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Supermarket Guru.com Editor Phil Lempert on the potential surge in milk prices if the Farm Bill is not extended.
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What Washington still fighting over the debt deal farmers are worried about a dairy deal.
Farm bill is set to expire at the end of the year along with everything else is going on in -- senate agricultural committee chairwoman.
Pushing for a short term extension to avert the Clinton.
But if that doesn't happen no prices get ready for this could go up to eight dollars a gallon.
The supermarket guru Phil leopards -- how this is going to turn consumers sour you bet that would O Tom the -- that are about double Elizabeth.
It's it's about -- can increase hopefully not but anywhere between three and four dollars a gallon and it's not just about milk.
This is eighty food cliff we talk about the financial -- this the food -- keep in mind we're coming off of two years of horrible weather conditions around the globe.
The drought this past summer I don't think that's of the whether people say that we're in a cycle that's not to his company to itself but it's not in fact the USJ has said over the next twenty years.
We're gonna see more weather conditions that affect the price of food.
Food prices are gonna go up.
So we don't need this nonsense happened in Washington.
Over over the form bill we gotta get this past secretary Vilsack has been saying that the past six months are.
We just are we just subsidizing.
Here because I mean if we take away.
This subsidy in the prices go to -- isn't that what the real market price of milk is no it's not could it's not about the farmers -- about the dares it's about the distribution and it's all over the lot you take a look you know here in New York City prices are higher.
Then you know two miles away in New Jersey sure.
You know there's there's a lot at risk here and frankly we're having an economy where people are struggling to pay for their supermarket food.
Dig in and day out and bottom line is it's gonna get worse so they've really got to pay attention to this they've got to focus on it and they've got to get -- salt.
The I know this is a little off topic but as those -- the food stamps EBT card room they cholera.
I was over to gas station a couple of weeks ago and and they had a big.
You know -- they have the in the middle of the gas station they sell the high priced snapped great friend and that's all it is is high price necks and they had a big signs saying weeks -- PBT cards.
Often thought why doesn't the government negotiate with major food.
Grocery chains regionally.
To try to get their cost down because otherwise people are going in -- pain.
Premium prices on our dollars for the food -- Well to be honest with you there's a lot of programs out there now -- in the -- -- who's a fabulous -- up in Connecticut started out here in Manhattan.
-- come from a family of farmers.
What he's done he's he's put together a nonprofit.
We're if you're on food stamps and you go to a farmer's market and you buy fruits and vegetables they actually doubled the value for you.
So there's a lot of programs out there in this country to really help.
But when we look at milk for example one think that has me concerned if you look at New York City and there's been a lot of -- -- over the past year year and a half.
Since Mayor Bloomberg talked about the soda -- right -- and decides it's.
In those cities where soda is less expensive than milk soda consumption is higher than milk.
Those cities that -- consumption milk prices are lower than.
So I guess what so this it was so we're saying is a -- that prices shoot up people discuss which over start drinking -- -- -- is absolutely -- -- this is -- one trillion dollar.
Five year deal.
It every five years this thing comes around every five years I hear the same complaints and nothing gets done.
Correct and it goes back to 1949.
When the formal started it is antiquated.
He really doesn't take into consideration -- -- crops that need subsidies do we really need a subsidy on corn these days.
Look at the price of corn it's now -- 300 dollars a -- So when you have animals you've got to feed like -- it's about three times what it was just a couple years ago.
And the other problem with corn is everybody noses you know -- so we don't know what number it is but we know there's some ethanol.
Program is causing corn prices to be distorted between thirty and 40% of -- going for ethanol and of that remaining 60%.
About half of that corn gets exported.
Now what we're starting to see is China is really.
You know -- to plant lots of corn could say they see this is a great opportunity to get into it you think this.
-- it's gonna go up to eight bucks you gonna they're gonna try to get it done before Sunday night.
I hope not are you really think that secretary Vilsack.
That the White House is really pushing to really solve this form Balkans if not.
We're gonna have some severe problems when you go to a -- market and -- eight bucks for a gallon of milk.
You're gonna throw up your hands and say this is worse than I ever thought absolutely -- -- we'll check back with you thank you so much thank you to Dmitry.
