NYT:
Lost in the political standoff between the Obama administration and
Congressional Republicans over the budget is a virtually forgotten
impasse over a farm bill
that covers billions of dollars in agriculture programs. Without
last-minute Congressional action, the government would have to follow an
antiquated 1949 farm law that would force Washington to buy milk at
wildly inflated prices, creating higher prices in the dairy case. Milk
now costs an average of $3.65 a gallon.
Higher prices would be based on what dairy farm production costs were in
1949, when milk production was almost all done by hand. Because of
adjustments for inflation and other technical formulas, the government
would be forced by law to buy milk at roughly twice the current market
prices to maintain a stable milk market.
But the market would be anything but stable. Farmers, at first, would
experience a financial windfall as they rushed to sell dairy products to
the government at higher prices than those they would get on the
commercial market. Then the prices customers pay at the supermarket
would surge as shortages developed and fewer gallons of milk were
available for consumers and for manufacturers of products like cheese
and butter.
Why is so much legislation just add-ons to old law? These guys take so long to put the laws together, you'd think they could scrap out the old stuff that doesn't apply. Apparently not. Also, there's this:
“This is a totally antiquated law that has nothing to do with farming
conditions today,” Professor Smith said. “It was put as a poison pill to
get Congress to pass a farm bill by scaring lawmakers with the prospect
of higher support prices for milk and other agriculture products.
Letting it go into effect for even a few months would be particularly
disastrous for consumers and food processors. “
It appears that these guys are dysfunctional enough that they need to avoid the poison pills, unless they are taking actual pills.
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