For the first time in years, the price of a gallon of milk is now higher than the price of a gallon of gas.
A gallon of generic milk at a Kroger in Cincinnati was selling for $3.09 Wednesday, while gas at the station outside the store went for $3.05 or less.
And experts say milk prices could get even higher if congressional negotiators don’t reach an agreement on a five-year farm bill by New Year’s.
They’ve been tripped up by differences over the nation’s food stamp program and how to restructure farm subsidies.
The farm bill is the primary agricultural and food policy tool of the federal government. The comprehensive bill is passed every five years or so by Congress and is a statute that would regulate farm production and prices.
The two chambers have been far apart on both issues for more than two years. But the leaders of the House and Senate Agriculture committees expressed optimism after a private meeting last week that they may be able to find resolution in time to narrowly avert the expiration of dairy subsidies on Jan. 1.
If those subsidies expire, however, new laws will kick in that could result in decreased dairy supply on the commercial market and higher prices for a gallon of milk.
Without a deal, consumers in January could pay $8 for gallon of milk.
If you want to get your milk for cheaper this week, Kroger charges $2.89 a gallon if you have a ‘Kroger Plus Card’ …so you don’t waste your money.
Source: WCPO