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
“For producers, the retaliation is the big threat...”
As the White House works to close the trade gap, patience is wearing thin for some lawmakers. Senator Chuck Grassley (R-IA) says farmers are getting backed into a corner.

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:

Farm Bureau Economist Dr. Faith Parum joins us to break down what year-round E15 passage could mean for agriculture, energy markets, and the future of renewable fuels in the United States.
A tax preparer can help identify penalty and interest charges and determine whether Form 843 should be filed.
Thailand will not replace major corn buyers overnight, but renewed access could create another outlet for U.S. corn demand.
Kentucky Farm Bureau President Eddie Melton joins us to discuss fertilizer affordability concerns, Senate Agriculture Committee testimony, and spring planting conditions in Kentucky.
Agri Stats would no longer be allowed to show participant lists, rankings, or “flags,” and it could only report individual company data in narrow situations.
Farmdoc economist estimates 2024 colony stock losses at roughly $175 million, with rebuilding and renovation costs near $161 million.