Farm Compliance

Of the 16 items surveyed, 10 decreased, four increased and two stayed the same in average price compared to the 2007 third-quarter survey. Compared to one year ago, the overall cost for the marketbasket items showed an increase of about 5 percent.

Corn oil showed the greatest decline in price, down 58 cents to $2.43 per 32-oz. bottle. Mayonnaise dropped 50 cents to $2.92 for a 32-ounce jar.

Other items that decreased in price were: vegetable oil, down 48 cents to $2.25 for a 32-oz. bottle; Russet potatoes, down 28 cents to $2.29 for a 5-pound bag; bacon, down 25 cents to $3.35 per pound; apples, down 22 cents to $1.27 per pound; flour, down 21 cents to $1.70 for a 5-pound bag; ground chuck, down 12 cents to $2.69 per pound; and sirloin tip roast, down 11 cents to $3.75 per pound.

“The fourth quarter of 2007 was pretty hard on the meat and oil markets,” said AFBF Economist Jim Sartwelle. “Beef and pork production was up sharply and domestic retail demand was down, which is typical during the holiday season. The oils seemed to take a break from three straight quarters of increase, but that is unlikely to last long.”

Farm Bureau volunteer shoppers reported a 3-cent drop in price for whole milk at $3.91 per gallon.

“Retail milk prices took a breather from a wild 2007 ride during the fourth quarter,” said Sartwelle. “For the time being, it appears domestic milk prices have leveled off, in part because the increased foreign demand for U.S. dairy products that began in the first quarter of 2007 has stabilized.”

A 10-oz. box of toasted oat cereal showed the largest price increase, up 15 cents in the fourth quarter to $3.05. Other items that increased in price were: a dozen large eggs, up 10 cents to $1.61; a 20-oz. loaf of white bread, up 8 cents to $1.62; and cheddar cheese, up 3 cents to $4.10 per pound. Two items, whole fryer chickens and pork chops, stayed the same in price at $1.28 and $3.39 per pound, respectively.

As retail grocery prices have increased gradually, 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 $41.61 marketbasket total would be $9.15.

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 96 volunteer shoppers in 28 states participated in the latest survey, conducted during November.