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No Farm Bill May Raise Food Prices

HUDSON (CBS 2/ FOX 28)-- On Brent Hansens dairy farm, the term fresh takes on a whole new meaning.
His farm produces about 1,000 gallons of milk a day, that he pasteurizes, bottles, and sells straight from the field.
It lets him cut out a middle man, like a grocery store, and set his own prices.
You have to separate yourself as to where you want to be and how vulnerable you want to be to the market, Hansen said.
A market now in limboat least for farmersjust days after the latest farm bill expired.
 There is probably some fear, Hansen said.
With no new bill on the table, farmers who rely on government subsidies to cover their costs may have to raise their prices to make ends meet.
Meaning the cost of things like milk and cheese may soon double.
 If it were that milk was $6 or $7 a gallon, its quite possible that they could sustain without a subsidy, but because the consumer drives the price down, a subsidy is necessary, Hansen said.
Especially in Iowa, the 12th largest milkproducing state in the country.
Without a subsidy, Hansen says most farmers would just about break even.
 Youre basically a volunteer, donating to the food supply, he said.
A scenario Hansen says thats made him grateful for staying independent.
You never know whats going to happen, he said.
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