Milk, grocery prices on the rise if Congress ignores farm bill

But even if Boehner does decide to slip farm legislation into the "fiscal cliff" package, no single bill exists right now for the agriculture committees to offer: The House farm bill, approved by Lucas' committee in July, never made it through the GOP-controlled chamber, due primarily to disagreements over how deeply to cut food stamps. The Democratic-controlled Senate passed its version - the "Agriculture Reform, Food and Jobs Act of 2012" - in June.

It's a turf battle as much as a spending-cut war. Peanut and rice farmers back the House version, which proposes $35 billion in spending cuts, and replaces the current agriculture subsidy program with what is essentially a safety net, guaranteeing government payments if crop prices fall below a certain point; corn and soy farmers prefer the Senate bill, which proposes $23 billion in spending, and offers insurance when revenue from a crop is more than 11 percent below average.

One thing both chambers, and parties, agree on: Extending the 2008 law shouldn't be an option. Between having to scramble for additional funding for already-expired programs and extending payment for disaster assistance, which was significant this year following a prolonged Midwest drought, any temporary measure would cost more than a full five-year bill, without offering any spending cuts. But while Lucas, according to House Agriculture Committee spokesperson Tamara Hinton, remains devoted to getting a five-year bill through the hoops of Congress, he is "planning for all contingencies." That could include a one-year extension.

Still, the chance for any form of farm legislation to be included in rush negotiations to avoid tumbling into a recession at the start of the year, as Vilsack said, has faded, along with the likelihood of a big-picture "fiscal cliff" deal at all. Cornell University professor of agricultural economics Andrew Novakovic told CBSNews.com that Stabenow's commitment to a five-year bill may be disconnected from reality.

"Needless to say, I have no idea what sweet nothings the President and the Speaker whisper to each other, or what the Republican conference is really prepared to support, but I have to say that it seems to me that Senator Stabenow has had her rose colored glasses firmly in place for several months now," he said in an e-mail. "Far be it from me to suggest I know more about it than she does, but it seems to me that it's pretty hard for folks on the Senate side to do much more than watch.

"I know there are several scenarios floating about out there, but I wouldn't bet money on any of them (i.e., I think any number of things are about equally probable)," he continued. "Like most folks, I find it plausible that a farm bill gets attached to some last minute fiscal cliff solution, but it also seems that the kumbaya between the two Ag Committees has suffered lately, as [the Congressional Budget Office] is saying you can't have all of the above. ...From the outside anyway, it has become less clear what farm bill would get tacked on to a broader fiscal bill."

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[doctordan38]

I love milk! I drank 2 gallons a week myself. Notice I said "Drank". It just jumped to $4.29 here in Erie ,PA. I said I would quit if it went to $4. I am retired (worked hard all my life...still do) and cannot afford it on my budget. I'm not poor enough to collect food stamps or qualify for WIC and I'm not rich enough to afford my milk habit. My taxpayer money is paying for those people to enjoy that luxery. Got Milk ?!

[HistoryNote]

The old adage - "the price of eggs", is about to hit home, a dozen fold. Think about how many products the price of milk affects. Here's a short list:

Cheeseburgers. - Say goodbye to the dollar menu at the drive thru.
Salads - That'll be an extra dollar for that ranch dressing.
Pizza. - Look for the new "Reduced-Cheese" pizza. (that might actually taste better)
Pastry - Imagine the Three Dollar Doughnut.
Coffee with cream. - Add a dollar for the cream, and expect the complimentary cream pods to vanish.
Cookies - Plan on paying two bucks a cookie.
Instant Potatoes - Look for box size to shrink.
Canned Soup - Some are made with milk, so expect them all to go up in price.
Cosmetics - Look for the new "Lactose Free" replacement.
Chocolate - Indulgence at a new price level.

What's for shame is that the milk cow will receive nuthing from the price increase. Poor Cows. What's unknown is the trickle-down effect on the economy from the price of milk - basically doubling.

[nearl451]

.....and the "straw man" argument is complete.

If the cost is $8 without govt subsidy and $4 with the subsidy, how much does the subsidy cost the average tax payer per gallon or increase the budget deficit?

This is where hedge funds and CDS's were invented:as "insurance" against bad (read shortage)years.

[knsn_for_cmn_sense]

poor poor corporate dairys wont get their subsidies.... COF- corporate welfare.

[knsn_for_cmn_sense]

Farm bill is one of the biggest welfare bills out there. And I am not talking about food stamps. So much "please dont work" cash in that bill.

I say let that bill BURN and let the free market take over.

[hopeing2win2]

the price of milk goes up in price again i will not buy it until it drops in price. you should to, when you by it you just telling them you pay what ever they want for it. we need to say NO and stand up to it. all is a whole lot of BULL SHI-

[logictoo]

Goat milk is already $16.00 per gallon.

[micmac666]

"I think I'll go out and milk the elk." - W.C.Fields in "The Fatal Glass of Beer".

[beachshoe]

Another can kicked down the road by the US Congress.

[credibility2]

Taxpayers shouldn't be subsidizing farmers that are owned by mega corporations.

[sabniz]

yep, we need to end all subsidies!

[nearl451]

Yes. If a farm bill is required to reduce the consumers price of milk, then we are in effect payingthat price now! Just through taxes AND purchase price.

[empirebuilder]

Somehow, some way, Obama will make this out to be Bush's fault.

[WHAT-IS-HE-SMOKING]

No, just the republican congress for not doing their job. After all it is still stuck in the House.

[catmomtx]

Like you are doing? No one is even talking about George Bush but Republicans who have nothing else to say.

[TJphoto]

Does anyone here think Congress cares about the average American Citizen? Congress capped the interest rates for credit cards at 32%. Does anyone here think a member of Congress will step up to the cameras and defend that? 98% get re-elected with money that is not from the electorate. Figure it out on your own!