ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Will the Price of Milk Double?

Updated on November 29, 2012

Is Your Breakfast At Risk?

Your morning bowl of cereal may become a victim of our dysfunctional Congress.
Your morning bowl of cereal may become a victim of our dysfunctional Congress. | Source

Introduction

Your morning bowl of cereal may soon become a victim of our dysfunctional Congress. Due to Congress' inability to agree on a renewal of the Farm Bill, the average price of milk may more than double to over $6 per gallon in 2013!

Average Milk Prices, April 2012

City
Average Retail Price for a Gallon Whole Milk
 
Atlanta, GA
$3.82
 
Baltimore, MD
$3.42
 
Boston, MA
$3.62
 
Chicago, IL
$4.16
 
Cincinnati, OH
$2.72
 
Cleveland, OH
$3.32
 
Dallas, TX
$2.95
 
Denver, CO
$3.19
 
Detroit, MI
$2.96
 
Fort Lee, NJ
$3.76
 
Hartford, CT
$3.87
 
Houston, TX
$3.65
 
Indianapolis, IN
$3.64
 
Kansas City, MO
$4.13
 
Louisville, KY
$2.99
 
Miami, FL
$3.74
 
Milwaukee, WI
$3.82
 
Minneapolis, MN
$3.96
 
New Orleans, LA
$4.66
 
Oklahoma City, OK
$3.99
 
Omaha, NE
$3.93
 
Philadelphia, PA
$4.07
 
Phoenix, AZ
$3.49
 
Pittsburgh, PA
$3.89
 
Portland, OR
$3.56
 
Seattle, WA
$3.06
 
St. Louis, MO
$3.51
 
Syracuse, NY
$2.99
 
Washington, DC
$3.79
 
Wichita, KS
$3.29
 

Current / Future Price of Milk

According to the United States Dairy Association, the average national price for a gallon of whole milk was $3.60 in April 2012. This price varied widely throughout the country. For example, the average price was only $2.72 a gallon in Cincinnati, OH, but a hefty $4.66 a gallon in New Orleans, LA.

The price of milk has historically been regulated by the nation's Farm Bill. The Farm Bill includes a subsidy called the Milk Income Loss Contract ("MILC"). The MILC is a program administered by the Farm Service Agency that compensates dairy farmers when the price of milk falls below a certain level. Without the Farm Bill, these subsidies would disappear, and dairy farmers would demand higher prices.

The Farm Bill also sets the policies under which the government purchases dairy products. Without the current Farm Bill, government purchases of dairy products would revert back to the outdated policies of the 1940s. This would put further upward pressure on milk prices, according to the National Milk Producers Federation.

The Farm Bill, which is typically renewed every five to seven years, expired on September 30, 2012. The renewal of this bill--the 2012 Farm Bill--passed the Senate on a bipartisan vote of 64 - 35 on June 21, 2012, but has been stalled in the Republican-controlled House. The Republican leaders of the House have said they will not consider the 2012 Farm Bill until after the November 6th elections.

Thus, the price of milk will depend on whatever action--if any--is taken during the lame duck session of Congress after the elections. If the lame duck Congress fails to pass the 2012 Farm Bill, we can expect the price of milk to skyrocket during 2013, with the National Milk Producers Federation warning that the average price of milk will rise above $6 per gallon. Considering the current Congress has passed fewer laws than any previous Congress, its entirely possible that it will not act.

Along with milk prices, the prices of other foods and beverages would also soar. This would include the prices of cheese, yogurt, ice cream and other dairy products. Also impacted would be the prices of chicken wings, chips, hamburgers and bacon, which would rise by an estimated 20%.

What You Can Do

Consumers will have few options for dealing with soaring prices for milk and other groceries in the event the lame duck Congress does not pass the 2012 Farm Bill.

Some consumers may switch to milk substitutes, such as soy, almond or other non-dairy milks.

Other consumers may use less milk, such as by having bagels instead of cereal.

Perhaps the best possibility is for consumers to contact their Congressmen to urge them to overcome their dysfunction and agree on a renewal of the nation's Farm Bill.

Comments

    0 of 8192 characters used
    Post Comment

    • Barbara Kay profile image

      Barbara Badder 

      5 years ago from USA

      I hope this is taken care of. We have sales here for $2.50 a gallon almost every week, but I've noticed that last couple of weeks it has been $2.99. $5 would ruin my grocery bill.

    • billybuc profile image

      Bill Holland 

      5 years ago from Olympia, WA

      It is an important bill for sure; I have written at length about the farmers in the country and the raw deal they are getting.

      On a side note, we have a store here in Olympia where milk is $2.00 per gallon and has been for several months...at least a dollar cheaper than other stores. I have no idea why!

      Thanks for the information!

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)