WASHINGTON, DC – Farmers and ranchers continue receiving a small share of consumer food spending, highlighting ongoing pressure at the production level despite rising retail food costs.
New analysis from the American Farm Bureau Federation, using USDA Economic Research Service data, shows producers captured just 5.8 cents of every food dollar in 2024, down slightly from 5.9 cents the previous year. Crop producers saw their share fall to 2.5 cents, while livestock producers improved modestly to 3.3 cents, reflecting diverging trends across sectors.
Most of the value in the food system is generated beyond the farm gate. Processing, transportation, packaging, retail, and food service account for more than 88 cents of every dollar spent, underscoring how supply chain costs and services dominate final food prices.
The gap is less pronounced for minimally processed foods. Items like eggs, milk, and beef return a larger share to producers, while highly processed products — including snacks and soft drinks — return only a few cents per dollar.
Even small changes in input costs or commodity prices can significantly impact farm profitability, given the narrow share producers receive.
Farm-Level Takeaway: Small food-dollar share leaves farms sensitive to costs.