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Non-Tech : The Woodshed
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To: TheSlowLane who wrote (16585)11/14/2004 8:10:30 PM
From: The Vet  Read Replies (1) of 60908
 
"If the dollar continues to fall will not American farm products become extremely competive?"

Intuitively, that seems right but don't lose sight of the fact that American farms are highly mechanised and use chemical fertilizers the costs of both of which are very sensitive to the oil and energy prices.

Also almost all US farm products are heavily subsidised, WTO rules notwithstanding (as are EU farm products). If the government ability or will to maintain those subsidies erodes then US farms will remain high cost producers. Certainly for local consumption farm products can and will be protected, but don't count on export income.
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