Happy Thanksgiving from CLA
As we celebrate Thanksgiving, we also must celebrate and thank those individuals that produce all of the scrumptious dishes that appear on our Thanksgiving table. All of that food does not originate in the grocery store and it seems, many consumers really do not have a good understanding of how that turkey does turn up on their table each year.
The turkey industry is big business in the United States and the following information was obtained from The National Turkey Federation (www.eatturkey.org). Per the Federation, turkey consumption in the US has nearly doubled since 1970, as more people eat it year-round and not just during the holidays. The increased popularity of ground turkey as an alternative to beef has also allowed consumption to grow. In 2021, US consumption of turkey was 5.1 billion pounds, or 15.3 pounds per capita. The top 8 states for turkey production were Minnesota, North Carolina, Arkansas, Indiana, Missouri, Virginia, Iowa and California. The US is the world’s largest turkey producer and exporter with 210 million turkeys being raised in 2022 on approximately 2,500 farms.
It takes 75-80 pounds of feed to raise a 38 pound tom turkey and the cost of feed is approximately 2/3 of the total cost to raise a bird. It takes around 18 weeks for a tom to reach market weight. A hen takes 14 weeks and weighs 15.5 pounds when processed. You generally eat a hen at Thanksgiving as the toms are often further processed into other products (sausage, deli meat, etc).
The American Farm Bureau annually publishes the total estimated cost of a traditional Thanksgiving dinner. For 2023, the average cost for a feast for 10 is estimated at $61.17 or less than $6.20 per person. This represents a 4.5% decrease from 2022. The meal cost is comprised of the following:
| Turkey (16 lb) | $27.35 | Cube Stuffing (14 oz) | $3.77 |
| Cranberries (12 oz) | $2.10 | Dinner Rolls (1 dozen) | $3.84 |
| Sweet Potatoes (3 lbs) | $3.97 | Pumpkin Pie Mix (30 oz) | $4.44 |
| Carrots & Celery (1/2 lb each) | $.90 | Whole Milk (1 gallon) | $3.74 |
| Green Peas | $1.88 | Whipping Cream (1 pint) | $1.73 |
| 2-9″ Pie Shells | $3.50 | Miscellaneous Other Ingredients | $3.95 |
| TOTAL | $61.77 |
Compared to lunch at your favorite local fast food restaurant, Thanksgiving dinner looks like a steal given price, quality and quantity. While most of us go up and down the aisles of the grocery store and complain about prices, it is also fascinating to learn how much a farmer actually makes as a part of the product price. Per an article published by Harvest Public Media that references data from the USDA, a farmer receives less than $.15 for every dollar spent on food in 2022. To breakdown a classic Thanksgiving, a farmer receives the following:
| Pumpkin | $.16 of the $1.79 can of pie filling |
| Cranberries | $.30 per $2.99 bag of fruit |
| Potatoes | $.60 per $3.99 5lb bag |
| Turkey | $.06 per pound |
So, as we gather with family and friends this week, take a minute to thank the farmers that put all of those delightful dishes on your table. We are fortunate to live in a place where we can count on a safe and reliable food supply, operated by individuals who take pride in their work, the welfare of their animals and the quality of their products. We at CLA are proud and privileged to serve the agribusiness industry and wish all of you a Happy Thanksgiving.
Kelly Jackson Hardy is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers, privately-held elevators and supply dealers, and cooperatives. Kelly is a principal with CliftonLarsonAllen in Princeton, Illinois, as well as a regular speaker at tax and estate planning seminars. Kelly was raised on a hog, row crop and cattle farm in central Illinois and has been involved in the ag industry her entire life. Kelly, her husband, and two sons are active in 4-H and operate a small feeder calf operation and pumpkin business.
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