Forget The Fiscal Cliff, We’re Facing A Milk Cliff

milk-cows

From The Hill:

The three bills are aimed at preventing a spike in dairy prices looming in the new year.

Because Congress has failed to renew farm programs, an underlying 1949 law is slated to kick in. This would force the government to buy up American milk at inflated prices and the purchases are expected to possibly double the price of milk at the grocery store as supplies dwindle.

Late Saturday night, House Republicans posted the three bills on the House Rules Committee website, setting up possible Monday votes under layover procedures put in place in this Congress.

One bill would extend the expired 2008 farm bill, which expired Sept. 30, for one year. The second would provide for a farm-bill extension through January and a third would just extend dairy programs through January.

No one wants $8 a gallon milk.

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Posted by on December 30, 2012.
Filed under Congress, Economics.
Doug Johnson is a news junkie and long time blog reader, turned author.

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  • jim_m

    Wait… So you’re saying that the problem is a 1949 law that forces the government to buy milk at inflated prices and that will cause the price of milk to soar, and the supposed answer is not to repeal that idiotic law, but to spend millions of dollars on farm subsidies instead?

    WTF? You can’t make this stuff up. Here, Bruce, is your horribly inefficient, parasitic bureaucracy. Don’t tell us that it isn’t.

    • Brucehenry

      So you blame the bureaucracy for a decision Congress made?

      And it’s hilarious, IMO. Congressional Republicans, who have been screaming “Austerity NOW!” for years, scrambling to “fix” this problem with government action when the opportunity for austerity actually arrives.

      Couldn’t be that the GOP idea of austerity is that it is “for thee, not for me,” could it?

      • jim_m

        Congress creates the bureaucracy. And I think that everyone can agree that Congressmen (of both parties) are perhaps the most parasitic of all within the government.

    • Brucehenry

      So you blame the bureaucracy for a decision Congress made?

      And it’s hilarious, IMO. Congressional Republicans, who have been screaming “Austerity NOW!” for years, scrambling to “fix” this problem with government action when the opportunity for austerity actually arrives.

      Couldn’t be that the GOP idea of austerity is that it is “for thee, not for me,” could it?

  • Vagabond661

    Why do I get the feeling we are the ones getting milked?

  • herddog505

    Further proof – if any were needed – of just how inefficient, meddlesome, troublesome, and downright stupid our government has become.

    Could somebody explain to me why we needed (need) a friggin’ federal law concerning the price of milk? Were farmers and consumers in 1949 suddenly beset with some mysterious brain malady that stopped them making the same rational market decisions that they had been making for centuries? And why is this damned law still on the books?

    • ackwired

      Your duopoly at work!

      • jim_m

        I notice that when the GOP is in charge it is solely their fault. Now that the dems have the White House it becomes “The Evil Duopoly”.

        Please

        • ackwired

          The two party system has become increasingly dysfunctional for the last 30 or 40 years. If our government were a marriage, it would now be to the point that divorce is the only answer. It is not unusual in those cases for one side to want to place all of the blame on the other.

  • retired.military

    Why cant one of the solutions be that the govt doesnt buy any milk and doesnt hand out farm subsidies?

    • Brucehenry

      Why don’t you ask Senators Grassley and Brownback?

      • jim_m

        So it’s just two senators from the minority party that are holding this up? Slay me with your explanation on how Harry Reid has been cowed by two senators from the minority.

        Let me guess: It’s the same reason he will never let obama’s budgets come up for a vote. He’s afraid that Republicans will vote against him.

        Please. You’re being pathetic.

        • Brucehenry

          Sorry I wasn’t clear. I was addressing RM’s question about why the solution wouldn’t be ending farm subsidies or government purchases of agricultural products.

          I chose Brownback and Grassley because they’re Republican farm state Senators, but could have used many other examples.

  • retired.military

    Why cant one of the solutions be that the govt doesnt buy any milk and doesnt hand out farm subsidies?

  • http://www.wizbangblog.com David Robertson

    Is it my imagination, or are the cows in the above-posted photo saying, “Eat more chicken.”?