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FCC’s 2021 trade report connects currency to ag performance

Farm Credit Canada’s 2021 trade report examines the role of currency and exchange rates as an indicator of Canada’s agricultural and food performance. According to FCC, the USD/CAD exchange rate is often used as a metric of competitiveness for Canadian exports, but this fails to accurately assess the global market impact of the strength of other currencies. FCC proposes the use of an effective exchange rate to better understand the relationship between the strength of the Canadian dollar relative to the currency of importing countries. Martha Roberts, FCC economics researcher, examines the agricultural and food trade landscapes in 2020 for their impact on trade in 2021, particularly in consideration of key agricultural exports like wheat, beef, pork and canola. |READ MORE