Senator See Dairy Industry Chaos Without Farm Bill Action
Spencer, IA: (Dec 26, 2012) - While it may not compare to a Mayan-prophesized apocalypse, some see chaos erupting in milk markets next week if Congress doesn’t prevent the Agricultural Act of 1949 from going into effect. Referred to as the “permanent Ag Law,” it will become default ag policy if Congress doesn’t approve or extend an alternative law before the end of the year.
Vermont Senator Patrick Leahy says failure to act would set off a chain of events that could double the prices of milk and dairy products. He says the 1949 law will force the federal government to spend billions of dollars to buy and store dairy products in an effort to raise the price of milk for dairy farmers.
Enforcing the parity rules would result in milk support payments that are nearly double today’s market price. That, he says, will have a ripple effect throughout the supply chain, resulting in over-production and weakened demand. Leahy blames House inaction for the situation.
Leahy says that, like Thelma & Louise, House leadership has driven the U.S. to the edge of the dairy cliff and is refusing to put its foot on the brake.