Late harvest, wet corn and chilly fall strain Iowa's propane supplies, force elevators to ration fuel

With a late harvest, wet corn and an unseasonably chilly fall, demand for propane has skyrocketed, straining supplies and forcing suppliers across Iowa to ration the fuel used by farmers to dry grain and rural homeowners to heat their homes.

"All across the state, I'm hearing the demand on the system during the last week to 10 days has been tremendous. It's really created a supply pinch," said Mike Naig, Iowa's agriculture secretary.

Record rains last spring delayed planting and have resulted in a late corn and soybean harvest. While most of the soybean crop has been combined, only 43% of Iowa's corn crop is in the bins, 11 days behind where the harvest typically is at this time of year, a U.S. Department of Agriculture report this week shows.

And nearly every bushel of corn needs to be dried, Naig said.

The corn crop's late maturity means it had less time than usual to dry in the field. Corn normally should have about 15-17% moisture, which is acceptable for storage on the farm in an elevator. But the the average for corn currently being harvested is 21%, putting it at risk of spoiling if not dried.

Temperatures dipping into the 20s and 30s this week also mean more propane is needed to heat homes and livestock facilities, primarily those with small pigs in confinements.

Naig said suppliers will first provide propane to homes and livestock operations, then to farmers for drying corn.

"You may have a farmer who just can't run, can't harvest, because they don't have propane to dry" corn in grain bins, Naig said. "With over half the corn crop in the field, that's several billion dollars worth of corn out there."

The agriculture department estimates that Iowa farmers will harvest about 2.5 billion bushels of corn. 

Iowa elevators are scrambling to get propane for customers, with trucks waiting in line for 10 to 12 hours at propane terminals. Gov. Kim Reynolds signed an emergency proclamation to help boost supplies by lifting restrictions on how many hours drivers can work.

"There were drivers who would time out while they’re sitting in line, so the proclamation is helping move product," Naig said.

The Federal Motor Carrier Safety Administration likewise lifted driver restrictions across Iowa and seven other Midwestern states with propane shortages.

New Century FS, a Grinnell elevator that provides farm services in nine counties, is sending trucks across Iowa and to pipelines in Kansas and Oklahoma for propane, said Kevin DeGoey, New Century's energy marketing manager.

The existing pipelines in Iowa are unable to deliver propane fast enough to meet the need.

"It's like filling a swimming pool with a garden hose," DeGoey said. "The U.S. has a good supply of propane. The problem is logistics."

He said the elevator typically needs "20 loads a day to keep our trucks moving. I feel fortunate to get 10."

DeGoey said his elevator, like many other suppliers across the state, has added storage to meet spikes in demand. Still, it's not enough, although New Century has not had to ration supplies yet.

Suppliers filled most residential customers' tanks over the summer, so they started the fall with a full supply. Iowa's propane prices have remained stable, sitting at $1.20 a gallon on Oct. 28, a nickel more than at the start of the month, according to data from the U.S. Energy Information Administration.

Despite the increase, propane prices are still about 16 cents below the price this time a year ago, the agency's data show. That's good news for families, who may remember when a propane shortage in 2014 drove prices to $5 a gallon.

Dave Holm, executive director of the Iowa Institute for Cooperatives, said some propane suppliers are adding a surcharge to reflect the added transportation costs, though others are absorbing the expense.

And it's not just farmers who are struggling to dry grain. Elevators also dry grain for customers, and some have had to stop accepting grain temporarily while they wait to replenish propane supplies.

Whether the drying is at elevators or on farms, the delay is slowing an already late harvest, Naig said.

With seven days of good weather, and enough propane to keep driers running, DeGoey said, "we could make one great big dent" in the harvest.

Donnelle Eller covers agriculture, the environment and energy for the Register. Reach her at deller@registermedia.com or 515-284-8457. 

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