INDIANA — It’s no secret that prices for consumer goods are on the rise this year and ingredients for the traditional Thanksgiving dinner are not immune. Indiana Farm Bureau’s annual Thanksgiving market basket survey shows that Hoosier shoppers can expect to spend approximately 14% more at the grocery store than in 2021. According to this year’s pricing survey, Hoosiers are paying an average of $61 for a Thanksgiving dinner for 10 people, or $6.10 per person. However, Indiana’s market basket price is approximately 5% lower, or 31 cents less, than the U.S. average price of $6.41 per person.
According to the American Farm Bureau Federation, the main driver of the increase is inflation, as well as other factors including supply chain disruptions and the war in Ukraine, with other countries pulling back on exports to protect domestic supplies.
The U.S. Bureau of Labor Statistics states the food-at-home consumer price index for October 2022, a measure of price changes at the grocery store, increased 12.4% year-over-year. Additionally, the current rate of inflation for the average American was at 7.8% as of October 2022, according to the U.S. Labor Department. Many consumers have felt the weight of inflation this year, including farmers, who have been dealt a tough hand. While food prices have increased, so have input prices for the farmers growing that food.
According to the U.S. Department of Agriculture’s revised Food Dollar Series, farmers currently receive approximately 8% of every food marketing dollar. Using this figure, the farmer’s share of this market basket would be $4.88. The rest goes toward food processing, packaging, transportation, wholesale and retail distribution, food service preparation and other marketing costs.