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Farms Receive Smaller Share Of Each Food Dollar

May 1, 2026 Tony St. James All Ag News 0

LUBBOCK, TX – 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.

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.

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.

  • Farm Share
  • food dollar
  • food prices
  • Marketing Costs
  • USDA ERS
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