Agricultural and Biological Sciences
6 years ago

Dollar's Depreciation Boosts U.S. Corn and Soybean Exports, Reviving Agricultural Trade

Staff Reports
THE DOLLAR TURNAROUND AND U.S. AGRICULTURAL EXPORTS
Barry Krissoff, Art Morey

Paper Summary

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U.S. agricultural exports declined in the 1980s due to the strong dollar making them less competitive globally. However, in 1986, the dollar's value dropped against some trading partners' currencies, leading to a turnaround. A three-region world model was used to study the dollar's movements. The model showed that while the dollar's appreciation in 1984 and 1985 hurt wheat exports, the 1986 depreciation had a positive impact on corn and soybean exports.