Page 35 - MWC 2-2-2023s

Understanding the drop in the food dollar return to Farmers The Midwest Cattleman · February 2, 2023 · P35

K-State Agricultural Economist Dustin Pendell Explains Declining Numbers

By Lisa Moser, K-State Research and Extension news service
Anyone associated with be heavily processed before crease in the return to farm- if more total people are con-
agriculture knows there are reaching consumers.” ers and ranchers as disap- suming goods, that can lead
often many steps involved in The remaining portion pointing, Pendell says the to an increase in the whole
getting the commodity from of the food dollar relates to numbers don’t reflect the industry profits, which is ad-
the farm and ranch to the marketing, Pendell said. profitability of an operation. vantageous to all,” Pendell
consumer. Dustin Pendell, “Those costs include trans- “I would argue that even said.
an agricultural economist portation, packaging, pro- though farmers are getting
at Kansas State University, cessing and selling to con- a smaller share of the dollar,
said each of these transac- sumers,” he said.
tions cuts into the share of Another reason
the return on the farm dol- for the downward
lar. trend relates to
Pendell cited a November the increase in
2022 report from the USDA spending on food
Economic Research Service away from home,
showing that U.S. farms re- according to the
ceived 14.5 cents per dollar report.
spent on domestically pro- “As the COVID-
duced food in 2021. The ERS 19 pandemic
reports that this was a de- eased, a lot more
crease of 1.0 cents from 15.5 people start-
cents in 2020, and the lowest ed eating out at
recorded farm share value in restaurants and
nearly three decades. that added one
“Keep in mind that return more layer to the
will vary greatly by com- marketing com-
modity,” Pendell said. “As an ponent,” Pendell
example, eggs would likely said. A November 2022 report from the USDA Economic Research Service showed that U.S. farms
have a higher return as com- Though some received 14.5 cents per dollar spent on domestically produced food in 2021, the lowest recorded farm
pared to wheat that has to may view this de- share value in nearly three decades.

You’ve got to ‘hang

around’ in the right

places if you want to get

attention...

Your Ad Could be Here!