Fallon Farmer Discusses Possible "Dairy Cliff" - KTVN Channel 2 - Reno Tahoe News Weather, Video -

Fallon Farmer Discusses Possible "Dairy Cliff"

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If a deal to avoid the Fiscal Cliff is not reached on Capitol Hill before Tuesday, there could be many trickle-down effects.

One being the "Dairy Cliff".

The federal farm bill expires in two days. Part of that bill controls the dairy market. Without it, the government would be required to buy dairy products based on 1949 production costs.

That means up to $7 per gallon of milk. And, you guessed it, those costs would be passed onto consumers.

"It would be great for maybe a few months, but once the consumer stopped buying milk, then I think it would hurt the dairy industry extremely," says Jeff Whitaker.

Jeff and his family have owned the Whitaker Dairy Farm in Fallon since the 1930's. He says he doesn't foresee prices getting out of control, and isn't too concerned over the approaching Dairy Cliff.  

Prices may jump, he says, but not that high. It's all based on supply and demand.

"Without a bill passed or government involvement, who knows, but I think it's going to stay pretty much status quo," says Whitaker.

But, if prices soar to $7 per gallon, you may see families around the country cutting back instead of dishing out the extra cash.

"I think you'd see a huge cutback in the amount of milk being drank," says Whitaker. "It would affect everything, your cheeses and butter, and that would be affected by it."

Written by Adam Rasmussen

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