Farmers Receive 15-18% of Retail Price for Fresh Potatoes

USDA’s Economic Research Service reports the farm share of the retail price of potatoes fluctuated between 15 percent and 18 percent 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 $0.78 per pound at grocery stores in 2021, and the monthly average price received by farmers was $0.12 per pound. As part of the farm share calculation, the USDA Economic Research Service assumes that farmers supply a little more than 1.04 pounds of fresh potatoes for each pound sold at retail to account for the roughly four percent of fresh potatoes that is lost through spoilage or damage. Therefore, at an average farm price of $0.12 per pound, the farm receipt was 12.5 cents for each pound of potatoes sold in 2021, about 16 percent of the retail price.