While Congress tries to head off a "fiscal cliff" tax hike, a so-called "milk cliff" could double the price you pay for milk.
The House has refused to vote on a Senate-passed farm bill. If a new farm bill doesn‘t pass by January 13, federal price supports revert to a "parity pricing" system created in the Truman Administration, a system which incorporates inflation and production costs into federal price supports.
Purdue animal sciences professor Mike Schutz says many dairy producers have wanted higher prices to keep pace with rising feed costs.
But he says the milk cliff would drive prices so high that sales would drop.