Congressional Compromise: Dairy Prices will Not Rise, Milk Cliff Avoided

It seemed like President Obama had given out a pay raise to lawmakers even though they can't seem to get much accomplished as it pertains to a "Fiscal Cliff. Then early on the first day of 2013 a little magic happened; Senate Passed a 'Fiscal Cliff' Deal on which the House Could Vote Tuesday.

Maybe the Sentate took a look at its Agriculture Committee leadership that came to a compromise on the farm bill Sunday to prevent a "Milk Cliff."

The compromise will keep milk prices from skyrocketing to $6 or $8 a gallon.

Did you know about the milk cliff?

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What Milk Cliff?

Congress had not yet passed a new five-year bill reauthorizing agriculture programs from dairy subsidies under the 2008 farm bill that expired on Monday.

If lawmakers had not passed a bill by Dec. 31, the country would have reverted to 1949 dairy price support law.

Under those 63-year-old rules, the Agriculture Department would have been required to buy dairy products at $40 per hundredweight, twice the current market price.

Senate Agriculture Committee Chairperson Debbie Stabenow indicated in addition to a one year extension of the Farm Bill, the House GOP is also considering two other extension bills — a one-month extension and an even smaller bill that would simply extend dairy policy that expires Jan. 1, according to the Associated Press.

Missouri Senator Claire McCaskill (D-MO) pushed for the Farm Bill to be included in end-of-session legislation as a way of helping drought-stricken farmers.

“Our country’s farmers and ranchers produce the highest quality, lowest cost food in the world, and they need strong farm policies to ensure they can continue providing our nation with a safe and reliable food source,” McCaskill said in a statement December 17. “These are some of the hardest workers in the United States, and it is our turn to show them Washington is fighting for rural America.”

Did you know about the Milk Cliff? Would it have impacted you or your family?