As harvest ticks closer, the Propane Education & Research Council (PERC) reminds farmers to fill up propane tanks sooner than later.
“Propane is a crucial energy source for many agricultural operations, especially during the harvest season,” said Mike Newland, director of agriculture business development at PERC. “By filling tanks early, farmers can avoid the high demand rush and benefit from more stable pricing.”
Newland says the price of propane can fluctuate anywhere from 30¢ to 50¢ a gallon throughout a calendar year. He says propane suppliers often have summer savings and opportunities to lock in a price for a year.
“I think every farmer should have a relationship with their propane supplier, just like their seed supplier, their agronomist, or their grain merchandiser,” he says. “It should be that kind of a relationship to where they are helping you through the process to make sure you have supply and that you can maximize your farm’s income.”
According to PERC, more than 80% of grain dryers in the U.S. are powered by propane. Yet, Newland says farmers may hesitate to fill up now because they aren’t sure how much they will need. Based on a propane industry model, he expects 2024 harvest-time propane demand to be back at or a little above average after a drier 2023. What’s more, propane can be stored for the next year.
“If you’ve dried grain in the past, most likely, you’re going to dry grain again this year,” Newland says. PERC’s grain drying calculator can help farmers estimate how much propane they will need based on acres, yield, and how much moisture will need to be removed. Newland says the calculator’s rough estimate can be a good starting point for a discussion with a propane supplier.
EDITOR’S TAKE:
Cogent advice for farmers who intend to dry grain this fall – lock price advantages in now and avoid a fall rush on propane. Why wait for the fall when demand and prices for propane will likely be higher. In addition to grain drying, farmers/ranchers often use propane for heating their home or shop area. The great lesson from this story is to advise your customers to strike while the deals are hot. More inventory, most OEM’s offering more incentives, and, of course, as a CAD member, only you and other CAD members can offer an additional Return on Truck Investment through AgPack®. Talk about a deal – let them know today not to wait until this fall or winter!
