YOUR TEXAS AGRICULTURE MINUTE
Farmers, consumers feel the squeeze of inflation
By Gary Joiner
Texas farmers and ranchers are paying more at the grocery store, just like everyone else.
The price for groceries jumped 1.4% in February and 8.6% over the past year, the Bureau of Labor Statistics reported.
The monthly increase was the largest in about two years, but the 12-month increase was the biggest since the period ending April 1981.
The common assumption is that farmers and ranchers benefit from the higher prices at the grocery store.
Not so much.
For every dollar American consumers spend on food, U.S. farmers and ranchers earn just 14.3 cents.
The increase in food prices at the grocery store are reflections of higher expenses in the food supply chain beyond the farm and ranch gate. The increased costs range from energy to labor to raw materials.
Always remember that entities beyond the farm and ranch can pass on their higher costs of business to the consumer.
Farmers and ranchers cannot.
The preceding commentary is brought to you by Texas Farm Bureau, the “Voice of Texas Agriculture.” Called “Your Texas Agriculture Minute,” TFB will issue thought-provoking editorials each week—via print and audio—to spark understanding of agriculture in the Lone Star State and its impact on each and every Texan.
Media outlets: This content may be used without further permission.