Friday, December 13, 2013

Chance of Doubling Milk Prices in 2014?

This is from me and Cornell University:

A year ago, there was much speculation about what could happen to milk prices if Congress failed to either enact a new farm bill or extend the old one, which included reverting to a law dating from the WWII causing the price of milk to double. 

There were fears of milk prices in the stores doubling. Here's what I wrote about it last year: 

Congress still hasn't passed a Farm Bill. So are we in danger of doubling milk prices in 2014? 

Cornell economist Andrew Novakovic says no.

Novakovic, former chair of the Department of Agriculture’s Dairy Industry Advisory Committee and professor of Agricultural Economics at Cornell University, says Congress will not be foolhardy enough to allow those old laws to come into effect.

“Is there any chance that we will see a doubling of milk prices in early 2014? No!

“This year, Congress seems on the verge of actually completing the task of adopting new farm and food legislation.  Although they won't get that job done until mid-January, they learned from last year that there is nothing to be gained and a good deal of mischief to be wrought by letting those old programs come into effect again.”

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