Skip to content

GRAPHIC: What share of retail sales returns to farmers? Depends on the product.

More money spent on processing means less money for farmers.

Why you can trust Investigate Midwest /Content type: Explainer
GRAPHIC: What share of retail sales returns to farmers? Depends on the product.
Meat products at a grocery store in Fairfax, Virginia, on March 3, 2011. USDA Photo by Lance Cheung.

Over the past several decades, how much farmers have made from retail sales of their products has decreased.

In 1950, farmers received about 41% of what consumers spent on food. In 2013, the figure was about 17%, according to a 2015 Congressional Research Service report.

Over the years, more and more of the money has gone to manufacturers and distributors.

“An array of costs is layered on top of the price of a raw agricultural commodity at each stage of the marketing chain as it moves to the consumer,” the research service report noted. “As a result, the farm share of a food product’s price declines as it moves to the retail outlet.”

The foods consumers enjoy pass through a long journey to reach retail stores.

Fresh fruits and vegetables are often sorted, cleaned, trimmed and packaged, which affects retail prices, according to the USDA’s Economic Research Service.

Foods that require less processing costs, such as whole milk or butter, lead to more money flowing to farmers, according to the USDA.

More in Data Harvest

See all

More from Pramod Acharya, Midwest Center for Investigative Reporting

See all

THANK YOU TO OUR FUNDERS

Reva & David Logan Foundation, Inasmuch Foundation, Lumpkin Family Foundation, Builders Vision Philanthropy, Gary Marx Journalism Fund, Kirkpatrick Foundation, Chicago Region Food System Fund, Illinois Food Movement Fund, GRACE Communications, Good Chaos, Donald W. Reynolds Journalism Institute, Fund for Investigative Journalism, Pulitzer Center for Crisis Reporting, Rural News Network, Google News Initiative, Data-Driven Reporting Project, Arnold Ventures.

We are proud to hold the Candid Seal of Transparency, demonstrating our commitment to openness and accountability in all that we do.

MEMBER OF