What farmers earn from turkey day
Although consumers are paying more for Thanksgiving dinner this year, the farmer’s share of the food dollar remains low, according to a new analysis.
National Farmers Union says the farmer’s share of the retail price of turkey that sells for $1.99 a pound is only 6 cents. For stuffing, the farmer gets 13 cents on a box that sells for $3.59; mashed potatoes, $1.30 on a 5-pound bag that sells for $5.99; frozen sweet corn, 44 cents on a $2.59 container; boneless ham, $1 on a retail price of $12.98; apple pie filling, $1.03 on a can that sells for $4.99.
Overall, farmers received around 14.5 cents of every dollar spent on food in the United States in 2021, according to U.S. Department of Agriculture figures. Much of the rest went to processors, marketers, retailers, trucking, and others in the food chain. In 1975, farmers received 40 cents of the food dollar, according to University of Michigan data.
National Farmers Union blames the decrease on systemic changes in agriculture and the food industry.
“Multiple waves of mergers and acquisitions during the last several decades have resulted in agriculture and food supply chains that are not only uncompetitive and fragile but also underpay farmers,” said NFU President Rob Larew.
The farmers’ share of the food dollar for Thanksgiving dinner was derived from USDA data and retail prices at Safeway grocery stores in Washington, D.C. Retail prices vary widely across the country but have been rising everywhere.
Farmers get a smaller share from eating-out dollars because more of that money goes for food preparation and other expenses.
Consumers aren’t as close to their food sources as they once were.
Consolidation of farms, food processing operations and distribution warehouses has increased the distance, University of Michigan said.
The changes have placed management decisions into fewer hands, the study noted.
For example, four firms control 85% of the beef packing market; 82% of soybean processing is also controlled by four firms.
Meanwhile, the top four food retailers sold nearly 35% of the nation’s food in 2019, compared with 15% in 1990.
Food waste contributes to higher costs. One estimate is that 2% of total annual energy use in the U.S. is used to produce food that is later wasted. In 2018, more food reached landfills than any other material, according to University of Michigan.