Milk Could Skyrocket to $6 to $8 a Gallon
Congress is so focused on the fiscal cliff, the farm bill has yet to be renewed.
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.
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.
“I think there are some serious consequences,” U.S Rep. James P. McGovern, D-Worcester, a member of the House Agriculture Committee, said of the possibility of reverting to decades-old policy to the Worcester Telegram & Gazette. “It’s important that we address the agricultural issues that this nation faces.”
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.
Frank
12:05 pm on Friday, December 28, 2012
Good job voting Obozo back into office.
Dan Fredonia
1:59 pm on Friday, December 28, 2012
So Frank, you really have NO input of value here, do you, other than make a not-so-clever cliched Obama name dig.
And why blame Obama? A Washingto Post article this week states, "The Farm Bill isn’t technically part of the fiscal cliff. Speaker John A. Boehner (R-Ohio.) has resisted the call by Agriculture Secretary Tom Vilsack (D) to incorporate it into the budget negotiations — to avoid complicating the budget talks and losing GOP votes, a Boehner aide told Politico last week."
http://www.washingtonpost.com/blogs/wonkblog/wp/2012/12/26/a-gallon-of-milk-could-cost-8-in-2013-heres-why/
Add something USEFUL to the discussion, ok Frank?
Frank
8:40 pm on Friday, December 28, 2012
Truth hurts doesn't it Danny.
Dan Fredonia
3:31 pm on Saturday, December 29, 2012
LOLOLOL....what a cartoon you are of yourself, "Frankie"!!!
"Thuth hurts?" what truth??? I gave you an intelligent, useful citation and a link to show how wrong you were and all you came back with another brain-dead cliche?
Thanks for the laugh, "Frankie"....that made my day, mensa-candidate!
Pete N
11:41 am on Sunday, December 30, 2012
Good thing Obama gave all his hacks a raise to pay for the high prices of milk. This guy gives almost 1 Billion dollars in raises to people while the marority of Americans are struggling? That is why I blame Obama. More than doubling the deficit in the shortest period ever is why I blame Obama. I blame those who vote for him too.
GwenB
6:14 pm on Friday, December 28, 2012
Things just keep getting better and better
Pete N
10:49 am on Sunday, December 30, 2012
Truth does hurt. Unfortunately it's hurting us all now and we're stuck with four more years of it. Dan how pompous you are to call anyone anything, a citation makes you brilliant? Grow up.
Dan Fredonia
3:26 pm on Sunday, December 30, 2012
No Pete, a citation does NOT make me brilliant.....but LACK OF ONE being replaced by inane rhetoric DOES make one look like a fool, such as yourself. i don't see ANY reference or link to indicate accuracy in your statement about Obama and his so called "hacks".
Grow up? How about this....Want to talk like an adult and have people take you seriously? Then start making an effort, and I don't mean just spitballing. Don't be another laughable poster.
Pete N
7:27 pm on Sunday, December 30, 2012
Another rambling bunch of nothing, well done Danny we are all impressed again. Or maybe not.
Dan Fredonia
7:51 pm on Sunday, December 30, 2012
"Another rambling bunch of nothing" = " I don't understand what you just said and I can't even think of a good enough comback, Danny, so here's hoping I can save face with a quick two-line bit while my drool cup overflows all over my keyboard".
Nicely played, good sir.
Aron Levy
11:04 am on Sunday, December 30, 2012
At least he doesnt keep creating sock puppets, eh 'Jerry?'
Pete N
11:32 am on Sunday, December 30, 2012
Stop stalking me
Dan Fredonia
9:34 pm on Sunday, December 30, 2012
Good "Breaking News"...it seems as though both sides are close to reaching a one year deal....USA TODAY article states, "Top leaders on both the Senate and House Agriculture committees announced a deal on Sunday to extend the 2008 farm bill by a year, a deal that could avoid a surge in market prices for milk and other commodities. The measure, which still has to be approved by votes in both chambers of Congress, would give lawmakers another year to iron out a deal."
Let's hope that both sides pass this extention and that they can come to terms in the next year. I need me' cheese!!!!!!!!
http://www.usatoday.com/story/news/politics/2012/12/30/farm-bill-extension/1799535/
Dan Fredonia
9:36 pm on Sunday, December 30, 2012
And with that, I am done...have a Happy and Safe New year, everyone!
John Mc
10:44 am on Monday, December 31, 2012
Kool aid mmmmmmm
Susan Petroni
11:16 am on Monday, December 31, 2012
http://framingham.patch.com/articles/congress-to-compromise-on-farm-bill-milk-prices-likely-not-to-double