With grocery prices soaring, doesn’t it make sense that farmers and ranchers would also see an increase in profits? This just isn’t the case, says rancher Dallis Basel of Union Center, S.D.

“We go grocery shopping just like everyone else,” says Basel, who raises sheep and cattle together with his wife, Tammy. “Even though prices are up in the grocery store, we do not earn much more than breakeven on cattle. And right now, the sheep markets have bottomed out, so we are going backward when we sell market lambs.”

Basel says he appreciates South Dakota Farmers Union hosting its annual Farmers Share Lunch during the South Dakota State Fair, because feeding more than 1,000 fairgoers lunch for the price a farmer receives for the meal’s ingredients helps consumers understand a producer’s situation.

“Big conglomerate food processors and the packers are making exorbitant profits — not family farmers and ranchers,” says Basel, who serves on the state board for SDFU.

Valued at $13, the meal was bought by fairgoers for only 35 cents — the price farmers receive. Fairgoer Christi Lunders, Huron, says she was happy that this lunch helps explain to consumers how little farmers and ranchers receive for the crops and livestock they raise.

“I think everyone should know how little they earn for the work that they do. I grew up in a rural community, so I understand how little farmers and ranchers earn,” Lunders says. “It did surprise me that for a $13 meal, they only earn 35 cents. I was hoping they earned more.”

Day of celebration

The Farmers Share Lunch is just one of many events hosted during Farmers Union Day at the South Dakota State Fair. “The state fair is a wonderful opportunity to highlight the families who raise the crops and livestock that make up our state’s No. 1 industry,” says Doug Sombke, SDFU president and a fourth-generation farmer in Conde.  

A premier sponsor of the state fair, SDFU recognized rural volunteers from across South Dakota with the Rural Dakota Pride Award:

“Rural communities depend on willing volunteers to help care for those less fortunate and keep their rich traditions alive,” says Karla Hofhenke, SDFU executive director. 

Farmer’s share of dollar

The National Farmers Union says that, on average, farmers and rancher receive 14.3 cents of every dollar that is spent on food. Consumers may purchase this food at the grocery store or at restaurants.

According to USDA, off-farm costs, which include marketing, processing, wholesaling, distribution and retailing, account for more than 80 cents of every dollar spent on food in the United States. Examples of this are shared with common goods and products from bread to lettuce to top sirloin to beer.

For a gallon of fat-free milk with a retail price of $4.39, for example, the farmer receives $2.31. For an 18-ounce box of cereal with a retail price of $3.49, the farmer’s share is 10 cents.

Roti writes for SDFU from Sioux Falls, S.D.

Source: South Dakota Farmers Union, which is responsible for the information provided and is wholly owned by the source. Informa Business Media and its subsidiaries aren't responsible for any of the content contained in this information asset.