If you were planning to combat the financial hell that will ensue—if and when we go over the fiscal cliff—by surviving on a cheap diet of soggy Raisin Bran, think again: experts are saying nosediving off the cliff might jack up the price of milk to as much as $8 a gallon.
A farm bill pledging federal aid to agriculture programs expired on September 30th, and if Congress does not extend it by the January 1st deadline, the Agriculture Department will have to hike its milk prices. The hike is due to an antiquated law that sets standards by a 1949 dairy price subsidy. Right now, milk is set at a national average of $3.50, but the new standards could have milk costing $6 to $8.
Like pretty much everything else these days, the extension of the bill has sparked squabbles in Congress, with food stamp cuts, crop subsidiaries and dairy price standards among several issues on the table. And failure to pass the bill won't just make the price of a crack pie at Momofuku Milk Bar unbearable— it's also expected to hurt dairy and farm jobs all over the country, though we expect those rooftop farms will still stand strong, assuming property taxes don't kill them off.