By Rep. Paul Anderson
By now, most folks are probably aware of the huge spike in price that has occurred in the LP or propane market this winter. What was priced less than $2 a gallon just a couple of weeks ago is now between $4 and $5. Reasons given include the wet harvest that pulled down inventories of the fuel used for corn drying last fall and now our bitterly cold winter. Retailers are having difficulty in sourcing product, and there have been reports of trucks being sent as far as Kansas or even Texas to bring back supply.
This is having a big effect on folks’ ability to pay for heating fuel. Budgets weren’t set with the idea of gas doubling in price. As a result, instead of filling tanks, retailers in some cases are limiting deliveries to as little as 100 gallons. And it’s not just home heating that’s affected by this shortage. Livestock facilities, especially chicken and turkey barns are large users of LP gas during the winter heating season. I heard from one turkey grower who has six, 1,000-gallon tanks alongside his barns. Just imagine the increased cost of filling those tanks right now… if he can get that much delivered. A month ago, 6,000 gallons would have cost less than $12,000, but today that same expense will run between $24,000 to $30,000. It will be difficult to recoup that additional expense because farmers can’t set their own price – they take what the market will pay. And a short-term spike like this will probably not affect prices in a significant way.
One propane retailer was quoted as saying that we are dealing with one-half the inventory this year and that product supplies are at levels not seen in years. And even more concerning is that the pipeline terminal in Benson which has been a major source of product for this part of the state is phasing out of propane. Originating in Canada, this line, called the Cochin Pipeline, is in the process of reversing its pumps and, after this spring, will no longer be delivering gas to the Midwest. Instead, it will be pumping drilling material north to the oil fields in Canada.
The federal government has appropriated additional funding to help with this sudden increase in heating costs. At this time, it’s not known how much will be coming to Minnesota. Here is a phone number folks can call to learn more about getting assistance with their heating bills: (800) 657-3710 (Department of Commerce).
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If you happen to be having a birthday and turning 65 soon, you are not alone. Studies show that approximately 10,000 Americans are reaching that milestone every day and will continue reaching our once traditional “retirement age” at that pace for the next 15 years or so. This rapidly aging demographic is having a large impact on social and medical programs, in addition to causing shortages in some areas of the US workforce. This same “aging” is also being seen in agriculture, where during the period from 2002 through 2007 the number of farm operators under the age of 25 decreased by 30 percent while the number of older operators increased by 20 percent.
Another statistic gleaned from a recent ag seminar is that 98 percent of farms today are family-run. When they are included in the broader category of family-run businesses, we were told that only 30 percent of family-run businesses survive and are passed on to the next generation. Even fewer, 12 percent, are passed on to the third generation, and only three percent reach the fourth generation.
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