Milk prices were thought to rise dramatically in 2013 as the United States legislature mulled over their fiscal cliff agreement. A gallon of milk could have gone up to as much as $7!

As it turns out, Senate Agriculture Committee Chairwoman Debbie Stabenow worked to extend portions of a farm bill which had expired in 2008.

The Huffington Post explains:

“Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich., told reporters that negotiators had agreed to extend portions of the expired 2008 farm bill through September. She said that includes language keeping milk prices from rising, but excludes other provisions like energy and disaster aid for farmers.”

“Stabenow said she considers the slimmed-down extension to be “Mitch McConnell’s version of a farm bill.” She was referring to the Senate Republican leader from Kentucky, who she said forced bargainers to accept the version of the farm bill that appeared in the deal.”

Many families were nervous about potential prices hikes in milk prices. Others in the school systems, non-profit sectors, and of course the agriculture business were concerned consumers would not be able to afford milk in 2013. For now, it seems the fiscal cliff agreement will stave off any milk price increases.

Video Credit: ABC News

Sources: Huffington Post

The year has just begun. If changes in the bill were to take place down the line, the dairy business as a whole would endure great overhaul.  Do you think this fiscal cliff agreement will hold for the remainder of 2013?