While the average consumer is aware of the prices they pay for food and goods at farmers markets and grocery stores, they are often unfamiliar with the true cost of production for the farmers and producers who make them possible.
What happens behind the scenes that leads to the prices we see on stickers? The answer is a variety of fixed and variable costs that are unfortunately not so easy to predict.
FIXED
- Cost of land – A hard truth is that many farmers cannot afford to own their land outright. Lease payments and other land-related fees are often required.
- Labor – Staffing has become increasingly complex due to rising minimum wages and the need for competitive pay in an industry with a limited candidate pool and high turnover, in part due to the demanding nature of farm work.
- Cost of feed – If you have livestock, you need grain and hay for them to thrive. At Wolfe’s Neck, for example, while we would love to feed our cows exclusively with hay grown here on campus, that isn’t always possible. Excessively wet or dry seasons which tax hay production can result in unanticipated feed costs.
- Cost of fuel – Farm equipment runs on fuel which unfortunately are subject to market change.
- Costs associated with growing the herd -Breeding costs, veterinary costs, utilities, bedding and more are constant sources of financial output for farmers
VARIABLE
- Equipment – Whether it’s repairs to the barn or a lease on a new tractor, equipment and maintenance costs can arise at any moment.
- Veterinary costs – While some medicines can be kept on hand, you never when an animal will require medical attention and treatment.
- Climate – Severe drought or excessive rain can significantly affect crop production and, ultimately, the bottom line.
Additionally, there is the ever-changing price that buyers are willing to pay. A food company or consumer will only pay a certain amount for a product, based on global markets as well as supply and demand.
Within this sales cycle, producers must also consider the viability of their product. Many crops have short lifecycles and must be bought and sold quickly before they perish and lose profitability.
What can we as consumers do to help? Local farmers and producers make an important contribution to their communities through a reduced carbon footprint and meaningful economic benefit. A 2025 study by the Vermont Agency of Agriculture, Food & Markets found that each Vermont dairy cow provides $8,676 economic activity to the state annually. That’s a lot of reasons to shop local at farmers markets, via direct farm visits and more.
For farmers, all of this is a labor of love. Each sunrise, hay bale and seed planted is a gift of gratitude for the ability to steward the land and nourish the surrounding community. And with each locally made purchase, your dollars allow the farmer to continue this work for yet another season.
Learn more about Wolfe’s Neck Center’s Farmer Training, partnership with the Dairy Grazing Alliance and New England Grazing Network.
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