A new analysis by the American Farm Bureau Federation (AFBF) shows the United States has the most affordable food supply in the world. Megan Nelson, AFBF economic analyst, researched global food prices and found Americans enjoy the most affordable overall price for food at home.
“Americans actually have the most affordable basket of groceries,” she said. “The amount of money that each individual spends out of their disposable income on food is about 4.8 percent. That was from 2017. That’s substantially lower than a lot of other areas.”
Nelson noted individuals in low-income countries must spend much more of their household budget on food than those in high-income countries.
“For high-income countries, we’re looking at four to six, to maybe eight percent, of their total disposal income being spent on food,” Nelson said. “But then if you go into more low-income countries, you’re seeing over 50 percent of their household budget spent on food. And that has been true since the 1800s.”
It’s important, Nelson said, agricultural trade and policy help reduce global price volatility.
“The importance of keeping price predictable for not only farmers, but all individuals in these low-income countries is paramount,” Nelson said. “We really need to be able to stabilize markets abroad and build up trading partners, instead of having unstable trade flow.”