Fiscal Cliff Could Impact Dairy Prices

Reported by: Alexis Arnold
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Updated: 12/13/2012 6:23 pm
Spencerport, N.Y. - Dairy farmer Robert Colby of Colby Homestead Farms in Spencerport says he wants a resolution to the Farm Bill soon.

If there isn't one, the bill will default to a 1949 permanent bill which requires the Federal Government to buy huge amounts of milk at double the price.

Farmers say that will trickle down to consumers.

Senator Chuck Schumer says that could even put a bust in Western New York's booming yogurt industry.

“Our Greek yogurt industry in Genesee County is one of our best industries and if they start worrying about the prices of milk and if they see the price of milk is gyrating, it's really bad and they may lose a little faith here,” Senator Schumer said.

“When it works its way down for the farmers, at the same time it works it way up for consumers so it has the potential for all the dairy products to go up 40 to 45 percent within a three month period,” Robert Colby with Colby Homestead Farms said.

Senator Schumer says if an agreement isn’t reached, we could see milk prices jump within the first few weeks of January.

The Farm Bill wouldn't just affect all things dairy but it could also impact funding for food stamps, and school lunches.

Schumer says he's hopeful a bill will pass or at least an extension.

He anticipates Congress to take a couple of days off for the holidays, but they could work until the end of the year.

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