Friday, December 28 2012, 10:12 PM CST
Dairy cliff could result in higher cost of some groceries
By Jessica De Nova/KTVL.com
MEDFORD, Ore.-Federal funding for many agricultural programs is only good through March 2013, pressuring Congress to pass a Farm Bill to replace the one that expired at the end of September, and keep prices at the grocery store, down.
Since the end of September, farm regulations have
been operating under the Agricultural Act of 1949, which says the
government must purchase milk at a price twice higher than it is today.
The 2008 Farm Bill covers all crops planted this year, giving lawmakers some time between the end of the expired bill and Jan. 1, when the price of some products, like milk, could rise.
"It helps my husband sleep and if, um, if it goes up, we won't be able to buy as much, cause you know everybody's on a budget," says Amy Lytlebielby on the possible rise in the cost of milk.
Barb Goheen, on the other hand, may have to cut down on other dairy products if they increase in price.
"Probably not the milk, probably more on the cheese and ice cream if it goes up a lot," says Goheen.
In the end, the federal government determines how much dairies will pay for raw milk.
"They use some complicated formulas based on, you know, cheese inventories across the United States and what cheese and butter are trading for on the Chicago Mercantile Exchange, to come up with some numbers that they plug into this formula, that then goes to tell us what we're gonna pay for milk," says Umpqua Chief Operating Officer, Steve Feldkamp.
This raw price helps dairies determine how much they will charge their distributors, such as grocery stores, for the finished product.
At this point, there are only "what if" scenarios.
If Congress does not have a new farm bill in time to cover expiring farmer subsidies, it may cost farmers more to produce.
"Then that will probably drive the cost up, which ultimately goes to affect the price of milk at the grocery store," says Feldkamp.
MEDFORD, Ore.-Federal funding for many agricultural programs is only good through March 2013, pressuring Congress to pass a Farm Bill to replace the one that expired at the end of September, and keep prices at the grocery store, down.
Since the end of September, farm regulations have
been operating under the Agricultural Act of 1949, which says the
government must purchase milk at a price twice higher than it is today.
The 2008 Farm Bill covers all crops planted this year, giving lawmakers some time between the end of the expired bill and Jan. 1, when the price of some products, like milk, could rise.
"It helps my husband sleep and if, um, if it goes up, we won't be able to buy as much, cause you know everybody's on a budget," says Amy Lytlebielby on the possible rise in the cost of milk.
Barb Goheen, on the other hand, may have to cut down on other dairy products if they increase in price.
"Probably not the milk, probably more on the cheese and ice cream if it goes up a lot," says Goheen.
In the end, the federal government determines how much dairies will pay for raw milk.
"They use some complicated formulas based on, you know, cheese inventories across the United States and what cheese and butter are trading for on the Chicago Mercantile Exchange, to come up with some numbers that they plug into this formula, that then goes to tell us what we're gonna pay for milk," says Umpqua Chief Operating Officer, Steve Feldkamp.
This raw price helps dairies determine how much they will charge their distributors, such as grocery stores, for the finished product.
At this point, there are only "what if" scenarios.
If Congress does not have a new farm bill in time to cover expiring farmer subsidies, it may cost farmers more to produce.
"Then that will probably drive the cost up, which ultimately goes to affect the price of milk at the grocery store," says Feldkamp.
Related Stories
- National News
- International News
Automotive
Find valuable information about buying your next car, including price quotes and your latest automotive news.
We Know Why You're Awake
We Know Why You're Awake. We can help.
Closings & Delays
Check here for closures and delays.
Community Calendar
Looking for something to do? Check the events calendar.
Gas Prices
Gas prices are on everybody's mind. So News10 is working with Gas Buddy to help you find the cheapest gas in the area.
Word of the Day
The Wild Rogue Pro Rodeo is sponsoring our "Word of the Day" contest. Click image to see details!
2013 Last Band Standing
Enter this years Last Band Standing! Click to enter online and find out about the contest.
No Text Zone
Help make our roads safe and you could win prizes! Read the official rules here!
KTVL Top Stories
Special Report: Zeroing in on top jobs
Special Report: Preparing for work
Dozens rally in support of marijuana suspects
Federal involvement in drug raids explained
Support grows for marijuana suspects
Northern Californians describe jolt from quake
Local inspectors laying out plans for bridges in our area
Early berry season
Slide into some fun
Items seized in drug raids revealed
Police: Pair had gun near high school
Cannabis community plans protest
Trucker horrified as I-5 bridge collapses behind him
Judge declares mistrial in Jodi Arias case
Block the sun
Don't forget the potato salad
Nike plans to donate shoes, clothing to Oklahoma tornado relief
Boy Scouts will accept openly gay boys; keeps ban in place for gay adult volunteers
Oregon gas prices flirt with $4 mark
Police plan DUII patrols for Memorial Day Weekend
Earthquake causes damage in Northern California
Vietnam POWs reunite at Nixon Library
Officials believe oversize load caused Washington bridge collapse
Meet Amber Radebaugh
Tornado victims move forward
How big was that hairball?
No fatalities in I-5 bridge collapse
Earthquake hits near Susanville
Local fairgrounds may see change in ownership
Officers make several arrests as they serve eight pot related warrants
Local club prepares for Boatnik
County Commissioner asks for pay cut
A 911 call in an unsafe county
Police chief: You can't sell marijuana in Oregon
Feds will release timber payments next week
Police serve search warrants in pot trafficking case
Josephine County leaders search for solutions
State leaders look for ways to help protect counties
Weather slows up tornado cleanup
Memorial planned for dead inmate
Crews restore power in Phoenix
Crater Lake's entrance still closed
So close to death
Police activity reported at pot advocacy office
Be safe before you launch
Report pushes for more physical education in schools
Eastern Oregon checkpoint finds invasive species on boat
Sheriff official: Inmate hanged self
GP fire crews battle house, car fires
Families remember tornado's youngest victims
Aumsville remember tornado
Celebrate Oregon wine
Roam the Rogue
Roam the Upper Rogue Wineries
A taste of everything
Find the valley's wines
Meet Robert Moody
Too sweet to pass up
Crews blame broken insulator for power outage
Power outage in south Medford
Prosecutors propose sentencing compromise
Govenor looking at public safety emergency
Failed levies mean cuts somewhere
Voters react to failed tax levy
Campgrounds ready for Memorial weekend
Josephine County commissioners hear from voters
What is the Triple Top?
And the Cool School is ... Mountain View
Combining veggies and fruit
Deputies investigate inmate's attempted suicide
Fire scorches KFalls home
Break out the lawnmower and trimmer
House may increase its budget as other departments face cuts
Gilbertson: I'm disappointed
Voters react
Josephine County voters support Wolf Creek firefighters
Meet Rodeny Colson
DAs want to reduce sentences for some drug crimes
As rescuers continue search, families deal with loss
Failing tax levy causes county cutbacks
Voters reward frugal fire department
Lane County is only timber county to pass tax hike
Josephine County tax levy destined for failure?
Fire brings the barn down
Police reunite missing man with caregivers
Multiple ballot measures in Josephine County
MMW Back In Time: KKK
Good samaritan helps arrest suspect in drug bust
Locals can help Oklahoma tornado victims
Utilities and property taxes may increase for local town
Large fire destroys barn at local ranch
Timber counties aren't happy that federal subsidy is late
Police: Burglar took jewelry, electronics from Marissa Court home
Oklahoma governor vows to account for every missing person
Surveillance video provides suspect description
Man expected to change plea in child abuse case
She's a talker
Researchers: Don't sleep with your baby
Blended decadence
Burglary suspects steal firearms, cash, gold
Trial postponed for man accused of scalding child; change of plea expected
Control your gun remotely? Company develops the technology
Three timber counties ask voters for tax hikes
City bans nine from downtown Ashland
Police: Park bench attack was unprovoked
How to help
Rescue workers dig through the rubble
Don't forget to drop off your ballot
Polls close at 8 p.m.
Congress: Who knew what? And when did they know?
Meet Roseann Ritchison
Medical examiner: 24 dead in Oklahoma twister
Medford Rogues nearly ready to open
EMT recalls helping abducted children
Homeless dog finds new meaning
iPhone app leads police to burgulary suspect
Tornado tears through Moore, Okla.
Technology leads police to burglary suspect
Don't forget to vote
Who won the Powerball? Winner still hasn't come forward
UK scrambles to vaccine against measles
There is no wrong way to make goulash
President's approval rating is holding despite scandals
iPhone helps police find burglary suspect
Supreme Court: FCC has power in cell tower disputes
Theft suspects accidentally dial 911 while smashing into cars
Buckle up! Cops start seat belt enforcement campaign
Tornadoes rip through central Oklahoma
Groups look to reform the IRS
Spice it up
One step back, one step forward
A little dip
Has a little kick
Meet Aggie Bearden
Local high school camps prepare incoming freshman
Car stolen with children inside
Local teachers file for unfair labor practices
Wild Wines expands into the Applegate
Toast for tails
Gas prices rising
Children get professional safety tips
Locals try to win $600 million
Suspect takes off in stolen car with kids inside
Timber county troubles
Manhunt scaled down
More than 50 people injured at parade
Bear camp road open
Police find suspect hiding in trailer
Officers learn how to handle unusual high pressure situations
Parents are the key to keeping kids sharp
Sheriff says recent crime shows budget cuts are not an option
Community health grants
Money measures on the ballot making for high voter turnout
Detectives say lingerie stand ad may be a scam
Powerball jackpot grows to $600 million
Voter turnout is strong in Josephine County
Bill would regulate pot retailers
Oregon AG: It is too late to appeal Kinkel sentence
The search for Susan Powell's body may come to an end
Your handbag: A breading ground for bacteria
Bill could legalize medical pot retailers
California sees drop in unemployment rate
BLM, Forest Service open Bear Camp Road
AP Review: Tea Party tax returns show activism on budget
Ex-loan officer pleads guilty in real estate case
Oregon attorney general opposes Kinkel appeal
Poll: Americans are unsatisfied with government
Need to save a duck? There is an app for that
Meet Terry Croft
The record is making a comeback
Restaurant serves up lion
Britt Festival opens up ticket sales to non-members
Drug use results in shooting
Medford School District experiments with year-round learning
A fourth home is burglarized in local neighborhood
Man admits to identity theft
Search for drive-by shooter continues
Candidates for Eagle Point School Board Position 2
Rural counties vulnerable to Cartels
Rain puts damper on fire season
Police say Middle School Fire was Intentional
Police release shooting suspects names
Park officials pitch budget plan
Boaters beware: Tree Danger Ahead
Crowds queue up for Britt tickets
New charter school is taking applications
Watch for milestones
Economists: Oregon tax collections will be up
Tree causes hazard in Rogue River
Police recover stolen handgun
Lawmaker wants rule-breakng coaches to pay
Driver rolls car into ditch
Quinoa : Nature's supergrain
Obama cleans house at IRS
Don't skip breakfast
Blending the fruit
Dressing up the quinoa
A tasty start
Meet Eva Albert
Just wants treats
Joke in the sky
Mail theft suspects face federal charges
Remembering fallen police officers
Resident's home hit by bullets
Police say cartels moved in to rural Klamath County
Migrant summer school growing in Medford
Park officials open Crater Lake's North Entrance Road
Early gunshots startle nearby neighbors
Holder: Potential civil rights violations at IRS
Police: Shooting was targeted attack
Drug raid nets 30
Remembering the fallen
States urged to reduce alcohol limit
Start thinking about your taxes now
Drug operation leads to 30 arrests; 4 pounds of meth seized
Police look for targets of early morning shooting
SWAT enters home; police make arrest
Police are investigating an early morning shooting
Networks have ties to White House
Meet Rachel Jensen Nordahl
This is Eagle Rock Elementary School
Man charges elephant
Police close in on shooting suspects
Police investigate morning shooting
Gun shop fined for lead exposure to workers
A hard days' night for Josephine County deputies
Firefighters respond to fire alarm at a local school
Investigators search for cause of fire
Two men are running for one seat on Eagle Point's School Board
MMW Back In Time: Train robber tells all
Bug boom bothering growers
Missing Eureka girl is OK
Finding more summer school funding
Holder justifies Justice Department's probe into AP phone records
State house extends hospital, nursing home tax
Man fights federal fine for stripping at TSA checkpoint
Fire crews contain bathroom fire at Ashland Middle School
Police offer details in drive-by shooting
Alert neighbor helps capture burglary supsect
Isn't she beautiful
Angelina Jolie has double mastectomy to prevent breast cancer
Firefighters respond to fire at Ashland Middle School
Oregon sees another drop in unemployment rate
Lawmakers look to extend hospital, nursing home tax
Sheriff: Terrain, darkness trapped hunter
Police release description of shooting suspect
Douglas County Sheriff identified dead woman as Ashland transient
Top IRS official: Agency showed a "lack of sensitivity"
Bone marrow needle takes a back seat
The only chance
Trying to find the perfect match
Swab your cheek
Filing out the form
Meet Wayne Ingram
Ground control, this song is for you
Ice invasion
Fire destroys two Central Point apartments
Onion farmer faces fines for harrassment
Tablerocks staffing being cut
New methadone clinic is still a concern to some
Warm water dangerous to salmon
Newsmax Headlines
Business News
US durable goods orders rise 3.3 percent in April
WASHINGTON (AP) -- U.S. orders for long-lasting manufactured goods rebounded in April, buoyed by more demand for military and civilian aircraft and an increase in business investment.
Consumer Info
BC-US--Dow Record-Three Personal Stories, 1st Ld-Writethru,1173
Dow Record: Three tales of ups, downs and changes
AP Photo FX102, FX103
Eds: With BC-US--Dow Record. Adds photos.
By SCOTT MAYEROWITZ
AP Business Writer
NEW YORK (AP) -- When the Dow first crossed 14,000, investors were overjoyed. ...
Entertainment News
"HANGOVER 3"
LOS ANGELES (AP) -- All hangovers come to an end eventually, and so, too, "The Hangover" franchise.
Get This
Science/Tech News
IN THE NEWS: RESTAURANT FLAP LEADS TO INTERNET MELTDOWN
SCOTTSDALE, Ariz. (AP) -- It isn't exactly to curry favor with your restaurant customers -- even if your specialty isn't curry.
