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Weakening U.S. Dollar a Positive for U.S. Exports

Ag economist Ben Brown with the University of Missouri says the weakening U.S. dollar could have a positive impact on agricultural exports.

“We, as consumers, love a strong dollar. It makes our buying power even much more so. We can buy more product with the same amount of dollars. However, when it comes to the export market it’s not just the challenge of selling the goods, it’s also the signal it sends to other consumers and producers around the world.”

He says the Mexican peso and Brazilian real have seen some gains against the U.S. dollar. “When your currency is cheap relative to somebody else, it makes your product that much more attractive to buy.”

Brown says weaker economic data, rising jobless claims, and newly imposed tariffs on trading partners helped weaken the dollar.

EDITOR’S TAKE:

Professor Brown is correct, a weaker dollar can help make our exports look more attractive on the world markets. He is also right to state that, as consumers, we enjoy a strong dollar, one that allows us to purchase more with our dollar. So, when it comes to exports, there is the consideration as to what is the strength or weakness of other nations selling the same product from the perspective of the potential importer. Also, the quality and relative “value” of our products might be higher than less expensive alternatives of other countries. Exports are critical to U.S. producers, so let’s hope that 2025 is a record year for our nation.

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