The rising cost of groceries is not translating into higher returns for Canadian farmers, according to a new report from the Agricultural Producers Association of Saskatchewan (APAS), which says producers are receiving a shrinking share of the money consumers spend at the checkout.

The organization's 2026 Farmers and Food Prices Report, now in its fourth year, examined the relationship between retail grocery prices and the value farmers receive for the commodities used to produce everyday food items. The report found that while grocery prices have remained high, the portion of those prices returning to producers declined for more than half of the products studied in 2025.

APAS President Bill Prybylski said the findings challenge the common belief that farmers benefit when food prices rise. Instead, producers continue to face increasing costs for fuel, fertilizer and other inputs while selling into global commodity markets where they have little control over the prices they receive. At the same time, consumers continue paying elevated prices at grocery stores.

The report points to what APAS describes as a growing disconnect between farm gate prices and retail food costs. Commodity prices fluctuate with international markets, but those changes are not consistently reflected in grocery store prices, leaving both producers and consumers under financial pressure while raising questions about where additional costs are accumulating within the food supply chain.

APAS is calling for greater transparency throughout Canada's food supply chain to better understand how food is priced between the farm and the grocery shelf. The organization welcomed the federal government's new National Food Security Strategy, saying its focus on supply chains and market power could provide greater insight into how food prices are determined.

The findings come as Canadians continue to grapple with food inflation. Canada's Food Price Report forecast food prices would increase between four and six per cent in 2026, with the average family of four expected to spend nearly $1,000 more on groceries than the previous year.

For producers across Alberta and Saskatchewan, the APAS report reinforces a familiar reality: despite higher grocery bills for consumers, stronger retail prices do not necessarily mean better returns on the farm. Instead, many producers continue to face tight margins as input costs remain high and commodity markets fluctuate independently of what shoppers pay at the checkout.