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AAEC 2305 Fundamentals of Ag Economics - page 10 / 27

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(continued)

While the American consumer benefited from the strong dollar (i.e., foreign products were cheaper), U.S. agricultural exports became uncompetitive in world markets.

The results were dramatic.  Total agricultural exports plunged from $44 billion in 1981 to only $26 billion in 1986.

This was the depth of the economic depression in agriculture – primarily a result of changing monetary policies.

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