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
The National Cattlemen’s Beef Association (NCBA) and Public Lands Council (PLC) are praising the passage of a bill to delist gray wolves as an endangered species by the U.S. House last week.
Mary-Thomas Hart, with the National Cattlemen’s Beef Association, discusses the latest WOTUS developments and their implications for agriculture.
Roger McEowen with the Washburn School of Law reviews key highlights from the House Agriculture Committee’s latest farm bill proposal.

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:

Southern farms are deepening online engagement for cost savings and market access, while higher-cost precision technologies face renewed scrutiny amid tight budgets.
Global trade teams and summit discussions highlight expanding opportunities for U.S. corn and ethanol exports as nations explore renewable fuel options and reduced-carbon energy pathways.
Slightly higher output amid softer gasoline pull points to steady corn grind — watch regional stocks and export pace for basis clues.
Expect firm calf and fed-cattle prices — pair selective heifer retention with prudent hedging and liquidity to bridge rebuilding costs.
Using FEMA and USDA data, Trace One researchers estimate average annual U.S. agricultural losses of $3.48 billion, with drought accounting for more than half.
The new antitrust agreement between the Department of Justice (DOJ) and the U.S. Department of Agriculture (USDA) aims to enforce antitrust laws and monitor market activity across the ag sector.