi-Peril Crop Insurance (MPCI) Federal crop insurance covering losses from natural events including drought, flood, hail, and disease. Includes Revenue Protection (RP), Yield Protection (YP), and endorsement options such as SCO and ECO.
• Livestock Risk Protection (LRP) - Cattle Coverage against market price declines for feeder and fed cattle. Provides customizable price floors with 35-55% subsidized premiums, settling against the CME Feeder Cattle Index or live cattle cash index.
• Livestock Risk Protection (LRP) - Swine Protection against price declines for future hog sales. Offers customizable coverage dates, prices, and head amounts with premiums subsidized 35-55% and settlement against the CME Lean Hog Index.
• Livestock Gross Margin (LGM) - Swine Protection against declines in gross margins for swine producers, covering market value of livestock minus feed costs over an 11-month period.
• Dairy Revenue Protection (DRP) Insurance coverage for dairy producers protecting against revenue declines based on milk revenue relative to projected revenue.
• Pasture, Rangeland and Forage (PRF) Insurance Subsidized insurance plan offsetting feed expenses due to lack of precipitation, using area-based rainfall measurements.
• Crop Insurance Endorsements (SCO, ECO) Supplemental Coverage Option (SCO) and Enhanced Coverage Option (ECO) endorsements providing additional county-based coverage above base MPCI policies.
• CIH Insurance Services, LLC Insurance agency subsidiary licensed to sell crop and livestock insurance products, earning commissions from insurance carriers.
• CIH Mobile Application Mobile app providing clients access to policy details, indemnity estimates, market data, analytics, and scenario tools from any device.
• GrainOS Specialized risk management platform for grain and oilseeds market participants, referenced in CIH's market analysis and WASDE report summaries.
• Education Seminars Targeted seminars covering hog risk management, crop margin management, beef margin management, dairy margin management, commodity price risk management workshops, and FINTECH topics. Includes CPE credits and NASBA continuing education, held at US and international locations.
• Strategy Simulations Web-based simulations including dairy margin, hog margin, beef margin, soybean producer, and corn purchasing simulations for skill development in hedging strategies, with Spanish-language versions also available.

Quantifiable outcome

• Over 1,000 clients served across agricultural commodity markets
• +2 more outcomes

Named customers5 records

Segments6 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature6 records

Partnerships

Two partnerships are on record, tiered core.

• Tokio Marine HCCcoreStrategic or Co-development Partner · 26 November 2025Tokio Marine HCC is the specialty insurance segment of Tokio Marine Group. The CIH acquisition will strengthen Tokio Marine HCC's agricultural business and expand its non-insurance risk solutions capabilities by combining CIH's commodity expertise and proprietary technology platform with Tokio Marine HCC's existing agricultural business.
• Tokio Marine HoldingscoreStrategic or Co-development Partner · 21 November 2025Tokio Marine Holdings, a leading global insurance group with market cap of ~$74 billion, signed a definitive agreement to acquire CIH from Falfurrias Capital Partners for $970 million. The acquisition is expected to close in Q1 2026 and will enhance Tokio Marine's specialty offerings in the U.S. agricultural sector, expand non-insurance risk solutions capabilities, and diversify earnings by combining Tokio Marine HCC's agricultural business with CIH's platform. CIH CEO Pat Gregory stated the partnership will extend reach, broaden capabilities, and deepen client support.

Scale indicators5 records

Recent moves6 records

Expansion highlights6 records

Broad incumbents

• CME Group: Operator of the largest US agricultural futures and options exchanges (CBOT, CME). Not a direct advisor/competitor but a foundational infrastructure provider whose product suite (corn, soybean, wheat, cattle, hog futures) underpins CIH's hedging recommendations.
• ADM Investor Services: Futures brokerage and clearing arm of Archer Daniels Midland serving commercial and institutional clients in agricultural and other commodity markets. Direct competitor in agricultural futures execution, with parent-subsidiary capital backing.
• ED&F Man: Global commodity merchant and brokerage offering hedging services to producers and commercial buyers across sugar, coffee, grains, and other soft/agricultural commodities. Comparable integrated risk management plus execution, though globally diversified.
• Cargill Risk Management: Principal commodities merchant that offers client-facing hedging and risk management services as part of a much broader agricultural supply chain. Comparable in offering integrated advisory and execution but subsidized by a global commodities franchise far larger than CIH.
• Nationwide Agribusiness: Specialty crop and livestock insurance provider and subsidiary of Nationwide Mutual. Comparable to CIH Insurance Services in offering federally subsidized MPCI, LRP, and PRF products to producers, with broader distribution scale.

Emerging players

• AgResource Company: Independent agricultural commodity research and advisory firm serving producers, elevators, and end-users with market analysis and hedging recommendations. Comparable in research-driven advisory model but narrower in execution/brokerage capability than CIH.
• DTN (Progressive Ag): Provider of agricultural weather, market data, and decision-support tools to producers and agribusinesses. Adjacent comparator — overlapping client base with CIH — increasingly bundling market analytics that can complement or substitute for advisory work.

Direct peers

• R.J. O'Brien & Associates: Independent futures broker and clearing firm serving agricultural and other commodity clients with execution and managed hedging programs. Direct competitor in agricultural futures brokerage and introducing-broker services.
• Advance Trading (ATI): Provider of risk management and brokerage services to the grain industry, acquired by CIH in March 2025. Was a direct competitor in grain hedging prior to the deal and remains a useful benchmark for grain-segment execution capability.
• StoneX Group (formerly INTL FCStone): Global commodity brokerage and risk management provider offering execution, clearing, and hedging advisory across agricultural and other commodities. Closely comparable to CIH's brokerage-plus-advisory model but at significantly larger scale and broader geographic footprint.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/cihedging
• LinkedInlinkedin.com/company/commodity-ingredient-hedging-llc

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Subsidiaries1 record

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Commodity & Ingredient Hedging