Poultry - General

The Shrinking Slice: Farmers Receive Less Than 6 Cents of Every Food Dollar

Tue, 31 Mar 2026 20:30:43 GMT

For the past two years, USDA has estimated farmers and ranchers received less than 6 cents of every food dollar. In 2023, that was 5.9 cents, and using the latest data from 2024, it’s 5.8 cents.

“Our oldest data point right now is 2007 [USDA updated the data series] and that’s 14.7 cents per dollar, and now we’re down all the way to 11.8 cents per dollar,” says Faith Parum, economist with the American Farm Bureau Federation. “So we’ve really seen that decline year after year. It reflects how much of the value of things in the grocery store or when you go out to eat is going to other parts of the supply chain and not necessarily to farmers and ranchers.”

Livestock vs. Crops: A Widening Gap

The aggregate decline masks a widening gap between sectors. While the overall farmer share is down, livestock and crop producers are seeing divergent trends:

Crop Farmers: Share dropped from 2.9 cents to 2.5 cents (a 2.5% year-over-year decrease).
Livestock Producers: Share increased from 3 cents to 3.3 cents.

“Overall, the farmer share is down. But we have those two markets really at odds,” Parum says. “We’ve seen that tale of two farm economies where our livestock producers maybe have seen a little bit of better days than they had had in the past, while our row crop farmers and our specialty crop farmers are really facing strong headwinds in the market.”

Effect at the Farm Gate

As highlighted by USDA, farm finances are quickly strained when farmers/ranchers are capturing a small percentage of the food dollar and even modest swings in commodity prices and/or input prices take place.

Parum adds, “when we talk about the health of our farms and the health of future generations on the farm, and being economically viable and sustainable and being able to keep their operations open, the trends we’re seeing right now are really hard for those farmers. Our ranchers are seeing a little bit of better days right now with high beef prices, but that’s not going to last forever, and with production expenses continuing to increase, we’re really going to see that that question come up of, what is sustainable if, if these dollars we’re spending in the grocery store aren’t making it back to our farmers.”

Where Does the Money Get Distributed?

The key takeaway: farmers produce the raw commodities that make food production, however, the price is clearly more determined by what happens after the products first leave the farm.

The USDA Food Dollar Series tracks how each dollar is spent by consumers and then divides it across the industries contributing to the value in the supply chain, such as farming, food processing, transportation, packaging, wholesaling, retail and food service. As noted by the USDA, with each step in the process, the additional services, labor, transportation and infrastructure add value and increase costs to the final food product.

USDA’s Economic Research Service Food Dollar Series shows in 2024, farmers received 11.8 cents of every dollar spent on domestically produced food, the remaining 88.2 cents of the food dollar went toward the ‘marketing bill’, which includes costs associated with food processing, transportation, packaging, wholesaling, retailing and food service. Over time, this shift illustrates how an increasing share of food spending is driven by services and supply chain activities rather than farm production itself.

Groceries Leave the Most on The Table For Farmers

Farmers’ share of consumer food spending varies widely depending on the type of food purchased. For example, the farm share of the food-at-home dollar was 18.5 cents in 2024, up slightly from 18.4 cents in 2023. But even in this category it means only than one-fifth of what consumers spend on groceries goes back to farmers.

As you may expect, products with minimal processing, require less of the value to be retained in that part of the food system, and therefore return a larger share of the food dollar to producers.

“The highest commodity that gets the most of that food dollar is fresh eggs,” Parum notes. “That’s just because there’s limited labor to process that food.”

Examples include:

Fresh Eggs: 69.1 cents (+6% from 2023)
Beef: 52.2 cents (+4.8%)
Fresh Milk: 50.8 cents (+5.6%)
Pork: 23.7 cents (+7.2%)
Poultry (+3.1%)
Fish (+2.8%)
Tree nuts and peanuts (-1.7%)
Fresh fruits and vegetables (unchanged)
Bakery Products: 4.8 cents (-9.4%)
Soft Drinks/Bottled Water: 1.3 cents (-7.1%)

Vilsack Lists USDA's 4 Policy Objectives for 2023

Wed, 11 Jan 2023 14:16:20 GMT

USDA Secretary Tom Vilsack has a history of making key announcements during visits, and that was the case during his appearance at the American Farm Bureau Federation’s annual meeting in Puerto Rico.

Some of them include:

1. ERP Phase 2

Vilsack announced Phase 2 of the ERP, which will provide help to producers for production and quality losses of eligible crops, utilizing calculations of a producer’s decrease in gross revenue.

Those were about to be released months ago but were pulled back at the last minute due to lawmaker and farmer complaints. USDA eventually announced anyway.

USDA said in documentation on file at the Federal Register that using that approach will reflect the losses “without requiring the more extensive calculations and documentation required under previous programs” for disaster-related crop losses. USDA said this streamlines the aid to minimize the burden on producers and processing of applications by county FSA offices. Using that process also means it will address losses for a qualifying disaster event whether it happened before or after harvest.

ERP Phase 2 will be available for a decrease in gross revenue in 2020 or 2021, primarily to those with losses not covered by Federal Crop Insurance or the Noninsured Assistance Program (NAP).

The application period is Jan. 23-June 2. USDA has already paid out $7.31 billion under ERP Phase 1 as of Jan. 8, up from $7.28 billion the prior week, including $6.23 billion for non-specialty crops ($6.21 billion prior) and $1.09 billion for specialty crops ($1.08 billion prior). A total of $10 billion was earmarked for ERP.

USDA projects outlays for ERP Phase 2 payments will be $1.2 billion and will likely be pro-rated as USDA projects total gross outlays at $1.5 billion.

Phase 2 Reflection

Phase I was highly successful and it worked well. Phase 2 has tons of problems. Comparing schedule F in relevant years to past years doesn’t reflect losses. A farmer may have had to sell land or livestock when they didn’t want to. They may have sold a previous year’s crop in the year in question. These and other things skew the schedule F. There is also the issue of forcing farmers to share schedule F info with local FSA offices.

2. Pandemic Assistance Revenue Program (PARP)

Vilsack announced PARP payments for producers that suffered a 15% or greater decrease in allowable gross revenue for the 2020 calendar year compared with either 2018 or 2019. This effort, Vilsack said, aims to “fill in gaps” for losses covered by either Phase 1 or Phase 2 of ERP.

The payments will have a factor of 80% (90% for underserved farmers and ranchers) and will be reduced by 2020 ERP payments, and pandemic assistance under either the Coronavirus Food Assistance Program (CFAP) 1 or 2 and other pandemic aid.

Payments will be limited to $125,000 per person or entity and USDA may set a lower maximum payment amount per person if total payments exceed available funding and USDA expects that to be the case — PARP outlays are projected at $250 million with gross outlays pegged at $2.66 billion.

USDA also will expand payments under prior efforts such as CFAP 2 and others. The total payments USDA projects under the ERP Phase 2, PARP and expanded other programs is $1.82 billion with gross amounts at $4.54 billion.

3. U.S.-Made Fertilizer

USDA will seek public comment on 21 potentially viable projects totaling up to $88 million to boost U.S. fertilizer production via the first round of USDA’s Federal Production Expansion Program, a $500 million effort announced earlier this year.

The projects are in Alabama, Arizona, Colorado, Florida, Iowa, Louisiana, Massachusetts, Minnesota, Missouri, Montana, Ohio, Oregon, Texas, Washington, and Wisconsin. USDA is seeking comments through Feb. 8 on the environmental impacts of the projects.

4. Meat and Poultry Processing

Vilsack announced three projects in Ohio, Michigan and Minnesota which will expand independent meat and poultry processing capacity via the Meat and Poultry Processing Expansion Program.

The projects total $12 million and are in addition to other recently announced efforts in the sector.

More on policy:

We Have ERP Phase II
Policy and Payments: What Producers Can Expect in 2023

Senators Reintroduce Transporting Livestock Across America Safely Act

Fri, 23 Sep 2022 20:01:50 GMT

After not being able to move through hours of service reform for livestock haulers in the previous session of Congress, a group of Senators has brought forward legislation that might address concerns with the transportation rules.

The bipartisan Transporting Livestock Across America Safely Act (TLAAS) was brought forward again by co-sponsors Senators Ben Sasse (R-NE) and Jon Tester (D-MT) on May 1. Sasse was the lead on TLAAS during the 115th Congress during 2017-18 and that bill had 10 original co-sponsors, 23 co-sponsors by the end of the session. The first version of TLAAS never made it out of committee after being referred to the Senate Commerce, Science, and Transportation Committee on May 23, 2018 .

The latest version of TLAAS is co-sponsored by 17 other Senators including: Deb Fischer (R-NE), Kevin Cramer (R-ND), Jim Risch (R-ID), Steve Daines (R-MT), Marco Rubio (R-FL), Tina Smith (D-MN), Mike Crapo (R-ID), Pat Roberts (R-KS), Cindy Hyde-Smith (R-MS), Jerry Moran (R-KS), Doug Jones (D-AL), John Hoeven (R-ND), Mike Rounds (R-SD), Mike Braun (R-IN), Mike Enzi (R-WY), Joni Ernst (R-IA), and James Lankford (R-OK).

“Overly strict regulations are hurting our ranchers and our haulers. My legislation pushes back against those dumb regulations and works to promote safe transportation,” Sasse says . “This is good, reasonable, common-sense, bipartisan legislation — and it should pass so we can give Nebraskans the flexibility they need to keep livestock safe and to keep our state running and feeding the world.”

The summary of S. 1255 in the 116th Congress , also known as TLAAS, is as follows:

Provides that HOS and ELD requirements are inapplicable until after a driver travels more than 300-air miles from their source. Drive time for HOS purposes does not start until after 300-air mile threshold.
Exempts loading and unloading times from the HOS calculation of driving time.
Extends the HOS on-duty time maximum hour requirement from 11 hours to a minimum of 15 hours and a maximum of 18 hours of on-duty time.
Grants flexibility for drivers to rest at any point during their trip without counting against HOS time.
Allows drivers to complete their trip – regardless of HOS requirements – if they come within 150-air miles of their delivery point.
Ensures that, after the driver completes their delivery and the truck is unloaded, the driver will take a break for a period that is 5 hours less than the maximum on-duty time (10 hours if a 15-hour drive time).

“Ranchers and livestock haulers face unique circumstances when hauling live animals, and the rules should reflect that,” Tester says . “This bill gives them the flexibility they need to safely transport their product and get it to market in time while protecting both the animals and their bottom line.”

A version of TLAAS was also reintroduced in the House of Representatives on Jan. 10 by Rep. Ted Yoho (R-FL), who is a veterinarian. The House TLAAS bill now has 34 co-sponsors and was referred to the House Transportation and Infrastructure Subcommittee on Highways and Transit on Feb. 7.

Agricultural Support for TLAAS

The bill has the support of groups representing agriculture including Nebraska Farm Bureau, Nebraska Cattlemen, National Cattlemen’s Beef Association, U.S. Cattlemen’s Association, and the Livestock Marketing Association. Here is what some of these associations are saying about the legislative proposals:

“We greatly appreciate the work of Senators Tester and Sasse in bringing forth a prescriptive solution for livestock haulers that gives them the flexibility needed to get their live cargo to its destination as safely and efficiently as possible. This bill will not only allow drivers to take a rest break when it is needed, not when it is required, it will also increase the safety and welfare of the animals,” says United States Cattlemen’s Association (USCA) Transportation Committee Chairman Steve Hilker. “USCA has led on this issue from the beginning and we will see it through to its end. We look forward to broad bipartisan support of this legislation that will allow for swift passage into law.”
“The current Hours of Service rules for livestock haulers present major challenges for our industry and can often jeopardize the health and well-being of livestock,” says Colin Woodall, National Cattlemen’s Beef Association’s senior vice president of government affairs. “Hauling livestock is inherently different than hauling typical consumer goods, like paper towels or bottles of water. Live cattle cannot simply be left unattended in a trailer – especially in very hot or cold weather – for extended periods of time. This bill recognizes the unique needs of livestock haulers, and we are grateful for the continued support of Senator Sasse and the other co-sponsors.”
“Nebraska plays an integral role in the beef production chain, with a vast amount of livestock shipped in and out of our state daily,” says Nebraska Cattlemen President Mike Drinnin. “One size fits all federal regulations endanger the health and welfare of livestock by failing to account for the intricacies involved with hauling live animals. This legislation provides needed flexibility for livestock haulers while continuing to maintain the safety of our roads.”
“On behalf of the Nebraska Farm Bureau I want to thank Sen. Ben Sasse for his work in introducing the ‘Transporting Livestock Across America Safely Act,’” says Nebraska Farm Bureau President Steve Nelson. “Livestock production is a major contributor to Nebraska’s local and state economies. The ability to transport livestock in timely and safe manners plays a major role in the success of Nebraska’s livestock sector. Sen. Sasse’s bill is a step in the right direction to fixing regulations that fail to provide the flexibility needed to address the unique needs that exist in the transport of livestock.”

Other ELD and Hours of Service Fixes

This bill is just the latest in a series of legislative proposals that have been made during the past few years. Here is a list of articles referring to other ELD and hours of service solutions:

More Hours of Service Fixes for Livestock Haulers Offered by Congress

Fri, 23 Sep 2022 20:01:50 GMT

Another bill has been proposed in Congress that seeks to address concerns for livestock haulers regarding hours of service regulations, adding to a growing list of legislative fixes.

The Modernizing Agricultural Transportation Act was put forward in the U.S. House of Representatives on May 2 by Representatives Collin Peterson (D-MN) and Greg Pence (R-IN). The legislation was Pence’s first bill that he has introduced since being elected into office in November and in a tweet the freshman congressman says the bill “reduces the regulatory burden and provides flexibility for truckers, farmers, and producers–America’s backbone.”

Washington mandates suffocate hard-working Hoosiers across the 6th District & beyond. I’m proud my first bill, the Modernizing Agricultural Transportation Act of 2019, reduces the regulatory burden & provides flexibility for truckers, farmers, and producers–America's backbone! 🇺🇸 pic.twitter.com/FX4oO1Pren
— Rep. Greg Pence (@RepGregPence) May 2, 2019

A similar version of the bill was reintroduced in the Senate during March by Senators John Hoeven (R-ND) and Michael Bennet (D-CO). There are currently 14 cosponsors of the Senate bill , while the House bill has just two cosponsors listed currently . The original Modernizing Agricultural Transportation Act was introduced in the Senate on June 12, 2018, but never made it out of committee and there was no House version of the bill.

The text for the House and Senate bill appear to have the same language with the goal of establishing “a working group to study regulatory and legislative improvements for the livestock, insect, and agricultural commodities transport industries, and for other purposes.”

The Senate version of the Modernizing Agricultural Transportation Act is supported by the National Cattlemen’s Beef Association (NCBA), United States Cattlemen’s Association (USCA), Livestock Marketing Association, National Pork Producers Council, American Farm Bureau Federation, American Honey Producers Association and Rocky Mountain Farmer’s Union.

Both NCBA and USCA released statements applauding Peterson – who is also the Chairman of the House Agriculture Committee – and Pence for moving ahead with the hours of service reform.

“We applaud Congress for working every angle to come up with solutions that would allow for the safe and efficient movement of cattle throughout the country. New regulations, imposed in 2017, do not work for the livestock transportation industry. We’ve been working strategically with Members of Congress and the Administration to find regulations that enhance highway safety, while also allowing transporters to deliver their live cargo as humanely as possible,” says USCA Transportation Committee Chairman Steve Hilker .

“Cattle producers are glad to see another bipartisan effort designed to provide much-needed relief for livestock haulers. This legislation demonstrates that U.S. Representatives Collin Peterson (D-MN) and Greg Pence (R-IN) are serious about addressing the implementation of electronic logging devices and the overly-restrictive hours of service rules that livestock haulers face today. We thank them and all the original co-sponsors for their support. NCBA will continue to work with members of Congress, industry groups, and the Department of Transportation on long-term solutions to our current transportation concerns,” says Jennifer Houston, president of NCBA .

Other ELD and Hours of Service Fixes

This bill is just the latest in a series of legislative proposals that have been made during the past few years. Just last week the Senate reintroduced a bill that would also reform hours of service regulations for livestock haulers called the Transporting Livestock Across America Safely Act .

Here is a list of articles referring to other ELD and hours of service solutions: