Ag News
Farmer share of food dollar shrinks
Posted on Apr 08, 2026 at 15:53 PM
In another sobering reminder of the economic challenges facing America’s farmers and ranchers, new data show that farmers’ share of the money consumers spend on food continues to shrink, even as expenses rise. The March 23 installment of Market Intel from American Farm Bureau Federation economists shows that in 2024 farmers and ranchers received a combined 5.8 cents of every food dollar after accounting for expenses, down from 5.9 cents in 2023. 2024 is the latest available data from USDA.
“America’s farmers and ranchers are the backbone of our country’s food system, yet they only see a small share of the total food dollar. While prices may be up at the grocery store, most farmers’ paychecks are shrinking,” said AFBF President Zippy Duvall. Even modest swings in commodity prices or increases in expenses can quickly strain farmers’ finances to the breaking point. This imbalance must be corrected to create a brighter future for U.S. agriculture. The only alternative is reliance on other countries to feed America’s families.”
Crop producers saw their share decline from 2.9 to 2.5 cents, while livestock producers experienced a modest increase from 3 to 3.3 cents. The majority of the food dollar is attributed to food marketing costs incurred after food passes the farmgate.
From the Market Intel: “Taken together, the food dollar data highlight a fundamental reality of the modern food system: while farmers and ranchers are the foundation of food production, most of the economic value is created after products leave the farm. Less than 6 cents of total value added occurs at the farm level, while the marketing bill continues to expand as consumer spending increasingly reflects processing, transportation, retail and food service.”
The slight increase in share among livestock producers reflects a shrinking herd, which increases the value of cattle. Historically low crop prices and increased expenses including fuel and fertilizer pulled down the share for crop farmers.
Read the full Market Intel on the Food Dollar Series here.
- Categories:
- Tags: