Milk Prices Could Rise to $8 Per Gallon if New Farm Bill Is Not Passed by Tuesday

If a new bill is not passed by Tuesday, Americans could see the price of milk more than double. Prices for milk would by law be set by standards that date back to 1949, fueling a sharp increase from the national average of $3.50.

If a deal is not reached, the price of milk could rise to $8 per gallon.

While Congressional leaders and President Obama are trying to work out a deal that would avoid the cliff's sharp tax increases and spending cuts, agriculture committees in both the House and Senate are attempting to hammer out a short-term extension of the farm bill that expired on September 30.

If a new farm bill is not passed by Tuesday, milk prices would rise significantly as prices for milk would be set by standards dating back more than half a century ago.

During a Senate debate on Friday, Sen. Max Baucus of Montana said that a failure to extend the farm bill could cost many jobs. He said that there is "no excuse for inaction" and warned:

“Make no mistake, the farm bill is a jobs bill."