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Dairy a Key Component to Farm Bill Negotiations

If there's no farm bill before the end of the year, legislation will revert back to the 1949 version including the original Dairy Industry Act. Some have speculated that could result in milk prices skyrocketing to 6 to 8 dollars a gallon because federal price supports would nearly double.

Steve Maddox, a member of the National Dairy Board, doesn't see that happening….

“Its the only way you can get that money out of the market place is actually selling to the government. Milk on the shelves would dry up and exports would stop and all of the processing plants would be making product for the government to buy. That realistically is not going to happen.”

If the so-called "dairy cliff" is reached in January, the high price the government would be paying for milk could prompt action, according to Ranking House Ag Committee Member Collin Peterson.

Peterson thinks having the government gouged for a price like that would quickly prompt congressional action.

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