The farmers share of the retail food dollar continues its gradual decline from yeartoyear as food companies take in record profits and family farmers sell their farms. Evaluating the farmersshareoftheretaildollar statistic. There are many drivers fueling this price increase, including rising food demand. The farm share is the average portion from each dollar of expenditure on food that is.
Through the mid1970s, farmers received about onethird of consumer retail food expenditures for food eaten at home and away from home, on average. Over the past 25 years, farmers have received a decreasing share of the consumer food dollar. Did you know that farmers and ranchers receive only 15. Saving money on groceries is easy with dollar tree. In the early 1970s, the farmers share of the consumer food dollar was 32 to 35%. Business general liability insurance farmers insurance group. Farmers share of food dollar at record low pork business. The content on this page is available as a topic brief pdf download, building local and regional food systems. The farmers market is a critical piece of the food projects broad vision to create a local food system in boston. Farmer share and fair distribution in food chains from a. The farm share in canada from 1997 to 2010 university of guelph. Mar 08, 2018 food costs have risen steadily since the 1980s, while the farmers share of the retail food dollar has plummeted by 50%. The restaurant industrys share of the food dollar was 25 percent in 1955 and.
Pdf there has been renewed interest in the farmers share of retail food sales recently. Farmers share of retail food dollar ohio farmers union. A larger share of the consumers retail food dollar returns to the rural communities where food is grown, but direct. This figure is for the farm share, however, not the farmers share which only amounts to 6. Department of agriculture began compiling the data, reports the washington post.
Farmers overwhelmingly oppose bayer monsanto merger farm aid. Farmers receive 11 cents of thanksgiving retail food. Does the farm share of retail produce dollar matter. Pdf conventional wisdom appears to support the thesis that declines in usdaa s. Visit to learn more united to grow family agriculture did you know that farmers and ranchers receive only 15. Nearly every step from farm to retailer has been impacted by surging commodity costs. Oddly, the usda does not provide an updated illustration of the marketing components from its previous version in 2006. Farmtoretail price spread and farm share in food supply chains. Farmers share of food dollar at alltime low feedstuffs. Farmers share of food dollar at record low drovers. The database is searchable by expenditure categorytotal, food at home, or food away from homefor the food dollar and the food and beverage dollar by year, from 1993 to 2018.
The figure represents a 5 percent decrease from the previous years data and the lowest farm share since usda began reporting the figures in 1993. The farmers share did you know that farmers and ranchers receive only 14. United to grow family agriculture the farmers share. Farmers share of the retail food dollar hits new low. Its a simple reality that anyone who comes into contact with you or your employees while youre conducting business can file a claim or lawsuit against you for any number of reasons from physical injuries to wrongful termination.
Some analysts and farm interest groups are concerned that this decline can be attributed, in part, to increasing concentration in agriculture. Each farmers market in kentucky is an independent entity that sets its own rules and guidelines. Farmers share of the retaildollar statistic for all agricultural products, meat products, and real 2000 per farm net farm income, 192009. It is a place where a community gathers to share and celebrate both the fruits of city gardens and the gardeners that produce them. Retail food prices grew faster than the prices farmers received for agricultural commodities, but economic research has not established that concentration has affected these trends over the past 25 years, farmers have received a decreasing share of the consumer food dollar.
Farmers markets provide one of the only lowbarrier entry points. Farmers markets stimulate local economies americans have long known that farmers markets offer shoppers food thats unrivaled taste and freshness, however, a growing body of research points to the economic benefits of farmdirect marketing. Farmers and ranchers play the most valuable role in actually producing the food that is served at holiday dinners, yet they make just pennies on the dollar for their products. The difference in the percentage of the retail price which goes to the farmer is striking. Farmersshareoftheretaildollar statistic for all agricultural products, meat products, and real. Farmers share of the retail food dollar iowa farmers union. Structural strategies for consumer product companies. Discover a wealth of educational materials for farmers, ranchers, ag professionals, community organizers and others who are striving to reconfigure the nations food system so more value stays in foodproducing communities. Farmers receive 11 cents of the thanksgiving food dollar, nfu. This statistic shows the restaurant industrys share of the food dollar in the united states in 1955, 2014 and 2016.
Peoria county farm bureau farmers share of the food dollar breakfast, peoria, illinois. Iowa farmers union po box 1883 ames, ia 500101883 email protected. Farmers share of the retail food dollar beginning farmers. When packers and processors take such a substantial share of the food dollar, farmers are left to. Usdas economic research services food dollar series recently revealed that in 2016 the farmers share of the food dollar fell to 14. Farmtoretail price spread and farm share in food supply. The ers also noted that for every dollar spent in 20 in the u. Although farming is the primary occupation, a relatively high share of income of 43 percent stems from nonagricultural wages, indicating that nigerias smallholders diversify their income.
Department of agriculture economic research service november 18, 2016 t he f armers s hare did you know that farmers and ranchers receive only 17. Because every farmers agent is also a small business owner, each one has an understanding of some challenges faced by small businesses like. Farmers share of food dollars drops to record low news. But when food prices go down, producers say theyre the first ones to see their pay cut. By selling directly to consumers, farmers retain the value added to their products through various transportation and marketing activities that are usually performed by urbanbased wholesale and retail establishments. Growth in retail sales has equaled 20 percent or more annually since 1990. According to usda, off farm costs including marketing, processing, wholesaling, distribution and retailing.
By processing and marketing their own products, tribal producers will capture a greater share of the retail dollar and keep jobs and revenues in the community. The price consumers pay for food is almost invariably higher than that received by farmers. Aug 16, 2018 for example, between 1998 and 2007, dairy farmers saw their share of the retail milk price drop by 25 percent, while retail prices increased by 40 percent. Farmers share of retail food dollar did you know that farmers and ranchers receive only 15. According to usda, off farm costs including marketing, processing, wholesaling, distribution. While farmers were paid less, and consumers paid more, corporate processors recorded windfall profits. Another trend is the increase of the share of food expenditures allocated to food consumed away from home. Farmersshareoftheretaildollar statistic for all agricultural products, meat products, and real 2000 per farm net farm income, 192009.
Consumers, for the most part, do not buy food directly from farmers. The farmers share of the retail food dollar continues its gradual decline from yeartoyear as food companies take in record profits and family farmers sell their. Farmtoretail price spread and farm share in food supply chains abares. The national farmers union points out that farmers and ranchers receive only 15. Usda econ service in the 1930s there were close to seven million farmers in the u. Farm share of retail price varies by food groups and individual foods.
The seven seattle farmers markets hosted by the neighborhood farmers market alliance support 9,491 acres of farmland in diversified production. Concerns about diverging trends in prices received by farmers and retailers in australias food supply chains have generated interest in the connection between farm commodity prices and retail food prices. Farmers markets give you an opportunity to try retailing with limited capital expense. Usda has just issued a revision to its food dollar seriesits graphic explanation of how the u. In fact, on average, farmers get 17 cents for every dollar americans spend on food. The food dollar series measures annual expenditures by u. Second, the importance of food and beverages in the weighting of the consumer price index cpi is smaller. When adjusted for inflation, in 2009 dollars, the farmers share of the food dollar was 12.
During the war period, however, this share increased rapidly to a record high on an annual basis of 53 cents in 1945. Mar 23, 2020 the food dollar series measures annual expenditures by u. Retail food prices grew faster than the prices farmers received for agricultural commodities, but economic research has not established that concentration has affected these trends over the past 25 years, farmers have received a. One recent study discovered that, for every dollar of sales, direct marketers are generating twice as much economic activity within the region, as. Farmers markets allow consumers to have access to locally produced, farmfresh food and the opportunity to personally interact with the individuals that produced the food. Farmers share of food dollar at record low dairy herd. Does the farm share of the retail food dollar matter. Retail food price inflation is addressed in crs report r40545, consumers and food price inflation.
Price is the primary mechanism that links raw farm commodities through the various levels of the market system to the retail food product. Nonfarm related marketing associated with the food dollar, i. Nov 21, 2018 the farmers share of the retail food dollar continues its gradual decline from yeartoyear as food companies take in record profits and family farmers sell their farms. Food imports to united states soar under wtonafta model. Stimulate local economies farmers market coalition. Farmers share of retail food dollar did you know that farmers and ranchers receive only 20 cents of every food dollar that consumers spend on food at home and away from home. The farmers share of the consumers food dollar by united states. From the consumers point of view, the retail price is the most important. The 1989 farm share of the food dollar averaged 30 cents for every dollar spent in. Farmers share of retail food dollar national farmers union. For the 15 items nfu tracks for the thanksgiving version, farmers. According to the usda, off farm costs including marketing, processing, wholesaling, distribution and retailing. Consumer food dollar 2012 different story in local food. Those farmers who grow fresh tomato varieties receive forty percent of the price to the consumer but farmers supplying tomatoes for canning only get twenty percent of the consumers dollar.
Fueling america through renewable resources biofuels and. Nominal current year data are now available from 1993 to 2018. In many parts of north america, farmers have worked at bringing consumers to their farm. This 1989 increase in the farm value of the market basket was the largest since 1984. Pdf evaluating the farmersshareoftheretaildollar statistic. The breakfast is to provide an opportunity to meet the farmers that raise their food and to provide. Farmers market manual national association of city. They believe that firms in highly concentrated markets may be able to exert market power by raising retail food prices while also depressing prices farmers. These decreasing returns have made smaller farms less economically viable. Farmers receive 11 cents of the thanksgiving food dollar.
Nov 21, 2018 farmers and ranchers play the most valuable role in actually producing the food that is served at holiday dinners, yet they make just pennies on the dollar for their products. When food prices go up for consumers, it doesnt necessarily translate into higher pay for farmers. The farm share of the retail dollar has trended down since 1993. The group is also working on a regional marketing plan for local valueadded products. According to usda, off farm costs including marketing, processing, wholesaling, distribution and retailing account for 80 cents of every food dollar spent in the united. Structural strategies for consumer product companies c onsumer product companies face a challenging combination of rising and volatile input costs, and a pricesensitive consumer. The impact of these policies can be seen in the drop in the farmers share of the retail dollar. And the farmers share during the 1930s the farmers share of the consumers food dollar was as low as 32 cents, and in 1940, at the beginning of world war ii, averaged only 40 cents. This means when you grocery shop or go to a restaurant, only 17% of what you.
Peoria county farm bureau farmers share of the food dollar. The farmtoretail price spread is the difference between what the consumer pays and what the farmer receives. Yet, the market is not just about the exchange of vegetables. In 1956 the farmer received 8% of the price of a box of corn flakes, but by 1979, the farmer received only 1. According to usda, offfarm costs, including marketing, processing, wholesaling, distribution and retailing, account for more than 80 cents of every food dollar spent in the united states. Overall, since 2000, the farm share of the retail food dollar has remained under 16 cents. Beef and pork values and price spreads explained usda. Why local food matters agricultural marketing service. This record low follows four years of sharp declines.
Farmers share of retail food dollar turkey 1 pound retail. Yet, they get a very small portion of the food dollar spent. Publication date 1937 topics food prices, agriculture. For every dollar consumers spend on food, the farmer receives just 14. Because of their market power, corporations can push down the prices paid to farmers without passing on their savings to consumers. Farmers share derived from usda, nass agricultural prices, 2017. Farmers share of food dollar at record low ag professional. As retail grocery prices have increased gradually over time, the share of the average food dollar that americas farm and ranch families receive has dropped. Today, the farmers share of the retail food dollar is down to only 20%. Farmers receive a smaller share of awayfromhome food dollars roughly 2. Value redistribution is a major policy con cern, as the public opinion and policymakers perceive that the farmers share of food value is unfairly low e.
820 377 1251 964 1100 315 1607 83 1054 1275 1320 1540 573 1317 212 719 882 524 552 186 117 1595 1293 899 971 360 1501 1457 1154 1285 849 1138 731 1162 922 786 346