Dairy prices could spike without Washington deal

December 26, 2012 12:00:00 AM PST
The fiscal cliff isn't the only issue concerning lawmakers. If Congress can't agree on a new farm bill by the end of the year, milk prices could soar to as much as $8 a gallon.

But a Valley dairyman is not buying that scenario.

Dairy is one of many ag commodities represented in the on-going farm bill talks on Capitol Hill.

If lawmakers can't reach some kind of an agreement by year's end consumers will pay the price at the super market as milk prices would soar.

"I don't think any of us out here expect the rise to go to $8 a gallon," dairy operator Steve Nash said.

Nash is a Valley dairy owner. He is frustrated by the lack of movement on the farm bill.

He says the dairy industry as a whole would suffer even though a sudden spike in milk prices would initially benefit producers.

"It would be but then you come to the point where nobody buys milk and then what do we do with it. Better to be a little more orderly in the marketplace rather than let that happen," Nash said.

Two separate farm bills have been passed by the Senate and the House committee. But the House version never reached the floor.

Without an agreement, the price both Washington and the rest of us pay for milk will double in price.

Nash, though, doesn't believe that will happen.

"All they have to do is extend the 2008 farm bill and that will take care of it and that's a pretty easy vote," Nash said.

Another reason why Nash believes some kind of agreement will be reached - he says the government would never let dairy operators earn that much profit.


Load Comments