Lawmakers Work New Year's Day to Avoid Milk Cliff
While Americans enjoy New Year's Day, lawmakers in Washington work on an agreement to prevent milk prices from vaulting to $7 a gallon or higher in 2013.
The crisis, which would impact lower income Americans' ability to keep milk on the breakfast table, stems from an expiration of milk subsidies that would cause important dairy price supports to revert to 1949 levels allowing a massive price shift on the market.
On New Year's Eve, concerns over the pending price hike were already being felt by the milk supply as one local grocery store saw their milk delivery delayed as regional stores rushed to buy up existing milk before price increases went into effect.
A temporary stopgap proposed by the Senate would forestall the so-called, "Milk Cliff," and give lawmakers time to work on a new farm bill to extend current subsidy levels indefinitely.