I am the 2%!December 31st, 2012
Milk prices to rise in 2013
While taxes increase and the job market remains at a turtle’s pace, those of you who enjoy a warm glass of silk before bed can sleep peacefully, because farm fresh milk will become more expensive in the coming new year. The irony is as thick as the cream at the top in the recent news…
Some of you may not know, but every year the government buys up a percentage of farmer’s milk. In other words price-fixing, something that sends most people to prison. Not the government though.
“It works like this: In order to keep dairy farmers in businesses, the government agrees to buy milk and other products if the price gets too low. The current agriculture bill has a formula that means the government steps in if the price of milk were to drop by roughly half from its current national average of about $3.65 a gallon.”
This is one of the many examples of how the government loves a good, old-fashion double standard. Don’t be naive either, milk is just one of many agriculture products the government is involved in. Corn, soybeans, cattle, are all subject to the government’s control. This story is nothing new. Back in 2002 Maine farmers dumped tons of their milk in protest against the lowering prices of their milk in the market, but don’t worry the government is always there to make sure their paychecks stay constant, keep competitors at bay, and make the price of milk does not go “too low” – all at the expense of the tax-payer. We’d hate cheap milk wouldn’t we?:
Taxpayers may also wish to remember that while the Maine farmers dump their milk in the manure in the name of prices that are “too low”, our friends in Congress continue to throw money—some $ 242 billion thus far—at the WIC program. WIC specifically targets milk and other food staples, as a consumer good far too expensive for anyone whose income is less than 185% of the congressionally-defined “poverty level” (currently $18,104 for a family of four).
Need I say more?