As farmers prepare for harvest, propane supply looks solid while diesel availability could pose challenges. Jay Christie, energy development specialist for New Century FS, says the fall energy outlook offers both stability and concern depending on the fuel in question.
FEATURED CONVERSATION WITH GROWMARK’S JAY CHRISTIE:
Christie explained that propane inventories are in strong shape across the Midwest. Mild winters in recent years have limited the draw on supplies, and propane prices have remained remarkably steady. “For the past three years in a row, end users have paid nearly the same price,” Christie said. “It hasn’t tracked inflation the way so many other costs have, which has been a real benefit for farmers and homeowners alike.”
The biggest demand driver for propane today is the export market. Gulf Coast terminals ship large volumes overseas, and Midwest supplies typically move through the Conway, Kansas hub. While exports can divert product away from the region when economics favor global sales, Christie says availability for crop drying and home heating should remain secure. He added that demand for dryers may be lighter again this year because corn is maturing rapidly in the field. “Some of our agronomists say the stalks are so brittle that farmers should consider harvesting earlier than usual,” he noted. “That could mean less propane use as corn goes through the combine drier than normal.”
Diesel, however, tells a different story. Christie says Midwest inventories are sitting at what he called a “20-year low,” and that raises concern as combines, semis, and grain dryers add to seasonal demand. “If we see continuous demand without rain delays, some terminals will run out,” he said. “We’ve already seen it happen in parts of northwest Iowa this spring. The main supply hubs like Omaha, Des Moines, and Iowa City are usually strong, but secondary terminals may be bypassed if product gets tight.”
His advice for farmers is straightforward: don’t wait until you are in the field to secure fuel needs. “The pipelines weren’t built for harvest surges,” Christie explained. “Fuel only moves three to five miles an hour, so it takes time for the system to catch up. The best move is to fill your tanks now.” He noted that the system functions best when demand is spread out, giving time for terminals and pipelines to reset between delivery cycles.
Gasoline supplies appear more balanced, although Christie pointed out some seasonal volatility tied to the switch in Reid Vapor Pressure blends. Premium grades have seen price swings, but overall supply is not expected to be a major concern this fall.
For farmers, the message is mixed: propane remains affordable and reliable, but diesel could present headaches if harvest moves at full speed without weather breaks. Christie emphasized that preparation is key, urging producers to lock in fuel supplies early and avoid being caught short when demand peaks.
