Liquid propane experts don’t expect a repeat winter shortage in Iowa

CEDAR RAPIDS - Iowa Department of Agriculture experts don't think customers will see a repeat of high liquid propane prices.

A wet harvest and cold winter last year created a shortage in the supply of liquid propane, sending the statewide average price to nearly $5 per gallon.

State officials say this fall's harvest, expected to be at least a double-digit percentage increase from last year. will determine a large portion of what happens to LP prices.

If the harvest has a lot of moisture, farmers will have to use propane to dry it out.

Linn County farmer Steve Martin says his crop is in better condition this year, leading him to think he won't need as much propane. 'I'm thinking we're going to use a little less [propane] because the crop is further along in maturity than most years. [If] we get dry weather with no rain, it's going to be drier coming out of the field,” he said.

However, the experts also say there are signs the winter shortage led more people than last year to lock in lower prices with purchase contracts. However, they're waiting for the results of a survey due out in a couple of weeks to get the exact figures that will allow them to compare propane contracts between years. They also found more suppliers arranged for a larger amount of LP gas this year.

One official who tracks propane prices says the current state average is $1.59 per gallon, which is higher than the $1.40 per gallon prices around this time last year. However, that comes as no surprise as he didn't expect propane prices to completely rebound from the winter spike.

He says a cold winter will still make propane prices increase even if the harvest is relatively dry, as residential customers use more to heat their homes.