Food Costs Beyond the Farm Gate

Higher marketing costs were the primary cause of rising consumer expenditures on food over the past decade. Marketing costs are measured by the marketing bill, which is the difference between the farm value of domestically produced foods and the final cost to consumers. Between 1980 and 1990, the marketing bill rose 83 percent and accounted for most of the 67- percent rise in consumer domestic food spending (figure 1). The farm value, or farmer's share, of food purchases climbed only 30 percent (see box)