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Wednesday, July 23, 2008

Maximize Farmers' Share of Food Dollar


Ever wonder how much of your food dollar actually goes to the farmer? Take a guess at the farmer's share of the following items purchased at your typical conventional grocery store (most of these prices come from Safeway). The answers are after the jump.

Lays Classic potato chips: $3.79

Head of iceburg lettuce: $1.99

One pound top sirloin steak: $7.99

Pound of bacon: $3.29

Loaf of sliced bread: $2.99

One gallon skim milk: $3.99

Six-pack of beer: $5.05

Five pounds of flour: $2.89

On average, farmers and ranchers only receive 20 cents of every dollar that consumers spend on food.

Lays Classic potato chips: $3.79 = .08

One head of iceburg lettuce: $1.99 = .37

One pound top sirloin steak: $7.99 = .92

Pound of bacon: $3.29 = .55

Loaf of sliced bread (one pound): $2.99 = .17

One gallon skim milk: $3.99 = 1.55

Six-pack of beer: $5.05 = .12

Five pounds of flour: $2.89 = .86

Surprised? Or perhaps this was a depressing reminder of what you already knew.

USDA estimates that off-farm costs -- marketing, processing, wholesaling, distribution and retailing -- account for 80 cents of every food dollar spent in the U.S.

So keep those dollars in your farmer's pocket. By buying directly from farmers at markets, road stands and through community supported agriculture (CSA) shares, these off-farm costs become nominal and farmers' share profitable. And buying directly from farmers keeps the price of fresh, nutritious produce down as well, especially in the face of historic fuel prices. In other words, it's the way it should be: a distribution system that works for farmers and consumers both.

Original here

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