UNIVERSITY PARK, Pa. -- Dairy farmers struggling with fluctuating milk prices can learn to use the futures market to stabilize their income, thanks to a training program offered by dairy experts in Penn State's College of Agricultural Sciences.

"Dairy Risk Management Training: Learning How to Forward Contract/Hedge Milk in Pennsylvania" is a one-day workshop being taught in several locations around the state by Kenneth Bailey, associate professor of dairy markets and policy, and Sarah Roth, extension associate with Penn State's Dairy Alliance program. The training is sponsored by AgChoice Farm Credit and Land O'Lakes Dairy Cooperative.

Bailey explains that the training helps dairy farmers lock in better milk prices, understand their milk market and decipher their milk checks.

"In recent weeks, milk prices have fallen significantly due to a weak national economy and events surrounding September 11," Bailey says. "Dairy farmers who used the futures market prior to the September tragedy were able to protect their milk income against these sudden drops, and it's surprisingly easy, once you understand the basics.

"The training is very basic, so you don't have to be a math genius," he says. "This one-day class also is a good introduction for farmers planning to attend the USDA's Dairy Options Pilot Program later this year."

The six-hour training will address such topics as "Understanding Your Milk Check," "Basics of Forward Contracting," "Computing Your Basis," "Incorporating Risk Management Into Your Business Plan" and "Strategies and Market Outlook."

Training sessions will be limited to 20 participants, and a registration fee of $10 will include lunch. All worksheets and materials will be provided, and the basis of the training will be a new Penn State manual on dairy risk management available on the Web at http://pubs.cas.psu.edu/freepubs/ua359.html.

Training times and locations are:

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EDITORS: Contact Ken Bailey at 814-863-8649.

Contact:

Gary Abdullah gxa2@psu.edu 814-863-2708 814-865-1068 fax