MINNEAPOLIMEDIA NEWS | Minnesota Grocery Prices Rise More Than 34% Since 2020 as Farmers Union Calls for Action on Corporate Market Power

A new report examines surveillance pricing, unequal wholesale purchasing terms and alleged anticompetitive practices as lawmakers prepare for the 2027 legislative session.

ST. PAUL, MN (November 12, 2026).

Grocery prices in the Minneapolis-St. Paul-Bloomington metropolitan area have risen more than 34% since 2020, according to federal inflation data cited in a new Minnesota Farmers Union Foundation report.

The increase exceeds overall inflation during the same period by approximately eight percentage points.

For Minnesota households, the figures help explain why food affordability remains a concern even as individual inflation rates change.

But the report argues that the rising cost of groceries is not simply a consequence of higher production expenses or disruptions to supply chains.

It identifies corporate market concentration and several pricing practices as issues that deserve legislative attention.

The report, The Secret Behind High Grocery Prices, was released in October and discussed in new reporting this week.

Its author, Minnesota Farmers Union antimonopoly director Justin Stofferahn, is calling for changes to state law during the 2027 legislative session.

The Question of Market Power

Food prices reflect agricultural production, processing, transportation, labor and retail expenses.

Those costs can rise independently of corporate concentration.

The Farmers Union report, however, argues that the structure of the food industry can influence how prices are set and how revenue is distributed.

Large companies may have purchasing advantages unavailable to independent retailers.

Farmers may have limited options for selling their products when processing markets are dominated by relatively few businesses.

Consumers may consequently face higher prices without farmers receiving a corresponding increase in their share of food spending.

The report cites figures suggesting farmers now receive approximately 15.9 cents of each consumer food dollar, compared with roughly half during the 1950s.

That historical comparison does not, by itself, establish excessive profits. Food processing and distribution have changed substantially over the intervening decades.

It does raise questions about where value is created and captured within the modern food system.

Surveillance Pricing

One of the report's principal concerns is surveillance pricing, a practice involving the use of consumer information to influence individualized prices or offers.

The information may include purchasing histories, online behavior or other personal data.

The Farmers Union argues that such practices can make prices less transparent and allow businesses to charge different customers different amounts.

The report cites a 2025 investigation involving grocery baskets displayed through Instacart at a St. Paul Target location.

Prices for the same basket reportedly ranged from $81.24 to $86.78.

The example raises questions about price variation on digital shopping platforms, although it does not establish that every difference was unlawful.

The organization wants Minnesota lawmakers to prohibit surveillance pricing in retail transactions.

Any proposal would need to define the practice carefully and distinguish potentially harmful individualized pricing from ordinary discounts and other legitimate pricing arrangements.

Independent Grocers and Wholesale Prices

The report also examines the purchasing disadvantages some independent grocery stores face.

According to Stofferahn, retailers participating in Farmers Union discussions described wholesale costs substantially higher than the prices large competitors charged consumers.

Those accounts suggest that smaller grocers may struggle to compete even before accounting for their own operating expenses.

The organization supports the Consumer Grocery Pricing Fairness Act, associated with state Rep. Emma Greenman of Minneapolis.

The proposal seeks to address unequal purchasing terms.

Supporters argue that stronger protections could help independent stores remain competitive, particularly in smaller communities where losing a grocery store can reduce residents' access to food.

The legislative debate will need to consider legitimate differences in order size, distribution costs and commercial arrangements.

Price Fixing and Modern Data Systems

A third concern involves unlawful coordination among competitors.

The Farmers Union argues that data-sharing services and algorithmic pricing systems can create opportunities for coordination that traditional competition laws may not adequately address.

The report discusses the federal and state enforcement case involving Agri Stats, a company that supplied data to meat processors.

That litigation resulted in a settlement in 2026.

The existence of an enforcement action does not mean every information-sharing practice is unlawful.

The relevant question is whether current law can distinguish legitimate commercial information services from arrangements that facilitate anticompetitive conduct.

What Minnesota Lawmakers Must Evaluate

The Farmers Union's proposals place food affordability within a broader debate about market competition.

Lawmakers will need to examine whether the identified practices materially increase consumer costs, whether proposed restrictions would improve competition and how compliance would be enforced.

The concerns extend beyond the Twin Cities.

Independent grocers and farmers are important to rural communities, while higher grocery prices place disproportionate pressure on households with limited incomes.

THE TAKEAWAY

Twin Cities grocery prices have increased more than 34% since 2020, according to federal data cited by the Minnesota Farmers Union Foundation.

The organization argues that concentrated market power and certain pricing practices contribute to the problem and is seeking legislative action in 2027.

The report does not establish that corporate conduct explains every increase in grocery prices.

It does present questions about market transparency, competition and whether Minnesota's laws adequately protect consumers, independent grocers and farmers.

For families managing rising household expenses, those questions deserve careful examination rather than simple explanations that attribute every price increase to a single cause.

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