Will Lack of Farm Bill Cause Milk Prices to Double?

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Dec. 11 (Bloomberg) -- Prices for nonfat-dry milk, the biggest U.S. dairy export, rose to a six-year high on surging overseas demand at a time when Congress’s failure to extend an expired farm law leaves the threat of surging consumer costs. ALan Bjerga reports on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

Details.

We've been hearing a lot about the possibility that without a farm bill milk prices may double in january.

Where does that stand?

I was on a call with secretary tom vill sack and he said you would not be seeing any changes to milk prices in the month of january.

Even though the farm law takes that, you have the month of january to get some sort of a lot done because we cannot get this bill enacted and there is a feeling that a bill cannot get done and that is what they are counting on right now.

They have a little breathing room.

Are they confident they will get a bill done?

Negotiators say they are very close to having a bill done.

They're looking for congressional scoring issues to be resolved down looking at a few more details and then they think they will have a package that can go to congress in january.

What happens?

Congress is very unpredictable and this certainly starts an era of good feeling, an idea that bipartisanship can happen and we will see if whether that holds in the farm bill.

We've been hearing house speaker jon banner sang the chamber would consider a one- month extension of the lawmakers did not finish their work this month.

That was immediately shot down in the senate because there is a feeling that the extension does not really needed.

In january, your cesium programs from 1940 nine technically needing to be put into effect but there is a rules process which the obama administration has a reason to drag its feet on to keep consumer prices from rising.

While you have that window where the law of demand is from 1949, what is happening is not affected by these programs and is congress a chance to get something done.

As the year goes on and the start to apply to other areas about your culture, things start to bite, that is also a prod for congress to do something.

What could still trip them up cap go?

It was difficult to even get this far.

The attempts failed them he ended up having two separate agriculture programs from the food stamp programs to get it through the house and it has been brought back together in the full version and you don't know how this will play out.

They are negotiating a package to be sent to the floor and both chambers.

What are they saying?

What we are hearing largely comes from congressman collin peterson, ranking member on the ad committee.

The food step program ranges between $4 billion in the senate to $40 billion in the house will probably be at around $10 billion.

Honestly, a lot of these are arcane issues that would border the typical person off the street to tears but they are important for the constituencies involved and it's keeping the farm bill from being passed on till next year.

Congress has been debating the farm bill and how is this affecting the debate if at all?

It is affecting the debate.

When you were talking one year ago, you are seeing record prices for coin and soybeans.

We are having a lot of production income and that is very large crops.

They are pushing down commodity prices and now you are seeing some concerns that there will be a reduction in farm income and these prices have been reduced creating a different set of problems in the farm economy changing the debate on what the subsidy program should look like in the farm bill.

Agriculture correspondent alan bjerga, thanks so much.

This text has been automatically generated. It may not be 100% accurate.

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