How Much of Grocery Cost Goes to Farmers?


To kick off the year, the National Farmers Union recently released their latest “Farmer’s Share” report.  It is based on calculations derived from the monthly Agricultural Prices report that comes from USDA NASS and is compared to price points of common grocery food items at a Washington, D.C. Safeway supermarket.


According to USDA’s Economic Research Service, farmers and ranchers only receive 15.8 cents of every food dollar spent by consumers outside the home in the United States. Additionally, more than 80 cents of every food dollar is spent on marketing, processing, wholesaling, distribution and retailing.


“It’s easy to forget the true value of our farmers and ranchers, who in some cases are only making pennies to the dollar on their goods, while we’re at our local supermarket,” said NFU President Roger Johnson. “Our Farmer’s Share report reflects the true value that our farmers and ranchers are receiving.”


Click on the image below to enlarge it.




© Northern Ag Network 2013

with news from the National Farmers Union

Haylie Shipp



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