The farm share of the food dollar increased one cent in 2020, according to new data from USDA’s Economic Research Service.
On average, U.S. farmers received 16.0 cents for farm commodity sales from each consumer dollar spent on domestically produced food in 2020, up from a revised 15 cents in 2019. Known as the farm share, the one-cent rise is the largest increase in nearly a decade. On the other hand, the marketing share goes to food-supply-chain industries that move domestically produced food from farms to points of purchase, including costs related to packaging, transporting, processing, and selling to consumers at grocery stores and eating-out places.
In the first year of the Coronavirus pandemic, households redirected a substantial amount of their eating-out dollars, or food-away-from-home spending, toward food-at-home markets such as grocery stores. Generally, farmers receive a smaller share from eating-out dollars because a larger portion is spent on preparing and serving meals at restaurants, cafeterias, and other food-service establishments.
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