The latest Farm Bureau Marketbasket survey shows that while national retail grocery prices are declining, the farmer’s share of those food dollars is too.
The quarterly report measures the prices of 16 foods used to prepare meals, and on average shoppers are paying 59 cents less compared to a year ago at $53.28.
Wisconsin Farm Bureau director of communications Amy Eckelberg says in the past three decades retail grocery prices have steadily increased, while the share of the average dollar spent on food that farmers receive has continued to drop.
“Back in the 1970’s farmers received about one-third of consumer retail food expenditures in grocery stores. But since then it’s decreased, and is now about 16 percent according to the USDA.”
She tells Brownfield in Wisconsin, the farmer’s share of the nearly $50 dollar grocery bill is only $7.95.
Nationwide, 10 of the 16 food items decreased in price due mainly to lower energy prices and rebounding supplies of beef, eggs and dairy products.
The survey also revealed that Americans spend approximately 10 percent of their disposable income on food, which Eckelberg says is the lowest in the world.
“I think that also puts into perspective that (Americans) have lots of choices at the grocery store; right now we’re seeing grocery prices go down; but even when they go up a little, we’re really not spending that much on food. And that’s something we can really be thankful for.”
Farm Bureau says the year-to-year direction of the Marketbasket survey tracks closely with the federal government’s Consumer Price Index report for food consumed at home.
Source: www.brownfieldagnews.com