Politics & Government

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.

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

In Woburn, prices on milk vary, even at one store, with fluctuations above and below the industry average:

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Stop & Shop S&S Milk, all varieties (gallon) $3.29 Garelick Farms, all varieties (gallon) $4.09 Hood Milk, all varities (gallon) $4.29 Market Basket Horizon Organic Milk (half-gallon) $2.99 Lactaid Milk (three-quart) $3.99 CVS Milk, all varieties (gallon) $3.79 Walgreens Milk, unflavored varieties (gallon) $2.99

 

 

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.


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