Could milk double in cost?

Could milk double in cost?

MIDWAY, Utah - (ABC 4 News) - Forget rising gas prices. It turns out that milk prices could more than double, to 6 or 8 dollars a gallon.
MIDWAY, Utah - (ABC 4 News) - Forget rising gas prices. It turns out that milk prices could more than double, to 6 or 8 dollars a gallon.

"It would go up drastically," explained Mike Kohler, with Dairy Producers of Utah.

Kohler said the price could rise, depending on if congress passes a new farm bill that amends an old 1949 policy. 

 "If it goes back to the 1949 Farm bill, the price of milk is set by the cost of  inputs," explained Kohler.

The higher prices would be similar to dairy farm production costs in 1949. This was when everything was done by hand. The government got involved in order to help farmers regulate dairy costs.

 "it's set by formula. it has nothing to do with the market," Kohler said.

If the new bill doesn't pass, by law, the government would have to purchase milk at twice the current price, which is about 3 to 4 dollars a gallon right now. Although Kohler believes the cost increase would be helpful for farmers, he worries.

"Whenever the Government is dealing with something you have to be nervous, but I think they're going to do an extensions, which will basically keep us in the present."

Kohler told  ABC 4's Lauren Johnson that 8 dollar milk has lasting effects beyond the carton cost.

"If the milk in the stores goes up that high, there will obviously be repercussions, not just with milk, but with everything we eat, and that would have drastic consequences," said Kohler.
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