NASHVILLE, TENN. (RFD NEWS) — A softer U.S. dollar is improving export competitiveness for American crops, offering potential price support without requiring lower farm-gate bids, according to economists with Texas A&M AgriLife Extension.
Because most global agricultural commodities are priced in dollars, exchange rates directly affect foreign buying power. When the dollar weakens, overseas buyers can purchase more U.S. grain and fiber using their local currency, often strengthening export demand and supporting domestic prices. The opposite occurs during a strong-dollar environment, which tends to slow export movement and pressure bids.
Farm-Level Takeaway: A weaker dollar supports export demand and may strengthen crop prices.
Tony St. James, RFD NEWS Markets Specialist
During 2025, currency trends shifted in agriculture’s favor. The broad U.S. dollar index fell 7.2 percent after rising the previous year, while key customer currencies strengthened, including the euro and the Mexican peso. Brazil’s real also appreciated, potentially limiting Brazil’s ability to undercut U.S. offers in global markets.
Research shows even small currency moves matter. A one-percent decline in the dollar has historically been associated with roughly a half-percent increase in the value of U.S. agricultural exports.
Benefits, however, do not appear instantly. Exchange-rate effects filter unevenly into basis and contracts depending on timing and location.
Corn growers are turning to ethanol, E15 expansion, and export markets to help absorb record supplies and stabilize prices. Farm leaders discuss low-carbon ethanol demand, flex-fuel vehicle challenges, input costs, and the role of USMCA as producers look for market relief in the year ahead.
January 20, 2026 02:04 PM
·
From rising trade tensions in Europe to a pending Supreme Court decision on tariffs and shifting demand from China, global trade policy spearheaded by President Donald Trump continues to shape the outlook for U.S. agriculture—adding uncertainty as farmers navigate another volatile year.
January 20, 2026 01:14 PM
·
The Surface Transportation Board rejects the proposed Norfolk Southern–Union Pacific merger, prompting concerns from agricultural shippers about rail consolidation, service reliability, and higher transportation costs.
January 20, 2026 12:25 PM
·
Livestock strength is carrying the farm economy, while crop margins remain tight and increasingly dependent on risk management and financial discipline.
January 19, 2026 05:00 PM
·
Freight volatility and route selection remain critical to soybean export margins and competitiveness.
January 19, 2026 04:00 PM
·
Strong balance sheets still matter, but liquidity, planning, and lender relationships are critical as ag credit tightens, according to analysis from AgAmerica Lending.
January 19, 2026 03:00 PM
·
Protein-driven dairy growth is boosting beef supply potential, creating an opening to support rural jobs and ground beef availability.
January 19, 2026 01:00 PM
·
New Resource Makes It Easier for People to Access Data on Rural Development funded Projects in Rural Communities
January 19, 2026 11:50 AM
U.S. agriculture entered the week with mixed signals as weather, logistics, and markets shaped early-year decisions. Here is a regional breakdown of domestic crop and livestock production for the week of Monday, Jan. 19, 2026.
January 19, 2026 11:40 AM
·
