Marketing Bill: Definitions
Consumer expenditures for farm foods represent the market value of foods originating on U.S. farms and purchased by or for consumers. These expenditures cover food in retail stores, food served in restaurants, food served at other away-from-home eating establishments, and food bought directly by consumers from farmers, processors, and wholesalers. Included are the value of food served by schools, hospitals, and other institutions and the value of food furnished by employers to employees at workplaces. Consumer expenditures are calculated by adjusting Census retail expenditure data for seafood and imported foods, such as bananas and coffee. These data are further adjusted by removing nonfood sales from supermarket sales totals.
The farm value is the value of the farm products equivalent to foods purchased by or for consumers at the point of sale by farmers.
The farm share (or farm
value share of expenditures) associated with the marketing
bill is computed by dividing the farm value by consumer
food expenditures, and is reported as a percentage. Over
time, the share reflects relative changes in expenditures
for farm products, food marketing services, and retail food
products. The farm value share has declined over the
years due to large supplies of farm products holding
down farm prices while increased expenditures for food
marketing services have caused retail food expenditures to rise.
The farm share associated with the marketing bill tends to be lower
than estimates of farm share reported for foods marketed
for at-home consumption because of the inclusion of away-from-home
foods. These foods require a higher degree of preparation
than is generally the case for at-home foods. Therefore,
higher expenditures for additional marketing services, such as labor,
are required, resulting in a smaller farm share.
The marketing bill provides a composite estimate of the value added
to agricultural products by the food marketing system for all types
of food, including both at-home and away-from-home foods.
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