Farm Progress is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Serving: IA
Farmers' Share Of Food Dollar Shrinks

Farmers' Share Of Food Dollar Shrinks

The farmer's share of what consumers spend for food is less than originally thought. It is just 11.6 cents of each dollar. "What you pay for groceries at the store has even less to do with the price of corn," says Iowa Corn Promotion Board Chairman Dick Gallagher.

Last week the United States Department of Agriculture published "A Revised and Expanded Food Dollar Series—A Better Understanding of Our Food Costs" and it shows that the farmer's share of the food dollar is even less than originally thought. According to the new report, just 11.6 cents of every dollar spent on food makes it back to the farmer.

"Only a small percentage—11.6 cents—of our food dollars actually pays for the production of the raw commodity itself," says Dick Gallagher chairman of the Iowa Corn Promotion Board and a farmer from Washington County in southeast Iowa. "I think it is easy to see that what you pay for groceries at the store has even less to do with the price of corn."

The USDA food dollar series measures annual expenditures by U.S. consumers on domestically produced food. The new food dollar replaces the old marketing bill series, which has been discontinued because of measurement problems and limited scope. The industry group's series identifies the distribution of the food dollar among 10 distinct food supply chain industry groups. 

Dollar PDF available for download at

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.