Surge In Milk Prices Possible In The New Year - News and Weather For The Quad Cities -

Surge In Milk Prices Possible In The New Year

Updated:
  • Most Popular StoriesMost Popular StoriesMore>>

  • Dr. Danger Returns To Local Speedway After Last Year's Scare

    Dr. Danger Returns To Local Speedway After Last Year's Scare

    Sunday, August 31 2014 11:32 PM EDT2014-09-01 03:32:52 GMT
    Greg "Dr. Danger" Carpenter is back at the Jackson County Speedway one year after a death-defying stunt nearly proved to be his last. The star of the American Daredevils TV series took on the same track in Maquoketa, IA, on Saturday, Aug. 30, 2014. More >>
    Greg "Dr. Danger" Carpenter is back at the Jackson County Speedway one year after a death-defying stunt nearly proved to be his last. The star of the American Daredevils TV series took on the same track in Maquoketa, IA, on Saturday, Aug. 30, 2014. More >>
  • First Alert Weather 24/7

    KWQC 24/7 Weather

    KWQC 24/7 Weather is our 24 hour weather channel.  It's available here at KWQC.com, on Mediacom Channel 247 (in the Quad Cities), over the air on Digital 6.2 or you can call your local cable company...More >>
    KWQC 24/7 Weather is our 24 hour weather channel.  It's available here at KWQC.com, on Mediacom Channel 247 (in the Quad Cities), over the air on Digital 6.2 or you can call your local cable company to ask for KWQC 24/7 Weather.More >>
  • Developers Hope To Turn Old Schools Into New Apartments

    Developers Hope To Turn Old Schools Into New Apartments

    Sunday, August 31 2014 11:18 PM EDT2014-09-01 03:18:03 GMT
    It will be new life for a few old schools in Clinton and historic buildings in Davenport if a handful of developers have their way.Community Housing Initiatives is looking to transform the Roosevelt Administration Center, a former elementary school, into mixed income housing, by creating 16 spacious apartments there.More >>
    It will be new life for a few old schools in Clinton and historic buildings in Davenport if a handful of developers have their way.Community Housing Initiatives is looking to transform the Roosevelt Administration Center, a former elementary school, into mixed income housing, by creating 16 spacious apartments there.More >>

The fiscal cliff could affect your grocery bill. Some are calling it the "dairy cliff," where milk prices could skyrocket starting in the new year.

The average price per gallon in November was about $3.54. Come January 1st that price could skyrocket to $7 or $8 per gallon. With all the concerns over the fiscal cliff, other issues like a stalled farm bill are falling by the wayside. The cost to consumers is something many in the Quad Cities area say is hard to swallow.

"Too expensive, very expensive. If you're trying to feed a family that's pinching your purse," said one mother who buys more than a gallon a week.

It all has to do with the farm bill and renewing federal support for agriculture programs, in this case the dairy subsidy. If congress fails to pass something by the first of the year the U.S. would revert back to a 63-year old policy. It would force the government to buy milk at inflated prices, driving the cost up for everyone.

"I think that's highway robbery, absolutely. Eight dollars a gallon for a gallon of milk?" said one shopper buying milk in Davenport.

"It worries me a little bit, that's just crazy. I had no idea that was going on," said another person.

It's definitely on the radar for dairy farmers. John Maxwell just opened a new facility in Donahue, Iowa run completely by robotics. With 300 dairy cows at full production he expects to produce 2,500 gallons a day.

Maxwell says at first the price surge would benefit his business. For every one hundred pounds of milk produced he normally gets paid $15 to $18. That could jump to $30 to $40. But with that, and double the costs in the grocery store, he predicts many consumers will conserve or find other means. "Who's going to buy it, we're going to have all sorts of milk. Now we're going to have all sorts of troubles," said Maxwell.

To avoid that lawmakers can either quickly write a new farm bill in the next few days or extend the current one until something else is figured out. "You do want the law makers to get their act together," added Maxwell, "The extension of it would be good, then rewriting it so it does the right things."

The Senate passed a farm bill back in July of this year but House leaders have yet to bring its version to the floor. One suggestion is attach a farm bill extension to the fiscal cliff legislation, if a deal is reached.

Powered by WorldNow

805 Brady Street, Davenport, IA 52803

Telephone: 563.383.7000
Fax: 563.383.7131
Email: news@kwqc.com

Can’t find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Young Broadcasting of Davenport, Inc. A Media General Company.