Max Velocity Tactical



Your Ad Here - Email for Info

You Can Shop At Amazon and Help Support Emergency-Preps.com Without It Costing You One Thin Dime - Click Here to Learn How!

Author Topic: Neglected bill could raise price of milk to $8  (Read 713 times)

0 Members and 1 Guest are viewing this topic.

Offline Ken

  • Hero Member
  • *****
  • Posts: 1008
  • Karma: +8/-0
  • Gender: Male
Neglected bill could raise price of milk to $8
« on: December 27, 2012, 03:19:00 PM »
http://www.wmbfnews.com/story/20433528/neglected-bill-could-price-of-milk-to-8


Posted: Dec 27, 2012 11:04 AM CST
Updated: Dec 27, 2012 12:19 PM CST
By Stephanie Robusto - email
 

 
MYRTLE BEACH, SC (WMBF) - As lawmakers struggle toward a compromise on the fiscal cliff, a very important farm bill is waiting in the wings.

If and when Congress reaches a deal concerning tax increases, it may be too late.

It's been dubbed as the "dairy cliff," and if lawmakers don't give this bill some attention soon, farmers will continue operation under a 1940s law since the farm bill expired three months ago.

Federal funding assured through March 2013 has kept prices at the average for now, but if the first of the year comes and goes without any action on the farm bill, prices could skyrocket.

The cost would be based on the cost of production, set over 64 years ago, which would pass along more cost to the consumers.

In 1964, the year the Beatles came to the United States and Martin Luther King, Jr. won his Nobel Peace Prize, the price of a gallon of milk averaged 95 cents.

In 1980, when Ronald Reagan was elected president and the Mount St. Helens eruption killed 57 people, milk cost $1.60.

In 2011, the average cost of a gallon of milk was $3.39. So what can we expect if the farm bill is swept under the rug? Well, your gallon of milk could cost around $8.

Here's a look at the increase in prices in the United States over the past 50 years:

Tune in to WMBF News at 4 to see how this price increase could effect you.

Copyright 2012 WMBF News. All rights reserved.




“If mankind is to survive, then throughout man’s history except for a very few years the word “ship” will mean “space ship.”
Arthur C. Clarke

Offline Flight-ER-Doc

  • Hero Member
  • *****
  • Posts: 2255
  • Karma: +57/-7
  • Gender: Male
Re: Neglected bill could raise price of milk to $8
« Reply #1 on: December 27, 2012, 03:22:52 PM »
Frankly, good.  Milk prices are an extreme example of how government meddling creates unexpected problems, which require more government meddling, which result in more problems, etc....
Yes, I'm a physician.  No, I'm not YOUR physician.  Nothing I say here is medical advice.

Do I treat Glocks like I treat my lawn mowers?  No, I treat them worse.  I treat my defensive weapons like my fire extinguishers and smoke detector - annual maintenance and I expect them to work when needed


Offline Bill Quick

  • Administrator
  • Hero Member
  • *****
  • Posts: 5035
  • Karma: +50/-6
  • Gender: Male
    • Daily Pundit
Re: Neglected bill could raise price of milk to $8
« Reply #2 on: December 27, 2012, 04:59:08 PM »
Agreed.  Without a farm bill, the markets themselves would be of primary importance.  Let the market, rather than the government, set commodity prices.
"You can get a lot farther with a kind word and a gun than a kind word alone."  --   Al Capone

Offline razorbacker

  • Hero Member
  • *****
  • Posts: 743
  • Karma: +16/-1
Re: Neglected bill could raise price of milk to $8
« Reply #3 on: December 27, 2012, 05:08:09 PM »
Quote
It's been dubbed as the "dairy cliff," and if lawmakers don't give this bill some attention soon, farmers will continue operation under a 1940s law since the farm bill expired three months ago.

Federal funding assured through March 2013 has kept prices at the average for now, but if the first of the year comes and goes without any action on the farm bill, prices could skyrocket.

The cost would be based on the cost of production, set over 64 years ago, which would pass along more cost to the consumers.

Do you ever wonder where milk comes from?  Who, exactly, enables you to procure the white fluid?

I don't know about where you live, but around here the number of dairymen have been plummeting, and the few dairy farmers left are simply there by inertia.  They've always been around the business, and they do it because they love the life.

I once made my living selling a product that allowed people to easily keep up with commodity prices (before the internet was universal.  Really.  There was a time when the internet was available to the neither the hoi nor the polloi.)  Even back then the number of dairy herds was in decline; my friend at the dairy tells me that the trend has only accelerated.

You can demand that the producers produce at a desired price.  It is a bit trickier to demand that the nonproductive produce what is demanded.  Looking at your chart, it is telling that the products that have increased least in price are foodstuffs requiring the least processing (milk and eggs, once the cow and chicken do their part most of the hard work is done).  Whereas homes cost 20X, gas 10X, postage 9X, bread almost 10X and so on milk and eggs are up about 3X.

Offline Flight-ER-Doc

  • Hero Member
  • *****
  • Posts: 2255
  • Karma: +57/-7
  • Gender: Male
Re: Neglected bill could raise price of milk to $8
« Reply #4 on: December 27, 2012, 05:27:12 PM »
Thats just it:  I cannot demand that producers produce milk at a price that I set, because the government (federal and various states) have set price limits, and guarantee customers.  The result is that many inefficient dairy farmers stay in business, dairy cattle from California get moved to Nebraska because their milk is more valuable there, and people are grossly misinformed about the value of the product they use.

Get the government out of setting prices for commodities.  Get the government out of setting minimum standards for milk fat....if I as a consumer want lower or higher levels of milk fat, vitamins, protein or any other damned thing in my milk products, I can pay for it......or decide that the real cost isn't worth it to me.

For the record, the only dairy products we use on a regular basis are cheese, butter, and half-and-half for coffee.  We rarely have liquid milk in the house unless we're cooking something that requires it.
Yes, I'm a physician.  No, I'm not YOUR physician.  Nothing I say here is medical advice.

Do I treat Glocks like I treat my lawn mowers?  No, I treat them worse.  I treat my defensive weapons like my fire extinguishers and smoke detector - annual maintenance and I expect them to work when needed

Offline Bill Quick

  • Administrator
  • Hero Member
  • *****
  • Posts: 5035
  • Karma: +50/-6
  • Gender: Male
    • Daily Pundit
Re: Neglected bill could raise price of milk to $8
« Reply #5 on: December 27, 2012, 08:37:03 PM »
I looked into it a bit, and now I understand what the problem is:  The old (1941) Farm Law mandated that the government pay much higher prices to support milk prices that the later bill.  With the later bill defunct (at the moment) the earlier, much higher mandates take effect, apperently.

So, with the government forced by law to bid $8.00 a gallon for milk, that will naturally drive up the cost for the private consumer as well.

The solution?  Remove all price supports and let the price of milk find its market level.  It may end up being even lower than we've been paying of late, given the vast improvement in dairy productivity over the years.
"You can get a lot farther with a kind word and a gun than a kind word alone."  --   Al Capone

Offline BooMushroom

  • Hero Member
  • *****
  • Posts: 557
  • Karma: +17/-0
Re: Neglected bill could raise price of milk to $8
« Reply #6 on: December 28, 2012, 12:44:08 AM »
The solution?  Remove all price supports and let the price of milk find its market level.  It may end up being even lower than we've been paying of late, given the vast improvement in dairy productivity over the years.

Not enough room for graft.

Offline Langenator

  • Hero Member
  • *****
  • Posts: 1386
  • Karma: +17/-1
  • Gender: Male
Re: Neglected bill could raise price of milk to $8
« Reply #7 on: December 28, 2012, 08:57:41 AM »
As PJ O'Rourke said in Parliament of Whores, "take the Omnibus Farm Bill out behind the barn and kill it with an ax."
Fortuna Fortis Paratus
“In the house of a wise man are stores of food, wine, and oil, but the foolish man devours all he has.” Proverbs 21:20
"We are content with discord, we are content with alarms, we are content with blood, but we will never be content with a master." -Pashtun malik, 1815

Offline Mr. Bingley

  • Sr. Member
  • ****
  • Posts: 439
  • Karma: +2/-0
    • The Coalition of the Swilling
Re: Neglected bill could raise price of milk to $8
« Reply #8 on: January 01, 2013, 08:29:47 PM »
That is such a wonderful book, and as relevant today as when it was written.


 

Related Topics

  Subject / Started by Replies Last post
7 Replies
1109 Views
Last post December 05, 2010, 07:04:25 PM
by Amisheggpicker
32 Replies
5536 Views
Last post December 09, 2011, 12:28:32 PM
by BooMushroom
0 Replies
277 Views
Last post December 12, 2010, 09:27:11 AM
by Drang
3 Replies
382 Views
Last post December 18, 2010, 08:06:40 PM
by Bandit5
1 Replies
132 Views
Last post July 18, 2013, 08:12:56 AM
by Amisheggpicker


Your Ad Here - Email for Info
Help Support E-P.com
Even A Buck Makes A Difference!
Or Make Convenient Monthly
Donations By Selecting
A Payment Option
Payment Options