Perfect Storm Brewing for Propane Supply, Transportation

Agronomy
Lezer plot harvest in Foley

A wet and late harvest is quickly progressing throughout the five-state area, and as propane demands skyrocket, supply is not keeping pace. According to Mark Grave, Federated’s director of energy, propane pipeline terminals outside of Federated’s service areas to the south are experiencing 12 to 20 hour waits for a single load. Rail terminals have depleted inventories with limited access to more rail cars. Multiple propane suppliers throughout southern MN and northern IA have suspended delivering corn dryer propane to focus on heating needs for homes and livestock.

Grave noted that the peak of corn drying has yet to reach Federated’s trade territory, and thus similar challenges may arise when local demand accelerates as corn is harvested.

“Your Federated Co-ops propane supply team is working vigorously to secure additional propane rail cars and propane from pipeline terminals. Our inventory is currently in excellent position as we enter an extended harvest season,” he said.

Grave added: “We ask for your assistance as dryers are firing up for the season. As harvest progresses, please communicate your expected propane needs with our staff.  We will do everything possible to provide the propane you need to complete harvest without interruption.”

Contact Grave or your Federated Agronomist with questions.