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Dairy Farmers May Further Tax Already Soaring Milk Prices

Despite record high prices for milk at the grocery store, California dairy farmers say they're considering a new tax or ‘fee’ per carton. From Sacramento, Jenny O'Mara reports.

Dairy Farmers May Further Tax Already Soaring Milk Prices

Despite record high prices for milk at the grocery store, California dairy farmers say they're considering a new tax or ‘fee’ per carton. From Sacramento, Jenny O'Mara reports.

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Increasing worldwide demand has helped to drive up prices. But Michael Marsh with the Western United Dairymen says costs are still rising too.

<b> Marsh </b> : Some of the farmers are looking at this year's net income of $45,000 to $60,000 effectively going away to environmental costs.

Much of that is for equipment to comply with new regulations for air and water quality. So he says next year they'll be seeking help from the legislature-in the form of a tax or "fee" on containers of milk.

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<b> Marsh </b> : That would go a long ways toward helping farming and farmers stay in business in the state of California and not simply close their doors or move out of state.

Marsh acknowledges it will be an uphill battle -- as Governor Schwarzenegger has vowed not to raise taxes.