The oil boom in Texas has ripple effects that go beyond the cost of gasoline. Kai Ryssdal talked with commercial grain farmer Curt Mowery of Mowery Farms in Rosharon, Texas, to find out how oil is reflected in his business.
As a commercial grain farmer, Mowery estimates that 50 percent of his costs circle around oil. Some examples include the chemical costs on some of the crop protectants, containers and transportation from getting grain from the field to the processor. “Everything’s tied to oil that we do in our business,” he says.
As the cost of oil goes down, Mowery might see savings in 2016, but he doesn’t believe the consumer will see savings for a while. “The price will go down a lot slower than the price will go up,” he says.