|
 |
|
|
|||
|
 |
|
Oct. 26, 2026
by Terri Moore, Vice President, Communications, American Farm Bureau Federation Some of this gap is timing. Farm prices swing far more than grocery prices, and store prices typically trail and are often not very related to price changes at the farm. The costs of getting food from field to shelf, such as diesel, labor and packaging, haven't gone away and continue to get costlier. But the pattern points to something farmers know well. When prices for their crops and livestock fall, they feel it right away. Yet, when their production costs rise, they can't pass along the increase when they sell their products. Farmers have to sell at whatever price the market sets because they are price-takers, not price-makers. This point is illustrated well in the USDA's breakdown of the farmer share of the industry food dollar, analyzed in a Farm Bureau Intel earlier this year. In 2024, that share was only 5.8 cents of every dollar spent on domestically produced food. The remaining 94.2 cents of the food dollar went toward costs associated with food processing, transportation, retail and other costs. There are different ways USDA analyzes the food dollar, including what's referred to as the marketing food dollar, but any way you slice it, the farmer's share is less than 7 cents. That's why the farm economy can be in trouble -- like it is now -- even when grocery prices are normal or elevated. The turbulent winds swirling around farmers have left many underwater ... again. For some, it's their fifth year in the red. Bottom line: farmers have many obstacles to overcome. On the brighter side, public perception that they are big beneficiaries of high grocery prices is not among them. I've literally had dozens of conversations with farmers worried about this perception. The comment I hear goes something like this: "The public is going to think high food prices mean we're lining our pockets and we need them to know that's just not the case." Giving Consumers Credit Shoppers are frustrated too. Nearly two-thirds of consumers across demographics in a recent national survey cited high grocery prices as a top financial pressure. The June survey by Global Strategy Group also revealed that two thirds of respondents consider food prices unfair. So, who do they point the finger at as responsible for the higher prices? Most consumers blame tariffs (48%) or big corporations raising retail food prices (46%). Notice who's missing from the list of perceived culprits: farmers. That's a welcome surprise to many farmers. It seems consumers understand that the U.S. has a complex food supply chain even if they don't fully comprehend its complexities. Of course, sometimes public perceptions are way off, and surveys that reveal big gaps in consumer understanding get a lot of attention. They often shape farmers' assumptions, but concluding that all consumers are ignorant about food and agriculture is neither accurate nor helpful. Why do farmers care so much about what consumers think? Because farmers take such pride in raising healthy food that families can afford. They don't take for granted the extraordinarily high level of trust that consumers place in them, which has remained above 80% in our polling for nearly a decade (as noted in a previous Farm Bureau Intel). To read the entire report click here. Tweet |
|
|
|
|
|
|
|
|
|||||||||||||
