DOPP in Utah
Dr. E. Bruce Godfrey
USU Extension Economics Specialist
USDA�s Risk Management Agency introduced the Dairy Options Pilot Program (DOPP) in 1998. Initially, this program was only available to producers in 37 counties in the nation. Round II of the program, which will start in late 1999, increases the number of states where this program is available from 7 to 32. Utah is one of the states included in round II, but the program will only be available to producers in Cache and Utah counties.
DOPP is a pilot program that will give milk producers an opportunity to learn how futures and options markets work. The advantage of participation in DOPP stems from the fact that about 80% of the cost of participation is paid by USDA. While the cost sharing provisions of DOPP are only available to producers in Cache and Utah counties, the lessons learned should be of interest to dairymen throughout the state.
Workshops will be offered by USDA personnel for producers in Cache and Utah counties. These workshops will explain the provisions of DOPP and provide an introduction to the use of futures and options in managing price risk. Other sessions will be offered by USU specialists concerning the use of futures markets including DOPP. Some of these sessions will be of interest to dairymen in other counties. Information on the time, location and cost of all sessions will be made available at a later date. If you want to attend any of the training sessions that will be offered, either contact your local county agent or give me a call (435) 797-2294.