The Economic Research Service’s Food Dollar Series shows that the farmers’ share of the food dollar fell to 14.8 cents in 2016. That is a 4.5 percent drop from the previous year, and the lowest level since the series first launched in 1993. The farmers’ share of every $1 spent on domestically produced food represents the percentage of farm commodity sales tied to the food dollar expenditure. Non-farm related marketing associated with the food dollar rose to a record-high of 85.2 cents. Those expenses include things like transportation, processing, and marketing.
The largest decline in the farmer share of the food dollar was in food not consumed at home. The family farm share of food consumed away from home dropped to 4.4 percent, 10 percent lower than the previous year.
The smaller share of the food dollar consumed away from home is due to the cost of restaurant food service and preparation. For all but the food and beverage dollar consumed at home and the food at home dollar, the farmers’ share of the food dollar is at record-low levels.
Source: NAFB News Service