If Congress fails to pass a farm bill extension, dairy prices will increase substantially.
The fiscal cliff is not the only unfinished business in Washington. Congress also has failed to pass a farm bill extension, and that could mean serious sticker shock at the grocery store in a few weeks.
Pundits are calling it the “dairy cliff.” The current farm bill expires with the new year, and an old law, dating back to 1949, would then set rules for government dairy policy. It uses a formula to set prices the government will pay for milk, butter and cheese in order to help regulate prices in the marketplace.