The mammary cliff! $6-8 milk!

[Doppel]

Oh noes!

http://www.cnbc.com/id/100333179

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.

Reading the article it seems there is a bit too much meddling as it is (not that I'm advocating that milk should double in price). Milk is seriously cheap at $3.65/gallon by industrialized standards, I suspect. Canada appears to pay around twice this, England possibly more after a quick googling (doesn't that verb sound dirty?).

 

[WhipperSnapper]

It really would suck if the price of milk (and presumably all dairy products such as ice cream and cheese) doubled.

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.

That sounds insane!

 

[fleshconsumed]

Hm, I get my milk at Aldi at ~1.99/gallon or Trader Joes at ~$2.79/gallon. I only use two gallons a month, so increase like that would suck but wouldn't hurt me too bad. It'll be much worse for the parents with families though, at least until they stop feeding their kids cereal in the morning.

 

[ElFenix]

It really would suck if the price of milk (and presumably all dairy products such as ice cream and cheese) doubled.




That sounds insane!

so they have to pass a law in order to fix a retarded law from the 40s else the drive for 8 happens? thanks government! why wasn't the current fix permanent to begin with?

 

[dank69]

Hm, I get my milk at Aldi at ~1.99/gallon or Trader Joes at ~$2.79/gallon. I only use two gallons a month, so increase like that would suck but wouldn't hurt me too bad. It'll be much worse for the parents with families though, at least until they stop feeding their kids cereal in the morning.

Remember, milk is used for a lot more than, well, jugs of milk. I'm sure all dairy products will be affected.

 

[IBMer]

Instead of Congress spending all this time just trying to mess with the other party, they really should have a committee that does nothing but goes back and either repeals or fixes old laws that either don't apply or don't make sense anymore.

 

[CPA]

so they have to pass a law in order to fix a retarded law from the 40s else the drive for 8 happens? thanks government! why wasn't the current fix permanent to begin with?

and this country wants the government fully involved in medical costs.

 

[ElFenix]

Instead of Congress spending all this time just trying to mess with the other party, they really should have a committee that does nothing but goes back and either repeals or fixes old laws that either don't apply or don't make sense anymore.

that sounds like work.

and this country wants the government fully involved in medical costs.

you're fooling yourself if you think it isn't already that way.

 

[alzan]

Instead of Congress spending all this time just trying to mess with the other party, they really should have a committee that does nothing but goes back and either repeals or fixes old laws that either don't apply or don't make sense anymore.

That would be one busy committee.

 

[schneiderguy]

As a patriotic American, I will volunteer my Nipples to be milked if we go off the mammary cliff, and will sell it for $3/gallon. Cheap schneiderguy milk for everyone.

 

[Pr0d1gy]

As a patriotic American, I will volunteer my Nipples to be milked if we go off the mammary cliff, and will sell it for $3/gallon. Cheap schneiderguy milk for everyone.

 

[bignateyk]

Wait... why is the government buying milk?

 

[werepossum]

Instead of Congress spending all this time just trying to mess with the other party, they really should have a committee that does nothing but goes back and either repeals or fixes old laws that either don't apply or don't make sense anymore.

This.

 

[stormkroe]

Wait... why is the government buying milk?

To make government cheese, of course.
Also, milk has been $4.65/gallon in Alberta for the last 5 years at least.

 

[Fern]

Wait... why is the government buying milk?

^^This^^

Fern

 

[BoberFett]

LOL, government.

 

[werepossum]

To make government cheese, of course.
Also, milk has been $4.65/gallon in Alberta for the last 5 years at least.

+1

It's all so clear now.

 

[Moonbeam]

I pay 5.99 a gallon.

 

[sao123]

oh look... a new government induced market bubble.

 

[Ken g6]

Wait... why is the government buying milk?

For the troops? For school lunch programs? I don't know for sure; just guessing.

Edit: Looks like they would buy it, then auction it off or something, wasting taxpayer dollars.

 

[DucatiMonster696]

For the troops? For school lunch programs? I don't know for sure; just guessing.

Edit: Looks like they would buy it, then auction it off or something, wasting taxpayer dollars.

Government buys up excess milk and then sells it for a loss to ensure that diary farmers are over producing milk. The worst part of ending dairy subsidies is that these farmers/farms will have to eventually compete on prices against each other and the alternative choices like almond and soybean milk which will have a price advantage if the price climbs. Not everything is as bleak as the diary industry would lead you to believe. However they are right that prices will spike initially because this occurs once subsidies are removed but eventually competition sets in and prices slowly fall over time as real competition to provide more milk for a non-distorted market is met.

 

[Smoblikat]

so they have to pass a law in order to fix a retarded law from the 40s else the drive for 8 happens? thanks government! why wasn't the current fix permanent to begin with?

Because government is involved.

 

[Mr. Pedantic]

Man, you guys are spoiled. Here milk is around $8/g.

 

[exdeath]

Wtf you talking about? I keep picking up a gallon of milk for $1.75. L2shop.

 

[chucky2]

I see there's a bunch of rich Republicans in here, paying less than their fair share for a key resource.

Where I'm at we've been paying $10/gal for milk for at least a year now.