Impact of COVID-19 on Agriculture

Farmers’ Share of Food Dollar At Record Low

Market Intel / April 18, 2018

USDA’s Economic Research Service’s Food Dollar Series recently revealed that in 2016 the farmers’ share of the food dollar fell to 14.8 cents, down 4.5 percent from the prior year and the lowest level since the series was launched in 1993. When adjusted for inflation, in 2009 dollars, the farmers’ share of the food dollar was 12.2 cents, down 11.6 percent from 2015 and again the lowest level since the series began. The farmers’ share of the $1 spent on domestically produced food represents the percentage of the farm commodity sales tied to that food dollar expenditure. Non-farm related marketing associated with the food dollar, i.e. transportation, processing, marketing, etc., rose to a record-high of 85.2 cents. 

USDA tracks several other methods of food consumption in the Food Dollar Series. For 2016, the farmers’ share of food consumed at home was 23.6 cents, down 2.9 percent from the prior year. For food and beverages consumed at home, the farm share was 18.9 cents, down 3.8 percent from 2015. The largest decline in the farm share of the food dollar was in food consumed away from home. The farm share of food away from home was 4.4 cents, down 10.2 percent from the prior year. The smaller share of the food dollar consumed outside of the home is attributable to the costs of restaurant food service and preparation. For all but the food and beverage dollar consumed at home and the food at home dollar, the farmers’ share of the food dollar is at record-low levels. 

Contact:
John Newton, Ph.D.
Chief Economist
(202) 406-3729
jnewton@fb.org
twitter.com/@New10_AgEcon
 

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Credit: Yuri Samoilov // CC BY 2.0 

USDA data reveals that as of the end of June nearly one-third, or $4.85 billion, of the $16 billion in CFAP assistance has been paid to livestock, dairy, crop and specialty crop producers. Of that total, $2.4 billion, more than 50%, has been paid to livestock (cattle, hog and lamb producers), $1.3 billion, or 26%, has been paid to non-specialty crop producers, $1 billion, or 22%, has been paid to dairy producers and $113 million, or 2%, has been paid to specialty crop producers.

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Following USDA’s March Prospective Plantings report, USDA’s June 30 Acreage report updated acreage expectations for the upcoming crop year. For the 2020/21 crop year, USDA now estimates corn planted area at 92 million acres, 3%, or 2.3 million acres, above prior-year levels. The revision is 5 million acres lower from March intended planting projections of 97 million acres, which was expected to lead to a record amount of corn production. Pre-report estimates had been calling for a reduction of 1.8 million acres, to 95.2 million acres of corn. Iowa leads the way in corn acres planted with 14 million acres, an increase of 4% compared to 2019. Illinois follows with 10.9 million acres of corn planted, up 4% from 2019, and Nebraska planted 9.8 million acres, down 3% from 2019. With 3.4 million acres, Ohio is expected to have the largest increase, 29%, in corn planted in 2020 compared to 2019. South Dakota follows with an increase of 24% in corn planting for 2020 compared to 2019 and Washington increases 18% in 2020 compared to 2019 corn planting. Figures 1 and 2 highlight USDA’s corn acres planted and the year-over-year change from 2019.

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