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Retail beef prices and ranch profits aren’t the same
An economist with the American Farm Bureau Federation says there’s a common misconception that cattle producers are benefiting from record-high beef prices.
Faith Parum says the connection between grocery store prices and farm income isn’t always what consumers think.
“I think the biggest thing, and this is not just beef but all of agriculture, when (people) see their grocery bill go up you think ‘oh, the farmers and ranchers out there must be doing great.’ But in reality, most of that money isn’t going back to the farm.”
She tells Brownfield a large portion of the extra pricing comes from other parts of the supply chain.
“A really good example now is diesel prices. We’re a very trucking-heavy country. Diesel prices go up and that gets translated into higher food prices as well.”
Parum says cattle producers continue to face tight margins as input costs remain historically high.
Faith Parum:
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