JEFFERSON, Ohio – Northeast Ohio has been selected by the USDA to participate in Round 3 of the Dairy Options Pilot Program.
Producers were able to participate in Round 2 of this program last summer.
The program will be held July 19 at the Williamsfield Community Center from 9:30 a.m. to 2:30 p.m.
This program will allow Grade A and Grade B milk producers to learn how to manage “price risk” by learning about the dairy options and futures markets.
Given the volatility of the dairy market, this program is designed to teach dairy producers how dairy futures and options markets work and how they can be utilized as price risk management tools.
The “upside” to this program is that producers will be able to get “real life” experience by purchasing Put Options on a maximum of 600,000 pounds of milk. To encourage trading, the USDA will share some of premium cost for each contract.
The registration fee for this program is $12 before July 6.
This day will be packed with information to help local dairy producers learn more about the dairy options program.
Some of the many topics being discussed include the basics of cost of production, puts and hedging, understanding the markets and conversations with brokers.
Producers will work through an exercise that will allow them to calculate a “planning price” from their financial records.
To participate in Dairy Options Pilot Program, you must attend one training session conducted by the USDA, Risk Management Agency and your Extension Service to learn about the use of put options and the program’s operations.
There are several training sessions those interested may attend. These locations include:
* July 16, Ashland Agriculture and Family Center, 804 Route 250, Ashland, Ohio; registration 9:30-10 a.m., training 10 a.m.-2:30 p.m.
* July 17, Minerva United Methodist Church, 204 N. Main St., Minerva, Ohio; registration 9:30-10 a.m., training 10 a.m.-2:30 p.m.
* July 18, Amish Door Restaurant, Route 62, Wilmot, Ohio; registration 9:30-10 a.m., training 10 a.m.-2:30 p.m.
* July 19, Williamsfield Community Center, Route 322, Williamsfield, Ohio; registration 9:30-10 a.m., training 10 a.m.-2:30 p.m.
* July 20, Spiritual Center of Maria Stein, 2365 St. John’s Road, Maria Stein, Ohio; registration 9:30-10 a.m., training 10 a.m.-2:30 p.m.
There is a $12 preregistration fee to cover lunch expenses payable at the door ($20 if you do not preregister.)