The U.S. Army Corps of Engineers plans to explore privatization of Mississippi River Valley inland waterways................................3
Early detection of PEDV can significantly reduce baby pig losses as the disease spreads quickly on Illinois farms..........................6
Department of Labor officials clarify an OSHA exemption for grain bins on farms employing less than 10 people..........................4
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Propane supply crisis eases
Illinois Farm Bureau mission: Improve the economic well-being of agriculture and enrich the quality of farm family life.
Monday, February 17, 2014
Energy prices projected to stay firm into summer BY DANIEL GRANT FarmWeek
Consumers hopefully breathed a little easier as temperatures moderated and the propane supply crisis eased the second half of last week. Propane prices fell as much as 25 cents per gallon in overnight trading late last week. The nationwide price of propane a week ago sat at $3.89 per gallon, down 12 cents from the previous week, but still well above the average price on Dec. 30 of $2.80. The propane shortage this winter affected 24 states, including Illinois. “We’ve seen the worst (of prices already) this winter,” Jackie McKinnis, GROWMARK senior energy analyst, told FarmWeek. “I don’t think we’ll go back to prices (which peaked around $5 and even $6 in some locations) we saw in the third and fourth weeks of January. “However, prices will remain firm,” she continued. “We are low on stocks.” Propane prices eased since January due to state and federal efforts to rebuild supplies in the Midwest and East Coast.
In recent weeks, more propane was shipped to Illinois and surrounding states from Texas and Canada. Inventories subsequently rebounded from recent lows, but still remained well below the five-year average (see graphic on page 10). Demand for propane also decreased as many customers canceled or reduced orders. Consumers also adjusted to the situation by turning down thermostats, closing off rooms and using other strategies to reduce home heating needs. Meanwhile, the temperature from the beginning to the end of last week increased as much as 30 to 40 degrees. And the forecast this week called for more seasonable temperatures rather than another arctic chill. “We’ve been getting a lot of product (shipped into Illinois),” McKinnis said. “And the warmer weather will help.” The high prices also impacted the export market as fewer shipments of propane left the U.S. in recent weeks compared to last fall when the U.S.
Three sections Volume 42, No. 7
HARBINGERS OF SPRING
Nothing says spring like the arrival of lambs. Bryan Hoffman of Danvers currently houses more than 80 spring harbingers with more lambs on the way in March. A ewe and her baby get some fresh air on a sunny, winter day. (Photo by Cyndi Cook)
‘They’re fighting the ice. It’s a mess’ BY KAY SHIPMAN FarmWeek
Periodicals: Time Valued
exported more than 24 million gallons of propane in October and November. Some propane was even re-exported from other destinations back to the U.S. last month due to the price spike. “We got out of balance (of propane stocks compared to demand),” McKinnis said. “But we’re not going to run out.” Prices likely will remain firm into the summer, though. McKinnis believes more propane tanks will be empty due to the cold winter and high prices, and will need to be refilled this summer compared to previous years. Gasoline and diesel fuel prices also are expected to remain firm into the summer months. The price of both fuels increased nationwide the last four consecutive weeks. Gasoline demand in January was stronger than expected. Many utility companies this winter switched to diesel fuel due to a shortage of natural gas. Fuel prices typically increase in the warmer months when driving tends to pick up and blenders switch to more expensive summer blends.
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Barge traffic on the Illinois River remains choked by heavy ice and the future looks ominous unless a thaw comes soon. “All the cold, icy conditions on the river, it’s creating havoc. Bob Bess They’re fighting the ice. It’s a mess,” Bob Bess, Havana terminal manager for Sunrise Ag Service Co., told FarmWeek. “Hopefully, it
See Propane, page 10
will thaw out pretty quick. Otherwise, it will get real interesting.” Bess reported on river conditions during an Irrigation Clinic last week in Havana. Instead of tows moving 15 barges at a time, Bess reported a recent one arrived with four empty barges and left with only two full ones. “There’s not as many line boats going up and down the river, and they’re running fewer barges with them because they can’t get through the ice with full tows,” he explained. “It’s starting to limit the supply of empty grain barges
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to get grain moved down south from the local ports on the Illinois River,” Bess said. Not only are fewer tugboats moving on the river, but each empty barge must be pushed by two boats instead of one. Illinois’ river highway moves a lot of fertilizer as well as grain. Bess speculated the ice could create logistical problems, especially if spring comes early. “If there’s not as many barges coming up (river), there is not as much movement of fertilizer and other products,” he said. “And it might take longer to
get to its final destination along the Illinois River.”
Moving on the river The Illinois Waterway system transports a lot of commodities out of the state — 76.1 million tons. This includes: • 37.1 million tons of coal; • 24.5 million tons of grain; and • 4.6 million tons of petroleum. Winter grain shipments on the Illinois River gain importance after shipping ceases on the upper and mid-Mississippi River. Source: U.S. Army Corps of Engineers 2011 data
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