Will the “Dairy Cliff” affect Humboldt?
Humboldt pot growers may soon consider adding a cow or two.
…the arrival of 2013 may bring a doubling in the price of milk to as much as $6 to $8 a gallon, up from about $3.75. For this, you can thank Congress, which seems to have lost the ability to carry out its most basic functions, starting with passing legislation.
The source of the dairy cliff can be found in the failure of Congress to agree on a new farm bill, which is normally renewed every five years. Not this year, and the deadline for passing a new law expires Jan. 1.
The upshot is that the rules governing dairy price supports will revert to legislation adopted in 1949, forcing the government to purchase milk at elevated prices. With Washington soaking up milk, market prices would follow.
And a Bloomberg piece from this morning: http://www.bloomberg.com/news/2012-12-31/farm-state-lawmakers-back-plan-to-avoid-dairy-cliff-price-jump.html