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Milk Prices May Soar to $8 a Gallon

iStock/Thinkstock(NEW YORK) -- Partisan gridlock in Congress may lead to sharply higher milk prices in the new year.  It’s the latest sign that the deep divide between Democrats and Republicans is having a direct impact on consumers and the economy.

Milk prices could at least double in January if there is no agreement on farm price supports. The current fight over the $80 billion-a-year food stamp program is a big part of this.

The farm bill money includes food stamps as well as farm subsidies.  Without a deal, consumers in January could pay $8 for gallon of milk.

Lawmakers from both the House and Senate are set to begin negotiations this week on the five-year farm bill.  Both sides are at odds over how much money to cut from food stamps.

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