Milk Prices Could Double To $7 Early Next Year

Milk Prices Could Double To $7 Early Next Year
World
Like Us On Facebook
Like Us On Facebook

With all the worry over whether Congress will take action in time to avert the fiscal cliff, America hasn’t noticed that its skirting dangerously close to the edge of another terrifying precipice that would skyrocket milk prices to $7 per gallon. 


‘We call it the dairy cliff,’ said Chris Galen, spokesperson for the National Milk Producers Federation.

Galen is referring to the agriculture bill that could cause milk prices to double by early next year if not addressed.

To keep dairy farmers in business, the government has an agreement to buy milk and other products in the event the prices dip too low. Today’s agriculture bill has a formula for the government to intervene if prices plummet by approximately half of the national average of $3.65 per gallon. 


But the current bill expired last summer, and Congress has yet to agree on a new one.

Many of the measures in place to protect farmers have already expired, and more are about to do the same, including a dairy subsidy expiring Jan. 1.

The law states that if a new bill isn’t passed or the current one not extended, the formula used to calculate the price the government pays for dairy products will revert to a statute written in 1949. 


Under that formula written more than 60 years ago, the government would have to buy milk at double today’s price, driving up the cost for all consumers.

‘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 told CNN’s Candy Crowley in an interview on State of the Union airing Sunday, Dec. 30.

‘Consumers are going to be a bit shocked when instead of seeing $3.60 a gallon for milk, they see $7 a gallon for milk. And that’s going to ripple throughout all of the commodities if this thing goes on for an extended period of time,’ Vilsack said.

High milk prices could also be bad for farmers, Galen said. 

It could provide a short term boost to profits but then consumers unable to afford dairy would either cut back, look for imported milk products, and use milk alternatives like soy.

To avoid this, the government would have to issue a notice that it would pay the increased price for dairy products then determine a schedule for when the buying would start. 


The process would take at least a few weeks.

‘It’s not like people would dump blocks of cheese on the USDA’s front lawn January first,’ he said.

To keep things even, Congress will need to extend the current bill, pass new legislation, or enact a provision to keep the 1949 rule from going into effect.

So all Congress has to do is agree. You might want to visit your local dairy aisle now.

James Gilbert | Elite.

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Julian Sonny

From the sandy beaches of Hawaii, to the streets of New York: Julian has seen it all. His lifetime of travels has given him a broad scope of knowledge and an eclectic taste unlike any other in the tri-state area. Julian has often been compared to cultural icon, The Rock, because of his unequivocal work ethic and warrior-like stature.

More In World

World Emily Arata

The First Ebola Case In America Has Been Confirmed

The Centers for Disease Control and Prevention has confirmed the first case of Ebola in the US. While doctors have previously treated the devastating disease, patients up until now had been transported in from West Africa to American hospitals. The man, currently in isolation at Texas Health Presbyterian Hospital in Dallas, arrived at the hospital on Monday with […]

World Sean Levinson

Iraqi TV Parodies ISIS In Bizarre And Hilarious Music Video (Video)

Baghdad has expanded its attack on the Islamic State to the TV screen in the form of a show parodying the militant group. Sunday saw the premiere of “The Superstitious State,” advertised in a trailer that has been playing for weeks, Raw Story reports. Created by the state-run Iraqiya TV, the show’s first trailer pokes fun at […]

World Emily Arata

In Case You Were Wondering, Caffeine-Infused Underwear Actually Exists (Video)

If you’re looking to fight cellulite, caffeine-boosted undies are not the solution. The Federal Trade Commission has found underwear brands Wacoal America and Norm Thompson guilty of deceptive advertising. Ads put out by both companies led customers to believe that they would lose significant amounts of weight as a result of fabric infused with caffeine. […]

Also On Elite

World

Forbes Writer Says ‘Drunk Female Guests Are The Gravest Threat To Fraternities’

Late yesterday afternoon, Forbes published and subsequently pulled an article seemingly blaming intoxicated female college students for safety measures that ruin all the fun for fraternities. The article, written by contributor Bill Frezza, identifies drunk young women as the number one risk factor at a fraternity party. Frezza, the president of MIT’s Chi Phi Beta Foundation, asks […]

World

India’s Mars Orbiter Successfully Reaches Mars On Its First Attempt

India’s Mars Orbiter Mission has successfully reached the Red Planet, the first spacecraft to do so for the nation. The robotic satellite known as Mangalyaan (Hindi for “Mars Craft”) entered Mars’ orbit after 10 months in space, according to NBC News. The feat was confirmed by mission controllers in Bangalore after Mangalyaan, or MOM, sent […]

World

Philadelphia Lawyer And Lobbyist Allegedly Raped Woman He Called In For A Job Interview

A Pennsylvania lawyer allegedly sexually assaulted a woman during a job interview. Andrew J. Marsico, 40, from South Penn Square, PA, was arrested and charged on Saturday with sexually assaulting an unidentified 27-year-old woman on August 21. Marsico, who recently married 6ABC reporter Annie McCormick, has been put on leave by Greenlee Partners, a Harrisonburg lobbying firm […]

World

Beautiful: Two Women In Their 90s Finally Marry After Being Together For 72 Years

After being in love for 72 years, Alice “Nonie” Dubes and Vivian Boyack are finally married. Davenport, IA, residents Dubes, 90, and Boyack, 91, were married on Saturday in First Christian Church while surrounded by family and friends who have watched the pair build a life together. Jerry Yeast, 73, who has known the women since she […]

World

A Hungry Great Dane Manageed To Swallow 43 Socks And Miraculously Survive

This may qualify as this week’s weirdest news. According to CNN, a 3-year-old Great Dane survived an emergency surgery in which surgeons removed 43 socks from the his stomach. The pup’s owners took their dog to DoveLewis Animal Hospital in Portland, Oregon after noticing he was vomiting and generally acting odd. Though they assumed he […]

Life

One iPod, One Soul: Couples Who Like The Same Music Have The Most Chemistry

Music, like sex, is an emotional experience. It transforms you, changes you and molds you into the person you define yourself as today. It evolves with our taste and our experiences. It’s the most important thing in our lives and the one constant we can all hold on to. Like Christianity, Islam, Judaism or any […]