Dairy Cliff Approaching 26 Dec 12

Milk prices could double if Congress fails to pass a new farm bill by the end of the year. Without action from federal lawmakers a 1949 law will take effect – giving farmers the option to sell dairy products at a significantly higher price than current prices. And while that may be good for dairy farmers initially, industry officials say that a large price increase would quickly turn off a lot of consumers, damaging the dairy industry in the long-term. It would likely take several months before prices spike at the supermarket if Congress fails to pass the Farm Bill by the end of the year, which is looking more likely by the day. President Obama and congressional leaders are also struggling to fix the so-called “fiscal cliff” – a combination of spending cuts and tax increases that will take effect in January if a new budget deal isn’t reached.