Farmers warn milk prices could approach $8 a gallon


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SALT LAKE CITY — If the fiscal cliff were not enough, another year-end deadline could push the price of milk way up, and it has some Utah dairy producers concerned.

One farmer who said the impact could be devastating to the agriculture industry, possibly pushing the price of milk up to $8 a gallon. And while you might think higher prices would be good for dairies, the owners say the opposite is the case.

Well over 200 young calves are growing up at the Stratford Dairy in West Haven. It's been the longtime family business; Ronald Stratford grew up with it.

"Dad actually started it with his brother in 1955," Ronald Stratford said.

The remaining 160 adult cows produce more than 1,000 gallons of milk each day. But as any agriculture producer will tell you, making ends meet is a constant challenge.

"It's a good way to work; it's a good way to live, to have satisfaction in your life. It's a heck of a good way to raise a family," Stratford said. "(But) we're sure not doing this for the money. We could probably do something else, and do just as well with a whole lot less work, and a little less headache."

Adding to that headache is the possibility that an old law could come back into effect, using a pricing structure about 100 years old.

Congress is at an impasse over a farm bill that would renew federal support for agricultural programs. If the bill doesn't pass, it would put milk somewhere between $6 and $8 per gallon, according to some estimates.

Congress already missed the deadline in October, with a ninety day extension running out at the end of the year. Right now, a compromise cannot be reached on how much the government should subsidize crops, how dairy prices should be stabilized and whether food stamps should be cut.


We could probably do something else, and do just as well with a whole lot less work, and a little less headache.

–Ronald Stratford


Stratford said dairy producers could always use the extra money, but he believes the reality is that people won't be willing to pay the higher cost.

"Yeah, we'll cash the checks, if they should get here," he said. "Out fear is that (this) would just kill our industry."

As a board member with the Dairy Producers of Utah, Stratford said farmers have been pushing congressional leaders to something. He says if a new bill isn't passed, dairies like his could shut down, and imported products could become less expensive than those made in Utah.

A proposed farm bill has made it through the senate and through the house agriculture committee, but hasn't hit the floor because of concerns that it wouldn't get enough votes. While they may not make the end of the year deadline, Stratford is hopeful that at least another extension can be put in place, buying Congress a bit more time to work it out.

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Mike Anderson

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