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How Low Has the Farm Share of Retail Food Prices Really Fallen?

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  • Stewart, Hayden

Abstract

For the commodities they sell, farmers have been receiving a decreasing share of what consumers pay for food at retail stores for some time, but the extent of this decrease has been overstated for at least a few commodity groups. Current estimates of farm share are based on baskets of foods representative of what households bought between 1982 and 1984. Using updated baskets based on what American households bought for at-home consumption between 1999 and 2003, this report estimates farm share for two major commodity groups—fresh fruits and fresh vegetables. Using this approach, this report found that farmers are capturing more of the consumer’s food dollar than current estimates suggest. The methodology behind the market basket data series is also detailed.

Suggested Citation

  • Stewart, Hayden, 2006. "How Low Has the Farm Share of Retail Food Prices Really Fallen?," Economic Research Report 7241, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersrr:7241
    DOI: 10.22004/ag.econ.7241
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    File URL: https://ageconsearch.umn.edu/record/7241/files/er060024.pdf
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    Cited by:

    1. Ferrier, Peyton M. & Zhen, Chen & Bovay, John, 2023. "Price and Welfare Effects of the Food Safety Modernization Act Produce Safety Rule," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(1), January.
    2. Kuchler, Fred & Stewart, Hayden, 2008. "Price Trends Are Similar for Fruits, Vegetables, and Snack Foods," Economic Research Report 56447, United States Department of Agriculture, Economic Research Service.
    3. Alston, Julian M. & Sumner, Daniel A. & Vosti, Stephen A., 2008. "Farm subsidies and obesity in the United States: National evidence and international comparisons," Food Policy, Elsevier, vol. 33(6), pages 470-479, December.
    4. Berney, Gerald & Grajewski, Gregory & Hinman, Don & Prater, Marvin E. & Taylor, April, 2010. "Marketing Maine Tablestock Potatoes," Research Reports 147004, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.

    More about this item

    Keywords

    Demand and Price Analysis;

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