Tag: Propane Use in Agriculture

Propane Demand for Crop Drying in the U.S. Faces Variability Amid Dry Conditions

Propane demand for crop drying in the U.S. is expected to show variability this year due to prevailing hot and dry conditions, which have reduced the moisture content of corn and soybean crops. According to Michael Newland, Director of Agricultural Business Development at the Propane Education and Research Council (PERC), eastern U.S. states will likely… Continue reading Propane Demand for Crop Drying in the U.S. Faces Variability Amid Dry Conditions

Propane demand for crop drying in the U.S. is expected to show variability this year due to prevailing hot and dry conditions, which have reduced the moisture content of corn and soybean crops.

According to Michael Newland, Director of Agricultural Business Development at the Propane Education and Research Council (PERC), eastern U.S. states will likely witness average propane demand for crop drying. Ohio is expected to experience the highest usage level. However, North Dakota and South Dakota should see average needs. At the same time, states such as Illinois, Iowa, Nebraska, and Minnesota are projected to have below-average demand due to the persistently hot and dry weather.

One contributing factor to this scenario is that favorable spring conditions led to early crop planting, putting the harvest ahead of its usual schedule. This early harvest reduces the need for crop drying, typically when crops are harvested later.

This summer’s unprecedented heatwaves exacerbated drought conditions across much of the upper Midwest. In Minnesota, for example, a September 2023 crop report by the USDA revealed that 63% of pastures were in poor to poor condition as of September 3rd. Similarly, rangeland and pastures in Kansas, Iowa, and Missouri were nearly one-half poor to poor on the same date.

By September 3rd, 18% of U.S. corn crops had fully matured, and 53% of U.S. corn acreage was rated in good to excellent condition. However, the hot, dry conditions also stressed immature crops, with at least a quarter of U.S. corn rated as poor to very poor in Missouri (40%), Kansas (33%), Minnesota (25%), and Nebraska (25%), surpassing the national average of 18%, according to USDA data.

Currently, weather conditions will not impact the maturity of the corn crop, but significant rainfall could hamper farmers’ ability to harvest sooner, warned Keith Barnett, President of Energy Strategies International. “The record level of propane means the U.S. is in great shape going into the home heating season and livestock season,” Newland added.

With U.S. propane stocks now exceeding 100 million barrels and propane levels well above average in the Gulf Coast and Mid Continent regions, crop drying is unlikely to have a substantial impact on Mont Belvieu or Conway prices, according to Peter Fasullo, Principal at EnVantage Consulting.

Propane usage for crop drying can vary significantly from year to year, depending on harvest size, timing, location, corn moisture content, and weather conditions. On average, propane demand for crop drying could increase by an estimated 200,000 barrels per day during the six-to-eight-week period, primarily from mid-September to mid-November in the Corn Belt, Fasullo explained.
“In conclusion, propane crop drying demand is not expected to impact prices significantly,” Fasullo emphasized. “And if there is any impact, it will likely be brief due to the ample propane supply.”

Propane Industry Gears Up for Corn Harvest: What Farmers Should Know

Farmers are gearing up to ensure their grain is adequately dried before storage as the corn crop approaches harvest season. This critical step in the process requires a reliable propane supply, and experts in the industry are offering valuable insights to help farmers prepare. Mike Newland, Director of Agriculture Business Development with the Propane Education… Continue reading Propane Industry Gears Up for Corn Harvest: What Farmers Should Know

Farmers are gearing up to ensure their grain is adequately dried before storage as the corn crop approaches harvest season. This critical step in the process requires a reliable propane supply, and experts in the industry are offering valuable insights to help farmers prepare.

Mike Newland, Director of Agriculture Business Development with the Propane Education & Research Council (PERC), highlights the importance of tracking yield projections and the expected moisture levels of the upcoming corn crop. He notes, “We’ve got a 23-year dataset, and we’re looking at moisture as it compares to the previous year, the five-year average, and that 23-year history.”

Newland’s assessment indicates an expectation of a relatively typical drying season across the Midwest. He anticipates normal propane usage, with a potential increase compared to last year’s lighter use per bushel of corn.

Crucially, Newland expresses confidence in the ample propane supplies available this fall. Approximately 40% of propane supply is utilized in the United States, leaving a substantial portion open for the export market.

Despite this confidence in supply, Newland advises farmers to proactively converse with their propane suppliers before the fall season. He emphasizes the importance of these discussions without the pressure of deadlines, stating, “We want people to have that conversation when there’s no stress, no time constraints.”

Farmers are encouraged to communicate their estimated propane needs to their local propane supplier, including approximate gallon requirements and their intended start date for grain drying. Newland also suggests that farmers prioritize obtaining their first propane fill for the grain dryer to ease the initial demand on the system.

To assist farmers in estimating their propane requirements for the fall, PERC offers a helpful tool called the Grain Dryer Propane Use Calculator. This online resource allows producers to input data such as acreage, average yield, and desired moisture levels for the crop. It then estimates the total gallons of propane needed for the upcoming season.

Farmers are advised to engage with their propane suppliers as the corn harvest approaches to ensure a smooth and efficient drying process. They can look forward to a successful and productive harvest season with reliable propane supplies and careful planning.