How Much Money Does a US Spud Grower Make From Doing Business With Retailers?

According to USDA’s Economic Research Service, farmers collect 15-18% of the retail price for fresh potatoes, but the farm share has been facing fluctuations in recent years. The farm share of the retail price is the ratio of what farmers receive to what consumers pay per pound in grocery stores.
The national monthly average price of fresh potatoes was USD1.72 per kilo at grocery stores in 2021, and the monthly average price received by farmers was USD0.26 per kilo.
As part of the farm share calculation, the USDA Economic Research Service assumes that farmers supply a little more than 0.47 kilos of fresh potatoes for every 0.45 kilos sold at retail to account for the roughly 4% of fresh potatoes that is lost through spoilage or damage.
“Therefore, at an average farm price of USD0.26 per kilo, the farm receipt was almost USD0.28 for each kilo of potatoes sold in 2021, about 16% of the retail price,” according to News Dakota.















