116 3rd St SE
Cedar Rapids, Iowa 52401
Iowans urged to prepare for propane needs
George C. Ford
Jul. 26, 2014 1:00 am
Iowa businesses, farmers and homeowners who depend on propane are being encouraged to take steps to lock in existing low prices and ensure an adequate supply this fall and winter.
Propane is selling for an average $1.60 per gallon, according to the Iowa Department of Agriculture and Land Stewardship, which tracks propane and other fuel prices on a weekly basis. That's a far cry from prices that farmers and rural residents were forced to pay in 2013, according to Iowa Secretary of Agriculture Bill Northey.
'Last fall and winter the price of propane jumped sharply to more than $5 per gallon in some locations as a number of events severely tested the capacity of the propane delivery system and infrastructure,” Northey said. 'Such a dramatic price increase seems unlikely this year, but it is important for propane users to be prepared.”
Deb Grooms, executive director of Iowa Propane Gas Association, said last year's propane shortages and sharp price increases caught a lot of people off guard.
'We had experienced some not-so-cold winters in the previous years, crop drying was nill and many people had the attitude that they didn't want to buy propane if they wouldn't need it,” Grooms said. 'All of a sudden, farmers all across the Midwest were drying their corn crop and it seemed like everyone was cold at the same time.”
U.S. Department of Agriculture projections continue to suggest a record corn and soybean harvest this fall in Iowa and the nation. With a large crop in Iowa and neighboring states, Grooms said demand for propane to dry grain could be significant again this year.
'We're hoping that the drying will be more state-by-state this year,” she said.
Northey said crop maturity is significantly ahead of last year and slightly ahead of the five-year average, which could limit some of the need for propane.
Northey is urging propane users to take advantage of early buying programs offered by propane suppliers.
He recommends filling propane tanks for grain drying, livestock facilities, homes and machine sheds in preparation for fall.
A July 1 decision by Kinder Morgan Partners MLP to reverse the 1,900-mile Cochin Pipeline that formerly delivered Canadian propane to Iowa and Minnesota is complicating the propane supply and pricing situation in Iowa.
The pipeline provided roughly 13 percent of Iowa's annual propane supply.
Reuters Don Bedford, a delivery driver for Arenson Oil and Propane in Sheridan, Ill., fills his empty 3,000-gallon truck from the company's 26,000-gallon holding tank in January. Last fall and winter, the price of propane jumped sharply to more than $5 per gallon because of shortages in some locations. Iowa farmers and rural residents are being encouraged to take steps to ensure an adequate propane supply this year.