Farm Bill expires, milk prices could double
POSTED: Wednesday, October 2, 2013 - 10:43am
UPDATED: Wednesday, October 2, 2013 - 10:43am
Lost in all the drama surrounding the government shutdown is Monday's expiration of the Farm Bill.
Thousands of farmers will be left in the lurch. Dairy safety net programs expired on Tuesday, those programs compensate dairy producers when milk prices fall below the cost of production.
Now the USDA will fall back on a 1949 law that forces the government to buy milk at 1940's production costs. As a result, milk prices could double to as much as $6 a gallon on January 1st.
Disaster insurance for livestock producers will also go unpaid, even as 70 percent of cattle producers grapple with severe drought and rising feed costs.