While this time last year $100 bought the US consumer €79, today, they will get only €72, nearly 10% less.

The effect of this weaker dollar is proving challenging for exporting companies including Glanbia and Kerry. The strong euro reduces the competitiveness of our firms and farm produce as it increases the price paid by Americans to buy our goods.

Coupled to this, a weakened US dollar makes US agricultural exports, like beef and dairy products, more competitive abroad, as well as at home, since it makes imports more expensive, allowing US domestically produced commodities a better chance to compete with foreign markets.

This comes amid concerns about the outlook for the US economy and monetary policy. According to Reuters, most investors seem convinced that the US Federal Reserve will continue a loose monetary policy maintaining its stimulus programme and continuing its bond purchasing into next year.

The recent US government shutdown has not helped matters and economic data released since has been surprisingly weak.

The dollar is considered the standard unit of currency in agricultural commodity markets around the world – wheat, maize, soya and fertilizers. International trade in agriculture is extremely important for the US since approximately 25% of the US gross cash farm income comes from exports. According to the United States Department of Agriculture (USDA), nearly 50% of the wheat crop produced in the United States is exported abroad.

There are many complex forces at play in determining the daily value of the dollar against the Euro.

However it is clear that we are part of a global farming economy and that a changing or volatile exchange rate can ripple all the way back to the farm gate.