Propane Powers 800,000 U.S. Farms as Diesel and Power Costs Climb

Propane already fuels more than 800,000 U.S. farms, and the Propane Education & Research Council says that number can grow as diesel and electricity costs climb. Michael Newland, PERC's director of agriculture business development, is leading the pitch.

"Everyone thinks of propane for grain drying, especially in the Midwest," Newland said. "But more and more, we are seeing it used as a backup power source for farms. We're also seeing it as a primary power for other farm applications."

Why the cost math is shifting

Diesel prices have spiked about two-thirds since the U.S. military intervention in Iran earlier this year. That is a sharp jump for any operation running tractors, trucks or generators on diesel, and it came fast enough to upend fuel budgets set last season.

Electricity bills are climbing too. Consumer demand keeps rising as households charge everything from electric cars to smartphones, and that demand growth flows into utility rates. Farmers running electric irrigation pumps feel it twice, through both higher rates and demand charges.

Supply, by contrast, favors propane. "We've had a big supply increase over the last decade of propane in the country," Newland said. Abundant domestic supply has made propane more cost competitive as a farm fuel, PERC officials noted.

Where propane fits on the farm

PERC points to several applications where growers are already switching:

• Irrigation. More irrigators are moving from electric pumps to propane-powered units, avoiding electricity demand charges incurred when pumps run at peak times, such as hot summer afternoons.
• Backup power. Farms increasingly use propane generators as insurance against outages.
• Heating and cooling. Propane can heat and cool shops and livestock buildings.

PERC demonstrated the technology in the field. This past summer, it worked with Farm Progress Show officials to cool the event's media tent and Hospitality Tent with propane generators, and it plans to repeat the setup next year.

What does the switch actually take?

Start with a local propane dealer. Growers without one can search propane.com, which lists every firm marketing and selling propane by ZIP code.

Next, determine the equipment needed. PERC's agriculture page, propane.com/for-my-business/agriculture, outlines the requirements for each application.

Money is on the table. PERC offers up to $10,000 through the Propane Farm Research Program for qualifying equipment, with details at propane.com/pfrp.

Delivery has also become simpler. In the old days, Newland said, a farmer had to walk out, check the tank gauge and call the dealer. Today, tank-monitor technology sends a cellular signal to the dealer automatically when tank volume drops to a set level.

"We have propane on over 800,000 farms in the country, so it is a widely adopted and accepted fuel within the farming community," Newland said. "It's an opportunity for your farm to become more resilient and cost competitive."

For growers weighing energy budgets against volatile diesel prices and rising utility demand charges, PERC's rebate window and the propane.com search tools are the practical first stops this winter.