Gas Prices Could Impact State Agriculture

pumpThe U.S. Energy Administration reports gas prices are down 36 cents per gallon from this time last year. While the lower prices are good for your budget right now, they could eventually affect your grocery budget.

Alabama farmers greatly benefit from lower gas prices. The lower prices mean they spend less money planting and harvesting their crops and transporting them to stores. That means a lower bottom line for their business, and a potentially lower price tag on fresh, local produce for consumers.

State Commissioner of Agriculture and Industries John McMillan is happy to see the prices go down.

john“This whole thing with the gas, oil and supply is favorable right now,” he says. “People that live in the city, that think their food comes from the grocery store, and doesn’t realize what all goes into making that happen.”

McMillan says the prices have to stay low for a few months before produce prices could be affected, and doesn’t see any produce discounts happening in the near future.

“Margins are so tight in produce, very very tight, for the farmers especially. There’s not much profit there. So I don’t think, I don’t think we’ll see any real difference in prices at the store.”

McMillan hopes the gas costs do stay low, and eventually consumers can benefit from the price break in stores.

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