Spirit of America: Celebrating the perseverance of the farmer

Families across America are getting ready for the semiquincentennial celebration. This may be the only time I refer to our amazing country’s 250th anniversary as a semiquincentennial because it’s hard to spell and even harder to say.

No matter what you call it, Fourth of July cookouts are going to cost a little more this year. According to the American Farm Bureau Federation’s annual survey, feeding 10 people at a holiday cookout will cost about $73.82, or $7.38 per person, up $2.90 from last year.

The cost of the cookout increased by about 4%, which closely mirrors the overall inflation rate. While nobody enjoys paying more at the grocery store, the reality is that food remains one of the best values in the family budget.

Americans spend a smaller percentage of their disposable income on food than almost any other country in the world. What so often gets overlooked is that the farmer’s share of that food dollar remains remarkably small.

According to Farm Bureau, farmers receive about six cents of every food dollar, with the remaining value covering processing, packaging, transportation, marketing, retailing and other costs throughout the food supply chain.

At the same time, the people growing and raising the ingredients that make up our holiday meals continue to face escalating costs and growing risks.

Livestock producers are dealing with higher feed, fuel, labor, equipment and interest costs while managing challenges such as drought, extreme weather, animal health concerns and market volatility.

Fruit and vegetable growers have battled devastating weather events and rising labor and transportation expenses.

Row crop farmers face increasing costs for seed, fertilizer, crop protection products, fuel, equipment, land rent and operating loans, along with weather extremes, pest and disease pressure, and uncertain commodity markets.

Despite these mounting expenses and risks, farmers have little control over the prices they receive for their products, making profitability a constant challenge.

Unlike many businesses, farmers can’t simply pass those costs along whenever expenses increase. They are price takers, not price makers.

They make planting and production decisions months before harvest and often invest significant money long before they know what they’ll receive for their products. Mother Nature, global markets, government policy, interest rates and consumer demand can all affect the outcome.

Agriculture is different from almost every other business. A restaurant can raise menu prices and a retailer can adjust prices on inventory, but farmers often have little control over the price they receive.

The reality is that farmers and ranchers are facing tighter margins today than they have in several years. Input costs remain stubbornly high while commodity prices have softened for many producers.

Weather extremes continue to create uncertainty, and operating loans cost more than they did just a few years ago.

As we gather with family and friends this Fourth of July, it’s worth remembering and mentioning that the safest, most abundant and affordable food supply in the world happens because farmers and ranchers continue showing up every day, despite the challenges, to put food on our tables.

God bless America and God bless farmers and ranchers!