When you buy a gallon of milk, a dozen eggs, or a fresh-cut steak, have you ever wondered how much of that money actually makes it back to the farmer? The answer might surprise you.
According to the USDA’s Economic Research Service, farmers receive only 14.9 cents of every dollar spent on food in the U.S. The rest is absorbed by processing, distribution, retail, and marketing. While farmers grow the food, much of the profit moves through other hands before reaching consumers.
This imbalance affects not just farm incomes, but the health of rural communities, food quality, and the resilience of the entire agricultural system.
Where Does the Other 85% Go?
The USDA’s data breaks down the remaining 85% of the food dollar into several categories:
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Food processing (24.6 cents) – The costs of turning raw agricultural products into packaged goods, such as wheat into bread or tomatoes into canned sauce.
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Retail trade (19.9 cents) – The cut grocery stores take for selling food.
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Food services (16.1 cents) – The markup from restaurants, fast food chains, and cafeterias.
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Wholesale trade (9.1 cents) – The cost of moving products through supply chains before they reach stores.
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Transportation, advertising, and legal costs – The expenses of moving, marketing, and regulating food before it reaches the consumer.
Each step adds costs, leaving farmers with a small share of what consumers pay.
The Impact on Farmers and Rural Communities
For many farmers, low margins make it difficult to stay in business. Small and mid-sized farms often face rising costs for land, equipment, and supplies, while earnings from food sales remain low. Many rely on additional income sources, off-farm jobs, or government subsidies to stay afloat.
As farms struggle, rural economies feel the strain. Local businesses that depend on agriculture, like feed stores and repair shops, see lower sales. Schools and public services in farm-dependent towns face budget challenges when farming declines. The economic effects extend far beyond individual farmers.
Why Buying Direct Supports Farmers
Buying directly from farmers shifts more of the food dollar back to its source. Farmers’ markets, community-supported agriculture (CSA) programs, farm co-ops, and online platforms like Our Farms reduce the number of intermediaries, allowing farmers to earn more for their work.
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More money stays in farming communities. Local spending strengthens rural economies, creating jobs and keeping small businesses open.
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Consumers gain access to fresher, high-quality food. Food travels shorter distances and reaches buyers closer to peak freshness.
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Farmers have more control over pricing. Without wholesalers setting rates, farmers can price their products based on the value of their labor and production costs.
Creating a More Sustainable Food System
Supporting farm-direct sales strengthens agriculture and local economies. When farmers receive fair pay, they reinvest in their land, adopt sustainable practices, and maintain the traditions that have supported rural communities for generations.
A food system that prioritizes direct farmer-to-consumer relationships ensures that farming remains viable, rural towns remain vibrant, and consumers continue to have access to fresh, responsibly grown food.
Strengthening the Connection Between Farmers and Consumers
The current food system makes it difficult for farmers to earn what they deserve. With so many intermediaries taking a cut, too little of each food dollar makes it back to the people actually growing the food. This imbalance affects not just farmers, but the entire rural economy.
Buying directly from farmers helps shift that balance. It keeps more money in farming communities, supports small and mid-sized farms, and ensures that consumers have access to fresh, locally produced food. A stronger connection between farmers and consumers creates a more sustainable, fair, and resilient food system—one where those who grow the food aren’t struggling to stay afloat.
At Our Farms, we believe that making these connections easier benefits everyone. By creating a more direct path between farms and consumers, we hope to make it possible for more farms to thrive, rural communities to stay strong, and people to feel more confident in the food they buy.
A stronger food system starts with you—buy fresh, buy local, buy direct with Our Farms.
