Last updated: February 20. 2013 12:00AM - 905 Views

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Washington DC- U.S. Senator Bob Casey (D-PA), Chairman of the Joint Economic Committee, today called on the House to pass the Farm bill before January 1. If a Farm Bill isn’t passed the U.S. Department of Agriculture will be forced to revert back to a 1940’s era milk policy that could push prices up to between $6 and $8 per gallon in 2013 and cause the government to unnecessarily spend between $12-15 billion.

Failure to act will require a terrible waste of taxpayer dollars which will likely result in major price spikes for consumers, said Senator Casey. Without action on a Farm bill, the U.S. will be forced back to outdated, depression era laws that will require the government to waste taxpayer dollars, increase prices on consumers, and likely throw milk away.

If the House fails to pass the Farm Bill the U.S. Agriculture Department will be forced to revert to a 1940’s era policy that could result in consumers paying between $6-$8 for a gallon of milk. Dairy is the first commodity that will revert to the old price parity law on January 1. Under the provision, the U.S. Department of Agriculture would be legally required to spend between $12-15 billion buying up milk. The result of the large milk purchases would be a substantial increase in the price for consumers and a potential decrease in demand which would then harm producers. Additionally, the federal government would be in possession of large reserves of milk that could end up just thrown away.

The Senate passed a Farm bill in June 21. The bill would help dairy farmers across PA and save taxpayer dollars by $23 billion. The bill would create economic opportunities in rural areas, sustain businesses that rely on agriculture, help Pennsylvania farmers address risk management and conservation, and help American agribusinesses such as honey producers maintain a competitive edge against unfair foreign competition.

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