
Will Minnesotans See a Propane and Fuel Shortage This Fall?
Have you booked your diesel fuel for this fall and propane for corn drying? Remember you can also book propane for the winter heating season too. Hopefully you have at least talked with your supplier and are watching prices? Diesel fuel and propane prices are quite a bit higher than last year, but how high is high?
CEO Jay Debertin with CHS warns farmers "propane supply issues could impact harvest. Supplies will likely tighten heading into the fall simply because there's been so much investment by propane producers looking to export." I would interpret "tightening supplies" means likely higher prices? No one, not even CEO Jay Debertin knows for sure what the price of propane or diesel fuel will be this fall or winter.
That depends on a number of factors like the weather, how much propane will be needed for corn drying in southern states even before we begin harvest in Minnesota, not to mention geopolitical events in other countries. But, you can know what your cost for propane and diesel will be for this fall if you have booked it.
I think all of the suppliers have programs to book diesel fuel and propane. Most have a certain price for booking or locking it in and then a lower price if you pay cash up front. I know what my cost will be because I pre-paid all my propane and diesel fuel for this fall. Maybe it was a good decision, maybe by this fall prices will be lower and I made a mistake. However, the "odds" say this is a good time to book as prices seasonally increase as we head into the fall!
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