The price of milk will double if Congress does not pass a replacement farm bill. We will be paying $7 a gallon. That’s because the federal government’s milk producers’ subsidy will go to $7 a gallon. The dairy industry will rejoice. “Happy days are here again!” “We’re in the money!”
The lapse of today’s farm bill will resurrect the 1949 percentages for the guaranteed price paid by the government to dairies.
This will remind the voters of the subsidies, which they always forget. Milk would be cheaper than $3.50 a gallon if it were not for the Department of Agriculture’s price support program, one of the oldest and most respected boondoggles in government.
There is no free market in agriculture. There has not been ever since 1933.
Why do dairies get paid guaranteed prices by the government? Because this tiny industry has conservative U.S. farm state Senators like Charles Grassley on their side. They know where their bread is buttered.
Is there a recession in farm products? On the contrary, agriculture is a booming sector of the economy. So, why do farmers need federal subsidies? That is like asking why a Hollywood starlet needs plastic surgery. Because the subsidies are there. It’s free money.
Does this program hurt the poor? No. Food stamps cover the losses to the poor.
Then who pays for food stamps for 47 million people? Who pays for the crop guarantees? After all, there is no such thing as a free lunch. Or breakfast. Or dinner.
Look in the mirror.
Go out and buy a gallon of milk before January 1. Buy two gallons. Splurge.
Will Congress hear from the voters? Yes. Will there be a new farm bill? Yes. Will $7 a gallon milk prevail? Not for long.
So, let’s enjoy the show. Let’s see how Congress handles the clear message from the folks back home.