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Veteran Advisor

UPDATE: Propane Shortage Confirmed

There are some farmers in Iowa that are reporting a shortage of propane for drying grain. Is this happening in your neck of the woods too?

The price of propane hasn't necessarily gone up. However, 3-4 delays in getting propane are happening. Propane trucks are lining up at the supply locations.

 

Full Story: LP Demand for Corn, Soybean Grain Drying Causes Supply Shortages

 

What about price and availability in your area for grain drying propane, this fall?

 

Thanks,

 

Mike

 

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14 Replies
scassellfarms3
Senior Reader

Re: Propane Shortage?

Here in south central Wi. we have barely stated corn. We are already running short. We sit on the end of the pipeline so if they are short south of us we are in trouble.

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Advisor

Re: Propane Shortage?

Could be possible that co-ops/retailers simply weren’t in a cash or credit position to shore it up early as has been the case rather often?

You wouldn’t have needed to be a meteorologist  to know that the corn was going to be wet in the Fall in the Northern corn belt from quite early on.

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Honored Advisor

Re: Propane Shortage?

bruce touches something of a modern change too.

Now that the coop is an entity that covers a state or two.  rather than a town or two.... 

Is it possible to take that early position as easily as before.  Or project it..... Or better yet finance it.

Size does matter   and occasionally the idea that customers and stockholders are the same might get lost in the shuffle.

Veteran Advisor

Re: Propane Shortage?

We bought a camp this year and we had to fill the propane takes and I called up the local gas company. They asked me how much I wanted and I told them to “fill them up”. 

When I got the bill I did not have my reading glasses and saw that the bill was $300. I thought that was great and left the bill on the table. Ten minutes later my wife yells out, “$3,000!”   “I’m in trouble.  Smiley Happy

Advisor

Re: Propane Shortage?

Also reading that limitations re: delivery truckers' allowed Hours of Service are contributing to the situation along with the increased demand due to early winter and wet crops.

Honored Advisor

Re: Propane Shortage?

Just a simple question here,

What did all the guys that planted corn late and still think they need to be done about Halloween think was gonna happen?

They only have a 500 gallon tank?

Honored Advisor

Re: Propane Shortage?

There was ample early booking opportunities.  But this corn really dried down fast in the field, it isn`t "2009" by any stretch. + or - 18%   Smiley Happy

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Veteran Advisor

Re: Propane Shortage?

Had an interesting conversation yesterday with a BTO a few miles to the west of us.

He and 2 other setups switched to natural gas for drying in the last 2 years and all are on the same line.

They can't all be running their dryers at the same time this year because the line isn't big enough.

 

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Advisor

Re: Propane Shortage?


@lsc76cat wrote:

Had an interesting conversation yesterday with a BTO a few miles to the west of us.

He and 2 other setups switched to natural gas for drying in the last 2 years and all are on the same line.

They can't all be running their dryers at the same time this year because the line isn't big enough.

 


Nice thing bout NG is no tanks are needed. 

Fact IS,  might be best to leave some corn in the field till Spring.  It'll be dry then... Probably 9 to 12% on a lot of it. 

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