DEPARTMENT OF AGRICULTURE


 The Farmer's Share of the

 Consumer's Food Dollar

 When food prices rise noticeably, consumers often
 wonder what percentage of the increased prices is received
 by the farmers.

 Farmers look at the retail prices paid by consumers in
the cities, then at the prices they are being paid for their
products, and naturally wonder what becomes of the
difference between the two figures.

 These dual questions have been acute while the prices
of food were rising during the past three years. In attempt-
ing to answer them, the best available figures have been
brought together from various sources. The result is a more
complete answer to the consumers than to the farmers,
although in neither case can the answer be considered en-
tirely adequate: their implications, however, are significant.

 The annual food budget of the average city working-
mans family is used as a representative example. Fifty-
eight foods are considered. The money spent for these 58
foods is about three-fourths of the amount spent for all
foods by the average city workingman's family. This family
spent $331 in 1935 for these 58 foods as compared with $264
spent in 1933, when the depression low point was reached in
prices paid for foods.

 What did the farmers receive for these foods during
those two years? In 1935 they received $138 of the retail
price, and in 1933 they received $92. These figures are
exclusive of rental and benefit payments that were made to
farmers during those ?ears

 This difference between the price paid by the con-
sumer and the amount received by the farmer is the margin
!hat goes to processors, transportation agencies, and dis-