Nov 11, 2019

All it takes is a quick google of “propane shortage,” and you will see several stories of farmers and elevator grain dryers idle because of a lack of propane.  Many suppliers are out of LP in the Midwest including several in SD. Read an AgProfessional article here.
“We anticipated and planned for heavy demand by contracting a high volume of product early, getting a jump on dryer inventories, replenishing inventories, increasing communication with suppliers and trucking companies,” says Kent Borstad, Agtegra’s VP of Energy.  “In my 15 years, I, along with every other marketer I have spoken to, the challenges highlighted below, are unprecedented.  I commend the planning and hard work of my staff who are, and continue to, work very long stressful hours to get timely delivery of LP.” 
  • - Entire Midwest harvests wet immature corn crop
  • - Most major pipelines are now on allocation.  
  • - Propane shares pipeline space with other fuels.
  • - To obtain gallons, we are now travelling outside our borders to southern NE, western WY, and central MN.
  • - There are not enough propane vessels for the U.S. demand
  • - Added concern of keeping grain dryers going while providing heat for poultry and hog producers that have contracted propane to keep their animals healthy.
  • - Extended wait times at terminals in ND and MT that are also being placed on allocation.
What are we doing:
  • - Limiting delivery to only customers who prepaid or contracted propane.  NO delivery to anyone otherwise.
  • - Home heat and animal confinements take priority over dryers.
  • - Continued conversations with suppliers and carriers
  • - Continue to monitor Agtegra dryers and dispatch the next available truck to location with lowest levels.
  • - Bulk LP and central trucking drivers are helping out when Brick Transport drivers need rest.
What is going well:
  • - Some areas are completing harvest, which will make more supply available.
  • - Strong emphasis on safety
Potential next steps:
  • - Halt delivery to farm dryers until supply improves
Thank you for your understanding as we all work through this challenging harvest. If you have any questions, please call Kent at (605) 252-8846.

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