If a new farm bill doesn’t successfully make it way through Congress in the coming days, then milk prices could jumped to around $8 per gallon starting next year.
Experts say the exact amount of the increase is a little hard to pinpoint at the moment. However, many believe milk prices could easily double after January 1 if the necessary amendments to farm policy aren’t made soon.
According to The New York Times, inaction on the bill would essentially force the government to buy milk at inflated prices. As a result, the price of a gallon is likely to increase. These actions are based on a farm law established in 1949.
New York Farm Bureau President Dean Norton said the increase in prices would help cover the rising cost of feed caused by the summer’s drought.
“But it would be short-term euphoria followed by a long hangover that would be difficult for us to recover from,” he explained. “I don’t think customers and food processors are going to pay double what they are paying now for dairy products.”
WDAY-TV explains the only way to avoid this increase in milk prices is for Congress to pass the aforementioned farm bill or to extended the program that’s already in place. Otherwise, the government will be forced to buy the product at prices that are much higher than market costs.
Experts believe the increased price of milk could takes its toll on children. If the parents simply cannot afford to purchase an $8 gallon of milk, then their kids may suffer as a result.
According to Lockport Union-Sun & Journal, Congress has until December 31 to pass the farm bill that would prevent the increased costs. Both the Milk Income Loss Contract and the 2008 Farm Bill expired last September.
What do you think about the possible increase in prices? Can you afford to pay $8 for a gallon of milk?