Farm-gate price

How it is used

Used in market analysis, policy debates and news about the gap between what farmers earn and what consumers pay. Analysts compare farm-gate prices with retail prices to show the marketing margin.

Example sentences

1. The farm-gate price of potatoes was less than a quarter of the supermarket price.

2. Low farm-gate prices pushed many growers to leave their lemons on the trees.

Common collocations

• farm-gate price
• farm-gate value
• retail price
• marketing margin
• producer price

Related terms

• commodityA basic product such as wheat, maize, soybeans, sugar or cotton that is bought and sold in large amounts and where one producer's goods are much like another's.
• cooperativeAn organization owned and run by its farmer members, who join together to buy inputs, process or sell produce, or share equipment and services.
• smallholderA farmer who works a small area of land, often a few hectares or less, mainly with family labor and limited capital.
• subsidyMoney or other support paid by the government to farmers to keep production profitable, lower costs or encourage certain practices.
• gradingSorting harvested produce into classes by size, weight, color, shape and defects, so that each class meets a market standard.

More terms: Trade, Markets and Subsidies

• food security
• crop insurance
• direct payment
• Common Agricultural Policy