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1530342 tn?1405020090

A gallon of milk could cost $8 in 2013. Here’s why:


There’s one potential casualty of the fiscal cliff that hasn’t gotten much attention at all: the price of milk.

Come Dec. 31, Washington’s inaction could push the country’s milk prices to as much as $6 to $8 per gallon unless Congress passes a farm bill renewing federal support for agriculture programs.

Might have to scale back on Cheerio consumption if we go over the “milk cliff.” (Source: bigstock)

Here’s how that would happen: Without legislative action in the next five days, the government will have to revert to a 1949 dairy price subsidy that requires the Agriculture Department to buy milk at inflated prices. Much like the current fiscal cliff, the law was left on the books “as a poison pill to get Congress to pass a farm bill by scaring lawmakers with the prospect of higher support prices for milk and other agriculture products,” as Vincent Smith, a Montana State University professor, told the New York Times.  

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. Legislators from rural districts are also worried that crop subsidies could be a tempting target in the fiscal cliff negotiations, so they’ve been trying to push Congress toward a separate resolution, to little avail. Although producers would temporarily benefit from the hike in milk prices, it would hurt processors and consumers, and the dairy industry would prefer a long-term resolution as well.

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21 Responses
1530342 tn?1405020090
I gotta call my dairy to see how much they may go up....If Milk is going to possibly be $6-$8 in the store,,I can only imagine!....
Avatar universal
Maybe it is a scare tactic...look at that link I posted about the fiscal cliff.
1530342 tn?1405020090
I just did..It doesn't explain it all..Thx Ri!...
Avatar universal
I know they didn't get into the details and specifics but if there really is this intense push for the Gov. to settle before the New Year, even though it won't really make a huge difference to the country being held hostage so to speak, then bringing in food prices at this point might get ppl riled up to start putting on the pressure or panicking or whatever just to keep the game going.
Maybe I am being paranoid. :-0
Avatar universal
I think this is more about causing panic or deflection.... Anything to keep us from looking at whats really happening.  

Milk prices have gone up, so has beef.  Feed prices for cattle is up, so anything beef should go up accordingly.  
973741 tn?1342346373
Yeesh, now people are going to be not only buying guns while they can get them but cows too!  I hope it is a scare tactic as 8 dollar a gallon milk would seriously crimp this milk drinking, cheese eating, yogurt loving family!
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