This was the smallest farmer's share since 1934, when it was 34 cents (fig. 2). 4. Beef, processed orange products, and bread accounted for about threefourths of the increase in the market basket farm-retail spread in 1963, although the spread for many other products also widened (tables 2 and 3). Much of the increase in the market-basket spread came in the first quarter, when prices farmers received for beef cattle dropped much more than retail prices of beef.

FIGURE 1

RETAIL COST, FARM VALUE, AND
MARKETING SPREAD FOR FARM FOODS

DATA ARE FOR MARKET BASKET OF FARM FOODS CONTAINING AVERAGE 1952 PURCHASES BY URBAN FAMILIES. 1963 PRELIMINARY.

U. S. DEPARTMENT OF AGRICULTURE

NEG. ERS 2638-64 (1) ECONOMIC RESEARCH SERVICE

FARMER'S SHARE OF DOLLAR SPENT FOR FARM-ORIGINATED FOODS IN RETAIL FOOD STORES.

U.S. DEPARTMENT OF AGRICULTURE

NEG. ERS 2650-54/11 ECONOMIC RESEARCH SERVICE

5. Consumers spent more per person last year for food than in 1962, but the proportion of their total income spent for food continued to decline.

6. Retail prices of 25 items of cotton clothing and household furnishings averaged slightly higher in 1963. The farm-retail spread also increased modestly, as the farm value of the cotton used in these articles decreased slightly. Average prices and spreads for cotton products have varied within a relatively narrow range in recent years and have shown no marked uptrend (table 11).

7. Retail prices of cigarettes continued a long-term uptrend. Total expenditures for cigarettes more than doubled from $3 billion in 1947 to $6.8 billion in 1962 (latest available data). However, the farmer's share of these expenditures has declined to less than 10 percent as total returns to farmers for tobacco used in cigarettes increased only from $418 million in 1947 to $672 million in 1962. Federal, State, and local excise taxes made up about 45 percent of the total expenditure for cigarettes in 1962, a slightly smaller proportion than in 1947 (fig. 14).