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Lawmakers working on last-minute farm bill extension ($8/gal milk scare)
Reuters ^ | Fri Dec 28, 2012 6:44pm EST | Charles Abbott

Posted on 12/29/2012 6:31:37 PM PST by Olog-hai

Lawmakers in the House and Senate agriculture committees are working on a short-term extension to the expired U.S. farm bill, and plan to vote on the extension by Monday, the final day of 2012, a Congressional source said on Friday.

The proposed extension to farm legislation that expired in September would be for “some months” but for less than a year, the source said.

If an extension is passed, the United States would avoid reverting to 1949 “permanent law” and a potential spike in the retail price of milk to as much as $8 a gallon in 2013. …

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: District of Columbia
KEYWORDS:

1 posted on 12/29/2012 6:31:47 PM PST by Olog-hai
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To: Olog-hai

How about we subsidize nothing, and let market forces do their thing.

It would require the absence of regulation, though, which doesn’t look likely.


2 posted on 12/29/2012 6:34:28 PM PST by lurk
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To: lurk
How about we subsidize nothing, and let market forces do their thing.

If that happened all at once every dairy farmer I know would be bankrupt by the end of the month. 6 months from now after all the dairy cows hit the market as beef most of the ranchers I know would be belly up. Within a few months after that after a long haul of the price of beef falling by half the hog and poultry producers would be selling off all of their breeding stock as well. When the smoke clears and there are very few people still in the meat and mild producing ag industry the consumer will then get the message.
Pull the plug instantly on the milk price and it will start a cascade of failures that within a 12 to 18 months will drive the price of food way up.

3 posted on 12/29/2012 6:44:52 PM PST by oldenuff2no
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To: Olog-hai
Sorry....This is one industry that needs subsidizing.

Kill wind and ethanol subsidies!!

4 posted on 12/29/2012 6:47:24 PM PST by Sacajaweau
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To: oldenuff2no

And when America finally goes belly-up, then what?


5 posted on 12/29/2012 6:48:56 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: oldenuff2no; Sacajaweau

Your scenario is based on the fact that Big Dairy has been on the government tit too long. There are no industries that need subsidized.


6 posted on 12/29/2012 6:52:38 PM PST by goodwithagun (My gun has killed fewer people than Ted Kennedy's car.)
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To: Jonty30

Hope you prepped with stock piling vitamins too..


7 posted on 12/29/2012 7:03:04 PM PST by Michael Barnes (Obamaa+ Downgrade)
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To: oldenuff2no; lurk

Let’s advocate a gradual stoppage of subsidies so people have time to adjust. I am no fan of subsidized industry (except perhaps for some limited defense type needs), but to suddenly pull the plug is, I think, wrong. Just reduce the subsidy regularly in a way that is foreseeable and let markets and consumers and farmers adjust.

If milk is worth $8 per gallon, then that is the cost.


8 posted on 12/29/2012 7:04:03 PM PST by Persevero (Homeschooling for Excellence since 1992)
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To: goodwithagun

I was listening to some talk show gal (sitting in for Mark Levin?) say that 80% of the money in this “farm bill” is for food stamps. Including a food stamp advertising/educational campaign to educate people living in Mexico!!!

The milk increase is a tiny part of it. But an important part as most will not realize they are giving up more of their Freedoms in exchange for a temporary increase in the price of milk.


9 posted on 12/29/2012 7:05:34 PM PST by 21twelve (So I [God] gave them over to their stubborn hearts to follow their own devices. Psalm 81:12)
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To: oldenuff2no

Why will all of the dairy farmers go bankrupt?

I’m asking because I don’t know, not to challenge your assertion.


10 posted on 12/29/2012 7:06:44 PM PST by perez24 (Dirty deeds, done dirt cheap.)
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To: Sacajaweau

Farm welfare should end. Immediately. Or sooner.


11 posted on 12/29/2012 7:11:10 PM PST by aMorePerfectUnion (Gone rogue, gone Galt, gone international. Gone.)
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To: reformedliberal

bkmk


12 posted on 12/29/2012 7:11:21 PM PST by reformedliberal
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To: Persevero; perez24; aMorePerfectUnion; oldenuff2no; Sacajaweau

Posted this before, but,

As a former dairy worker, i think people have to consider that unlike soda - which cost about 1.20 average i think for 67 ounces, but which really needs no refrigeration and can be stored for months, and is just sugar and flavoring - milk, which is about $1.75 for 64 ounces, requires expensive cows be feed, cared for and milked 2- 3 times a day, 365 days a year, and the milk kept under almost constant refrigeration from that time, except for being processed (clarified, pasteurized, homogenized) and delivered at least twice a week, all within about 4 days after the milk came from the cow.

And then there are the milk cases, which we used to lose about half of each year.

Kind of helps keep things in perspective.


13 posted on 12/29/2012 7:28:07 PM PST by daniel1212 (Come to the Lord Jesus as a contrite damned+destitute sinner, trust Him to save you, then live 4 Him)
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Comment #14 Removed by Moderator

To: daniel1212

Thanks.

Another question: So the subsidy helps to cover all of the extra costs that you referenced and if there’s no subsidy then milk goes to like 7 or 8 dollars a gallon and nobody will buy it and the farmers go out of business. Is that right or close to right?

Again, I’m just wondering.


15 posted on 12/29/2012 7:38:50 PM PST by perez24 (Dirty deeds, done dirt cheap.)
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To: 21twelve

A few of my relatives receive farm bill benefits. Let me tell you, these subsidies are bull$hit! My aunts have paid absolutely nothing for tens of thousands of dollars worth of craft books. Book reimbursement is just one of their subsidies. For other bennies, they believe they deserve them for being “salt of the earth” farmers. I’ve personally witnessed them dump milk over the hill because the price per gallon will drop if dairy farmers actually sell what they produce.


16 posted on 12/29/2012 7:43:05 PM PST by goodwithagun (My gun has killed fewer people than Ted Kennedy's car.)
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To: Olog-hai
$8 per gallon??

From link

We're not going to sit around watching the Super Bowl and eating chunks of butter,” said Gordon, who has about 150 cows on his farm in Washington state. “But the government has to keep buying” to keep the price up.

17 posted on 12/29/2012 7:46:21 PM PST by sickoflibs (Dems go for results, meaning winning. Rs go for symbolism: "We tried. We were foiled again"")
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To: daniel1212

“Kind of helps keep things in perspective”

It sure does. All those capital expenses tell me they shouldn’t be made if you can’t make a profit without Gov’t welfare!

We need to stop paying farmers and let the market work.

Ditto corporations and other categories of permanent parasitism.


18 posted on 12/29/2012 8:10:39 PM PST by aMorePerfectUnion (Gone rogue, gone Galt, gone international. Gone.)
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To: Olog-hai

People shouldn’t drink milk anyway. Milk is bad for you.


19 posted on 12/29/2012 8:21:44 PM PST by Age of Reason
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To: daniel1212

I make my kids drink milk for the protein and the old school habit. But truth be told, for the money, I bet they are better off getting a whey protein shake after breakfast and dinner.


20 posted on 12/29/2012 8:27:12 PM PST by laxcoach (Government is greedy. Taxpayers who want their own money are not greedy.)
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To: Age of Reason
People shouldn’t drink milk anyway. Milk is bad for you.

Agree. Beer is a much healthier drink.

21 posted on 12/29/2012 8:30:46 PM PST by okie01 (The Mainstream Media: IGNORANCE ON PARADE)
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To: daniel1212

I can easily understand where milk “should” be more expensive than it is.

We don’t have a right to it, it shouldn’t be subsidized, and I think many will pay the market price if we ease up to it.

It’s perishable. Of course it should cost more than soda!


22 posted on 12/29/2012 8:38:21 PM PST by Persevero (Homeschooling for Excellence since 1992)
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To: Age of Reason
People shouldn’t drink milk anyway. Milk is bad for you.

First, prove it. Real proof not global warming, sea is rising or falling liberal BS, real proof.

Second, what people drink is none of your damn business Bloomberg.

23 posted on 12/29/2012 8:48:29 PM PST by Eaker (Manners are good when one may have to back up his acts with his life. — Robert A. Heinlein.)
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To: Olog-hai

if milk reaches $8.00 a gallon, noone will but it. When shortages occur in any product, citrus, apples etc etc...I don’t buy them nor would I but milk at $8.00 per gallon. I understand farm subsidies, (I think) and they probably should have never been started at least in the form that they now exist. I see no reason to pay 4 or 5 dollars a pound for cheese when the federal government has warehouses full of it that they have purchased to bolster the price.


24 posted on 12/29/2012 8:55:32 PM PST by terycarl
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To: terycarl

but=buy


25 posted on 12/29/2012 9:02:12 PM PST by terycarl
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To: Persevero

Agreed on the “free market” idea. But the $8/gallon isn’t free market - it is the government being forced to purchase the milk at a calculated price (based on wages, costs, etc.).

And like I said before - this isn’t about milk, and only partly about farm subsidies. It is about food stamps (which accounts for 67% of this “farm” bill).


26 posted on 12/29/2012 9:09:19 PM PST by 21twelve (So I [God] gave them over to their stubborn hearts to follow their own devices. Psalm 81:12)
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To: laxcoach

And where does the whey come from I wonder? From milk of course. It’s what is left over after they make cheese from milk. Also the liquid on top of pasturized yogurt. So, $8 milk means VERY expensive whey shakes.


27 posted on 12/30/2012 1:28:18 AM PST by tinamina
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To: Olog-hai; All
Farm subsidies do nothing but cover up failed Free Trade policies.

Big Ag is subsidized brcause the Communist Chinese dump so much ag products on America and the world. To compete US Ag has to be sold outside the US...but at prices that US producers sell at a loss. The subsidies keep US Ag afloat.

If you tariff the Commie Chinese...you do not need subsidies. US Ag can sell in the US..at lower prices and lower taxes for the consumers

28 posted on 12/30/2012 3:50:22 AM PST by SeminoleCounty (Fiscal Conservatives are Neither)
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To: SeminoleCounty
Frankly, Big Agriculture is something that appears in the Communist Manifesto. (Wonder how many people are aware of this?)
  1. Extension of factories and instruments of production owned by the State; the bringing into cultivation of waste-lands, and the improvement of the soil generally in accordance with a common plan.
  2. Equal liability of all to work. Establishment of industrial armies, especially for agriculture.
  3. Combination of agriculture with manufacturing industries; gradual abolition of all the distinction between town and country by a more equable distribution of the populace over the country. …
Seems like we have experienced gradual centralization, dependence on subsidy, and more along those lines. Eventually falls apart . . . even will in Red China.
29 posted on 12/30/2012 3:58:20 AM PST by Olog-hai
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To: Olog-hai

Just another liberal voting block that receives money from taxpayers in exchange for their votes.

Yes, Republicans are guilty for being involved as well.

Show me where in the constitution it allows the federal gov’t to subsidize a product?


30 posted on 12/30/2012 4:19:19 AM PST by Erik Latranyi (When religions have to beg the gov't for a waiver, we are already under socialism.)
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To: aMorePerfectUnion

corn for ethanol should have never been subsidized...blame it on stupid politicians...no more ethanol...


31 posted on 12/30/2012 4:42:31 AM PST by Sacajaweau
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To: oldenuff2no
After the cattle and hogs are slaughtered , grain prices will tumble , most farmers and ranchers will go belly up.

Domino effect in play for mass starvation and riots ,

obama's wet dream coming to your house soon.

32 posted on 12/30/2012 5:11:33 AM PST by piroque ("In times of universal deceit, telling the truth becomes a revolutionary act")
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To: Olog-hai

They set up regulations that increase the cost of production, then hide the increases by having taxpayers subsidize the “lower” costs, and now try to obfuscate the whole sick deal by using scare tactics - whatta country!


33 posted on 12/30/2012 6:58:53 AM PST by trebb (Allies no longer trust us. Enemies no longer fear us.)
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To: Olog-hai

They set up regulations that increase the cost of production, then hide the increases by having taxpayers subsidize the “lower” costs, and now try to obfuscate the whole sick deal by using scare tactics - whatta country!


34 posted on 12/30/2012 7:06:15 AM PST by trebb (Allies no longer trust us. Enemies no longer fear us.)
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To: oldenuff2no

If milk goes up to $8 per gallon the remaining dairy producers will make money hand over fist. Competition will come in and the price goes down. Same as it ever was.


35 posted on 12/30/2012 8:53:16 AM PST by jdsteel (Give me freedom, not more government.)
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To: jdsteel

Competition will come in and the price goes down. Same as it ever was.

That is a pipe dream.

The cost of producing that milk is already higher than you pay for it in the store. There may be a little price playing for a short time but very quickly milk will go way up in price and stay there.
There are no short cuts to feeding the cows, and obtaining and safely processing the milk.
Good luck with ever having cheap milk again.


36 posted on 12/30/2012 11:32:55 AM PST by oldenuff2no
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To: goodwithagun
I'm just telling you what will happen. About 20 years ago the government decided to buy back a bunch of milk cows. They got dumped on the beef market and the cascade was launched. That one time buy back took three years to recover from. It first depressed the beef raisers markets and then the pork and chicken markets taking about three years for the markets to sort themselves out. The next three years after that were very good for the producers and very bad for the customers supermarket costs went way up stayed elevated. The cost to the consumer never did drop to the “before prices” point. At the end of this cycle there were more cows being milked than before they started and the prices for meat, milk, pork, and chicken were a lot higher.

If they remove the milk support it will be all of that times 1000 and many in the meat milk and chicken industry will not survive. The price of food will go sky high and never recover to the "before" point. Like it or not that is the history of the markets. The government supports and subsidies the cost of ag products to keep the prices low to the consumer while letting the farmers/ranchers make enough to profit and stay in business. It these subsidies are withdrawn the farmers/ranchers will, by necessity, end up charging a lot more for their food products.

37 posted on 12/30/2012 11:53:42 AM PST by oldenuff2no
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To: oldenuff2no

I am willing to pay what the market price is for the product. When my state makes me pay a MINIMUM price for the product now I feel very confident that the actual market price is less. Even if it would go up taxpayers are now spending tax money on milk and other farm products if they use them or not. It’s not right.


38 posted on 12/30/2012 7:34:34 PM PST by jdsteel (Give me freedom, not more government.)
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To: oldenuff2no

I am willing to pay what the market price is for the product. When my state makes me pay a MINIMUM price for the product now I feel very confident that the actual market price is less. Even if it would go up taxpayers are now spending tax money on milk and other farm products if they use them or not. It’s not right.


39 posted on 12/30/2012 7:34:50 PM PST by jdsteel (Give me freedom, not more government.)
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To: jdsteel

Sorry for the double post! Not on purpose.


40 posted on 12/30/2012 7:37:08 PM PST by jdsteel (Give me freedom, not more government.)
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