People from across the country will head (if they haven’t already) to grocery stores and supermarkets to stock up for Fourth of July festivities. It’s no secret that food prices are up, but what exactly are farmers making from food sales?
Last year, the U.S. Department of Agriculture announced that farmers only made 14.5 cents of every dollar spent — a historic low.
This year, the National Farmers Union has released its annual 2023 numbers of the Farmer’s Share of the Food dollar for items typically served at Fourth of July cookouts.
“Year after year we’re seeing a troubling trend of farmers earning less and less of the dollars that Americans spend at the grocery store,” said NFU President Rob Larew. “Whether it’s the highly consolidated meatpacking industry or harmful mergers in the grocery sector, farmers and consumers are being squeezed out of their hard-earned money.”
Included in the 2023 Fourth of July Farmer’s Share numbers are:
- 8 ct. hamburger Buns: Retail price, $3.49. Farmer’s Share, $0.10
- 2 lbs. ground beef: Retail price, $11.07. Farmer’s Share, $3.42
- 1 lb. tomatoes: Retail price, $2.00. Farmer’s Share, $0.42
- 1 lb. lettuce: Retail price, $2.79. Farmer’s Share, $0.76
- Party size potato chips: Retail price, $5.99. Farmer’s Share, $0.29
- 2 L soda: Retail price, $1.19. Farmer’s Share, $0.09
So, why are farmers seeing so little of the inflated food prices?
According to the USDA, off-farm costs, including marketing, processing, wholesaling, distribution, and retailing, account for more than 80 cents of every food dollar spent in the United States.
The National Farmers Union blames waves of mergers and acquisitions during the last several decades, which they say have resulted in agriculture and food supply chains that are not only uncompetitive and fragile but also underpay farmers.
“Corporate profits and consumer food costs continue to go up and up, but the share of the farmer’s share of the food dollar remains low,” said NFU President Rob Larew.
