Don't Blame the Farmers

Oct 10, 2014

  An Iowa energy expert says farmers are often unfairly blamed when propane supplies are low and prices are high. Farmers use LP to dry their corn before it's stored to avoid spoilage. Harold Hommes with the State Department of Agriculture says  farm use is only part of the picture. He says international customers also draw down supplies, " we now export around 400 thousand barrels a day and probably will for the foreseeable future. I don't see that changing." Hommes says traditionally, domestic customers have held down values, but the marketplace is evolving and producers are sending propane to places like Asia where they can make a better profit. He expects higher prices are here to stay.