Popcorn Propaganda vs. Facts

 Facts

Farm Gate Price of Popcorn – 2006:                    9 cents per pound

Farm Gate Price of Popcorn – 2007:                    13 cents per pound

1 tub of popped popcorn at a movie theater:         $5.00

Source:  Associated Press, 7-24-07

Calculation:

Five Dollars would buy:              38.5 pounds of popcorn at the farm gate

Tub of popcorn contains:            0.15 pounds of popcorn (prior to popping)

$5 tub of popcorn:                      Roughly 2 cents of popcorn

Conclusion:

• The farm price for popcorn would have to increase by a multiple of 12.5 to account for a 25 cent increase in a tub of popcorn.  In reality it hasn’t even gone up 50 percent.

• $5 of popcorn from the farmer (38.5 pounds) yields $1280 of popcorn for the movie theater (256 tubs at $5)

• Farmer receipt for popcorn to fill one movie theater tub:

               2006:     1.4 cents

               2007:     2.0 cents

How can an increase of 0.6 cents per tub to the popcorn farmer justify large price hikes for moviegoers or crazy headlines?  It’s time to pop the popcorn propaganda.

Prepared by the Iowa Renewable Fuels Association