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Upper Midwest Propane shortage...Is it real?

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Real Estate Agent

It is interesting how we ended up with a shortage of propane.

Last winter the propane suppliers had a glut of propane.

I know that I have heard about a pipeline shut down, but lately I don't hear about it anymore.

Instead if is being blamed on the farmers using extra for drying the fall crops.

I have a hard time believing that.  Farmers always use propane to dry some of the crops and  to say a lot of the issue is because of the amount they used is bunk.

if farmers had used that much the propane suppliers would have yelled shortage at the beginning of the heating season.

We are being told that we won't run out, but then why did the price have to triple in just a few weeks.

Something is rotten in Denmark!

Comments (7)
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Randi Brammer
Randi Brammer, Acctg. - Hinckley, MN
Accountant & Tax Preparer

Good point Vern.

WE dry some of our crops also, but we used maybe 25% more than the year before.  that  isn't enough to cause the sever shortage we supposedly have.

 

Jan 27, 2014 04:27 AM
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

Most likely it is real, but the problem is more likely to have been caused by government regulations or by the government shutting down pipelines/suppliers and other means of transport.

Tripling the cost of propane is not really in the suppliers interest. People will change over to electric where possible and not install anything that uses propane in the future.

Jan 27, 2014 05:24 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Vern, Probably just an engineered shortage. 

Someone is making money, but not from me, we decided to just go with straight wood at the rural office, the plumbing is off for the winter anyway so we can save a few bucks and leave a little lp for those who really need it.

Jan 27, 2014 05:47 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Vern...you bring up some good questions and points.

It does seem that the farmer is getting the rap for this at this point!

Jan 27, 2014 06:44 AM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

I always stock up on propane for my heaters and grills early on.  Supply and demand. Buy when others are not buying.  

Jan 27, 2014 09:09 AM
Vern Eaton
Askov, MN
Realtor 651-674-7449

A neighbor just paid $4.79 for a gallon of propane.

This is going to bankrupt some people!  And if you wat the propane you have to pay up front.

Jan 28, 2014 12:25 AM
Eric Kodner
Madeline Island Realty - La Pointe, WI
CRS, Madeline Island Realty, LaPointe, WI 54850 -

It's pretty outrageous. A lot of folks on Madeline Island rely on propane for their heat. When we built our cabin, we chose in-floor hot water heat, powered by off-peak electric service.  I've never regretted that decision.

Jan 29, 2014 10:39 PM
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