How Would The Fiscal Cliff Affect You? Milk Prices Could Double To Over $6 A Gallon
Everyone's waiting and watching the Fiscal Cliff news this holiday season - and the affects of a "non-deal" would be staggering to the average American. And while everyone is aware of the approximately $2,500 increase on middle-income taxpayers, one fact has largely been ignored by the press - and could prove to be equally as spendy: A failed farm bill from this summer would see milk prices double to more than $6 a gallon.
The price of milk is set by the Agricultural Act of 1949. Every time a new farm bill is passed, the new bill takes the place of the 1949 Act. However, if no new bill or extension is passed, the old act is back in force. With the market conditions of today as compared to 1949, that would be disastrous for the price of milk.
Soaring milk prices would greatly affect families with children - who can consume gallons of milk each week.
Washington insiders are pushing Congress to not just pass an extension but rather a new bill that would replace the 1949 act - to avoid situations like this all together.