UPDATE: Farmers warn of high milk prices without farm bill

UPDATED Friday, June 28, 2013 --- 12:40 p.m.

MILWAUKEE (AP) -- Congress' failure to pass a farm bill last week has already resurrected talk of a "dairy cliff," in which milk prices could skyrocket to $6 a gallon.

The dairy cliff became a topic of conversation last year as the 2008 farm bill and its milk subsidies were about to expire.

The law would have reverted to one in place in 1949 that requires the federal government to buy up dairy products until milk prices hit a certain point.

An extension of the current law has delayed that effect but it expires on Sept. 30, and consumers could see milk prices start to rise Jan. 1.

Another extension is possible, but lawmakers such as Senate Majority Leader Harry Reid are already saying they won't go for that.

Copyright 2013: Associated Press

________________________________

Posted Friday, June 28, 2013 --- 12:00 p.m.

MILWAUKEE (AP) -- Wisconsin dairy farmers say they are frustrated by Congress' failure to pass a farm bill and concerned about what happens now.

Congress could come back later this year and pass a bill, or it could extend the 2008 farm bill again.

But if it doesn't do either of those things, the U.S. will revert to dairy programs that it had in 1949.

Farmers say the result would be a sharp increase in milk prices, which might be a temporary financial boon but would hurt them in the long term by killing demand for milk.

Wisconsin dairy farmer Dean Strauss says that no matter what happens, it's hard to run a business with a lot of uncertainty.

Copyright 2013: Associated Press


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
NBC15 615 Forward Drive Madison, Wisconsin 53711 Business: 608-274-1515 Newsroom: 608-274-1500
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 213537481 - nbc15.com/a?a=213537481