'Dairy Cliff' Could Cause Price Increases For Consumers
By: Casie Mason
Updated: December 28, 2012
The Fiscal Cliff is getting much of the attention out of Washington these days, but another cliff could cost consumers a lot of money. It is known as the 'Dairy Cliff,' and if the country goes over it the price of anything made with milk could go way up.
Dairy price supports are just a small portion of a very large farm bill, but if Congress does not pass a new Farm Bill before the end of the year, consumers may have to dig much deeper into their pockets to buy their next glass of milk.
"It's a horrible thing the more you think about it, and I try not to think about it, and focus on hopefully that they will get it resolved because we don't want a mom passing up the grocery case because it's too much," says Brian Rexing who produces thousands of gallons of milk at his farm in Gibson County each day. If congress doesn't act soon the price of that milk could double or even triple by the time it hits grocery store shelves. "We hope this doesn't happen. It will cause problems for the whole dairy economics and it will put things totally out of proportion for where it needs to be. All we want to do is produce milk, make a living doing it, and put a good product out there for the consumers to have."
Congress is facing a December thiryfirst deadline to pass a new Farm Bill. If it does not dairy subsidy laws would revert back to a 1949 law which would require the government to purchase dairy products at inflated prices. "They haven't accomplished anything yet, but if the don't put together something soon, they've created a lot more problems. I really don't see it happening. As a producer I pray it doesn't," says Rexing.
A high price raising high concern for dairy farmer's these next few days. "If the milk price goes up, trust me, the people that we are paying our bills to are going to want a part of that. Me as a producer, I hope they don't you know. The word being out there that our milk prices on the farm would double and it will double in the grocery store, it's not a good thing for producers or consumers."
Rexing's New Generation Dairy Farm says they plan to continue production as normal and feel no changes need to be made just yet.
Dairy price supports are just a small portion of a very large farm bill, but if Congress does not pass a new Farm Bill before the end of the year, consumers may have to dig much deeper into their pockets to buy their next glass of milk.
"It's a horrible thing the more you think about it, and I try not to think about it, and focus on hopefully that they will get it resolved because we don't want a mom passing up the grocery case because it's too much," says Brian Rexing who produces thousands of gallons of milk at his farm in Gibson County each day. If congress doesn't act soon the price of that milk could double or even triple by the time it hits grocery store shelves. "We hope this doesn't happen. It will cause problems for the whole dairy economics and it will put things totally out of proportion for where it needs to be. All we want to do is produce milk, make a living doing it, and put a good product out there for the consumers to have."
Congress is facing a December thiryfirst deadline to pass a new Farm Bill. If it does not dairy subsidy laws would revert back to a 1949 law which would require the government to purchase dairy products at inflated prices. "They haven't accomplished anything yet, but if the don't put together something soon, they've created a lot more problems. I really don't see it happening. As a producer I pray it doesn't," says Rexing.
A high price raising high concern for dairy farmer's these next few days. "If the milk price goes up, trust me, the people that we are paying our bills to are going to want a part of that. Me as a producer, I hope they don't you know. The word being out there that our milk prices on the farm would double and it will double in the grocery store, it's not a good thing for producers or consumers."
Rexing's New Generation Dairy Farm says they plan to continue production as normal and feel no changes need to be made just yet.
