Farmers Worry About Dairy Prices As Deadline Nears

As the nation inches toward the economic "fiscal cliff," anxiety is growing in farm country about an obscure tangent of the Washington political standoff that reaches into the dairy industry and, indirectly, into the household budgets of consumers who buy milk and cheese.

Little noticed in the struggle over major looming tax increases and spending cuts is that the outcome could also affect the farm bill, on which Congress didn't complete action this year after it expired in September. Agriculture industry leaders hope the farm legislation can be added to any final fiscal package before the end of the year. But if no fiscal agreement is reached, and the farm legislation is left adrift, farmers could face the prospect of returning to an antiquated system for pricing milk that would bring big price increases for consumers.

"It's going to come down to whether leadership tells them in enough time to get (the farm legislation) into a bill," said Chandler Goule, lobbyist for the National Farmers Union, referring to the agriculture leaders' wait on the fiscal cliff negotiations.

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