- If Congress doesn't get around to passing a new farm bill before the end of the year the USDA will be forced to support higher prices for dairy farmers which would create a disruption up and down the food industry.
- Milk producers could benefit from the changes mandated by the 1949 farm bill - while food sellers could see profits pinched with consumers unlikely to absorb the full amount of price hikes.
- Most analysts think Congress will get its act together in time, but the risk of a stalemate exists.
- Related stocks: SJM, DF, NSRGY, WWAV, LWAY, DNKN, MCD, SBUX, KO, GIS.
New farm bill needed to prevent 'dairy cliff'
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