Washington, DC, USA
August 20, 2009

Outlook Report No. (WRS-09-05) 32 pp, August 2009
By May Peters, Mathew Shane and David Torgerson

The global economic crisis that started in late 2008 has led to a sharp curtailment of  international trade, including a short-term decline in the value of global agricultural trade of around 20 percent. After slowing, global agricultural trade will continue to grow in the future. The crisis is leading to a realignment of exchange rates, and the ultimate resolution of the crisis will depend on adjustments in the exchange value of the U.S. dollar. The U.S. agricultural sector would benefit from a depreciating dollar, which results in high export earnings, high agricultural commodity prices, increased production, and increased farm income.
 

Full report: http://www.ers.usda.gov/Publications/WRS0905/WRS0905.pdf

Website: http://www.ers.usda.gov/

Published: August 31, 2009