Dairy market collapsing :Farmers Want Bailout

The Chicago Sun-Times reports:

The price farmers get for their milk is plummeting -- and some of the difference may show up in your pocketbook soon.

The global dairy market has crashed so quickly, however, that it's backing up the industry's supply chain. In Galt, Calif., for example, farmer Bill Van Egmond had to pour 2,000 gallons of milk down the drain one recent weekend. That was a day's worth of milk for Egmond.

"No creamery would take it," he said.

The base price dairy farmers get for milk is set to tumble 35 percent -- to 97 cents a gallon -- Feb. 1. Retail prices should follow -- first milk, then other dairy products. But analysts say the drop likely won't be as quick, or as large, as the cut in farm prices.

Few if any dairy farms can turn a profit with milk at less than a dollar a gallon, several experts said.

Industry groups are asking for federal help, floating the idea of a taxpayer-funded buyout of 300,000 dairy cows to cut production, Karlin said.

Separating farming from state would be a very good idea.