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More Americans are dining out and it’s impacting farmers

Americans are spending more money dining out than for food prepared at home, according to the USDA’s Economic Research Service.

U.S. consumers spent a record $1.6 trillion on food and drinks in 2017 and 54 percent, or $869 billion, of that was purchased away from home.

Megan Nelson, an economic analyst with American Farm Bureau, says farmer’s share of the food dollar has decreased even further as a result.

“The portion of the farmer’s food dollar that they receive is smaller when those dollars are spent going out to eat as opposed to the share of the food dollar spent at a grocery store,” she says. “The trend could imply that the share of the overall food dollars for farmers could decrease.”

But, she tells Brownfield there is good news for farmers.

“We’re spending record amounts on food and beverages and overall that’s a great thing for the farmer,” she says.

Nelson says a major reason more people are dining out is the rising national income.

“As Americans, the more money we have the more we spend,” she says.

She says millennials are also contributing to the rise in money spent dining out.

The latest ERS Food Expenditure Series was released last month.

The series has been following the value of the U.S. food system since 1869.

 Audio: Megan Nelson, American Farm Bureau 

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