Farm Bill expires, milk prices set to soar

Tuesday, October 1, 2013 - 4:41pm

Millions of Americans are impacted by the government shutdown, but Congress also neglected another looming deadline yesterday: the expiration of the Farm Bill.

Thousands of farmers will be left in the lurch. Dairy safety net programs expired Tuesday. Those programs compensate dairy producers when milk prices fall below the cost of production. The USDA will now fall back on a 1949 law that forces the government to buy milk at 1940's production costs.

As a result, milk prices could double to as much as $6/gallon on January 1st. Disaster insurance for livestock producers will also go unpaid, even as 70 percent of cattle producers grapple with severe drought and rising feed costs.


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