Corn Commentary

American Farmers Clarify Where the Money from Higher Food Prices Goes

Contrary to what many believe, higher food prices do not equal more money for farmers.

As the Northeast continues to deal with the effects of Hurricane Sandy, other parts of the United States are still dealing with the most severe and extensive drought in at least 25 years. And that drought has spurred some talk about whether consumers will pay more for food at the grocery store.

While the current USDA food-price forecast for 2012 is below some recent food-inflation rates, such as the spikes in 2004, 2007, 2008 and 2011, shoppers can expect to pay a little more at the grocery checkout this year. And U.S. farmers, who saw firsthand the effects of the drought on their crops and livestock, want to be sure that consumers understand exactly where those extra food dollars end up. (Hint – it isn’t farmers’ pockets.)

“Believe me, as a farmer and a mom of one child, with another on the way, I definitely pay attention to food prices because they affect my family’s pocketbook, too,” says Iowa farmer and CommonGround volunteer Sara Ross. “I know it can sometimes be tough to look past the price tag. But it’s important for families to remember that, as Americans, we are very fortunate to only have to spend 10 percent of our income on food, versus the 18-25 percent spent by people in other countries around the world.”

Where does the money that families pay for their food go? CommonGround walks through the truth about food prices below: