Weaker Dollar Improves Export Prospects for U.S. Crops

A weaker dollar supports export demand and may strengthen crop prices.

frozen funds usda money farm programs_Photo by ivandanru via Adobe Stock.jpg

Photo by ivandanru via Adobe Stock

Adobe Stock

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.

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Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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