Skip to comments.Lawmakers push one-year extension of farm bill in bid to avert spike in milk prices
Posted on 12/31/2012 9:57:53 AM PST by impimp
The leaders in both parties on the House and Senate Agriculture committees have agreed to a one-year extension of the 2008 farm bill that expired in October, a move that could head off a possible doubling of milk prices next month. But House leaders have yet to say whether they will allow a vote on it.
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Just so nobody thinks I am anti-rural. I say cut off the urban transportation funding and welfare programs used by city-dwellers. Leaches are everywhere and they need to be cut off.
Leach is a harsh word. If I could get free money I would likely take it too. That being said they should ALL be cut off.
Embrace the cliff!!!
Because repealing the 1949 law that would have caused the problem would have just been too damn simple!
I FULLY agree, it’s about time CITY-LEECHES find out what food REALLY costs.
Dump this crapola. If milk is worth 8 bucks then it is 8 bucks. I really despise the US government having me make up the difference.
Must be nice to live in such a simple world.
I totally agree. Because of government interference we don’t know what anything costs.
I’m not sure I like the cliff unless it will result in maximizing moocher pain and I don’t think it will.
The milk subsidies would not be necessary if we weren’t burning a large share of the cattle feed for our cars.
They need to cut off the ethanol mandate. That will lower the cost of corn feed for those dairy cows and bring the cost of that milk down.
Spot on. We keep ginning up the law-making machine, why don’t they go in for which ones can be deleted? EVER?
Here is the BIGGEST “Leeches”:http://en.wikipedia.org/wiki/Northeast_Dairy_Compact
Still trying to wrap my head around taxpayers subsidizing 50% of every gallon of milk sold. Does the Farm Bill subdidize milk to such an extent or is this public posturing to ensure the subsidies continue?
You must understand that the market controls the price. We sent ships of wheat to sea in the 1930’s and sank the vessels.
8 bucks a gallon of milk would last less than a week. Farmers might have to cut back on that new Mercedes purchase.
Government interference and regulation to the rescue!
Yep, that’s worked so well. Reap the whirlwind!
“You must understand that the market controls the price”
You must understand the market has had little to do with the price of food for decades.
Pull out price supports and the agriculture industry, what is left of it, will collapse. Leaving the US with inadequate food resources, tends of thousands unemployed farmers, and a need to import even more food.
The subsidies need to be cut but it needs to be done in a responsible way.
If the agriculture industry (or any other industry for that matter) depends upon government interference, then we are truly in trouble. Let producers produce, and either make it or not on their own. Food would be cheaper, even if we had to import it.
I guess it is time to bring the market back. Rip that government band-aid right off.
I am not a fan of anything government. You are apparently dependent on it. We could never reach a solution to the ability of government to fall into the wrong hands.
Then let it collapse. I am not scared of the bogeymen you and others like you use to frighten us with.
Milk cows don’t eat that much corn when producing milk. When they’re not producing milk, they consume some corn in their feed.
To produce milk, milk cows need protein - and lots of it. Milk production is tied to the amount of crude protein that can be put into their diet. This comes from two sources: Alfalfa hay (and hot alfalfa hay) and soybean meal (when milk cows are on “mixed rations.”)
The biggest cost inputs for dairies right now have to do with things like hay costs, diesel fuel and cost(s) of replacement heifers. In the last two years, dairies have culled their herds pretty hard due to drought, and that impacts replacement heifer costs down the line. Feed costs due to the lack of hay and pasture are simply at absurd heights.
That and the fact big agri has contaminated our seed stock in pursuit of mass production to feed the urban areas to the point we cannot export rice and other grains.
These 3rd world shi_-holes that are starving don’t want our food just our money.
“Then let it collapse. I am not scared of the bogeymen you and others like you use to frighten us with.”
Then you’re an idiot. It means people will starve and die.
“I am not a fan of anything government. “
Not the military, not roads, prisons, hospitals, fire trucks?
“You are apparently dependent on it.”
No but you are an ass.
It doesn't feel like rationing but $12 a pound for beef is not normal ~ on the other hand $2 a pound for pork is a little more on target, and $1 a pound for chicken does make sense.
The market did only part of that ~ much of it was done by cutting us off from Canadian beef ~ fear of Mad Cow Disease! But chickens and pigs utilize grains more efficiently than do cattle ~ at least for meat.
When it comes to milk, the law was originally written when most regions had their own local dairy industries. They'd just had the experience of the Dust Bowl and that period's association with a different great drought.
Price supports were thought to be useful for keeping the local dairies in business no matter what happened to the local grain markets, plus, the greatest users of dairy products were families with children ~ and at that time the youth were the most likely to be poor and unable to afford milk for their babies (many Freepers were babies then BTW).
Market theories tend to collapse in the face of great droughts ~ at least when we are talking about agriculture. The way this system works now is the background costs to produce a gallon of milk sky rocketed ~ milk price support levels increased accordingly. When the drought ends, the background costs will decline and milk price support levels should decline accordingly.
Lurking in the background is the lost opportunity cost of the dairies ~ they could send their cows to slaughter and get a chunk of that $12 per pound retail beef price!
That would reduce the milk volume and increase the price even more.
Total elimination of the price supports will result in the herds being slaughtered and the price of milk rising far higher than a pitiful $8 per gallon!
We’ve been in trouble for decades. Perhaps we can send all these keyboard commandos to fix it. They don’t seem to care how many people get hurt.
fan of hyperbole?? wow-- just wow...
Milk prices have NEVER doubled overnight in the nation’s history, and there’s no reason to believe they would just
because a favored piece of pork legislation was allowed to
This is just “Big Bird Cried, Save Our Funding!” all over again.
“Total elimination of the price supports will result in the herds being slaughtered and the price of milk rising far higher than a pitiful $8 per gallon! “
Any idea how much milk the US Govt buys? Either directly or through food stamps and other programs?
Please. Unraveling the problems caused by the idiotic policies foisted upon us by government is going to cause a great deal of pain for someone, regardless of how they are resolved. How much pain will there be if the dollar collapses, or if we have to repudiate our national debt? The truth is, we CANNOT get to the promised land from here. I am sorry that us ‘keyboard commandoes’ are beneath your respect. I have voted. I have lived my life as a responsible citizen. I have tried to raise good kids. The keyboard is my only vent. Sure we could prop up farmers. And teachers, and wind generated power producer, and auto workers. But who is going to prop up the government?
$12/pound beef? What cuts are you eating?
Cattle markets are around $1.3-$1.40 per pound to the producer.
Choice box beef market is $1.80-$2.00 per pound to the processor.
yes we have been in trouble for decades....
We are not unconcerned about people getting hurt. We are merely more interested in making the sacrifices needed to get our freedom and liberty back right now, by our generation- instead of allowing ourselves to be so scared that we continue to support big government and let our children and grandchildren deal with the consequences of our fears...
when the rubber band snaps back it is going to hurt....but the further we keep letting it stretch = the more it will hurt...
sooner or later that dam is going to break...
really? you think people wont starve when food prices skyrocket?
Its easy to say cut all of it and let the pieces fall where they may when you are sitting behind a keyboard.
Its a huge mess and you can’t just abandon people after making them dependent on you for decades.
honestly- I think far fewer people will need to worry about starving than they will need to worry about thugs and bandits and violence....the communities where people care about one another will fare well(helping each other and sharing resources), the slums where the people have become wards of state through dependency will become a nightmare...
see a pattern??
Here in tampa a 3 lb cut of flank steak is running about $17 right now.
Ribeye is $11.99/lb on sale
I’m not a meat producer or a processor.
The number of societies that have taxed themselves into prosperity is ZERO.
The number of societies that have spent themselves into prosperity is ZERO.
The milk subsidy is just another society hidden tax. It does not lead to prosperity for society ... only the crony few.
Sometimes they do, depends on what the item is and what the support is.
really? Please show a post where I stated any of those idiotic statements you are attributing to me.
Name one society that has taxed its way into prosperity.
Name one society that has spent its way into prosperity.
Please explain why the milk subsidy isn’t a tax.
I’ll wait while the crickets chirp.
A lot of Iowegians winter in Florida. A lot of them used to take meat with them because of poor quality in Florida. They claimed that had changed in more recent years.
In any case, Tampa high prices aren’t from outrageous producer prices.
Ribeyes seem about right. Way too much for flank steak.
Sample prices around Des Moines:
top sirloin 4.99/lb.
new york strip 6.99/lb.
boneless chuck roast 3.69/lb
sirloin tip 2.99/lb.
Maybe there is more demand in Tampa for flank steak or less supply.
With respect to prices, let’s also count state and federal gasoline and diesel tax for vehicles in the food distribution system, then there’s the business tax on profits, the employee taxes, SSI, and OSDI, and health care, liscences and fees, inspections, etc. Taxes are the biggest slice of the pie. If you want to cut prices, cut gov’t out of the picture.
What you seem to be arguing (and please correct me if I am wrong)is that we have to artificially support producers in order to prevent there being massive layoffs. Then we have to artificially support consumers, in order to prevent starvation. Yet if we do this, (and we total up all the costs involved) we end up paying far more for food than we would have if we would have just left the whole system alone. I know that tough decisions are tough (duh). But the government NEVER makes a given situation better, over the long run.
Just let it die. The market will be in turmoil for awhile. When they start pouring milk out on the ground prices will stabilize.
Well, yes, although...
Either government interference in the intertwined markets for grain and meat lowers the price of those products or it doesn’t. Given the low prices Americans pay for food (compared to the rest of the world), the evidence suggests American government interference lowers consumer prices *for those products*.
That doesn’t mean a net benefit. Just the opposite. It just means that true cost is obscured by laundering some of it through Washington.
As long as we have Liberal Free Traders in politics and media (and even a few of them here on FR), there will always be price supports and farm subsidies
As long as we let the Communist Chinese dump ag products on the US with little or no tariff....there will be subsidies for US Ag so they remain competitive domestically and internationally. In fact, most price supports on Ag are done so US producers can sell their product overseas below cost
Put tariffs on foreign Ag products...and you will no longer need subsidies
It’s time to dump the Liberal Free Trade Globalist policies. We can no longer afford the high taxes and government subsidies to keep our domestic producers competitive. Tariffs work, contrary to what Liberal free Traders push
I have no problem with foreign nations subsidizing the food their farmers sell to us. Think about what you are complaining about. It is like complaining about someone giving you money.
I say free trade AND no subsidies. Things will work out.
We happen to have sufficient resources in and on public lands to not need to ever repudiate our debt or our money. In fact, we have the hardest currency in the world over the long haul ~ a fact long noted by every rich guy on the planet. They deposit money here even if they don’t get paid interest to do so.
A lot of small family farms will collapse, but the industry will not. Now, I have a fondness for small family farms -- don't get me wrong. I live in an upstate New York farming village that would see some serious repercussions to the ending of government subsidies.
But it ain't right and it doesn't make economic sense to subsidize small, inefficient operations with the hard-earned dollars of American workers.
No I’m saying the market has been artificially supported, directed, controlled and so forth for generations. To suddenly pull all of that out would create chaos with severe consequences.
As I’ve already posted numerous times the supports need to be pulled out but gradually to allow the markets and people time to adjust.
Kinda like jumping from an airplane with or without a parachute.
oh shut up you simpleton