MONROE - As food prices rise nationally, farmers should be benefitting, right?
Apparently not. These days, farmers are making less money off the food they sell.
In fact, farmers today make less money for every dollar spent for food than they did 30 years ago, Green County ag agent Mark Mayer said.
He said in the 1970s, farmers made about 33 cents of every dollar spent. Today, according to the Wisconsin Farmers Union, farmers and ranchers receive 20 cents for every dollar spent on food at home and at restaurants.
The Wisconsin Farmers Union (WFU) says 80 cents of every dollar spent for food goes for transportation, marketing and advertising costs. Food processing and marketing costs have increased 180 percent in the past 20 years, the union said.
The price for food may be increasing, but the higher prices need to be considered against the increased production costs, Mayer said.
"Fuel prices are driving everything," Mayer said. "The cost for fertilizer has increased and the cost of fuel to apply the fertilizer has also gone up."
This year, farmers are spending about $150 to $200 more per acre to fertilize their fields than last year, Mayer said.
Pig farmers take the biggest hit on production costs, Mayer said. An average pig sold at the market weighs between 260 and 270 pounds. The average farmer loses about $45 per pig when it's sold. "You can't do that very long and stay in business," Mayer said.
WFU provides statistics that show a farmer makes 40 cents for every pound of bacon sold at $3.29 per pound. A farmer also makes 40 cents for every pound of ham sold at $4.29 per pound.
Poultry farmers also are losing money on sales.
To offset their losses, pig and poultry farmers plan to raise fewer animals for sale, Mayer said. By the end of the year, he added, pork and poultry prices could increase as farmers receive more at the markets.
Beef producers are receiving a little more money than pig and poultry farmers, Mayer said. WFU said farmers receive 89 cents for every pound of top sirloin steak that is sold for $7.99 a pound.
Mayer said dairy farmers are doing well, but costs to produce milk continue to rise.
"It's costing more for feed," he said.
He recommends dairy farmers lock into prices that could reach $20 per hundred weight for milk. He estimates it costs about $16.50 to produce a hundred weight of milk.
WFU reports that a farmer receives $1.74 for every gallon of fat free milk sold for $3.50.
What the future holds for farmers may not be easy to forecast. Farmers have no control over a number of variables, such as fuel prices and the weather, Mayer said. He said it could be a difficult year for farmers if production costs continue to increase.
"This is probably the riskiest year I've seen in my 20 plus years here," he said.
Apparently not. These days, farmers are making less money off the food they sell.
In fact, farmers today make less money for every dollar spent for food than they did 30 years ago, Green County ag agent Mark Mayer said.
He said in the 1970s, farmers made about 33 cents of every dollar spent. Today, according to the Wisconsin Farmers Union, farmers and ranchers receive 20 cents for every dollar spent on food at home and at restaurants.
The Wisconsin Farmers Union (WFU) says 80 cents of every dollar spent for food goes for transportation, marketing and advertising costs. Food processing and marketing costs have increased 180 percent in the past 20 years, the union said.
The price for food may be increasing, but the higher prices need to be considered against the increased production costs, Mayer said.
"Fuel prices are driving everything," Mayer said. "The cost for fertilizer has increased and the cost of fuel to apply the fertilizer has also gone up."
This year, farmers are spending about $150 to $200 more per acre to fertilize their fields than last year, Mayer said.
Pig farmers take the biggest hit on production costs, Mayer said. An average pig sold at the market weighs between 260 and 270 pounds. The average farmer loses about $45 per pig when it's sold. "You can't do that very long and stay in business," Mayer said.
WFU provides statistics that show a farmer makes 40 cents for every pound of bacon sold at $3.29 per pound. A farmer also makes 40 cents for every pound of ham sold at $4.29 per pound.
Poultry farmers also are losing money on sales.
To offset their losses, pig and poultry farmers plan to raise fewer animals for sale, Mayer said. By the end of the year, he added, pork and poultry prices could increase as farmers receive more at the markets.
Beef producers are receiving a little more money than pig and poultry farmers, Mayer said. WFU said farmers receive 89 cents for every pound of top sirloin steak that is sold for $7.99 a pound.
Mayer said dairy farmers are doing well, but costs to produce milk continue to rise.
"It's costing more for feed," he said.
He recommends dairy farmers lock into prices that could reach $20 per hundred weight for milk. He estimates it costs about $16.50 to produce a hundred weight of milk.
WFU reports that a farmer receives $1.74 for every gallon of fat free milk sold for $3.50.
What the future holds for farmers may not be easy to forecast. Farmers have no control over a number of variables, such as fuel prices and the weather, Mayer said. He said it could be a difficult year for farmers if production costs continue to increase.
"This is probably the riskiest year I've seen in my 20 plus years here," he said.