How Much Do Turkey Farmers Really Make? The Surprisingly Low Salaries of Turkey Producers

As Thanksgiving approaches, millions of Americans look forward to gathering with family and friends to enjoy a delicious turkey dinner However, while consumers pay reasonable prices for turkeys at the grocery store, the farmers who raise these birds often struggle to make a living Just how little do turkey producers earn for their efforts? Let’s take a closer look at the economics of turkey farming.

The Retail Price of Turkey Doesn’t Reflect What Farmers Get Paid

In 2021, the average price for a frozen whole turkey was $1.23 per pound at wholesale. However, out of that price, turkey farmers only received around 6 cents per pound sold. The rest went towards processing, transportation, retail markups, and other production costs.

So even when consumers pay $15-$20 for a typical 15 lb turkey at the supermarket, the farmer who raised that bird will only bring home about 90 cents per turkey sold. For a medium-sized turkey operation producing around 200,000 birds per year, that translates to just $180,000 in annual turkey sales. Considering the overhead costs involved in running a farm, that slim portion of the retail price makes it tough for turkey producers to stay profitable.

Low Wholesale Prices Put Pressure on Farmers’ Earnings

Wholesale commodity prices for turkeys fluctuate year to year based on supply and demand. But even in years when wholesale prices rise slightly, it doesn’t necessarily translate into bigger paychecks for turkey farmers.

For instance, in 2021 the average wholesale price for turkey was up 11% compared to 2020. However, due to higher production costs for fuel, labor, animal feed and other farm expenses, turkey producers didn’t see an equivalent jump in their income. This demonstrates how turkey farmers are constantly squeezed by low commodity prices and rising costs.

The Average Turkey Farmer’s Salary is Shockingly Low

According to salary data, the average annual pay for a turkey farmer in the U.S. is just $31659 per year. That puts turkey producers squarely below the federal poverty line for a family of four. Most turkey growers rely on off-farm jobs or spousal income to make ends meet.

Sadly, the paltry earnings of turkey farmers don’t match up with the value of their labor and contributions to the food system. Without their skills and dedication to properly raising flocks of 20,000 birds or more, there would be no turkeys for the Thanksgiving table.

Unique Industry Structure Limits Turkey Farmers’ Earnings

In the highly consolidated poultry industry, most turkey farmers work under contract to large processors like Butterball or Cargill. The processors provide the birds, feed and transportation, while contract growers raise the flocks in barn facilities that they own.

This arrangement puts integrators like Butterball in the driver’s seat when it comes to setting pay rates. Farmers have little leverage to negotiate better contract terms that would allow them to receive a larger share of the turkey revenue. With limited options to market and sell birds independently, this contractual system restricts turkey producers’ earning potential.

Why Are Turkey Farmers Paid So Poorly?

With turkey being a staple for holiday meals and inexpensive protein the rest of the year, you might wonder why the farmers raising the birds are paid so poorly. There are several factors at play:

• Oversupply of turkeys keeps prices low
• Processors hold the power in Turkey industry
• Contract system gives farmers little independence
• Farm income dependent on volatile commodity markets
• Consolidation has diminished competitiveness
• High production costs and debt put squeeze on farmers

The lopsided turkey market and lack of bargaining power really stack the deck against turkey producers. Big poultry companies dominate the processing sector, which affects pricing across the entire supply chain.

Signs of Progress for Turkey Growers

While the earnings situation looks grim for many turkey farmers, there are some encouraging signs of change on the horizon. A few highlights:

• New farmer advocacy groups are forming, like the National Turkey Federation, to lobby for better legislation and protections. This could help give farmers more of a voice.

• Some turkey producers are exploring niche markets like organic, free-range, pasture-raised turkeys that can command higher prices for farmers. However, these specialty markets are still relatively small.

• A few new start-up poultry processors are entering the market, which could spur more competition and options for growers. But these upstarts have struggled to get off the ground.

• Some major poultry companies like Butterball have announced efforts to lock-in pricing through multi-year contracts to help insulate farmers from market volatility.

While none of these developments are silver bullets, they at least indicate some positive momentum toward improving the situation for U.S. turkey farmers.

Consumers Can Support Turkey Farmers This Thanksgiving

As you gather for Thanksgiving dinner this year, take a moment to reflect on the turkey farmer who helped provide the main feature of your holiday meal. While commodity turkey producers may only get pennies back for their efforts, there are small ways we as consumers can show our appreciation:

• Seek out locally raised, pasture-raised turkeys at your farmer’s market or local butcher. This allows you to directly support independent turkey growers.

• If buying a store-bought turkey, choose certified organic or free-range options, as these labels indicate better practices for birds and farmers.

• Contact your elected representatives to voice support for policies that empower farmers against consolidated corporate power in the meat industry.

• Donate to non-profits doing advocacy work on behalf of poultry growers, like the National Turkey Federation or Farm Aid.

• If you know a turkey farmer in your community, thank them for their work to help provide food for your family!

This Thanksgiving, let’s be grateful to the dedicated turkey farmers helping to sustain the holiday tradition. While we feast on the rewards of their labor, we must also speak up so that turkey producers can finally earn their fair share.