Dairy producers react to farm bill expiration

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Story Created: Oct 5, 2012 at 5:54 PM CDT

Story Updated: Oct 5, 2012 at 6:10 PM CDT

You may soon pay double for a gallon of milk. That's what some people are saying with the recent expiration of the farm bill.

Some sources like the National Milk Producers Federation are saying the price of a gallon of milk could rise from three dollars to six at the start of the New Year.

The farm bill provides a safety net for farmers and helps regulate dairy prices.

We spoke with a local dairy farmer who says he was disappointed a new bill didn't pass.

"It would help us keep producing the amount of product we need to keep consumers well fed," said Dave Murman.

Congress let the current farm bill expire. This means we revert back to the original bill from 1949. The bill requires small crop production and higher consumer prices.

"Milk prices do have to go up to keep up with the cost that we entail as dairy farmers," said Murman.

This year's drought has taken its toll on farmers. Higher costs of feed and fuel for farmers will have its effects in the marketplace though maybe not enough to scare consumers.

Despite fear that the expiration of the farm bill will double milk prices, experts here in Nebraska say it's highly unlikely we'll be seeing those prices on the shelves.

"We'll have some kind of a farm bill eventually, it's just a question of when," said Murman.

The USDA reportedly told Hy-Vee they expect a general increase of 4% in food prices. Officials at the grocery store say they're optimistic dairy prices won't skyrocket.

"We're hoping that we can continue to buy properly and buy aggressively to keep prices as low as possible," said Hy-Vee store director Dave Blum.

Blum says if there is a big increase, the store will have to adjust their margins like everyone else. Though they're not seeing much to indicate this will happen.

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