In a new report from the American Farm Bureau Federation (AFBF), the U.S. has the most affordable food supply in the world.
Megan Nelson, AFBF economic analyst, researched global food process and found Americans enjoy the most affordable overall price for food at home.
“The amount of money each individual spends out of their disposable income on food is about 4.8 percent—that was from 2017,” said Nelson. “That’s substantially lower than a lot of other areas.”
In low-income countries, more of their household budget is spent on food than those in high-income counties, according to Nelson.
“For high-income countries, we’re looking at 4 to 6 percent of their total disposable income being spent on food,” she said. “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.”
Nelson said it’s important agricultural trade and policy help reduce global food price volatility.
“The importance of keeping price predictable for not only farmers, but all individuals in these low-income countries is paramount,” she said. We really need to be able to stabilize markets abroad and build up trading partners instead of having unstable trade flow.”
Source: American Farm Bureau Federation