The U.S. dollar has held strong this year, adding to export troubles. Since 2021, USDA estimates it has grown by 15 percent against the currencies of buyers, and that is helping add to the growing U.S. trade deficit.
Analysts estimate the ag trade deficit to grow to $32 billion this year by the end of September, marking the second straight year of numbers in the red. The Nebraska Farm Bureau crunched the numbers, and they found the dollar has appreciated against other currencies ranging from 10 percent in Canada to 61 percent against the Japanese yen. Economic strength has played a role and so has higher interest rates.
Some believe the Fed could lower rates later this year, but that is still to be determined.
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