Skip to main content
Worker putting propane into tanks
Audio Clip
PropaneAround the TableEpisode 177

Propane contracting strategies

Matthew Wilde
Aug 6, 2024

For farmers and ranchers who rely on propane to dry grain and heat their ag buildings and homes, proper planning is a must. Tyler Kelly, a propane commodity trading expert with CHS, provides contracting tips and a supply-and-demand outlook.

Kelly recommends propane users talk to their energy suppliers about future needs well before the grain drying and heating season begins. He encourages them to evaluate all propane supply and retail programs available to find the one that best fits their situation.

“Being proactive is critical to coming up with a plan,” Kelly says. “Don’t wait until the snow starts to fly or the first cold snap when you really need propane. You can save time and headache down the road.”

Supply and demand

In late July, propane supplies nationwide were above historically average levels, Kelly reports. The two primary reasons for ample supplies were last year’s mild winter, which reduced demand, and propane production being near all-time highs.

However, Kelly says propane exports are keeping pace with production. “Surety of supply doesn’t depend on overall U.S. propane inventory levels. What really matters is whether there will be sufficient supplies where you need it and when you need it.”

Plan ahead

Kelly recommends farmers and ranchers contact their energy supplier as soon as possible to fill propane tanks and contract needed gallons for the rest of the season.

Each year unplanned events, such as hurricanes, can affect the supply chain. Planning ahead is a great way to avoid impacts of the unexpected, he says.

Estimate propane use and storage

Propane suppliers can analyze past annual consumption to provide contracting recommendations for future needs, Kelly says. Also, consider changes to your farm or residence that require propane, such as upgrading grain drying capacity, when making purchasing decisions.

 


Related news and stories
hands holding a tablet with a website shown
Propane 25 Nov 2024

A detailed product catalog, enhanced filtering system and simplified ordering process connects customers with solutions to meet their equipment needs.

man putting diesel in a tractor during winter
Safety 27 Aug 2024

Dan Harjes, a senior transportation safety specialist with CHS, provides tips to safely store and handle fuel on farms and ranches.

Sorghum being loaded onto barge
Grain 20 Aug 2024

Kealan Griffin, lead sorghum trader with CHS, provides an update on the 2024 U.S. sorghum crop and a global demand outlook.

More podcasts