The looming Fiscal Cliff has many of us concerned about higher taxes, but the first of the year could cause even more problems for Americans if Congress doesn't reach a deal.
A big one for a lot of consumers and South Dakota Farmers is something many are now calling the "Dairy Cliff."
It's a farm bill program that will expire on the first and could cause the price of a gallon milk to jump to $7.00 or even $8.00 a gallon.
Billions of dollars in federally funded farm programs will expire the first of the year. If nothing is done before then, Congress will be forced to operate under antiquated programs like the dairy price support program that originated back in 1949.
The program was created to ensure dairy producers receive a standard payment for their milk; however, the 1950s standard would force Congress to pay dairy producers nearly twice the current market value for milk.
"This means 100 pounds of milk that we're selling now at $21 could go anywhere to $38 and up, according to what we've read and heard on the radio," said Greg Ode.
The Ode's have been dairy farmers for the past 50 years. In all those years the dairy farm has seen a lot of changes in technology. The 1949 legislation does not account for those changes.
While this legislative mishap could mean a momentary gain for dairy producers, they don't want to see that kind of jump in prices.
If the price of milk gets too high, dairy farmers are wondering how much of their product will still be in demand.
"Then you think, nobody is going to want to spend 7,8 dollars a gallon at the grocery store for milk...if the milk price goes to $7.00, its a supply and demand deal, well are people going to buy it or not?" said Ode.
But many consumers say milk is a commodity they can't live without.
"If milk goes up, I'll still buy it, my daughter needs it, I like it, and its just something that, I guess the price is like gas, people will buy it," said dairy consumer Todd Fletcher.
Ode hopes all consumers will feel that way, but until the first of the year comes, he'll just have to wonder what it will bring.
"That's a good question, I don't know, I mean we as producers don't know what's going to happen," said Ode.
Small, family-run dairy operations like the Odes cost a lot to keep up. Any changes in supply and demand or a momentary loss of income would make a huge impact.
It's just one more thing looming overhead as we wait to see if Congress can make some kind of solution by the end of the year.
Thursday, February 20 2014 7:42 PM EST2014-02-21 00:42:09 GMT
Behind the glory of football there are the scars and bruises. Some visible, some not. We still have much to learn about the health risk football puts on it's players, but some of the biggest strides inMore >>
Behind the glory of football there are the scars and bruises, some visible, some not. We still have much to learn about the health risk football puts on it's players, but some of the biggest strides in research are happening on South Dakota's fields.More >>
Sunday, March 9 2014 11:45 PM EDT2014-03-10 03:45:40 GMT
Colon and colorectal cancers are the third most common cancer diagnosis in the United States, attacking thousands of men and women every single year. One of those is Katherine 'Kitty' Kocevar. Like mostMore >>
Colon and colorectal cancers are the third most common cancer diagnosis in the United States, attacking thousands of men and women every single year. One of those is Katherine 'Kitty' Kocevar.More >>
Sunday, March 9 2014 11:26 PM EDT2014-03-10 03:26:14 GMT
The Summit League Tournament is in its second day at the Sioux Falls arena, and people are packing the place. The tournament has set records for attendance all six years it has been in Sioux Falls. LuckilyMore >>
The Summit League Tournament is in its second day at the Sioux Falls arena, and people are packing the place. The tournament has set records for attendence all six years it has been in Sioux Falls.More >>
Sunday, March 9 2014 9:42 PM EDT2014-03-10 01:42:11 GMT
The situation in Ukraine is escalating. Next Sunday Crimea will hold a referendum to see if the people want to become part of Russia. University of Sioux Falls Professor Dr. Kermit Staggers said heMore >>
Next Sunday Crimea will hold a referendum to see if the people want to become part of Russia.More >>
Sunday, March 9 2014 2:55 PM EDT2014-03-09 18:55:49 GMT
WASHINGTON (AP) - A sure sign that spring is on the horizon: daylight saving time has arrived. Most Americans pushed the clock forward by 60 minutes before heading to bed Saturday night, but daylightMore >>
A sure sign that spring is on the horizon: daylight saving time has arrived.More >>
Sunday, March 9 2014 2:51 PM EDT2014-03-09 18:51:13 GMT
A Chinese restaurant in Worthington sustained significant damage after a fire broke out, early Saturday morning. The Worthington Fire Department responded to King Wok, formerly known as Michael's Steakhouse,More >>
A Chinese restaurant in Worthington sustained significant damage after a fire broke out, early Saturday morning.More >>
Saturday, March 8 2014 8:17 PM EST2014-03-09 01:17:06 GMT
ST. PAUL — The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), St. Paul Field Division Special Agent in Charge Scott D. Sweetow today announced a reward of up to $5,000 for information leadingMore >>
There is a $5,000 reward for information leading to the arrest of the suspect(s) responsible for the arson fire to the Colonial Inn Motel, in Yankton.More >>
Saturday, March 8 2014 8:05 PM EST2014-03-09 01:05:09 GMT
Despite a warm-up on the way in our forecast, taking a dip into water outside may be the last thing on our minds. In Huron, Saturday, if it was for a good cause, it was hard to say no. More than 200More >>
Brave souls plunged into icy cold water in Huron, Saturday, for a good cause. More >>