Farms Receive Smaller Share of Each Food Dollar

Farmers still earn only a small share of consumer food spending, even as post-farm costs continue to take most of the dollar.

farming taxes accounting money_adobe stock.png

Adobe Stock

LUBBOCK, TEXAS (RFD NEWS) — U.S. farms received 11.8 cents of every dollar spent on domestically produced food in 2024, according to the USDA’s revised Food Dollar data. That leaves 88.2 cents going to the marketing side of the food system, including transportation, processing, and retailing.

The new figure also continues a longer-run trend. USDA said the farm share was 12.1 cents in 2023, and one reason for the broader decline has been the growing share of consumer spending on food away from home.

Farm-Level Takeaway: Farmers still earn only a small share of consumer food spending, even as post-farm costs continue to take most of the dollar.
Tony St. James, RFD News Markets Specialist

Restaurant and foodservice spending accounts for a larger share of marketing because meals require more labor, preparation, and service after products leave the farm. That means even when farmers produce the raw ingredients, a smaller share of the final food dollar stays at the farm level.

USDA’s Economic Research Service also noted that the Food Dollar model was comprehensively revised in 2026. The updated numbers reflect changes in both methodology and source data.

Even with those revisions, the main message remains clear. Most consumer food spending is tied to costs incurred after production, while the farm portion remains a relatively small share of the final bill.

Related Stories
Feral swine cause more than $3.4 billion in annual damage to crops, pastures, soils, water resources, and wildlife habitat. They can also carry diseases threatening livestock and people.
The department is making $35 million available to help reduce feral swine populations through trapping, restoration and landowner assistance.
USDA reports that colony numbers increased in the first half of 2026 as beekeepers continued to replace losses and manage Varroa mites.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Reduced daily vessel capacity could create longer shipping delays for agricultural exports and imported farm inputs.
Eligible LLCs and S corporations can now access separate USDA payment limits for each qualifying member beginning with the 2026 program year.
Corn inspections reached 1.1 million metric tons as Mississippi River shipments remained well above recent averages.
Operating costs reached a record $2.34 per mile in 2025 as carriers faced higher expenses and thin profit margins.
Expanding cow numbers drove most of the production growth in July, with the national dairy herd up nearly 200,000 head from last year.
July placements fell to their lowest level on record even as total feedlot inventories remained above last year.