Feds Should Finally Stop Messing With Milk Prices
Government overreach has mucked up the market for decades: Bill Frezza
By John Johnson, Newser Staff
Posted Nov 20, 2012 1:02 PM CST
Jersey cows line up to feed at a dairy farm in this file photo.   (AP Photo/Toby Talbot)

(Newser) – About 400 California cows got shipped to Kansas this month alone, and more are likely to follow as scores of state dairy farms continue to shut down, writes Bill Frezza at Real Clear Markets. Why? Blame the "byzantine" world that results when the federal and state governments try to manage the dairy market, writes Frezza. "It's crony capitalism that only a Soviet commissar could love."

We all pay too much at the supermarket thanks to mandated minimum prices that have been set by the feds since the 1930s, and the industry isn't about to let Congress change that, he writes. In California, it just so happens that those minimums are lower than elsewhere in the nation because the state's cheese makers have more clout than the state's dairy farmers. These farmers are now "on the ropes" and bailing quickly. It's time for the government to get out of these markets, "allowing the dairy industry to restructure itself on rational lines," writes Frezza. Don't hold your breath, though. Read his full column here.

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Showing 3 of 14 comments
Nov 20, 2012 8:27 PM CST
A Free Market will also insure abundant fluid milk products too, the dairy industry LOVES the government to set prices, its a win/win for the industry!
Nov 20, 2012 8:12 PM CST
The alternative is huge farms where the herds are fed a steady stream of BGH which will go straight into the milk
Nov 20, 2012 6:55 PM CST
This guy is flat out wrong..... Subsidizing milk production results (in most years) in an over production of fluid milk..... Basic economics dictates an over supply LOWERS the price to the consumer.... Not only does the taxpayer get something back, more people can get milk, and farmers are not driven out of the business due to fluctuations in yearly production.....