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Got Milk? It Could Reach $8 a Gallon

Congress is so focused on the fiscal cliff, the farm bill has yet to be renewed. You can still buy milk at Trader Joe's in Laguna Niguel for under $2, get it while you can.

Come Jan. 1, there is a threat that milk prices could rise to $6 to $8 a gallon if Congress does not pass a new farm bill that amends farm policy dating back to the Truman presidency, reported the New York Times.

You can still get a half gallon of 2 percent at Trader Joe's for under $2 in Laguna Niguel. However, it could change if Congress does not renew the Farm Bill by Monday, Dec. 31, the milk price formula reverts back to 1949, reported CBS Boston.

On average, a gallon of milk costs $3.65, according to the dairy industry.

U.S. Agriculture Secretary Tom Vilsack said without a farm bill renewal farmers will be in a hurry to sell to the government, creating a shortage in the stores. It is estimated the price of milk could go as high as $8, he told the Capital Press.

If the farm bill is not renewed the government will be forced to buy milk at inflated prices, driving up the cost for everyone.

As customers demanded milk, markets would look to higher-priced overseas milk producers to make up the shortage, and prices could go up on everything from butter to yogurt to cheese.

Eventually, the government would sell off the milk surplus that it had built up, causing milk prices to plummet.

In the short term, consumers would be devastated and dairy producers would have a payday, after which consumers would get a break while dairy producers watched their profits crash and burn.

Action on the farm bill this year was stalled by disagreements over the food stamp program, from which some conservative members of the House of Representatives wanted deep cuts, reported the Capital Press.

The National Milk Producers Federation and other farm groups had hoped a farm bill would be part of a final "fiscal cliff" budget package passed before Jan. 1.

Terry Edwards December 29, 2012 at 10:00 PM
It's time to dump most of the farm bill stupidity. Large farmers, and Dairy Farmers, are over producing milk and other products because 'the government will buy it' Most of the large farms are run by mega corporations, only looking for a payout for the share holders. Consider what has happened to the candy industry because of the sugar price support, the manufacturers have gone 'off shore' or at least to Canada and Mexico. Time to end the corporate farmers feeding from the government trough
Zack Shoemaker December 29, 2012 at 10:35 PM
Do we really think everyone can live in the city and away from producing anything other than debt? No one needs to be a producer anymore, just leave it too the million head farms and machines? If the price of milk is to skyrocket, I would suggest you buy a dairy cow, you buy some goats, or you start using nut milk. Until the demand lowers, and then the prices lowers, and then you can consume it again with out taxing the system as pure consumers.
Lawrene Bottorf December 30, 2012 at 09:10 PM
Since cow milk makes baby cows into 800 lb heifers, it clearly has the same effect on the government. My parachute is ready, and no need for my lactose intolerant body to worry. What a bunch of incompetent clowns!

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