Hoosier Farmers Staring at Dairy Cliff
By: Sherrell Hubbard
Updated: December 28, 2012
AMERICANS ARE WELL AWARE OF THE FISCAL CLIFF BUT WE ARE ALSO FACING THE DAIRY CLIFF.
IF CONGRESS DOESN'T ACT BY JANUARY 1ST, WE COULD GO OVER.
WHAT IF YOU HAD TO PAY SEVEN DOLLARS FOR A GALLON OF MILK?
NOT ORGANIC MILK, REGULAR MILK.
WELL THAT UNSETTLING THOUGHT COULD BECOME A REALITY BY NEXT WEEK, IF WE GO OVER THE DAIRY CLIFF.
PAUL MILLS IS PRESIDENT OF THE PRAIRIE FARMS DAIRY COOPERATIVE. HE'S BEEN FARMING FOR OVER 40 YEARS.
IN THAT TIME HE'S BEEN PROTECTED BY A FARM BILL THAT SUBSIDIZES DAIRY--BUT THAT DAIRY SUBSIDY IS SET TO EXPIRE ON JANUARY 1. "IT WOULD IN ESSENCE DOUBLE THE PRICE OF MILK."
THE CURRENT NATIONAL AVERAGE FOR A GALLON OF MILK IS $3.65 A GALLON.
IF the DAIRY SUBSIDY ISN'T EXTENDED THE PRICE OF ANYTHING MADE WITH MILK WOULD ALSO GO UP. THAT MEANS CHEESE, YOGURT, SOUR CREAM WILL ALL BE MORE EXPENSIVE.
."
THE GOVERMENT HAS A VESTED INTEREST IN SEEING THAT A BILL GETS EXTENDED BECAUSE IF THEY DON'T, THE LAW SAYS IT MUST ABSORB THE COST OF ANY UNSOLD MILK. THAT WOULD COME AT A HIGH PRICE FOR AN ALREADY CASH-STRAPPED ENTITY.
TO STOP THE PRICE SPIKE, CONGRESS EITHER NEEDS TO EXTEND THE CURRENT BILL OR PASS A FRESH ONE.
EVERYONE LOSES IF THEY LET IT EXPIRE.
