Farm Compliance

Of the 16 items surveyed, eight increased, seven decreased and one stayed the same in average price compared to the 2007 second-quarter survey. Compared to one year ago, the overall cost for the marketbasket items showed an increase of about 7 percent.

For the second quarter in a row, regular whole milk showed the largest quarter-to-quarter price increase, up 48 cents to $3.94 per gallon, followed by cheddar cheese, which rose 35 cents per pound to $4.07.

Other items that increased in price were: Russet potatoes and corn oil up 23 cents each to $2.57 for five pounds and $3.01 for a 32-oz. bottle, respectively; bacon up 16 cents to $3.60 per pound; vegetable oil, up 7 cents to $2.73 per 32-oz. bottle; toasted oat cereal and Red Delicious apples, up 4 cents each to $2.90 and $1.49 for a 10-oz. box and one pound, respectively.

Pork chops showed the greatest decrease in price, down 24 cents to $3.39 per pound. Other items that decreased in price were: sirloin tip roast, down 13 cents to $3.86; ground chuck, eggs and white bread, down 4 cents each to $2.81 per pound, $1.51 per dozen and $1.54 for a 20-oz. loaf, respectively; and flour and mayonnaise, down 1 cent each to $1.91 for five pounds and $3.42 for a 32-oz. jar, respectively.

One item, whole chicken fryers, stayed the same in price at $1.28 per pound.

“Dairy products continue to increase in price,” said AFBF Economist Jim Sartwelle. “Strong competition from overseas consumers for U.S. milk products has helped drive prices to current levels. On the other hand, it was a pretty tough summer for beef and pork demand here at home. This is reflected in the third-quarter price slide for sirloin tip roast, ground beef and pork chops.”

As retail grocery prices have gradually increased, the share of the average food dollar that America’s farm and ranch families receive has dropped over time.

“In the mid-1970s, farmers received about one-third of consumer retail food expenditures on average. That figure has decreased steadily over time and is now just 22 percent, according to Agriculture Department statistics,” Sartwelle said.

Using that percentage across-the-board, the farmer’s share of this quarter’s $44.03 marketbasket total would be $9.69.

AFBF, the nation’s largest general farm organization, conducts its informal quarterly marketbasket survey as a tool to reflect retail food price trends. According to USDA statistics, Americans spend just under 10 percent of their disposable income on food annually, the lowest average of any country in the world. A total of 77 volunteer shoppers in 31 states participated in the latest survey, conducted during August.