Could Farm Bill Lead To Higher Grocery Prices?
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MINNEAPOLIS (WCCO) — The gridlock in Washington D.C. may soon be felt at a grocery store near you. While lawmakers are expected to vote on a budget deal on Thursday, it’s a different bill that could really impact your wallet.
With just 19 days left in the year, if Congress doesn’t pass a new farm bill by the end of the year milk prices could double. It’s currently at about $3.47 a gallon.
The prices wouldn’t jump overnight, but would could become reality within a few months.
Subsidies for dairy farmers will expire at the end of the month. Without another plan, rules from the 1940s will be reenacted that requires the government to buy milk, butter, cheese, at double the price.
Speaker of the House John Boehner said last week Congress could pass a one month extension on the farm bill to give them more time to work out a deal.
What’s holding up the bill is the difference over other controversial areas of the legislation, like food stamps and crop insurance.
The two proposals in the House and Senate want to cut up to $45 billion out of those programs. If there is an extension, we’d still be back in this same situation come the end of January.