Louisiana is among the 10 states hit hardest by the price meltdown for products from farming and mining.
The Bloomberg Commodity Index fell to a 13-year low last week, down 61 percent from the 2008 peak. That’s bad news for Louisiana, where 10.1 percent of the state’s economic product is tied to farming and mining, which includes oil and natural gas production, according to Bloomberg.
Over the past year, the price of oil has fallen close to 50 percent, while sugar is down nearly 40 percent and soybeans close to 10 percent.
A $1 drop in the average price of oil means Louisiana collects about $12 million less a year in severance and other taxes and royalties.
Wyoming is the state suffering the most from the commodities meltdown. Nearly 36 percent of Wyoming’s economic product is tied to mining and farming. In Alaska, it’s close to 27 percent.