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Milking the Taxpayers: $7 a Gallon When We Go Over the Fiscal Cliff

Written by Gary North on December 28, 2012

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.

Continue Reading on www.washingtonpost.com

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26 thoughts on “Milking the Taxpayers: $7 a Gallon When We Go Over the Fiscal Cliff

  1. End all farm subsidies. End them all. Either cut it in the open market or go out of business. After all most farm subsidies are in fact going to conglomerate agricultural companies like ADM and not to small guys like my Uncle. But never the less cut the farm subsidies. Make in the open market or go into the dust bin of history. That is called Free Enterprise. The current method is called bribery for your votes.

  2. I once told a guy we should end farm subsidies and just about got punched. He was my co-worker at an airline. He was also a part-time farmer who commuted 50 miles one-way to the airport rather than give up his farm lifestyle. He figured people had a right to live on their farms and it was up to the government to see to it that they didn't have to give them up and move to gainful employment. This is the mindset of many. I could've told him that nobody has a right to do some particular thing for a living if he can't make a go of it. But I didn't, because I wanted to defuse the situation. 🙂

  3. Let's go back to powdered milk.

  4. I say let it go off the cliff and take all those jokers in DC with it.

  5. "Milk would be cheaper than $3.50 a gallon"

    Milk would cost more. These so-called subsidies only raise the price floor while lowering the price ceiling.

  6. subsidies,for farmers and ranchers is garbage

  7. NoMoreMarxistsInDC says:

    People will stop buying milk and look for alternatives like rice milk, soy milk, coconut milk, etc. Once they start doing that, and their research of what really goes into milk, milk will go sour on the supermarket shelves. Watch the prices plummet then. It will all be supply and demand. The consumer won't pay any more than the going price now, so demand will dry up. The supply will be overstocked and most of the milk will get thrown out. So, the "poor" commercial farmers won't get anything. Awwwww! Too bad!. The farmers got caught up in the vicious government spiral of subsidies and they will soon be on the bread and milk lines themselves.

  8. The price for milk will go up BUT the payment to dairy farmers will go down & congress gets a raise!

  9. Hang'em high, Congress that is.

  10. Most people simply won't buy $7/gallon milk.

    If my kids can eat cereal dry (they've never used milk) I guess I can learn to as well.

  11. The price of milk is to high now ,, thanks to government ,, big brother needs to keep out of private business ,,,,,,

  12. Our politicians would refuse to do the right thing which is to give back the money to the American people, and we could afford the higher prices without subsidies.

  13. So, Kevin~~ what do you think powdered milk is made out of???!!!

  14. People posting here are ignorantly badmouthing farmers because they think we want the subsidies. We never wanted anything in the first place except a fair market price for our products!! Do you know that corn back in the 1940's and 50's was around 90c a bushel and it was still around a dfollar a bushel when my husband and I farmed in the mid-70's, and in the 40 years we have farmed since we never saw corn go over $4 until after we retired from farming in 2010. If the govt would STAY OUT of the farmers' business and let the MARKETS work by supply and demand, we would never have accepted the subsidies!! Our cost of production went way beyond the income from our milk, beans, corn, hay, wheat,–all farm products that you find in almost EVERYTHING YOU EAT!!–and we could not have made it back then without the subsidies. NO we DO NOT want the subsidies–just stay out of our business, Washington, but in the meantime, all of you people quit condemning the farmers that feed the world! You act like the farmers are demanding it–most of us are not! Just wait and watch the prices of food go through the roof because Obama is in control! Small farmers like most of us in the midwest will soon be a thing of the past.

  15. Then if farmers REALLY don't want the subsidies, why do they take the money anyway? Just refuse it. (right!)

  16. yes Charjo you got that right it is getting to the point AMERICA is almost a thing of the past. if obama goes for a third term as some people thinks he will. there will not be AMERICA. because he is giving this country away. he so stupid he sales some and gives the rest away. to his muslim buddy's he knows if a mosque is built then these muslims think they have a right to the land around it even if it is your drive way or front lawn.

  17. This is what Obama and the corrupt bastards want to try to tax their way out of this recession as they cant make any more jobs

  18. Howard Grant says:

    Buy a cow.

  19. Government is not the solution, government is the problem. Government puts it's nose where it does not belong and begins to manipulate everything, opening the door for unintended consequences.

  20. Repeal the old price support laws. Get farming off welfare. newsandopinions dot net

  21. The Big Easy says:

    The problem with that is the cost to feed the cow will be out-o-sight !!!!!!!!!!

  22. Geronimo Schmidt says:

    More expensive milk, more expensive ice cream and butter and cheese.
    This means , less obese people
    Less obese people, less expensive healthcare cost
    Problem solved !!!!!

  23. SaanenMom says:

    People will not pay $7 a gallon for STORE milk. For those that want REAL healthy milk, in the States where it is legal to sell or do herd share, people are paying from $6 to $14 gallon. Here in south-central ID, I currently get $7.50/gal for REAL, unpasteurized goats milk. I can sell from 7 goats and have plenty of customers where I can't keep up with the demand.

  24. SaanenMom says:

    Here Betty, something for you to read. This was sent to me a couple days ago & I can see this happening…our Country is pretty splintered: http://www.canadafreepress.com/index.php/article/

  25. SaanenMom says:

    Goats are more efficient with their feed and producing milk. My breed, Saanens, are known as the Holstein of the goat world because they can and do give 1.5+ gals a day…with the proper feed.

    If you think their milk tastes "goaty", then question the source. Most people think my milk tastes like rich cows milk. Yes, it should not taste "goaty". Some of the causes of off tasting goat milk: #1 is most important! All milk should be filtered and chilled to 40F within 1 hr. That requires ice water to get it down to that temp. 2. goats need worming like cows (& other animals) and it usually has not been done by "backyard" owners. 3. Not being fed a good diet. Goats are browsers, like deer, which means they prefer eating trees, shrubs, weeds, etc. They graze only when there is no other option. Since most people don't have access to browse, a proper diet with the required balance of phosphorus to calcium, protein, fat, minerals (goats require higher levels of copper) will produce good tasting milk.

    If this year is as bad as I have read from non-MSM news, my goats will be worth their weight in gold. Even without proper nutrition, they will still produce milk.

  26. SaanenMom says:

    Actually, REAL milk, ice cream, butter and cheese is healthy for you. What is causing obesity in this country is all the processed foods people eat. Store bought milk is highly processed. Back in the 50's when I was a kid, milk was still delivered to the house. It was pasteurized but NOT homogenized. Once they started homogenizing cows milk, heart attacks started going thru the roof.

    Now that people buy mostly processed foods, they are also buying foods made from GMO & GE grains. There haven't been enough long term studies (they have been in existance for about 35-40 yrs) done to see what the outcome will be. However, the obesity problem has only become a real problem in the past 15 yrs or so.