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Wed Dec 26, 2012, 12:55 PM

A gallon of milk could cost $8 in 2013.

http://www.washingtonpost.com/blogs/wonkblog/wp/2012/12/26/a-gallon-of-milk-could-cost-8-in-2013-heres-why/

Here’s how that would happen: Without legislative action in the next five days, the government will have to revert to a 1949 dairy price subsidy that requires the Agriculture Department to buy milk at inflated prices. Much like the current fiscal cliff, the law was left on the books “as a poison pill to get Congress to pass a farm bill by scaring lawmakers with the prospect of higher support prices for milk and other agriculture products,” as Vincent Smith, a Montana State University professor, told the New York Times.

The Farm Bill isn’t technically part of the fiscal cliff. Speaker John A. Boehner (R-Ohio.) has resisted the call by Agriculture Secretary Tom Vilsack (D) to incorporate it into the budget negotiations — to avoid complicating the budget talks and losing GOP votes, a Boehner aide told

Politico last week. Legislators from rural districts are also worried that crop subsidies could be a tempting target in the fiscal cliff negotiations, so they’ve been trying to push Congress toward a separate resolution, to little avail. Although producers would temporarily benefit from the hike in milk prices, it would hurt processors and consumers, and the dairy industry would prefer a long-term resolution as well.

The legislative impasse is over a host of issues: There’s major disagreement about how much to cut food stamps, how much the government should be subsidizing crops, and how dairy prices should be stabilized. As Time explains, the Senate has already passed a $969 billion farm bill that would reduce the deficit by about $24 billion over 10 years, in part by cutting $4.5 billion in food stamps and replacing direct payments to farmers with weather-related crop insurance. The House hasn’t passed a bill yet, but the House Agriculture Committee passed a bill that would cut $35 billion over 10 years, with a bigger $16 billion cut to food stamps.


The Farm Bill is a monstrosity. But it's also a bad idea to just scrap it with no replacement.

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Response to Recursion (Original post)

Wed Dec 26, 2012, 12:57 PM

1. Nothing like unintended consequences.

'Much like the current fiscal cliff, the law was left on the books “as a poison pill to get Congress to pass a farm bill by scaring lawmakers with the prospect of higher support prices for milk and other agriculture products,”'

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Response to Recursion (Original post)

Wed Dec 26, 2012, 01:03 PM

2. Perhaps the overworked, underappreciated dairy farmer will finally get what his product is worth.


However with 4 kids it will suck to have to pay it though! Hmm maybe time for my own cow in the old barn....

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Response to Recursion (Original post)

Wed Dec 26, 2012, 01:09 PM

3. rip breakfast

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Response to Recursion (Original post)

Wed Dec 26, 2012, 02:21 PM

4. That would drive down gas prices

I don't purchase milk anyhow.

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Response to Recursion (Original post)

Wed Dec 26, 2012, 02:50 PM

5. corporate farmer welfare...humans have no need for cow milk nt

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Response to msongs (Reply #5)

Wed Dec 26, 2012, 03:01 PM

6. I like milk. I drink a lot of it.

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Response to msongs (Reply #5)

Wed Dec 26, 2012, 03:07 PM

7. Where do you think cheese comes from?

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Response to msongs (Reply #5)

Wed Dec 26, 2012, 03:25 PM

11. okey-dokey

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Response to msongs (Reply #5)

Wed Dec 26, 2012, 03:44 PM

13. i have a need for it & so do plenty of others. i like milk, yogurt & cheese. There is no 'need'

 

for meat, either -- or any food made of grain. or any single vegetable or fruit.

or eggs or fish.

humans don't 'need' any single food. that fact has nothing to do with the op.

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Response to Recursion (Original post)

Wed Dec 26, 2012, 03:09 PM

8. I say end ALL subsides across the board and.....

let the chips fall where they may. The rpugs cry about the "Free Markets" let them have their free markets. Nothing is going to start to change until thousansd of people take to streets and that won't happen until more people fell the pain.

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Response to Hotler (Reply #8)

Wed Dec 26, 2012, 08:22 PM

15. I agree...

The Fed govt has had a "cheap food" policy for decades...they subsidize the farmers to keep too many of them in business which lowers the price of food. The govt would rather us buy more GM cars than spend so much money on food. Second reason is its in out national security interest to always have a surplus of food.

But too much cheap food is not healthy for us. Look at all the fatties around (including me!) If food was created without subsidies, the "true" price of it would eventually be found. And it will be much higher as there will be less farmers as the subsidies end and the market adjusts appropriately

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Response to Recursion (Original post)

Wed Dec 26, 2012, 03:10 PM

9. maybe the bipartisan congress that passed the fiscal cliff legislation and the democratic president

 

who signed it could repeal it.

yeah, that includes a majority of senate democrats and half the democrats in the house.

and obama.

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Response to Recursion (Original post)

Wed Dec 26, 2012, 03:22 PM

10. Dairy Cows have a short 4 year life

and then are used for hamburgers.

That's right ... a four year life.

Domestic cows can live to 20 years, however those raised for dairy rarely live that long, as the average cow is removed from the dairy herd around age four and marketed for beef. In 2009, approximately 19% of the US beef supply came from cull dairy cows: cows that can no longer be seen as an economic asset to the dairy farm.

http://en.wikipedia.org/wiki/Dairy_cattle

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Response to Ichingcarpenter (Reply #10)

Wed Dec 26, 2012, 05:56 PM

14. That's still more than twice as long as the average steer gets.

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Response to Recursion (Original post)

Wed Dec 26, 2012, 03:42 PM

12. somehow I don't believe those RW voting farmers are going to

demand that THIS bailout not happen ...

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