Could milk hit $7 per gallon in 2014?
Congress is under pressure to pass a farm bill by Jan. 1. If it doesn't, subsidies for dairy commodities will expire.
By William White
The price of milk in the United States could hit the roof if Congress doesn't take action by year's end.
CNNMoney reports that if a farm bill isn't passed by Jan. 1, subsidies for dairy commodities will expire and milk prices will skyrocket, potentially leaving consumers to pay nearly $7 per gallon, or double the national average.
Milk isn't the only thing that could get more expensive, either. The expired subsidies will activate a 1940s formula that also could propel the prices of other goods, such as corn and soybeans.
Lawmakers are looking at the possibility of ending subsidies paid to farmers and replacing them with crop insurance programs that would keep prices steady even during a disaster. However, Republicans and Democrats said late last week that talks were on the rocks.
Also standing in the way of the farm bill is funding for food stamps. Congress previously had agreed upon food stamp cuts to be attached to this bill -- 3.8 million people to save $40 billion across 10 years. However, Democrats are now battling against these pullbacks following November's expiration of funds dedicated toward the SNAP food stamps program.
A Senate version of the bill would have have $4 billion being saved from food stamps to help end abuse of the program, CNN Money notes.
According to Dairy Reporter, milk consumption in the United States has dropped 25% since 1975. The reduction in milk consumption is expected to continue as Americans drink 28 ounces less of milk per person a year. This reduction isn't due to price, though, as milk prices have remained relativity low since 1975.
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oh yeah i stopped buying it at 3:00 dollars a gallon, There is no reason in the world for this kind of rippping off of americans.
It is certainly time for we the people to rid ourselfes of the thieves in washington and replace every last one of them with new people.
Term limits need to be inserted and any and all of their retirment needs to be at age 72, and it needs to be social security instead of the six digit retirment they all voted to give themselves after one term.
we need to insist on this by january first 2014.
obama needs to be the first incompetent liar, that has violated our constitution and its core on several occasions. to be replaced, then we go from there right down the line until we have a new senate, house, congress, etc. The lying criminals that are running the show now are nothing but a bunch of law breaking morons that only create laws that protect them from the law itself.
Time for change is an understatment.
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[BRIEFING.COM] The headlines generally favored Tuesday being another good day for the stock market. Instead, it was just a mixed day with modest point changes on either side of the unchanged mark for the major indices.
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