Low Propane Prices, Fuel Agreements Mean Savings

Kelly MarshallAgribusiness, Energy, Harvesting

propane-logoNow is the time for producers to talk to their marketers about propane pricing, advises the Propane Education & Research Council.  Currently prices are low and fall harvest will be here soon.

“With propane prices reaching near record lows and harvest and grain drying season right around the corner, now is a good time for producers to talk with their propane marketer about their fall and winter propane needs and options for pricing,” said Cinch Munson, PERC’s director of agriculture business development.

Like other energy sources such as natural gas and electricity, the price of propane is market-driven and fluctuates as demand changes. “Cooler weather means higher demand for propane and often higher prices,” explains Munson. “Producers using propane for grain drying in addition to other uses on the farm or in their homes should discuss pricing options with their propane supplier.”

PERC also recommends producers start preparing for winter now by planning for their supply needs. One important step is filling propane tanks early, and it is a good idea to look into additional on-farm storage, especially for producers who dry grain at their farm. If producers haven’t already filled their tank, Munson suggests making arrangements for an early fill.

“Ask about automatic refills and payment programs if you aren’t currently on a delivery contract,” Munson said. “By planning ahead, producers can ensure there is always enough propane on the farm and mitigate the risk for delayed delivery during the winter months.”

Learn more about propane use on the farm here.