The New Year could push milk prices to $7 a gallon.
With Congress spending all its time trying to avert the fiscal cliff, other
legislative matters are going unattended. One of them is the agri-culture bill
which, if not addressed, could lead to a doubling of the price of milk early next
Part of the Bill works like this: In order to help keep dairy farmers in
businesses, the government agrees to buy milk and other products if the price
gets too low. The current agri-culture bill has a formula that means the
government steps in if the price of milk were to drop by
roughly half from its current national average of about $3.65 a gallon.
The current bill expired last summer, and Congress had been unable to agree on
a new one. Several protections for farmers have already expired, and several
more are set to do so over the next few months. One of them is the dairy subsidy.
“If you like anything made with milk, you’re going to be impacted by the fact
that there’s no farm bill,” U.S. Secretary of Agriculture Tom Vilsack