Milk Prices Could Double in the New Year

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Forget the fiscal cliff. What about the dairy cliff? Nobody wants to pay $7 a gallon.

We warned about this in October, and Congress still hasn’t fixed it. CNN reports…

It works like this: In order to keep dairy farmers in businesses, the government agrees to buy milk and other products if the price gets too low. The current agriculture bill has a formula that means the government steps in if the price of milk were to drop by roughly half from its current national average of about $3.65 a gallon.

That bill expired this summer, so prices may jump starting January 1.

Stacy Johnson

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