To help dairy producers respond to volatile dairy prices, the U.S. Department of Agriculture's Risk Management Agency will be offering the Dairy Options Pilot Program in Green County this summer. DOPP is a cost-share program designed to give dairy producers an opportunity to learn how futures and options markets work. Participants are provided an economic incentive to use put options, which insure a selling price and reduces their price risk.
Put options are similar to purchasing an insurance policy to place a floor on milk prices.
Producers must also attend a four-hour training session that will provide a good overview of how put options work and how to apply them to a dairy operation. The mandatory training session for Green, Dane and Sauk County producers is from 10 a.m. to 3 p.m. June 18 at Kitt's Korner restaurant in Pine Bluff. The session includes lunch. The DOPP program is open to the first 100 dairy producers who sign up in each county. Bliss Communication Inc. All rights reserved.