Those Amber Waves Are Fueling ExportsIssue 10-25-10 |
AbstractA combination of high commodity prices, a weak dollar, poor growing conditions in Europe, and surging demand in Asia have all contributed to strong farm exports from the U.S. So far this year, farm exports are up 14 percent, with strong sales to Canada, China and Mexico. This is also boosting sales of farm equipment, with farmers and equipment makers also benefiting from low interest rates. Corn prices have increased 60 percent since June, and wheat prices have doubled.
Commentary: Teaching in North Dakota, as I do, where we are experiencing a strong economy and record state budget surpluses, I remind my classes that our success is dependent upon what is happening in the rest of the world - our state's economic condition is driven more by demand in Asia and weather patterns in Europe than it is by what is happening in the U.S. or who gets elected next month. (Maybe a slight exaggeration, but this article sure helps bring home that point.)