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Oct 31, 2019

Energy News - October 2019

By Chad Larson - Propane Manager

As we face what is looking like a year we may see record drying, I believe our investment into the propane railcar offloader and additional storage in Janesville will prove to be a big benefit for our customers.

While operations continue to grow, we’ve seen our growers adding additional propane storage. In the past, many had a batch dryer on a 1,000-gallon tank. Now we have several large growers with continuous flow dryers, fed by a large propane vessel, which can range in size from 12,000, 18,000, or even 30,000 gallons. This size and scope of storage and demand can place supply terminals under strain faster than we’ve been used to in the past. 

At Crystal Valley, we plan all year for what we “think” we will need based on planting dates, degree days, overall crop progress, and new customers. Then we look at transportation logistics to make sure we run as smooth as we can coming into fall/winter.

We have seen falls where we’ve thought we’d burn a ton of propane, only to see blow torch winds and heat in late September and early October dry down the crop in the field.  As the old saying goes, “you can’t build a church for just Easter Sunday,” the same holds for the cooperatives. Planning, even with the best of intentions is still a guess. That said, know we will strive to take care of your propane needs the best way we can.

Cenex Total Protection Plan Warranty

If you have not considered taking part in our Cenex Total Protection Plan Warranty, I ask you to reconsider.  We received a call from a farmer just today, who had his CaseIH Quadtrac go into the shop with a transmission issue. The cost is estimated to be $57,000 to repair.

I ask you, how can you not be on this program?  I could not imagine after a year like this, have a $57,000 repair bill come in the mailbox.  Please, by all means, inquire about this program with your salesperson.

Energy Structure Changes

Our Energy Team has made some structure changes:

· Chad Larsen -  Propane Manager

· Bill Landin -  Refined Fuels Manager

· To Be Announced - Energy Sales Manager

Please reach out to any of us if you have any questions about what we offer. Have a safe harvest!

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