Farm Bill Impact - Milk Cost for You

Greg Meador, Plains Dairy
Greg Meador, Plains Dairy

At more than three dollars a gallon... Some ask what's worse - gas or milk prices.

Milk may do the body good... But lately it's a pain on your pocketbook.

Greg Meador with Plains Dairy says, "The cost of milk has gone up about 25 -30% in the last year."

The high cost on dairy farms... Begins in corn fields.

The corn once used to feed dairy cows... Today goes to ethanol production.

"It's stealing or robbing away the food that the cow, the dairy cows use. So then the cost to feed that cow goes up. If the cost of the cow goes up then the cost of the milk goes up."

From the farm to the factory... The tab gets larger.

"All cost are up. The resin we use to make the plastic jugs... The suppliers who give us caps, labels for the bottles."

There is good news... Meador says prices may have peaked.

"Last month it came down 18 cents a gallon. This month they are projecting it to come down a little more or stay even."

High or low.. Meador says few cash in when you cash out.

"I don't think anyone is getting rich here the farmer, to the processor to the retailer, they are all just trying to cover their cost."

Some are relating cost increase to the recent farm bill. Meador says some price hikes are linked but there is help through the farm bill for those who need it.

Including the WIC program... Which helps subsidize milk cost.