With 2012 very nearly over, it’s deeply unfortunate that there’s still a lengthy list of bills that need to be approved before the calendar turns over. The tax and spending measures related to ongoing fiscal talks are getting the bulk of the attention, but some important policies, including the Violence Against Women Act, are also awaiting action.
And then there’s the pending farm bill, which, like everything else, has stalled in the face of Republican opposition. Assuming the GOP refuses to act, there will be real consequences for millions of American consumers, and it’s likely much of the public doesn’t realize what’s coming.
Forget the fiscal crisis and the automatic budget cuts. 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.
Lost in the political standoff between the Obama administration and Congressional Republicans over the budget is a virtually forgotten impasse over a farm bill that covers billions of dollars in agriculture programs. Without last-minute Congressional action, the government would have to follow an antiquated 1949 farm law that would force Washington to buy milk at wildly inflated prices, creating higher prices in the dairy case. Milk now costs an average of $3.65 a gallon.
Higher prices would be based on what dairy farm production costs were in 1949, when milk production was almost all done by hand. Because of adjustments for inflation and other technical formulas, the government would be forced by law to buy milk at roughly twice the current market prices to maintain a stable milk market.
The market, however, wouldn’t be stable at all.









