US Farmers Receiving Less Of Each Dollar Spent On Food

2015 food dollar marketing bill_fed-01_450pxA study released late last week by USDA’s Economic Research Service shows that for the fourth year in a row, US Farmers received less of each dollar spent on domestically produced foods.  Those include foods purchased at grocery stores and grown in the US as well as those purchased at restaurants, coffee shops, and other eating establishments.  The data ran only through 2015, but showed a steeply declining curve in the amount of money coming back to the nations farmers.
The data released shows the amount of each dollar going back to the nations producers peaked in 2008 at just under 18 cents.  While the percentage increased slightly from 2009 to 2011, it never made it back to pre-recession levels and fell by 1.6 cents from 2014 to 2015.  The reduction coincided with four consecutive years of increases in the share of food dollars going to services within the food industry.  USDA concluded that the increasing costs of preparing and serving meals is also driving down the share going to farmers.
The decline also came during a sharp fall in the farm good PPI, or producer price index.  That index measures the average change in prices received by producers, meaning that while prices were declining, US farmers were also receiving a small share of the lower amount.
The study comes as part of an ongoing food dollar series, with USDA illustrating the relationship between the nations consumers, US farmers, and the processing industries.  More information and several other studies can be found at ers.usda.gov/data-products/food-dollar-series