Milk prices expected to increase

(WPRI) -- If you've noticed that the price of milk has gone up recently, you're absolutely right, and if Congress doesn't pass a new farm bill, dairy prices will be harder to swallow.

On Oct. 1, the U.S. Farm Bill expired, shutting off dairy subsidies. Add to that the ongoing drought in the Midwest, and dairy companies who rely on local farmers to supply their milk will now be hit financially.

"A lot of the subsidies that go to the farmers might not be coming back, or as strong as they have with large amounts of money they've seen in the past," said Lindsay Armstrong Mitchell of Munroe Dairy.

Small dairy companies like Munroe Dairy have already raised their prices, here by as much as 11 cents per half gallon. That may not seem like a lot, but for families on a budget it is.

"We saw a four-month continuous rise, and we just couldn't hold off anymore, and we try to protect our customers as much as possible," said Armstrong Mitchell.

Analysts say that if Congress doesn't hurry up and pass a new farm bill allowing subsidies to start flowing again, the price of milk could go up to $6 a gallon in a few months.

Those families who buy organic or all-natural milk can expect an even higher price.

Lawmakers don't expect to move on the new farm bill until after the election. Although, analysts say they expect a deal before January 1.