** AWARDS ISSUED PRIOR TO JANUARY 20, 2025, WERE FUNDED UNDER PREVIOUS ADMINISTRATIONS AND MAY NOT REFLECT THE PRIORITIES AND POLICIES OF THE CURRENT ADMINISTRATION.** TWO FACTS IN THE U.S. FOOD SYSTEM MOTIVATE THIS PROJECT. FIRST, OVER THE LAST 10 YEARS THE SHARE OF FOOD EXPENDITURES SPENT ON FOOD-AWAY-FROM-HOME (FAFH) HAS OVERTAKEN THE SHARE SPENT ON FOOD-AT-HOME (FAH). SECOND, CORRESPONDING TO THIS TREND, THE FARMER'S SHARE OF THE FAFH FOOD DOLLAR HAS DECLINED WHILE THE SHARE OF THE FAH DOLLAR HAS GENERALLY INCREASED. THESE TWO FACTS LEAD TO MULTIPLE QUESTIONS REGARDING PRICE AND QUANTITY RELATIONSHIPS, MARKET STRUCTURES, AND WELFARE DISTRIBUTIONS THROUGHOUT THE MARKET CHANNEL THAT HAVE NOT BEEN EXPLORED OR ANSWERED. OUR PROJECT AIMS TO UNDERSTAND THE EFFECTS OF THE CHANGING PATTERN OF CONSUMERS' EXPENDITURE ON FOOD-AT-HOME (FAH) TO FOOD-AWAY-FROM-HOME (FAFH) ON WELFARE DISTRIBUTION THROUGHOUT THE FOOD SUPPLY CHAIN, WHILE RECOGNIZING THAT THE EFFECTS WILL DEPEND ON THE UNDERLYING MARKET STRUCTURE AND CONSUMER SOCIOECONOMIC, DEMOGRAPHIC, AND ENVIRONMENTAL FACTORS. WE FORMULATE FOUR INTERCONNECTED OBJECTIVES: ESTIMATION AND DECOMPOSITION OFTHE FOOD-FARM MARKETING MARGIN, ESTIMATION OF CONSUMER SURPLUS THROUGH A DEMAND SYSTEM FRAMEWORK, A FLEXIBLE THEORETICAL MODEL OF MARKET STRUCTURE ALLOWING FOR IMPERFECT COMPETITION IN THE FOOD SUPPLY CHAIN, AND WELFARE CALCULATION FOR A RANGE OF ALTERNATIVE SCENARIOS AND POLICIES. CONSEQUENTLY, THE PROJECT WILL INTEGRATE FOUR WELL-ESTABLISHED RESEARCH AREAS THAT HAVE NOT BEEN INTEGRATED BEFORE TO UNDERSTAND IMPORTANT POLICY-RELEVANT QUESTIONS REGARDING PRICE AND QUANTITY RELATIONSHIPS, MARKET STRUCTURE, AND WELFARE DISTRIBUTION THROUGHOUT THE MARKET CHANNEL. TO ACHIEVE OUR OBJECTIVES, WE WILL UTILIZE PUBLIC-USE CONSUMER EXPENDITURE SURVEY MICRODATA FROM THE BUREAU OF LABOR STATISTICS, NBER-CES MANUFACTURING INDUSTRY DATABASE, AND ESTIMATES FROM THE LITERATURE. OUR INTEGRATED FRAMEWORK WILL ANSWER IMPORTANT POLICY AND SCENARIO QUESTIONS RELATED TO SOCIOECONOMIC AND DEMOGRAPHIC PROFILE OF CONSUMERS, COVID-19, UKRAINE WAR, ETC. ON WELFARE DISTRIBUTION THROUGHOUT THE FOOD SUPPLY CHAIN, WHILE EXTENDING OUR KNOWLEDGE ON THE FOUR STRANDS OF LITERATURE AND A UNIQUE WAY OF INTEGRATING THEM.