June 21, 20/07 Two pieces of economic news this past week bode poorly for farmers, and both of them relate to factors far beyond their control. One is the continuing rise of the Canadian dollar against its American counterpart. The dollar neared 92 cents American, a level not seen since 1977. Many analysts are saying the loonie could reach par with the American dollar before the end of 2007. The second piece of news concerned Canada's inflation rate. The so-called core inflation rate hit 2.5% in April, furthering speculation that the Bank of Canada will raise interest rates. Both situations have severe repercussions down on the farm. Grain on international markets is mainly priced in American dollars. Thus each increase in the value of the Canadian dollar effectively lowers the value of Canadian grain on export markets. Should the Canadian dollar reach par with the U.S.