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
In honor of Rural Road Safety Week, we’re highlighting some commonly overlooked hazards on rural roads, where 40 percent of all fatal crashes in the United States occur.
manage risk as milk price volatility increases.
Researchers at Florida Atlantic University’s Harbor Branch Oceanographic Institute found human sewage, not fertilizer, is mainly responsible for dangerous nitrogen levels in Florida’s Indian River Lagoon.

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:

Cuba remains a small but dependable, cash-only outlet for U.S. grain and food products.
Expanding cheese exports are strengthening U.S. milk demand and reinforcing global competitiveness.
Strong global demand and falling stocks suggest continued price volatility for U.S. coffee buyers despite record world production.
U.S. dairy producers remain the primary growth engine globally, while tightening supplies in Europe and New Zealand could support export demand for American dairy products.
Fewer acres and stronger prices suggest disciplined hop production is supporting market balance despite lower output.
Benchmark machinery costs against those of similar-sized, high-performing operations to inform equipment and investment decisions.