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Farmers' share of food dollar holds steady

Farmers' share of food dollar holds steady

Farmline 11(6): 10-13

The increase in US food prices in 1989 was the largest in 8 years, partly because of carryover effects of the 1988 drought. The farmers' share of the food dollar spent at grocery stores remained at 30% for the third straight year. Food prices, as measured by the Consumer Price Index (CPI), rose 5.8% in 1989. The farm value (what farmers receive) of food increased 6.9%, only the second time in the decade that farm prices rose as much as retail prices.

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