No Farm Bill could mean $38 milk after Jan. 1

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$38 milk?

If a new Farm Bill isn’t passed by Jan. 1, permanent law dating back to the 1930s and 1940s takes effect. That, in turn, would deliver parity and raise dairy price supports to $38 per hundredweight or more.

“We’ll have $38 milk at that point. And that will hopefully motivate somebody. We’ll see what happens,” Collin Peterson (D-Minn), ranking member of the House Agriculture Committee, told Agri-Talk Radio on Tuesday. (Listen to the audio clip above.)

Peterson continues to express frustration over failure to pass a new Farm Bill. Yet, he remains hopeful that a new one will be passed in the congressional “lame duck” session between Thanksgiving and Christmas.

“We have enough votes to pass this bill the way it came out of (the House Agriculture) Committee,” Peterson said. “They just need to put it on the floor (of the House), and hopefully they will.”

Peterson said House Speaker John Boehner has not been the problem.

“The problem has been (House Majority Leader Eric) Cantor and his allies,” Peterson said. There’s about 100 House Republicans who are holding up the Farm Bill discussion for various reasons, he added.

“Some of them think we haven't made enough reform in the commodity title; some of them don’t like the sugar program; some of them don’t like the dairy program,” he said. “Some of them want to cut more out of food stamps.”

Boehner would like to get a farm bill done in the lame duck session, Peterson said, citing discussions he had with the Speaker this summer.

“Hopefully, we will have an ally in the Speaker in bringing this up in the lame duck session,” Peterson added.

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osprey fl  |  September, 26, 2012 at 02:02 PM

so $38 for one hundred pounds sounds okay to me... 11.6 gallons for that price seems okay, no?

Ed & Emma    
MA  |  September, 28, 2012 at 04:32 AM

....that's almost enuff....

roaringspring pa  |  September, 26, 2012 at 04:39 PM

pray to God we get 38$ per hundred or more would be better, if you feel we dairy farmers need less i hope you go hungry

luray va  |  September, 26, 2012 at 04:40 PM

It would take a couple of years of that price to make up for the losses of 2009 and 2012!

deposit,ny  |  September, 26, 2012 at 07:39 PM

Well said

wisconsin  |  September, 27, 2012 at 07:13 AM

That would be wonderful. That would get our rural economy jump started.

Bernard Kwaku    
Clovis,NM  |  September, 27, 2012 at 08:16 AM

Still better than current prices

sherm bogie    
barnet vt.  |  September, 27, 2012 at 08:34 AM

i have said right along do away with the farm bill let farmers run the pricing of their products and get 100 per cent of perity.

MO  |  September, 27, 2012 at 08:34 AM

There is a reason the public is not pushing for this bill. They are becoming more and more informed and it is getting harder and harder for congress to fool them into supporting bad legislation. That is why the meat of this bill will ultimately be passed by some sort of executive order or congressional sleight of hand. There is way too much power at stake here, the bill will ultimately be passed. Remember the entire purpose of the farm bill is to insure long term dependency on government and keep food prices low.

September, 27, 2012 at 08:53 AM

Not good. It would cause milk production to expand rapidly that processors couldn't possibly sell. Then the pain of reducing production would start over again

CT  |  September, 27, 2012 at 09:29 AM

end the farm bill!

Barbara Troester    
Pennsylvania  |  September, 27, 2012 at 11:09 AM

Okay, $38/Cwt. would be much better than $18/Cwt. USDA states that it is costing $25-28/Cwt. to produce 100 pounds of milk. Now, there are 11.6 gallon in 100 lbs. of milk. The last time I checked the grocery store price it was $3.68 per gallon for whole milk. Take 11.6 gal. x $3.68 and you come up with $42.69. The dairy famer is getting less than half of that to produce it and take into consideration the investment and the costs he has to produce that product. Our fuel costs, machinery costs and repairs, veterinarian services, supplies and maintenance keep rising every day. They are concern with the consumer cost, well the farmer could receive more for his product without raising the price to the consumer by much. Let me tell you the corruption in the market is terrifying. Milk co-ops were formed years ago to help and benefit the dairy famers in the marketing of their milk. Well, I feel they are no longer working to help us. The CEO's and top executives are making big money at the expense of the dairy farmer and consumer. Fairness in this day an age does not come in to play as well as in other industries. It is soo unreal how they can manipulate the price of milk to the dairy farmer. Our food supply should be of very importance and things must change at the farmer's level to encourage the younger generation to provide us with adequate and safe food. Right now, it is very discouraging for the older farmers considering the investment and the work that is needed to provide us with a good quality supply of milk. Young people are not going to work and have the means to get into the dairy business if the profitability does not change. Good Quality Food is Important and Needed for our Nation.

mike richter    
ILLINOIS  |  September, 27, 2012 at 11:16 AM

there always seems to be someone who says the price would be to high and cause overproduction. 38 dollar milk would be like hitting an oil well or strike a gold or diamond mine in your back yard. processors would still make money and would probably promote further consolidation of our industry. Those staying in business could be profitable and those getting out would have something of value to sell. the last ten years have eroded so much equity it would be a great opportunity to rebuild. I think warren buffet once said that to really boost the economy is to make small business so obscenely profitable that everyone would aspire to a small business owner!

Michael Dancer    
Shepherd, Michigan  |  September, 27, 2012 at 12:42 PM

$38 dollars would be GREAT!, but what would the retail price be? Six or Seven dollar a gallon milk your demand would go down so I am thinking afterwhile milk would be back to 18 dollars. Maybe I am wrong but I know people that won't buy four dollar milk.

California  |  September, 27, 2012 at 12:59 PM

That will last for a week. Then no one will buy milk anymore. The government has supported you long enough. That's why dairymen are in this position. It's fundamental supply and demand.

Wisconsin  |  September, 27, 2012 at 02:02 PM

You certainly are not a dairy producer. And I bet you have your mouth full while writing this nonsense. Supported us??? The corrupt government has robbed us for decades. The Federal support is funded from dairyman's pockets to assure the lazy fat and unemployed Americans can receive their food share benefits. Do you realize that the major portion of USDA expenditures is in food distribution and administration costs? The main purpose of those offices is to spy on the producer and collect his production information. Furthermore take a look at those who benefits the most from this information. CME traders and investors, many of which hold government office. Starve us out and make us stand in line with our records for signup of programs that pay out a small fraction of our true losses. Until farmers unite and take a stand, we will always be treated like peasants. $38 dollar milk doesnt mean high retail prices either. It figures out to like a little over three dollars a gallon plus handling and bottling. And's the government that will pay the "support" price not the consumer. Right? Get a life.

Barb Troester    
Pennsylvania  |  September, 27, 2012 at 02:43 PM

Well, you know people that will not buy four dollar milk. First of all they must not have ever lived on a farm, second of all, do they realize what they are paying for orange juice, soda, beer, and other drinks? It is like I said in my other comment, if the corruption was taken out of the market place, we farmers could get paid more for our milk and the cost to the consumer would not have to increase that much. People who feel that $4.00 is too much for a gallon of milk, should make the investment in farming, work and live on the farm. I think they may get a different opinion. What irritates me is the people who are getting big wages and then they want cheap food. Why can't the dairy farmer have a fair profit and we could if our so called co-ops would do what they were intended to do. Why should the dairy farmer be paid eight to ten dollars less per hundred weight than it cost to produce the milk? What other industry works that way?

wi  |  September, 27, 2012 at 05:11 PM

$38 milk....YEAH ! and Collin Peterson is complaining. Shame on him, he's bought and paid for by NMPF and IDFA and the insurance industry.....

ed g    
new york  |  September, 27, 2012 at 08:35 PM

$38 sounds good to let's leave poor jerry out of this how can he make it without our $700,000

ma  |  September, 28, 2012 at 04:30 AM

No, Matt, they are going to limit it to the first 2.4 million pounds of your production, paid out of the pool. Any production over that will also paid out of the remaining receipts in the pool, obviously at a much lower rate... This way of payment will compensate everyone the same, much like the MILC, but in a manner that reflects the true cost of production for a base level of milk production. They did away with parity pricing and implemented the pricing scheme we have now, creating a situation where the milk price only covers costs if you milk more than 500 cows. Just look at the COP numbers tabulated by the Economic Research Service. Our country has been great for developing a cheap food policy, at farmers expense. This new payment program does not encourage overproduction, but will allow more farms to stay in dairy and will allow more farms to enter dairy, that is now near impossible, because of the low prices. Let's welcome parity pricing, instead of paltry pricing.

Sue Flint    
October, 01, 2012 at 09:42 AM

I agree with you Kevin but I can bet the bottom dollar they won't let it happen. I have said more than once this country needs to see starvation and the hunger. And not give to the people across the waters first. We are nothing to them. It's like what we do for this country means not a thing to them as long as when they go to the stores and get what they want. It's coming.

October, 01, 2012 at 09:44 AM

well said Barbara

NY  |  October, 01, 2012 at 10:01 AM

Willing to pay $4.00/gallon of milk? Last I checked, whole milk at Walmart in Northern NY was $3.99. I'm guessing organic milk was well over $4.00 a gallon. Yup, I paid almost $4.00 a gallon this week.

Garrett DeVries    
Gill, Colorado  |  October, 01, 2012 at 01:04 PM

This is non-sense. World dairy prices will kill this. We are very dependant on foreign exports. Government intervention has proven to me to have unintended consequences.. usually bad.

Ky  |  October, 01, 2012 at 07:19 PM

Well, hell lets just keep producing at loss. This bs that nobody will buy it is old coop bs. So what if they don't buy it we have lost our a@@ over last ten years. Other industry raises prices to yield some profit but dairyfarmer suppose to eat crap. The dairy industry is so corrupt that supply and true demand doesn't exist. The parity price is only way your going to get paid. If milk too high in store then tell schumer to give them more food stamp dollars. I'm tired of working for nothing while our farm has been run in the ground. These gov policy and a blind eye to criminal behavior in dairy markets leads me to not care if they run out food completely. Serves the crooks and citizens right for voting them in over and over.

Wisconsin  |  October, 02, 2012 at 12:53 AM

Regardless of what happens we'll be producing at a loss. Eventually the cost of production will match, and then excede whatever price we'll see. IF we have something someone else wants (money) they will enevitably find a way a way to take it from us. When poor farmer become rich farmer so long to any support the public will have for us. Property tax assesments on farm land, sales tax exemptions, fuel prices, utility rates, replacements, hired labor, land prices and rent, equipment and repairs. You name it, will rise up to meet us. A lot of those milk plants employ union labor and when the farmer has more, the unions won't be looking the other way that's for sure. The proccesers themselves will be calling the shots for the checks they'll be writing. If your SCC count is seen as a "little high", and they'll tell you what a little high is, forget your $38 and put up with $25. Better then what we're getting now but it ain't no $38. Is there going to be an increase in production? Darned right there will. be. And if the higher price holds for any lenght of time the sudden credit for loans will become oh so very tempting. How many will forget about paying off debt when the cash flow could run like a river. Human nature should have taught us that more is often never enough. Do we deserve higher prices? You know it! But define deserve. A poorly managed farm will still be a poorly managed farm no matter what the price. Then there is that silly idea that people want value for their money. If we're going to sell milk at $38 per hundredweight, it better be the absolute best that can be produced. What if the price drops from $38 to $37.75? Without question someone will start crying about low prices,..... again.

December, 06, 2012 at 06:16 AM

We ain't gona go hungry over any milk, cereal sucks...

Abilene, Tx  |  December, 10, 2012 at 09:36 AM

Wouldn't work because the customer won't pay, plus if milk goes to 75% of parity so would feed pices.

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