ERS Charts of Note
Monday, August 16, 2021
Local food producers had high levels of internet access in 2015 according to a recently released report by USDA, Economic Research Service researchers. They found that 72 percent of local food producers had internet access, either at the farm or at the principal farm operator’s residence. A local food producer is defined as a farming operation that produces and sells edible agricultural products directly to consumers, retailers, institutions, or intermediate markets. Geographic proximity of local food producers to urban areas may account for high levels of internet access. Less-experienced local food producers had greater internet access than those with more farming experience. Eighty-nine percent of first-year farmers had internet access, compared with 82 percent of inexperienced farmers (2 to 10 years of farming experience) and 70 percent of experienced farmers (more than 10 years of farming experience). In 2015, the most popular use of the internet by all local food producers was to buy items for the farm (44 percent of producers), including input supplies, commodities, and equipment. A larger share of first-year farmers used the internet to buy farm inputs (76 percent) and access price and market information from non-USDA sources (60 percent), followed by inexperienced farmers (62 percent and 46 percent, respectively) and experienced farmers (41 percent and 32 percent, respectively). This information is drawn from the ERS report, “Marketing Practices and Financial Performance of Local Food Producers: A Comparison of Beginning and Experienced Farmers,” released August 10, 2021.
Friday, August 13, 2021
Full-service and limited-service restaurants (fast food restaurants)—the two largest segments of the commercial foodservice market—accounted for 70 percent of all food-away-from-home (FAFH) spending on average from 1987 to 2020. Consumers spent the other 30 percent at places such as hotels and schools. Full-service restaurants had the highest share of FAFH sales in every year of that period except 1995, 2010, 2019, and 2020. In 2020, the share of sales at full-service restaurants dropped from 36.5 percent in 2019 to 31 percent, resulting from a 29.4 percent decline in sales, partly because of safety closures during the Coronavirus (COVID-19) pandemic. Full-service establishments typically have wait staff and other amenities such as ceramic dishware, non-disposable utensils, and alcohol service. In contrast, limited-service restaurants, use convenience as a selling point; they have no wait staff, menus tend to be smaller, and dining amenities are relatively sparse. Given their minimal physical interactions with customers, fast food restaurants adapted to COVID-19 restrictions more quickly during 2020 and assumed a larger share of total FAFH sales at 42.7 percent, compared with 36.8 percent in 2019. Despite the increase in the relative share of FAFH sales, fast food sales decreased by 3.6 percent in 2020 compared with 2019. All other FAFH establishments, such as school and college cafeterias, reported a 17.9 percent decline in sales in 2020 and accounted for 26.3 percent of total FAFH sales. This chart appears on the USDA, Economic Research Service’s Market Segments topic page and its data come from the Food Expenditure Series data product.
Wednesday, August 4, 2021
Since 2006, super stores received more USDA, Supplemental Nutrition Assistance Program (SNAP) redemptions than any other type of store, totaling half of all redemptions in 2016. SNAP participants can redeem benefits to buy food items at super stores, supermarkets, grocery stores, and other types of approved food retailers. Super stores are defined as large food and drug combination stores and mass merchandisers under a single roof as well as membership retail/wholesale hybrids offering a limited variety of products in warehouse-type environments. USDA, Economic Research Service (ERS) researchers examined the effects of entrant super stores on the survival of existing SNAP-approved stores and their revenue from redeemed benefits. Researchers found that when one super store entered a market area from 1994 to 2015, about 0.25 supermarkets and 0.05 other smaller food retailers on average left over the first three years after entry. Overall store availability did not decline though, as the entry of one super store more than offset the loss of supermarkets and other smaller food retailers in the markets. The ERS researchers estimated that from 1994 to 2005, local supermarkets and other smaller food retailers annually lost $191,000 on average in SNAP redemptions for each super store entrant into their local market. That loss increased to $213,000 on average from 2005–15. At the same time, super stores gained much more in SNAP redemptions than was lost at local food retailers, leading the researchers to conclude that SNAP beneficiaries shifted purchases to super stores. Based on previous research showing that food is about 3 percent less costly at super stores, the researchers estimated that a shift of SNAP redemptions to super stores expanded the purchasing power of SNAP participants’ benefits by $108.6 million in 2015 (0.15 percent of total SNAP benefits and costs in 2015).This chart appears in the ERS’ Amber Waves article, “New Super Stores Slightly Expanded Purchasing Power for Participants in USDA’s Supplemental Nutrition Assistance Program (SNAP),” June 2021.
Wednesday, July 28, 2021
Retail food prices have increased 1.6 percent in the first six months of 2021, less than the rate over the same period last year (2.9 percent) and equal to the historical average over the same six months from 2000 to 2019. Of the 13 food categories depicted in the chart, 10 have experienced slower price increases so far in 2021 compared with halfway through 2020, while 5 categories trailed their historical midyear average price increases. In the first six months of 2021, prices for five food categories increased at a rate slower than in 2020 and years prior: eggs, dairy, fresh vegetables, cereals and bakery products, and “other foods.” Conversely, prices for three food categories increased in the first six months of 2021 at a rate faster than in 2020 and in years prior: fresh fruits (4.8 percent), fish and seafood (2.5 percent), and fats and oils (1.9 percent). Inflationary pressures differ by food category. For example, fresh fruit prices currently are increasing more than four times faster than their historical average rate because of low citrus supplies and increased exports. Prices may change during the remainder of 2021; in the second half of 2020, prices increased for all food categories except eggs and the category of beef and veal. USDA, Economic Research Service (ERS) researchers project food-at-home prices will increase between 2 and 3 percent in 2021. Forecasts for all food categories, including for 2022, are available in ERS’s monthly Food Price Outlook data product, updated July 23, 2021.
Friday, July 2, 2021
During the Coronavirus (COVID-19) pandemic and economic recession in 2020, the share of U.S. consumers’ disposable personal income (DPI) spent on food decreased 10.1 percent from the previous year to 8.62 percent, the lowest share in the past 60 years. DPI is the amount of money that U.S. consumers have left to spend or save after paying taxes. The share of DPI spent on food in the United States was relatively steady over the last 20 years, decreasing from 9.95 percent in 2000 to 9.58 percent in 2019. Consumers spent 1.4 percent more of their incomes on food at supermarkets, convenience stores, warehouse club stores, supercenters, and other retailers (food at home) from 2019 to 2020, while they spent 22.2 percent less of their incomes on food at restaurants, fast-food places, schools, and other places offering food away from home over the same period. Changes in the shares of income spent on food in 2020 resulted, in part, from pandemic-related closures and restrictions at food-away-from-home establishments, as well as from the largest annual DPI increase in 20 years. The increase in DPI was driven by additional Government assistance to individuals in 2020, including stimulus payments to households and increased unemployment insurance benefits. The data for this chart come from the Economic Research Service’s Food Expenditure Series data product. See also the Amber Waves article Average Share of Income Spent on Food in the United States Remained Relatively Steady from 2000 to 2019, published in November 2020.
Tuesday, June 29, 2021
For Fourth of July cookouts this year, cheeseburgers could be a bit pricier than they were in 2019. The latest available prices from May 2021 show the ingredients for a home-prepared quarter-pound cheeseburger totaled $1.89 per burger, with ground beef making up the largest cost at $1.03 and cheddar cheese accounting for $0.34. This same cheeseburger would have cost $1.78 to prepare in May 2019, an increase of 6.3 percent. Retail prices for one-pound quantities of all ingredients, except tomatoes, were higher in May 2021 compared with May 2019. USDA, Economic Research Service (ERS) is using 2019 for comparison because 2020 was an unusual year for food prices. Higher ground beef prices accounted for more than half the 11-cent increase between 2019 and 2021, while cheddar cheese costs were 1 cent more per burger in May 2021. Bread and iceberg lettuce prices rose the fastest—17.2 and 11.4 percent, respectively—but these ingredients represented a relatively small portion of the total cost of a burger. Bread and lettuce added 4 cents to a burger’s total cost in 2021. Tomato prices remained roughly the same over this period. This chart uses data from the ERS Food Price Outlook data product.
Monday, June 21, 2021
The USDA, Economic Research Service (ERS) estimates that inflation and income growth drove up the costs resulting from 15 foodborne illnesses in the United States by $2 billion from $15.5 billion in 2013 to $17.6 billion in 2018. For this estimate, ERS included medical care costs, the value of lost earnings, and a monetary measure of death based on individuals' willingness to pay to reduce the risk of dying from foodborne illness. The biggest factor behind the increase in the overall costs of foodborne illnesses was the effect of inflation and income growth on the value people place on preventing deaths. However, the value of prevented deaths as a share of overall costs decreased slightly in 2018 compared to 2013 due to the substantial inflation in medical costs. Health effects from foodborne illness can vary by pathogen (bacteria, viruses, and parasites), ranging from a few days of diarrhea to more serious outcomes, such as kidney failure, cognitive impairment, and even death. Determining the overall costs of these health effects provides a common metric to compare impacts of different pathogens, a way to aggregate impacts across illnesses, and a means of comparing the costs of experiencing those illnesses with the costs of preventing them. More information can be found in the ERS’s updated Cost Estimates of Foodborne Illnesses data product. This chart appears in the ERS’s Amber Waves article, “Economic Cost of Major Foodborne Illnesses Increased $2 Billion From 2013 to 2018,” April 2021.
Monday, June 7, 2021
Shutdowns, stay-at-home orders, and the need for social distancing led households to buy more food for consumption at home during the Coronavirus (COVID-19) pandemic. In response to the economic downturn and pandemic conditions, supplemental emergency allotments were issued to Supplemental Nutrition Assistance Program (SNAP) households and Pandemic Electronic Benefit Transfer (P-EBT) benefits were distributed to households with children missing free and reduced-price school meals. This expansion of nutrition assistance led to a rapid increase in the dollar amount of these benefits issued to households and redeemed for food at home (FAH). In January and February 2020, SNAP benefit redemptions accounted for 6.8 percent of total FAH expenditures as estimated by the Food Expenditure Series. In March 2020, FAH spending spiked, causing SNAP’s share of FAH spending to fall. From March to June 2020, the introduction of P-EBT and increase in SNAP benefits led to rapid growth in these programs’ share of FAH spending. In June 2020, redemptions of these benefits peaked at $9.5 billion—making up 13.3 percent of FAH spending that month. This share fell the following three months. Overall, the share of total FAH spending attributable to SNAP and P-EBT from April through September 2020 was 11.7 percent—more than one in nine dollars and nearly 5 percentage points higher than SNAP’s share over the same months in 2019. This chart is based on a chart in the USDA, Economic Research Service’s COVID-19 Working Paper: Supplemental Nutrition Assistance Program and Pandemic Electronic Benefit Transfer Redemptions during the Coronavirus Pandemic, released March 2021.
Monday, May 17, 2021
In 2019, restaurants and other eating places claimed 38.5 cents of the average U.S. food dollar, continuing a steady climb since 2009, when the food services industry’s share was 29.6 cents. Farm production was the only other industry with a rising food dollar share in 2019, up slightly to 7.6 cents from its 25-year low of 7.4 cents in 2018. The proportion of the food dollar was the smallest since 1993 for several industries in 2019: agribusiness (such as fertilizer and farm services), food processing, packaging, wholesale trade and retail trade. The 2019 food dollar reflects conditions before the COVID-19 pandemic. ERS’s annual Food Dollar Series provides insight into the industries that make up the U.S. food system and their contributions to total U.S. spending on domestically produced food. ERS uses input-output analysis to calculate the cost contributions from 12 industry groups in the food supply chain. Annual shifts in the food dollar shares between industry groups occur for a variety of reasons, including changes in the mix of foods consumer buy, costs of materials, ingredients, and other inputs, as well as changes in the balance of food at home and away from home. This chart is available for the years 1993 to 2019, and can be found in ERS’s Food Dollar Series data product, updated on March 17, 2021.
Wednesday, April 28, 2021
The USDA, Economic Research Service’s (ERS) Food Access Research Atlas provides a map of neighborhoods with limited access to nutritious, affordable food for the entire United States. Limited access to high-quality, low-cost food may impede some consumers from achieving a healthy diet. The updated Atlas allows users to map low-income and low-supermarket access census tracts for 2019 and compare the results with those for 2015. Individuals can choose to display one or several of the measures of low-supermarket access that are based on residents’ distances from the nearest supermarket (more than 0.5 or 1 mile in urban areas or more than 10 or 20 miles in rural areas) and whether a substantial number of households have access to a vehicle. One measure considers a tract to be low-income and low-access (LILA) if it is low-income and contains a substantial number of vehicle-less households that live more than 0.5 miles from the nearest supermarket. Using this measure, the number of low-income and low-access census tracts in Pulaski County, Arkansas, for example, rose 4 percent from 2015 to 2019. Twenty-three percent of Pulaski County households lived in these tracts in 2019, including 6 percent who lived more than 0.5 miles from a supermarket and did not have a vehicle. This map was created using ERS’s Food Access Research Atlas, updated April 27, 2021.
Friday, April 16, 2021
The Supplemental Nutrition Assistance Program (SNAP) Online Purchasing Pilot began in 2019 as mandated by the 2014 Farm Act and was quickly expanded in 2020 in response to the COVID-19 pandemic. The pilot allows households in participating States to use their SNAP benefits to purchase groceries online from a limited number of authorized retailers. Households can similarly use Pandemic Electronic Benefit Transfer (P-EBT) benefits, which were issued in 2020 to households with children missing free and reduced-price school meals during the pandemic. Online transactions using benefits are subject to the same requirements as in-person transactions and cannot be spent on tips or fees. The number of States where SNAP and P-EBT benefits could be redeemed online grew from just one State at the beginning of 2020 to 46 States by the end of September 2020. As availability increased and the pandemic necessitated continued social distancing, the value of SNAP and P-EBT benefits redeemed online increased. In February 2020, households redeemed less than $3 million in benefits online, accounting for less than 0.1 percent of all benefits redeemed. By September, this amount grew to $196 million — 67 times its value in February. Overall, households redeemed $801 million in benefits online from February to September 2020. Despite this rapid growth, online redemptions accounted for only 2.4 percent of all benefits redeemed in September. This chart is based on a chart in the USDA, Economic Research Service’s COVID-19 Working Paper: Supplemental Nutrition Assistance Program and Pandemic Electronic Benefit Transfer Redemptions during the Coronavirus Pandemic, released March 2021.
Thursday, April 8, 2021
The U.S. Government expanded existing food assistance programs and introduced new ones in response to the COVID-19 pandemic and subsequent economic contraction in the United States in 2020. Some States began issuing monthly supplemental emergency allotments to Supplemental Nutrition Assistance Program (SNAP) households in March 2020, with the rest beginning to do so in April 2020. All States issued Pandemic Electronic Benefit Transfer (P-EBT) benefits to households with children who missed free or reduced-price school meals during the 2019-20 school year; the earliest States began issuing P-EBT benefits in April 2020. This led to a rapid increase in the dollar amount of food assistance benefits issued to households and redeemed for groceries during the pandemic. The value of total monthly redemptions roughly doubled from $4.7 billion in March 2020 to $9.5 billion in June 2020. Most P-EBT benefits for the 2019-20 school year were issued in May and June 2020, leading total redemptions to peak in June and decline over the next three months. By September, redemptions amounted to $8.1 billion. Overall, an average of $8.4 billion per month in combined SNAP and P-EBT benefits were redeemed from April through September 2020—an increase of 74 percent compared with the average value of benefits redeemed during the same 6 months in 2017-19. This chart is based on a chart in the USDA, Economic Research Service’s COVID-19 Working Paper: Supplemental Nutrition Assistance Program and Pandemic Electronic Benefit Transfer Redemptions during the Coronavirus Pandemic, released March 2021.
Wednesday, March 31, 2021
On average, U.S. farmers received 14.3 cents for farm commodity sales from each dollar spent on domestically produced food in 2019, up from a newly revised estimate of 14.2 cents in 2018. Known as the farm share, this amount increased slightly after 7 consecutive years of decline. Average prices received by U.S. farmers (as measured by the Producer Price Index for farm products) have been relatively stable for the last three years, following sharp declines in 2015 and 2016. The USDA, Economic Research Service (ERS) uses input-output analysis to calculate the farm and marketing shares from a typical food dollar, including food purchased at grocery stores and at eating-out establishments. The marketing share covers the costs of getting domestically produced food from farms to points of purchase, including costs related to packaging, transporting, processing, and selling to consumers at grocery stores and eating-out places. The farm and marketing shares of the food dollar in 2019 reflect conditions before the COVID-19 pandemic. Beginning in March 2020, the ERS monthly Food Expenditure Series reported sharp declines in the share of eating-out food dollars. Farmers receive a smaller share from eating-out dollars because of the added costs for preparing and serving meals at restaurants, cafeterias and other food-service establishments. The data for this chart can be found in ERS’s Food Dollar Series data product, updated March 17, 2021.
Wednesday, March 24, 2021
The share of food dollars spent at grocers, supercenters, and other food-at-home (FAH) retailers in the United States rose in 2020 above Great Recession levels in 2008 as the COVID-19 pandemic disrupted the way people consumed food. The share of spending at FAH establishments began a sharp climb from 48 percent in February 2020, and by April 2020, 66 percent of food spending was devoted to at-home consumption. Shifts to greater FAH spending occurred as states issued stay-at-home mandates and people generally avoided public gatherings. The economic recession likely exacerbated this shift as FAH purchases are more cost-efficient. Even after its April 2020 peak, the share of FAH spending reached the same level in August 2020 as it was in August 2008, during the Great Recession. After that, food spending shares generally followed typical seasonal patterns, although at a level more like the Great Recession than 2018, remaining stable with a slight increase in FAH spending in the colder, winter months. ERS researchers will continue to examine food expenditure data to determine whether this change will endure beyond the pandemic and recession. The data for this chart come from the USDA, Economic Research Service’s Food Expenditure Series data product.
Wednesday, January 13, 2021
From 2010 through 2019, retail—or grocery—food prices rose an average of 1.2 percent a year nationally. However, food-at-home price inflation varies by locality. Retail food prices rose an average of 1.7 percent a year in Honolulu over the decade, while price inflation in the Dallas-Fort Worth area averaged 0.6 percent a year. Averaging 10 years of annual data smooths out year-to-year “noise”—volatile price swings that are not indicative of the overall trend. Differences in transportation costs and retail overhead expenses, such as labor and rent, can explain some of the variation among cities because retailers often pass local cost increases on to consumers in the form of higher prices. Furthermore, differences in consumer preferences among cities for specific foods may help explain variation in inflation rates. For example, a city whose residents strongly prefer foods with less price inflation (such as fresh fruits and vegetables at 1.1 percent a year in 2010–19) might experience lower food-at-home price inflation than a city whose residents buy more beef and veal, which increased an average of 3.6 percent a year in 2010–19. This chart appears in an Economic Research Service data visualization, Food Price Environment: Interactive Visualization, released September 2020.
Friday, December 11, 2020
In 1960, U.S. consumers spent an average of 17.0 percent of disposable personal income (DPI) on food. By 2019, this share had shrunk to 9.5 percent. This decrease was driven by a decline in the share of income people spent on food at home. The share of DPI spent on food purchased at supermarkets, supercenters, convenience stores, and other retailers fell from 13.7 percent in 1960 to 5.7 percent in 2000. Over the same period, the share of DPI spent on food purchased from restaurants, fast-food places, schools, and other away-from-home eating places rose from 3.3 percent to 4.2 percent. The declining share of income spent on food at home reflects, in part, efficiencies in the U.S. food system (which kept inflation for food-at-home prices generally low) and rising disposable incomes. A slower decline in share of income spent on food at home after 2000 could reflect U.S. consumers opting to prepare more meals at home and purchasing more expensive grocery store options than they did in earlier decades. This chart appears in “Average Share of Income Spent on Food in the United States Remained Relatively Steady From 2000 to 2019,” in the Economic Research Service’s Amber Waves magazine, November 2020.
Tuesday, November 10, 2020
Households spend more money on food as their incomes rise, but the amount spent represents a smaller share of their overall budgets. In 2019, households in the lowest income quintile, with an average 2019 after-tax income of $12,236, spent an average of $4,400 on food (about $85 a week). Households in the highest income quintile, with an average 2019 after-tax income of $174,777, spent an average of $13,987 on food (about $269 a week). The three-fold increase in spending between the lowest and highest income quintiles is not the result of a three-fold increase in consumption, however. Rather, as people gain more disposable income, they often shift to more expensive food options, including dining out. Even with this shift, as income increases, the percent of income spent on food goes down. In 2019, food spending represented 36.0 percent of the lowest quintile’s income, 14.1 percent of income for the middle quintile, and 8.0 percent of income for the highest quintile. The statistics in this chart predate the coronavirus pandemic and its impacts. This chart appears in the Food Prices and Spending section of the Economic Research Service’s Ag and Food Statistics: Charting the Essentials data product.
Wednesday, October 28, 2020
The share of U.S. food expenditures occurring at grocery stores, supercenters, and other food-at-home retailers typically displays a consistent seasonal pattern. U.S. consumers devote relatively more money to food-at-home spending in the winter months—a time of Thanksgiving and holiday gatherings. The summer months see the highest share of spending at food-away-from-home places such as restaurants, cafeterias, and other eating-out places. While seasonal patterns have stayed constant until 2020, the share of total food spending dedicated to food at home has not. In 1998, food at home’s share was above 55 percent of total food spending throughout the year. Ten years later, 2008 saw the share of food spending devoted to food at home decrease a few percentage points despite the Great Recession of 2007-2009. In 2018, food at home’s share was below 50 percent in all but the winter months. The COVID-19 pandemic has upended past seasonal trends and expanded food at home’s share of total food spending. Food at home in August 2020 accounted for 54 percent of total food spending, after peaking at 66 percent in April 2020. The data for this chart come from the Economic Research Service’s Food Expenditure Series data product, updated October 16, 2020.
Friday, August 28, 2020
In 2019, before the COVID-19 pandemic, U.S. consumers, businesses, and government entities spent an average of $137.4 billion per month on food. Normal seasonal variations were present, with total food spending being lowest in January and February and highest in May, August, and December. Early 2020 followed the same pattern, with lower-than-average total food spending in January and February, but this trend continued into the spring with spending on food falling to $105 billion in April 2020, as spending at food-away-from-home establishments—restaurants, school cafeterias, sports venues, and other eating places—dropped to $36 billion. Spending on food-away-from-home rebounded in May and June but remained below 2019 spending in those months. Total food sales rose in May and June 2020 but were still lower than a year ago. Higher monthly sales at grocery stores, supercenters, convenience stores, and other food-at-home retailers compared with last year were not enough to compensate for the lower spending at food-away-from-home establishments. The data in this chart, along with more information on U.S. food sales and expenditures, can be found in the Economic Research Service’s Food Expenditure Series data product, updated August 20, 2020.
Wednesday, August 12, 2020
Knowing where natural resource use accumulates is fundamental to understanding what factors influence resource-use decisions. A recent Economic Research Service (ERS) study estimated natural resource use by the U.S. food system in 2007 (2007 data were the latest available with the level of detail needed for the analysis). Farm production was the smallest user of fossil fuels (12 percent of fossil fuel use); households were the largest users (35 percent). Over 40 percent of greenhouse gas emissions in food production were from farms and ranches, followed by households, and then companies that distribute and market food. For forest products, the greatest use occurred during food processing and packaging, with paper-based packaging accounting for most of this use. Farm production was the dominant user of freshwater withdrawals due to irrigation, but slightly over a third of water use by the food system in 2007 occurred after the farm, including in household kitchens (20 percent) and in the energy industry (12 percent). This chart appears in the ERS report, Resource Requirements of Food Demand in the United States, and Amber Waves article, “A Shift to Healthier Diets Likely To Affect Use of Natural Resources,” May 2020.