Spike in Milk Prices Averted Thanks To Fiscal Cliff Deal
A significant spike in the price of milk has been averted, for now, as part of the deal that White House and congressional negotiators reached to avoid the 'fiscal cliff.'
A nine-month extension of the farm bill was added to the fiscal-cliff package before it passed the Senate. The extension remained intact in the final piece of legislation that passed the House.
Negotiators agreed to extend portions of the expired 2008 farm bill through September 2013, which will prevent the cost of milk from going up between now and then. The extension agreement does not include other provisions like energy and disaster aid for farmers.
Prior to the farm bill extension, Americans faced the prospect of paying $7 or more for a gallon of milk within just a few weeks.
The extension of the 2008 farm bill is intended to give lawmakers an opportunity to reach agreement on a new five-year bill.