WASHINGTON, D.C. (RFD-TV News) — With harvest approaching, grain dryers will soon be running across farm country.
Propane supplies are holding steady, and Michael Newland with the Propane Education and Research Council says the industry is not expecting any major disruptions this fall.
“Supply is great. It is a fuel that does need delivered. Logistics, if we would have a tremendously wet corn crop in a particular area up against some really cold early fall temperatures, could we see some logistics constraints? Possibly, but we’re always pushing messaging about making sure you’re taking those early fills, trying to make sure that that doesn’t happen. Really, that’s the reason why the grain drying market is the one thing in the propane industry that can throw everybody a curveball if we have tremendous grain drying across the U.S. all at the same time.”
With diesel costs continuing to climb, Newland says propane also has an attractive price point.
“It’s the largest spread that I can recall between propane and the rest of the energies. I talked to a gentleman at Husker Harvest Days, and he just bought a transport load. He bought a semi-load, which may be unusual for some people, but a lot of people that are using propane for livestock heating and things of that nature are set up very similarly. He was sub $1 per gallon on his purchase price.”
Newland says many farmers now monitor crop moisture throughout the season, allowing them to better prepare for regional price spikes.
