USDA Reports Consumers’ Food Spending Hit Record High in 2022

According to USDA Economic Research data that was updated in June, real, or inflation-adjusted, annual food spending in the United States increased steadily from 1997 to 2022, except in 2008 and 2009 during the Great Recession and in 2020 during the Coronavirus (COVID-19) pandemic.

Food spending includes food at home (FAH), described as food intended for off-premises consumption from retailers, such as grocery stores, and food away from home (FAFH), described as food purchased at outlets such as restaurants or cafeterias.

Total food spending increased 70 percent from 1997 to 2022. During this period, FAH spending increased at a slower rate (53 percent) than for FAFH (89 percent). Total food spending increased on an annual basis by 7.2 percent in 2021 and 4.5 percent in 2022.

FAFH spending increases (19 percent in 2021 and 8 percent in 2022) drove overall increases in food spending. FAH spending increased by 4 percent in 2021 but fell by 2 percent in 2022.

EDITOR’S TAKE:

The fact that consumers are spending more and more on food, is placing many of them in a very precarious financial position. This is especially true when we add increasing inflationary pressures from energy, rising housing prices, interest rates, and prices for many other goods and services. Collectively, these increases are causing much concern for consumers to either forego purchases, dig into their savings or add to their credit card debt. Thus, we come back to that familiar drum beat – farmers/ranchers are in excellent financial condition and should be at the top of your customer prospect list. Farmers and ranchers consistently purchase nearly a million new vehicles each and every year, sometimes much more. Make sure your salespeople know to ask the question when a customer approaches – Are you a farmer/rancher? If they respond affirmatively then that is their cue to start talking about Return on Truck Investment through AgPack®, available only at a Certified Ag Dealer!