This report focuses on food costs for 1985. Some of the information included in the report includes an analysis of food cost trends, percentages of the food dollar that goes to the farmer, and how much of the food dollar goes to food processors and marketers. Some of the highlights of the study are the following: (1) food prices rose slowly in 1985--less than average, while some food prices declined; (2) the values of farms dropped; (3) the farm value share of food prices dropped; (4) the farm-to-retail price spread widened 5.5 percent in 1985; (5) higher labor costs added the most to the food costs; and (6) food spending increased less than income. (KC)