Who Benefits From Higher Food Prices?

The Issue: There’s no doubt that for most of us, family feasting is a hallmark at this time of year. As you sit at the table to share the holiday fare, it’s possible you’ll hear your non-farm friends mention food prices – and some may even suggest that the higher prices go, the richer farmers get.

How it could impact farmers: This is just one more example of non-farmers falling out of touch with agriculture. The U.S. Department of Agriculture’s Economic Research Service says the costs of transportation, processing, distribution and preparation account for a substantial portion of food prices.

What we can do about it: So, how should you respond? The truth is, U.S. farmers’ share of the retail food dollar has been declining for more than 60 years. In 1950, farmers received more than 40 cents for every dollar consumers spent in the grocery store. Today, they receive less than 12 cents.