Dairy Producer Use of BFP PUT Options to Reduce Price Risk: Application to USDA´S Dairy Options Pilot Program
Bob Cropp and Brian W Gould ( November, 1999 )
Summary
The BFP PUT option offers dairy producers the opportunity to insure the milk price. Purchasing a BFP PUT option allows a dairy producer to establish a floor under their mailbox price without forgoing the opportunity of taking advantage of rising prices. The DOPP is a means for dairy producers to learn first hand how the BFP options work. The cost of learning is minimal since the federal government is subsidizing 80 percent of the premium cost of the option and paying $30 towards the brokerage transaction fees.
Details
| Organization | University of Wisconsin Extension |
| Publisher | University of Wisconsin |
| Publication Date | November, 1999 |
| Publication Views | 1247 |
| Material Type | Written Material |
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