How much money do farmers and ranchers receive from the food I purchase at the grocery store?

We had another great question come in to the blog from a reader:

How much money do farmers and ranchers receive from the food I purchase at the grocery store?

Farmers and ranchers receive only 16 cents on average out of every retail dollar spent on food that is eaten at home and away from home. In 1980, farmers received 31 cents out of every retail dollar spent on food in America.

Off-farm costs (marketing expenses associated with processing, wholesaling, distributing and retailing of food products) account for 84 cents of every retail dollar spend on food.

Transporting, processing and packaging farm products so they’re ready to be enjoyed on the consumer’s table costs significantly more today compared with the recent past. The farmer’s share of the retail food dollar is as low as 2 percent to 3 percent for bread and cereal, and as much as 45 percent for some meat, milk and egg products.

– American Farm Bureau Federation’s “Food and Farm Facts”

Keep asking great questions! Our Nebraska farmers and ranchers look forward to explaining what they do every day to produce safe food for you and your family.

Learn more about ag families in Nebraska by visiting www.nefb.org. And while there, be sure to connect with us on Facebook, Twitter and YouTube.

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