So bad is the impact of the rising dollar, that the NFF estimates it has cost the farm sector $1.9 billion in lost earnings over the last 12 months.

Westpac's senior agribusiness economist, Justin Smirk, says the rising dollar is crippling returns for Australian farmers, who are dependent on overseas markets for 61pc of their sales.

"As one of Australia's most trade-exposed sectors, farming has been slugged by the ever-strengthening dollar – peaking over US$0.96 in May," Mr Smirk said.

"The US dollar value of the farm index is up 34pc on a year ago but the 15pc rise in the AUD has significantly impacted those gains.

"The rise in the Australian dollar follows continued robust demand for Australia's major export commodities, improving investor appetite for risk and the ongoing buoyancy in the Australian economy.

"A strong Australian dollar not only puts pressures on our export returns, but it also stimulates the imports of commodities such as pork, fruit and vegetables."

Mr Smirk says one of the factors driving the strength in the Australian dollar against the US currency is the noticeable weakening of the American economy, where unemployment is rising, industrial activity is moderating and the housing market is in an extended downturn.

While the struggling US economy is pushing the Aussie dollar higher, there has also been significant movement against the currencies of Australia's major agricultural commodity export destinations.

NFF Vice-President Charles Burke said a much larger appreciation of the Australian dollar has taken place against the currencies for South Korea and Indonesia, which are major destinations for beef and dairy.