Michigan Farm Bureau Field Crops Specialist Kate Thiel said when adjusted for inflation in 2009 dollars, the farmers’ share of the food dollar dropped even further – down to 12.2 cents, a decrease of 11.6 percent from 2015 and again the lowest level since the series began.
“The farmers’ share of a $1 spent on domestically produced food represents the percentage of the farm commodity sales tied to that food dollar expenditure,” Thiel said. “Non-farm related marketing costs associated with the food dollar, such as transportation, processing, marketing, rose to a record-high of 85.2 cents out of every dollar spent.”
According to Thiel, the largest decline in the farm share of the consumer’s food dollar was in food consumed away from home. The farm share of food away from home was 4.4 cents, down 10.2 percent from the prior year. “The smaller share of the food dollar consumed outside of the home is attributable to the higher costs of restaurant food service and preparation,” she said.
USDA tracks several other methods of food consumption in the Food Dollar Series. For 2016, the farmers’ share of food consumed at home was 23.6 cents, down 2.9 percent from the prior year. For food and beverages consumed at home, the farm share was 18.9 cents, down 3.8 percent from 2015.
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.