The Surprising Truth Behind Your Food Dollar: Who Really Gets Paid?

The Surprising Truth Behind Your Food Dollar: Who Really Gets Paid?

Ever wonder what happens to your money when you buy food? Like, where does that dollar actually go—from the farm to your plate?

At Earth Wake Foods, we’re curious about this stuff because we care deeply about the planet and the people growing your food. So, here’s the scoop, broken down and easy to understand.


Farmers Get Less Than You Think

First up, the farmers. They’re the superheroes growing the foods that make up your meals. But here’s a surprise: farmers often get less than 10 cents for every dollar you spend on food. Seriously!

For example, that means if you buy a $10 snack, less than $1 actually goes to the folks who grew the ingredients.

Why? Because food has a long journey with lots of stops along the way—processing, packaging, transportation, marketing, grocery stores, and restaurants all take their cut.


Where Does the Rest of Your Dollar Go?

When we’re talking about the food industry as a whole and breaking down the food dollar, there are many players involved. Think fruit and veggie farmers, nut and grain farmers, dairymen and livestock handlers, brokers, restaurants and caterers (slow to fast food and everything in between!), retailers (from truck stops to high end grocery stores), distributors, transportation and logistics—just to name a few.

Then there are the other companies who support and supply each of these businesses—think harvesters, sanitation, linen, equipment and maintenance, pest control, and the list goes on. The food industry supports a lot of us!

Ever wondered why food seems so expensive but farmers don’t see the benefits?
Let’s break down where your money goes when you spend $1 on food in the U.S.:

  • 34.1¢ goes to restaurants and foodservice

  • 12.4¢ covers retail trade—like your local grocery store

  • 14.4¢ pays for food processing, where raw ingredients become the packaged foods you buy

  • 10.7¢ goes to wholesale trade, which moves food from processors to retailers

  • 2.7¢ is for packaging

  • 3.5¢ covers transportation

  • 3.8¢ is for energy—things like fuel and electricity

  • 3.2¢ goes to finance and insurance services

  • 3.4¢ is for advertising

  • 1.8¢ goes to legal and accounting services

  • 7.9¢ goes to farm production—the actual growing of your food

  • 2.1¢ supports agribusiness, like seed, fertilizer, and farm equipment

So while you’re paying more at the register, only a small fraction goes to the farmers. The majority is consumed by the supply chain in ways most of us never see.

This data breaks down all food consumption across the US. When we focus on packaged food on store shelves, between brokers, distributors, and retailers, their piece of the pie can be over 50¢!

Source:
USDA Economic Research Service: Food Dollar Series (2023 data)


Food Prices Are Going Up — But Farmers & Other Food Artisans Aren’t Getting Rich

You’ve probably noticed food prices creeping up. In fact, food prices rose about 25% from 2019 to 2023!

But farmers haven’t seen a matching boost—in fact, some crop prices actually dropped recently. That’s because farmers often can’t control how much they get paid—they take what the market offers, even when costs like fuel and fertilizer go up.

One way to change this? Buy directly from small, local farmers and the businesses that source directly from them—like us at Earth Wake!


Why Buy Direct from a Small Farmer?

Because it just makes sense. When you buy straight from the farmer, there’s no long chain of middlemen marking up the price along the way. That means:

  • The farmer sets a fair price—one that actually reflects the time, care, and cost it takes to grow good food

  • You skip the store markups, fees, and gimmicks, getting more value for your dollar

  • The money goes where it matters—to the people doing the hard, honest work

We get it—you can’t buy everything direct. But even making an effort, here and there, helps real families, strengthens local food systems, and keeps traditions alive.

When it works, it’s not just a sale—it’s a connection. And that’s something a big-box store can’t offer.


Why This Matters for You—and for Earth Wake Foods

When you buy food, every dollar you spend is a vote for the kind of system you want to support.

When you choose our regeneratively grown, organic dried fruit, you’re doing more than just buying a snack—you’re:

  • Supporting farmers directly, helping them earn fair, sustainable prices without layers of middlemen

  • Choosing food that’s grown without chemicals, in a way that builds healthy soil and ecosystems

  • Helping shape a supply chain that’s shorter, fairer, and better for the Earth

  • Fueling a food system that’s transparent and puts people and planet first—not just profit

We’re not here to just fill shelves.
We’re here to wake up the food system!


So, What Can You Do?

Next time you snack, remember your dollar has power. Here’s how you can make your food dollars matter:

  1. Buy Directly from Small Farmers
    Skip the middlemen. Whether it's your local farmers market, a CSA (Community Supported Agriculture,) or a farm’s online store, buying direct means more of your money goes straight to the people growing your food. Farmers set fair, sustainable prices and can actually make a living — not just survive.

  2. Support Brands That Buy Direct from Farmers (Like Us!)
    At Earth Wake, we work with farmers who grow organically and implement regenerative practices. Because we cut out unnecessary steps in the supply chain, more of your dollar supports healthy soil, clean food, and thriving rural communities.

  3. Ask Questions at the Store
    Curiosity is power. Ask where your food comes from and how it’s made. When retailers and brands hear customers care, they listen.

  4. Choose Upcycled and Regenerative Products
    Support food made with a purpose. Choosing upcycled or regeneratively grown products helps reduce waste and actively improve the Earth — not just "do less harm."

  5. Share the Knowledge
    The food system can be confusing — help spread awareness. Share articles and facts with friends. It’s one more way to nudge the system toward fairness.


Thanks for being curious and making thoughtful food choices. We’re excited to be on this journey with you!