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Farmers are receiving less of the food dollar while consumers continue to pay more at the grocery store, according to the Agricultural Producers Association of Saskatchewan’s 2026 Farmers and Food Prices Report.
Now in its fourth year, the report examines the relationship between farm-level commodity prices and retail food costs across a range of everyday food products.
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APAS President Bill Prybylski said it shows changes in commodity prices are not directly driving increases at the grocery store.
“Our data continues to show a consistent story — food prices are rising, but the farmer’s share is actually shrinking,” Prybylski said.
(2026 Farmers and Food Prices Report/Agricultural Producers Association of Saskatchewan)
With more than half of the products tracked, the portion of the retail food dollar returning to producers declined in 2025, while grocery prices remained elevated, raising the question: if not farmers, what is driving food price increases?
In April, Statistics Canada said the annual rate of inflation in Canada accelerated to 2.4 per cent in March, due to soaring fuel costs because of ongoing conflicts in the Middle East and the closure of the Strait of Hormuz.
“Food inflation is a complex issue, but what’s clear is that producers and consumers are not on opposite sides,” Prybylski said. “Both are being impacted by a supply chain that lacks transparency.”
The report highlights a growing disconnect in the food system:
- Producers are facing rising input costs, including fuel, fertilizer, and other essential inputs
- Commodity prices remain volatile and are set by global markets
- Consumers continue to face persistently high grocery prices
Because producers operate in global commodity markets, they cannot set prices or pass on rising costs like other parts of the supply chain. APAS is calling for greater transparency to better understand where costs are accumulating and who is benefiting.
APAS says the federal government’s recently released National Food Security Strategy is an important step forward, particularly its focus on supply chains and market power within the food system.
“For years, we’ve been calling for greater insight into what’s happening between the farm gate and the consumer,” Prybylski added.
“The federal government’s commitment to examine supply chains and pricing is a positive step toward bringing more transparency.”
Prybylski said APAS wants to bring greater awareness to the realities faced by producers and contribute to a more informed national conversation on food prices.
— with files from CJME News
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