U.S. News

New Year Could Jar Milk Buyers, Too

Updated Dec. 28, 2012 7:08 p.m. ET

A quirk in dairy-pricing law is setting the stage for a possible increase in milk prices in the new year.

Dairy subsidies under the 2008 farm bill are set to expire on Monday. Without a farm bill, a 1949 dairy price-support law would take effect—one that uses a complex formula to keep milk prices stable through large government purchases. And government economists warn that doing so could double the price shoppers pay at...

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