Decomposing the Farmer's Share of the Food Dollar

Abstract

The Canadian farm share for five crop‐based products and seven livestock‐based products from 1997 to 2010 is calculated using a supply chain IO analysis. Significant differences exist in farm shares across food commodities with higher farm shares for livestock products and lower farm shares for grain‐based products. The decline in the Canadian farm share for food consumed at home is driven in large part by the food purchasing habits of consumers. This paper also addresses the hypothesis that the decline in the Canadian farm share could be partially driven by rising input costs in post‐farmgate processes or rising input costs that have greater impact on downstream sectors than primary agricultural producers. Three experiments were conducted to assess the impact of an increase in the cost of corn, energy, and farm labor would have on commodity output prices, farm returns, food expenditure, and farm share. In all three cases, the overall farm share increases, albeit by a small amount, suggesting that these shocks have a larger relative impact on the prices of agricultural commodities than the prices of marketing commodities used in post‐farmgate activities. A two‐period comparison of these simulations shows that energy (corn and farm labour) price shocks would have had a greater (lower) impact on the farm share in 2007 than 1997.

Farm share of the food dollar: an IO approach for the United States and Canada

“…This information on the flow of goods and services within the economy is the basis for aggregate economic measures such as GDP. It can also be used as the basis for calculating the decomposition of food expenditures since components of the value added by the industries in the domestic food supply chain are measured (Kelly et al, ).…”

Indicators of State Financial Support for Capital Reproduction in the Agricultural Economic Sector: The European Union and Russia

“…Despite the differences, they both are aimed at supporting the state's current goals of agricultural development, which are important for national economies, based on a successful combination of the principles of complexity, flexibility, and long-term programming (Table 1). Providing production quotas (limiting the crops areas and livestock density per unit area of land); direct income support payments (supporting credit subsidies per animal and hectare of crops); the three-tier pricing system: the target, intervention, and threshold prices Source: Compiled by the authors based on [12][13][14].…”