The falling Australian dollar is a god send for Australian Farmers. The dollar is back at levels not seen since 2001. The Australian dollar has been heavily sold down as global traders dump currencies that are tied to resources.
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“National Farmers’ Federation (NFF) manager of economics Charlie McElhone said the NFF estimated that every US1¢ fall in the Australian dollar increased net farm income by $190 million in cash terms.
The Australian dollar, which reached US98¢ in mid-August, closed at US72¢ yesterday. “That’s about $5 billion in revenue terms in added income,” Mr McElhone said.”
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Its not all good news though as all farm inputs like fertiliser, chemical and machinery manufactured overseas will of course be more expensive. But we’d rather have the dollar at 72 cents than were is was just 8 weeks ago at 98 cents.
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