Absolutely, that's right. Esp. used when someone's said something that you'd obviously agree to.
Variation: darn tootin'
Used mainly in rural areas of the US.
A: You gonna watch the superbowl tonight?
B: Dern tootin'!
A: Man, that was a rough day. Wanna go get a beer?
B: Dern tootin'!
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Originally meaning potato, also commonly used as a nickname, esp. for children, small animals or something cute.
Bit of a redneck equivalent of the French word 'chou'.
Kid: Mom, I'm hungry.
Mother: OK Tater, I'll make you a sandwich.
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