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regarding this cliff thing - can or will someone
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regarding this cliff thing - can or will someone


Dec 29, 2012, 9:13 AM

explain to me why milk would double in price?

from $3.50/gallon to $7+?

does that mean that the government is currently paying 1/2 of the price of milk to the dairy farmers? to keep it low for the consumer?
or will the farmers just raise it arbitrarily?

anybody??

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Saw a news report that said dairy pricing would revert


Dec 29, 2012, 9:37 AM

to the 1949 farm bill that ties milk prices to inflation but not to worry because other controls were in place through the comodities exchanges etc.

Apparently this is related to not being able to pass a new farm bill not the deal struck for sequestration etc.

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“Anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that my ignorance is just as good as your knowledge.”
Isaac Asimov


we can not let the market control the price of milk


Dec 29, 2012, 10:54 AM

they need to pass a milk bill quickly

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here is an article that kind of explains why the price will


Dec 29, 2012, 11:05 AM

spike. Evidently the government pays for milk by a regulated formula. That formula will revert back to the formula that was in place in 1949. They weren't as efficient at making milk back then, so now the cost of milk to the government will double and we get double priced milk as a result.

http://www.theatlantic.com/business/archive/2012/12/thanks-to-congresss-incompetence-milk-prices-are-about-to-double/266692/

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you have to ask yourself - why


Dec 29, 2012, 2:07 PM

they have never nillified/undid that crap?


that sounds like socialism to me.


i guess i dont understand why they wouldnt want the market to dictate what the value of milk really is.....

maybe there are so many legacy daries that cant function profitably? still?


we do some dumba$$ things. ugh.

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The proper solution would be to erase the 1949 law


Dec 29, 2012, 3:29 PM

And stop subsidizing the farmers. Prices would tank, milk would be dirt cheap, the industry would downsize to a reasonable market level, and we would be buying milk at the real price and saving billions of tax dollars.

Of course those farmers would be drawing unemployment, medicaid, and whatever else, so the cost savings would not be there because they would just fall into another safety net.

We really don't have a free market economy any more.

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Basically they subsidize most of our food in one way or


Dec 29, 2012, 3:21 PM

another. They do this with farm/agriculture subsidies. We pay $2 billion a year less for corn and corn products thanks to corn subsidies. $1 billion for grain. I'm sure there's something there for milk as well.

Ironic really that the government drops the price of corm products to the tune of $2 billion a year (this does not include ethanol subsidies). That's a lot of carbohydrates added to our diets, and adds to the increase of diabetes, which started back in the 80's when we really started subsidizing corn. And then the government has to spend perhaps $10-$20 billion more a year treating obesity and diabetes related medical care.

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Don't many farm subsities keep prices high by paying...


Dec 29, 2012, 7:11 PM

Farmers NOT to grow certain crops?

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Nope. Quite the opposite. I know with the example of corn


Dec 29, 2012, 9:18 PM

it pays the farmers TO plant it over other crops, bringing the price down. The farmer gets to sell his corn AND get the subsidy for planting it. So he can sell it on the market cheaper than it cost him to grow it and he still makes money. So in the market, the price is depressed because the subsidy drops the cost the farmer has to charge to sell the crop.

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