Thursday, December 27, 2012

The Price of Milk To Double Without a Farm Bill

Eric Blair
Activist Post

Did you know milk, cheese, and other dairy products could double in January if the farm bill isn't passed before the new year?

At first I thought this was a veiled threat from the farm lobby to get their subsidies, but it looks like it goes deeper than that.  In fact, farmers don't want the price to go up because they fear they'll be swimming in unsold milk.

"Few will buy milk the USDA will be forced to sell at prices consumers can’t afford, so Congress has no alternative but to stop the change," UW-Madison agriculture economist Bruce Jones told the Wisconsin State Journal. "We’ll be swimming in milk, with nobody to consume it."

He added that the dairy industry would experience a short-term windfall but the lack of demand would cause milk prices to eventually plummet which would be a catastrophe for dairy farmers.

But what is responsible for the price of milk, and why would it double without a farm bill?

The price of milk is not set by the free market as Jones suggests.  It's set by USDA regulators that claim to use market indicators and a "variety of pricing regulations":
Over the past 125 years, a complex system of both public and private pricing institutions has evolved to deal with milk production, assembly, and distribution. The pricing of milk in the United States is part market-determined, and part publicly administered through a wide variety of pricing regulations. (Source: USDA)

This complex system is said to be used to create a balance between supply and demand to take the following into account:
  • The need for producer prices to be high enough to maintain production, but not so high as to encourage surplus production;
  • The willingness and ability of consumers to pay for milk and dairy products, and;
  • The interest of producers, handlers, and the public in the orderly flow of milk and dairy products from the producers to the consumers. (Source: PDF)
Apparently this formula is constantly evolving primarily due to economic circumstances, international trade negotiations, and the restructuring of dairy conglomerates which alter pricing relationships, according to the USDA.

And without a modern farm bill to factor in today's market costs, the pricing reverts back to a antiquated pricing system from 1949. According to the Wisconsin State Journal:
National agriculture policy forces the implementation of a 1949 system for pricing milk if the country does not have an active farm bill. That antiquated policy uses a complex formula — based on costs of producing milk by hand and including inflation and other adjustments — that will force the U.S. Department of Agriculture to buy milk at nearly double the recent market price.
There doesn't seem to be much hope that the farm bill or even a stopgap measure will be passed before next year. "There was nothing on the schedule for (this) week to deal with any of this," said Wisconsin Congressman Ron Kind.

"This is crazy. The thought to going back to mid-20th century policies when we’re in the 21st century now is inexcusable," Kind added. "The dairy cliff is going to be amazing if no action is taken."

It seems the "fiscal cliff" crisis has cleared everything else from Congress' agenda and America will go over the "dairy cliff".

How far away have we gone from the free market when an act of Congress is needed to prevent the doubling of a core food in the United States? This is precisely the problem with the government "determining" the price of anything.

As soon as regulators touch anything in the market, its genuine value is tainted forever; and it usually requires more meddling to try to set it straight, but inevitably always makes it worse.

Meanwhile, consumers and farmers alike will suffer.

Read more articles by Eric Blair Here.

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Anonymous said...

Not sure how any of this affects my local farm. I get my raw milk from down the street. She grows her own feed, milks her own cows, or doesnt add any bsd hormone. I think the NWO only affects you if u play in their game. Get out of it now!

Anonymous said...

Milk is bad for you and makes people fat. It is cruel to the cows. Stop drinking milk. Make fresh almond milk, much better for you and quite delicious. Also it is white just like animal milk!

If you have your own cow and you are nice to it, then go ahead and drink raw milk.

ThomasT said...

Who's drinking milk anyway?

99% of milk drunk is pasteurised. Some, based on idiotic advice, consume this pasteurised non-food minus uts health-givng cream.

Pateurisation destroys 90% of the phosphotase enzyme needed for calcium absorption. It kills the immune-boosting 'friendly' bacteria, also needed to syntheside vitamin B6 in the gut from the cream part of the milk. On idiotic advice the cream is often not consumed. Vitamin B6 reduces blood homocysteine which is one of the major causes of arterial calcification.

Pasteurisation does not kill the dangerous bacteria, the samonella, listeria nor e-coli, (that requires boiling).

Heat-sensitive immune-boosting whey proteins, lactalbumins, are damaged. (These then lose much of their important benefits, which are a rich source of essential amino acids (EAAs) and branched chain amino acids (BCAAs), that aid protein synthesis and maintenance of muscle tissues, especially important in the elder; play important roles in weight loss and maintenance of cardiovascular health, and improve memory).

A newborn calf when fed exclusively on past. milk, dies in 6 weeks! Zoos source raw milk for their young animals.

Past. milk drinkers suffer from osteoporosis, even from past. milk with added calcium.

Quite simnply because the corrupt dieticians do not inform.

Many believe that milk pasteurisation is just an excuse for dirty dairies.

You want to drink expensive past. milk, go ahead. You have free will.

Anonymous said...

This article is a good overview, but there is more that goes into this. In modern times, farm production became more efficient and high volume. This created, and continued to create, (even in the Great Depression) a glut. Farmers were forced to sell at low prices, below their costs. Simple supply and demand (since the supply was higher than demand), was not working. At the insistence of farmers who were facing bankruptcy, the federal govt stepped in with price supports.

As time went on, many of these supports became permanent and more complicated. For example, there was historically and still exists, the tension between small farmers and large farmers and between all farmers and agribusiness, which supplied them with equipment, seeds, and other necessary products (like chemicals, now)as well as purchased their crops and livestock. And these influenced farm bills.

Also, the dust bowl and the loss of topsoil most places had the govt place restrictions like unplanted buffers. Holding down production close to demand eventually included not just price supports, but reducing planted acreage, which meant more payments and complicated regulations.

And, of course, agribusiness became big agribusiness and influenced farm bill legislation that benefited them, whether it benefited farmers or not.

All of these factors contributed to modern farm bills. And, obviously, not all of these farm bills benefited farmers and/or consumers.

I would also like to mention that I find the other anonymous comment offensive and racist, not to mention completely off topic.

Anonymous said...

Boy life would be so good without a government. They are useless. Why do we have to pay them?
I say we have a public military to protect us, get rid of the government and let people live free again. Prosper, help others, become a garden of Eden per se'.

Anonymous said...

Cows milk is poison for people- it is designed for calves. Human milk contains 6% protein, cows milk contains 25% protein. Casein is a powerful carcinogen. Google T. Colin Campbell, the China Study. Dairy = disease, it is for baby cows - time to grow up.

Sally Oh said...

Love my raw milk. Let the industrialized milk industry fail and fail now. Pasteurized milk is the #1 allergenic food and has killed hundreds of people.

Winsmith said...

ALL that you need to know about milk is found here: and all you need to know about diet soda is here:
for any other substancem google it with hazard
Then to cover everythng, see
oops! forgot If God wanted us to drink cow's milk, we would be calves.

MLKKK said...

Too bad, if you can't make money at your chosen profession, its time to choose a new one. No more bailouts, handouts or subsidies!

Anonymous said...

You want to drink expensive pasteurized milk, go ahead,
you have enough free will to think or see past your nose when ever you use it.

Anonymous said...

Cow's milk is not intended for humans... It is cruel to the animals... Just say no to milk and dairy ...

Anonymous said...

If Milk prices double that means that Food Price's would soon increase.Most likely everything else would soon follow,More people would get on Govt welfare,the collapse might be sooner.....

Buddy Penick said...

I LOVE milk. I know it's cuel to cows, forced pregnacy, babies ripped from the mothers & a life of servitude, but I still love the taste of milk better than any drink or food. It does my body good. Since drinking a gallon a day, I no longer have any heartburn/acid indigestion and I feel better than ever.

Anonymous said...

As far as I am concerned the milk can go sour because I am not going to buy it if the price doubles. It is already high enough as it is. The sheep can keep drinking it and get sheared. If everyone boycots it the greedy commercialist will have to start dumping it and the price will go down instead of going up.

Anonymous said...

As a kid I watched the farmers pour whole truckloads of milk into streams because the price for milk wasn't working for them. Whole, unpasturized milk is good for you but the bullies in business won't have it. Milk is used in and with our food and it is obvious that the USDA has never had a handle on it and care little for the benefits. With all the needy & hungry people, now, I can't bear the waste that I see coming. This country is out of control and prepared to throw food and milk into the stream of waste and stupidity. They can't get anything right now or then or ever, I guess.

Anonymous said...

Whole, unpasteurized milk is not good for you, as much as you might want it to be. The science is undeniable. Dairy is the root cause of much of the disease and obesity in western societies. Do your homework if you dare - or just stay a mind controlled slave, it's up to you.

Traci said...

This "Farm" bill has little to do with milk and more to do with Food Stamps, read it people. They only scaring everyone with high prices of milk to get people to support it.

Anonymous said...

If people had to pay the actual price of dairy products they would not consume massive amounts of it such as what goes on today. People would weigh less and be significantly healthier. This however is bad news for the dairy and the medical industry which is why these subsidies for milk will never go away.

Anonymous said...

"I would also like to mention I find the other anonymous comment offensive and racist, not to mention off-topic."

Truth hurts. Tough.

Anonymous said...

I stopped drinking milk years ago. Like a lot of swill they pass off as food today milk is right in there. No need for milk. Were stupid, do you see grown animals drinking milk??

Anonymous said...

The economic system will eventually self destruct due to the greed, corruption and fraud of the Elite Globalist Banking CABAL of the NWO that are members of the Illuminati. The Elite Political Hacks, Bankers and Industrialist are all in collusion. They do not represent the majority of the people who work for a living. They represent their own interest. That is not a true democracy where the majority rules. It is an oligarchy rules by plutocrats. What the people that are in power fear the most is when the masses rise up against their opressors. When the time comes they are not going to find a hole deep enough to crawl into.

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