Neglected bill could raise price of milk to $8 - KLTV.com - Tyler, Longview, Jacksonville |ETX News

Neglected bill could raise price of milk to $8

MYRTLE BEACH, SC (WMBF) - As lawmakers struggle toward a compromise on the fiscal cliff, a very important farm bill is waiting in the wings.

If and when Congress reaches a deal concerning tax increases, it may be too late.

"I have to start thinking about it because dairy products are such a need for my family and me," worries Steven Kruly, a father of three.

It's been dubbed as the "dairy cliff," and if lawmakers don't give this bill some attention soon, farmers will continue operation under a 1940s law since the farm bill expired three months ago.

"It's almost going to be impossible to feed your family on a normal basis," exclaims Brian Cunningham, a concerned consumer.

Federal funding assured through March 2013 has kept prices at the average for now, but if the first of the year comes and goes without any action on the farm bill, prices could skyrocket. Experts expect the price of milk to reach $8.

"It'd be ridiculous if it went up to $7 a gallon, that's double what gas is," says Kruly.

"That would take your cost of living and drive it through the roof," says Robbie Kruly, another grocery shopper surprised by the news.

It works like this: the government agrees to buy milk and other products from farmers in order to keep them in business. Right now that formula has the government step in when the price drops to less than half the current national price.

"That would affect everybody, especially here in Myrtle Beach, the lowest paying place in South Carolina, and will devastate a lot of people," worries Kruly.

However, that subsidy will expire January 1st, 2013 and a law from the 1940's will kick in, having the government paying off inflated prices which would be double the current price.

And it won't just affect your groceries.

"From $4 to $7 you're going to notice the price difference and it's going to hurt. But, you're probably only buying a gallon a week so it won't affect you like if you were buying 30 gallons a week," explains Brad Daniels with Croissants Bistro & Bakery.

Restaurants, bakeries, and even Day Cares purchase large amounts of dairy every week.

"That could lead to a significant cost of the product which is passed off to the customer or absorbed in our profit," says Daniels.

The cost would be based on the cost of production, set over 64 years ago, which would pass along more cost to the consumers.

In 1964, the year the Beatles came to the United States and Martin Luther King, Jr. won his Nobel Peace Prize, the price of a gallon of milk averaged 95 cents.

In 1980, when Ronald Reagan was elected president and the Mount St. Helens eruption killed 57 people, milk cost $1.60.

In 2011, the average cost of a gallon of milk was $3.39. So what can we expect if the farm bill is swept under the rug? Well, your gallon of milk could cost around $8.

Here's a look at the increase in prices in the United States over the past 50 years:

Cost of Living

1964

1980

2000

2011

Cost of new home

 $13,050

$68,700

$134,150

$262,260

US Postage Stamp

5 cents

15 cents

33 cents

44 cents

Gallon of milk

 95 cents

$1.60

$2.75

$3.39

Gallon of gas

30 cents

$1.19

$1.26

$3.52

Movie ticket

$1.25

 $2.69

$5.39

$8.20

Average Yearly Wages

$6,000

$19,500

$40,343

$40,925

Loaf of bread

21 cents

 51 cents

$1.72

$1.98

Dozen eggs

54 cents

 84 cents

89 cents

$1.32

US Population 191,889,000 227,225,000  282,224,000 311,705,000

Copyright 2012 WMBF News. All rights reserved.

  • NewsMore>>

  • Fatal crash in Titus Co.

    Fatal crash in Titus Co.

    Saturday, May 27 2017 4:15 AM EDT2017-05-27 08:15:28 GMT

    A one-vehicle crash in Titus County has left one dead and others injured.

    More >>

    A one-vehicle crash in Titus County has left one dead and others injured.

    More >>
  • UT-Tyler softball wins in blowout fashion at World Series

    UT-Tyler softball wins in blowout fashion at World Series

    Saturday, May 27 2017 12:12 AM EDT2017-05-27 04:12:41 GMT
    UT-Tyler won 13-0.UT-Tyler won 13-0.

    UT Tyler pitcher Alaina Kissinger threw a complete-game shutout where her team gave her an 8-0 lead before she delivered her first pitch in a 13-0 win over Amherst College on Friday as the Patriots improved to 2-0 in the NCAA Division III Softball Championship at the USA Softball Hall of Fame Stadium Complex.

    More >>

    UT Tyler pitcher Alaina Kissinger threw a complete-game shutout where her team gave her an 8-0 lead before she delivered her first pitch in a 13-0 win over Amherst College on Friday as the Patriots improved to 2-0 in the NCAA Division III Softball Championship at the USA Softball Hall of Fame Stadium Complex.

    More >>
  • East Texan gunning for back to back national championships

    East Texan gunning for back to back national championships

    Saturday, May 27 2017 12:09 AM EDT2017-05-27 04:09:41 GMT
    Whitney Simmons is going for back to back national titles.Whitney Simmons is going for back to back national titles.

    UT Tyler senior Whitney Simmons will attempt to cap her historic career with a third national title and seventh all-America honor when she competes in the hammer throw at the NCAA Division III Track & Field Championships at 10:30 a.m. on Saturday at the SPIRE Institute in Geneva, Ohio.

    More >>

    UT Tyler senior Whitney Simmons will attempt to cap her historic career with a third national title and seventh all-America honor when she competes in the hammer throw at the NCAA Division III Track & Field Championships at 10:30 a.m. on Saturday at the SPIRE Institute in Geneva, Ohio.

    More >>
Powered by Frankly