America’s farmers and ranchers continue to face tough economic times. Recent data reveals that farmers receive a shrinking percentage of the food dollar. According to the latest Market Intel report from the American Farm Bureau Federation, in 2024, farmers will earn just 5.8 cents out of every dollar spent on food. This is a small decrease from 2023’s 5.9 cents, reflecting rising costs that are squeezing their profits.
Crop producers are particularly hard hit, seeing their share drop from 2.9 to 2.5 cents. In contrast, livestock producers gained a bit, increasing their share from 3 to 3.3 cents. The bulk of consumer spending goes towards marketing, processing, transportation, and retail—far beyond what the farmers receive at the farm. The report highlights this imbalance, stating that while farmers are essential to food production, most economic value is generated long after products leave the farm.
The struggles of crop farmers can be traced back to a combination of low crop prices and rising costs for fuel and fertilizers. Meanwhile, the slight gain among livestock producers is tied to a declining herd size, which raises cattle prices.
AFBF President Zippy Duvall emphasized this concern, noting that farmers and ranchers are vital to the food system yet receive a diminishing share. He warned that even small fluctuations in commodity prices or rising costs threaten their livelihoods. “This imbalance must be addressed if we want a secure future for U.S. agriculture,” he said.
To put these figures into context, a USDA report shows that in the past two decades, the share of food dollars going to farmers has consistently decreased. A poll by the Farm Bureau found that 67% of farmers are worried about their financial stability this year, highlighting a growing sentiment of unease among producers.
For more detailed insights, you can read the full Market Intel report on the Food Dollar Series here.
