Four UTC Finance students visited New York City and Minnesota this summer as part of an internship program through Galtere, Ltd, the commodities-focused hedge fund of Renee Haugerud. Ms. Haugerud’s support established the Galtere Institute: Finance for the Future Initiative at UTC’s College of Business. The Institute’s mission is to promote the art and science of trading and investing.
The blog posts are sent from our interns in New York and Minnesota. Check in during the next few weeks to learn more about their experiences.
posted by Nicole Koegel, UTC Finance Major
We spent the last week of our internship in Preston, Minnesota. It is a nice change of pace from The Big Apple. This town is beautiful, quiet and peaceful. The scenery reminds me of home. There is a ton of agriculture all around. We are staying at the Jailhouse Inn which is the house Renee grew up in and it has since been turned into a bed and breakfast.
During the week we visited Renee’s farm which is run by a father and son team in Minnesota. They were kind enough explain the entire process of their business. It is a twofold operation for corn and soybeans. They harvest corn and soybeans to make hog feed as well as harvest the plants themselves to sell in the futures market. These farmers utilize technology to manage the planting process and measure nightly rains.
We were able to see ALL of their equipment and they explained in detail how each machine works. The farmers shared the cost of carry invoices with us so we could literally see how their business works. After seeing the invoices it is astounding to realize how much input costs for farmers are versus what they are able to sell the finished product for in the futures market.
One great point the father made at the end of the knowledge session is, “This is the only business in America where you buy retail on the front end and sell for wholesale on the back end.” What a powerful statement.
In addition to a visit to an ethanol plant, we heard from a variety of guest speakers during our Minnesota visit:
- Renee Haugerud
- Crop Insurance Salesmen
- Soil Quality Testers
The Minnesota aspect of the trip gave insight into how the futures market is able to exist. We were exposed to first-hand knowledge that students do not normally have the opportunity to experience. I highly encourage students to take advantage of the opportunity Renee Haugerud has provided exclusively for the University of Tennessee Chattanooga.
