WASHINGTON, D.C. (RFD News) — Farmers and ranchers are continuing to receive a small share of consumer food spending, highlighting ongoing financial pressure at the production level even as retail food prices rise.
New analysis from the American Farm Bureau Federation (AFBF), using USDA Economic Research Service data, shows producers captured just 5.8 cents of every food dollar in 2024, down slightly from 5.9 cents the previous year. The data reveals differences across sectors. Crop producers saw their share fall to 2.5 cents, while livestock producers saw a modest increase to 3.3 cents.
Farm Bureau economist Danny Munch discussed the findings on Thursday’s Market Day Report, explaining the broader impact on the U.S. economy.
“None of these numbers matter if they happen outside the country. We need to keep agriculture in the United States,” Munch said. “We see regulatory environment and cost pressures, competitive pressures that have pushed our farmers overseas and over borders.”
Munch added that maintaining strong domestic production is key to supporting jobs and economic activity across multiple industries.
Much of the value in the food system is generated beyond the farm gate. Processing, transportation, packaging, retail, and food service account for more than 88 cents of every dollar spent, showing how supply chain costs dominate final food prices.
The gap is smaller for minimally processed foods. Products like eggs, milk, and beef return a larger share to producers, while highly processed goods, including snacks and soft drinks, return only a few cents per dollar.
Even small increases in input costs or shifts in commodity prices can significantly impact farm profitability, given the narrow share producers receive.
