17 Oct 2010

Farmers worried about rising Aussie dollar

10:44 am on 17 October 2010

The Farmers Federation has warned of disastrous consequences for the agriculture industry if the Australian dollar sustains or exceeds parity with the US dollar.

The dollar touched $1.0003 US over Friday night before dropping.

The ABC reports the latest rise in the dollar is a result of growing expectations that the US Federal Reserve will introduce additional measures to stimulate the economy.

WA Farmers Federation president Mike Norton says farmers lose money every time the dollar rises because the value of their exports is eroded.

"The farming community are extremely nervous that .. it'll have quite dramatic effects on commodities that we're exporting," he said.

Westpac senior economist Huw McKay believes the dollar will remain high for some time.