Gallon Growers by PERC

Agriculture toolkit

I N TRO DU C TIO N

FIRST THI

FIRST THINGS FIRST CONGRATULATIONS.

You hold in your hands the GallonGrowers Agriculture Toolkit. This kit is designed to give you the tools and information you need to maximize your gallon potential in the agriculture industry. Up front youâ&#x20AC;&#x2122;ll learn about the agriculture market, the various ways propane is used on the farm, and how you can build relationships with farmers and producers in your area. The following section highlights available materials like case studies, fact sheets, and instructional videos to help train your employees. The last section collects and explains all the available materials you can use to help farmers in your area learn the advantages of using propane. You can access the files for these materials by using the links in this interactive PDF. Because materials are updated and added often, we encourage you to go to propanemarc.com/agtoolkit regularly for the most up-to-date versions. You can also customize many items and order printed copies on the Propane MaRC.

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TA B LE O F CO N TE N TS

TABLE OF

TABLE OF CONTENTS + agriculture MARKET OVERVIEW

· Harvesting Gallons in Agriculture · Types of Farming Operations · Today’s Efficient PROPANE-FUELED EQUIPMENT · Industry Influencers · How To Get Started

+ RESOURCES FOR YOUR TEAM + RESOURCES FOR DEALERS AND END-USERS

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AGRICULTURE OVERVIEW AGRICULTURE MARKET OVERVIEW

H arvesting G allons in Agriculture

Harvesting

Harvesting Gallons in Agriculture As a propane marketer, you have a tremendous opportunity to grow your gallons by helping farmers and others in the agriculture industry cut energy costs, increase efficiency, and meet their carbon emissions goals by switching from diesel fuel and gasoline to propane. Just consider this: on average, new propane-fueled farm technology like irrigation engines will consume 4,000-12,000 gallons running approximately 1,000 hours per year depending on the size and application. Put another way, a single irrigation engine consumes the same number of gallons as 10 average households.

1 ENGINE IRRIGATION

houses

1. ICF International, Propane Industry Impact on U.S. and State Economies, (Washington, D.C.: ICF International, 2011), prepared for the Propane Education & Research Council, 33.

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Even better, this usage occurs during the off-peak summer months.

Like any business owner, farmers have to keep a close eye on their bottom line, a job that has become increasingly difficult given unpredictable fuel costs. The rising price of gasoline and diesel has forced farmers to consider cheaper, more efficient alternative fuels. Thatâ&#x20AC;&#x2122;s part of the reason why approximately one billion gallons of propane were used in agriculture in 2009, representing 10 percent of total odorized propane sales.1 The competitive price of propane is a valuable proposition for an industry that is greatly dependent on energy-intensive equipment. A monthly or annual fuel contract can be very attractive to a farmer. The contract helps minimize price volatility, allows farmers to project their annual fuel costs, and alleviates anxiety about unforeseen spikes in prices commonly experienced with gasoline and diesel.

H arvesting G allons in Agriculture

Harvestin Harvesting Gallons in Agriculture

But aside from helping farmers lower their fuel costs, propane is beneficial to farmers in other ways, too. The Propane Education & Research Council (PERC) has spearheaded the development of new propane-fueled technology like high-efficiency irrigation engines that offer lower maintenance costs, reduced emissions, and a smaller price tag.

Lower maintenance costs

CO2

Reduced emissions

Smaller price tag

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H arvesting G allons in Agriculture

Harvestin Harvesting Gallons in Agriculture

Plus, farmers can increase their cost savings even further by enrolling in the Propane Farm Incentive Program. Sponsored by PERC, the program provides a financial incentive up to $5,000 toward the purchase of new propane-fueled farm equipment like irrigation engines and grain dryers. In exchange, participants agree to share real-world performance data with PERC.

In fact, participants in the 2013 program who purchased their propane-fueled irrigation engine to replace another engine reported reducing their fuel costs per hour by nearly 56 percent compared with previously owned diesel-fueled engines. This program can deliver significant value for two reasons: first, it can help you grow more gallons because the incentive provides farmers with an attractive motivator to use new propane-fueled equipment; and second, it can help farmers avoid the hassle and cost associated with the Environmental Protection Agencyâ&#x20AC;&#x2122;s (EPA) impending Tier 4 regulations for diesel-fueled equipment.

fuel Costs

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56%

PER Hour

H arvesting G allons in Agriculture

Harvestin Harvesting Gallons in Agriculture

The EPAâ&#x20AC;&#x2122;s Tier 4 regulations are a component of a federal law called the Clean Air Act. Tier 4 puts increasingly stringent emissions regulations on diesel engines, requiring deep reductions in pollutants and particulate matter. Diesel engines on farms must meet all Tier 4 standards by 2015, which means farmers must adopt more efficient, cleaner technology. Some may choose to do that by retrofitting diesel engines with costly emissions equipment. Others may look into replacing them with new diesel engines. But the price of new diesel engines is rising, as diesel engine manufacturers add expensive components to their engines to comply with Tier 4. Todayâ&#x20AC;&#x2122;s propane-fueled irrigation engines easily meet Tier 4 emissions standards and do so without compromising performance, power, or productivity. Now that you know the opportunity for more gallons exists in the agriculture market, letâ&#x20AC;&#x2122;s take a closer look at the types of farming operations that employ propane-fueled equipment.

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T yp es of Farming O p erations

Types of

Types of Farming Operations Crop Production

An operation that uses land exclusively for growing crops like barley, sorghum, wheat, corn, rice, rye, canola, and soybeans. Commonly Used Propane-Fueled Equipment: • Irrigation engines.

• Forklifts.

• Grain dryers.

• Building and water heating.

• Generators.

• Flame weed control (often for organic producers).

• Pickup trucks.

• Commercial-grade mowers.

Hay and Forage Production An operation that uses land exclusively for the production of grass, legumes, or other herbaceous plants that will be harvested and sold to livestock owners for animal feed. Commonly Used Propane-Fueled Equipment: • Irrigation engines.

• Building and water heating.

• Pickup trucks.

• Commercial-grade mowers.

• Forklifts.

Livestock Farming An operation that uses land to raise and care for livestock. Commonly Used Propane-Fueled Equipment:

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• Irrigation engines.

• Forklifts.

• Generators.

• Building and water heating.

• Pickup trucks.

• Commercial-grade mowers.

T yp es of Farming O p erations

Types of f Types of Farming Operations

Dairy Farming An operation that uses land to raise and care for dairy cows. Commonly Used Propane-Fueled Equipment: • Irrigation engines.

• Forklifts.

• Generators.

• Building and water heating.

• Pickup trucks.

• Commercial-grade mowers.

Mixed Farming An operation that involves two or more types of farming like livestock and crop farming, in which a tract of land would be specified for grazing purposes, while another would be used to grow crops or hay. Commonly Used Propane-Fueled Equipment:

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• Irrigation engines.

• Forklifts.

• Grain Dryers.

• Building and water heating.

• Pickup trucks.

• Commercial-grade mowers.

Today ’s E fficient Propane- F ueled E q ui pment

Today’s Eff

Today’s Efficient Propane-Fueled Equipment In the agriculture industry, the value of propane isn’t limited to just the field. It can influence all aspects of farming operations. Whether it’s used in irrigation engines, grain dryers, standby generators, pickup trucks, or a variety of other applications, propane’s ability to efficiently fuel a wide variety of farm equipment expands your opportunities to grow gallons.

Farmers may be familiar with propane as a fuel source, but they may know less about the high-performing propane technology that only recently has started to come to market. Here is an overview of the new generation of propane-fueled farm equipment available today.

Irrigation Engines Irrigation engines power different types of irrigation systems that deliver water to the crops out in the field. The new propane-fueled engines are more efficient than older propane models and can provide farmers with an immediate savings in fuel costs compared with diesel or gasoline. Plus, propane-fueled irrigation engines are better for the environment and are already compliant with the EPA’s Tier 4 emissions regulations.

grain Dryers Grain drying is a critical phase in the harvesting process that conditions grain for safe storage. Farmers who harvest early actually bring more total crop to market. Harvesting early, while the crop retains small amounts of moisture, reduces grain field losses. The extra grain harvested, can more than make up for the cost of propane drying. New propane-fueled units distribute a very precise heat, which ensures that the grain dries evenly, resulting in a high-quality yield.

Standby Generators A power failure can devastate a farm. That’s why an emergency power source like a standby generator is so essential. It prevents costly interruptions in operations and ensures critical farm equipment like water wells and building ventilation fans are always functioning. Propane-fueled standby generators provide farmers with an additional layer of security because propane does not degrade over time like gasoline or diesel. AT -V1

Flame Weed Control

Propane-fueled flame weed control is growing in popularity because it’s an environmentally friendly alternative to herbicides that is just as effective. It works by using intense heat to rupture plant cells, causing the weed to wither and die. The weed control machine can be used in a variety of weather conditions and growth stages, and it allows farmers to return to the field immediately after treatment. It also consumes up to 20 gallons of propane per acre per year.2 This is a great weed control solution for the growing number of organic farmers, as well as an alternative for others interested in reducing herbicide use.

2. Bruening, C.; Datta, A.; Gogos, G.; Knezevic, S.; “Propane-Fueled Flame Weeding in Corn, Soybean, and Sunflower,” University of Nebraska — Lincoln, August 2012, 11.

Today ’s E fficient Propane- F ueled E q ui pment

Today’s Effic Today’s Efficient Propane-Fueled Equipment

Building and Water Heating A growing number of farmers are using propane-fueled building and water heaters in their operations. Keeping animal containment areas heated during the cold winter months, cleaning and sanitizing dairy milking parlors, and providing warm baths for horses are just some of the ways propane helps on the farm. They are a valuable addition for farmers who need efficient heat.

Trucks and Other Vehicles Propane is the leading alternative fuel in the country, fueling more than 145,000 on-road vehicles. Propane-fueled light-duty pickups offer farmers a transportation option with lower operating costs and lower emissions than those that run on gasoline or diesel. Plus, these vehicles deliver horsepower, torque, and towing capacity equivalent to their gasoline counterparts while emitting up to 24 percent fewer greenhouse gas emissions.3

Lawn Mowers Propane-fueled commercial mowers can be a tremendous source of summer gallons. One commercial mower uses about 1,000 gallons of propane per year. That’s twice as much as a typical household. For farmers, they’re a simple way to make significant reductions in operating costs. Propane is cheaper than gasoline or diesel, and the cleaner fuel may result in reduced maintenance costs and longer engine life.

3. Energetics Incorporated, Propane Reduces Greenhouse Gas Emissions: A Comparative Analysis (Washington, D.C.: Propane Education & Research Council, 2009).

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Business opportunity SElling Propane If you think you might be interested in selling propane for vehicles or commercial-grade mowers, PERC has developed toolkits similar to this one for propane autogas and the professional landscape industry. Just visit propanemarc.com and search for the GallonGrowers Propane Autogas Toolkit or GallonGrowers Professional Landscape Toolkit and download yours today.

I ndustry Influencers

Industry

Industry Influencers Ag Equipment Dealers

Ag equipment dealers can be a valuable resource in your quest to grow more gallons. In many ways, dealers are like propane marketers. They’re typically smaller, family-owned businesses that have spent years, and in some cases, generations, in the same community selling, maintaining, and servicing farm equipment. Equipment dealers have long-standing relationships with farmers and are viewed as a trusted partner. They wield a strong influence on the purchasing decisions of local farmers. How can dealers help grow gallons? A dealer is relied on to provide equipment recommendations that can help customers meet a specific farming need. It’s important for you to know the various equipment manufacturers that each dealer carries and determine whether there’s a propane-fueled option. Then, take the time to educate dealers on the value propane can bring to the farm and to the dealers. If you can show dealers how a propane-fueled irrigation engine is cheaper, cleaner, and costs significantly less to operate than a diesel unit, then they will use that information to deliver even greater value to their customers and improve their own sales.

“Today’s propane engines are far more efficient than the engines 10 or 20 years ago. I encourage propane marketers to take a hard look at the efficiency of these new products, and put them to work for you in order to build long lasting summer demand for your business. Manufacturers, like our company, are here to help you each step of the way.”

Pete Stout

Product Manager, Origin Engines, Hastings, Ne.

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I ndustry Influencers

Industry Industry Influencers

Manufacturer Representatives

Manufacturer representatives (often called sales reps or territory managers) are responsible for recruiting dealers in a defined market and signing them up to sell the manufacturerâ&#x20AC;&#x2122;s line of equipment. Manufacturer representatives are also tasked with providing dealers with all of the support and information needed to properly sell the equipment. This can include marketing collateral, product sell sheets, customer service assistance, and equipment demonstrations. How can manufacturer representatives help grow gallons? Manufacturer representatives can directly influence the types of equipment that dealers will stock and promote. Spend some time finding the names of the reps who serve equipment dealers in your area. Building a relationship at this level can have profound advantages because they can give you access to all the dealers in your area. If you make the reps aware of the advantages of propane for everyone â&#x20AC;&#x201D; farmers, dealers, and reps â&#x20AC;&#x201D; they will likely work harder to sell and promote the propane-fueled models in their product lines. And as they talk to their dealers about propane, they will likely refer to you as a local expert, driving customers to you. Reps also hold regular dealer meetings and would likely welcome your suggestion to attend in order to provide an educational session on propane. And PERC has made it easy for you to do this by providing all kinds of materials in this toolkit.

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H ow To G et S tarted

GET STARTED

HOW TO GET STARTED Now that we’ve provided you with a better understanding of the market and identified why the agriculture industry offers a tremendous opportunity for propane marketers to grow gallons, it’s time to form a game plan.

Do your homework.

The first step should be to read this toolkit to make sure you have a good understanding of the advantages of propane on the farm. You might also do a little online research and spend some time with the PERC-sponsored website agpropane.com. It’s another valuable resource that can help boost your knowledge of the agriculture industry.

2 Review your Current Residential Customer List. Chances are, you’re already selling propane to farmers for residential use. Call them and explain how you’d like to help them save money with propane-fueled irrigation engines, grain dryers, mowers, pickups, and generators. They may be surprised to know how far propane-fueled technology has come.

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3 Identify Other Farmers. Next, identify other farmers in your area who are prospects for propane-fueled equipment like irrigation engines or grain dryers. Drive past the farming operations in your area and look for signs of crop farmers who are already irrigating. Oftentimes you can see the irrigation pump station from the road. Look for diesel tanks to confirm those who are using diesel engines. Look for large grain elevators to identify grain dryer customers.

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Get Starte how to get Started

4 Establish a relationship. Then, work to establish a relationship with equipment dealers in your area. • Stop by to introduce yourself. • Come armed with information from this toolkit on how propane can help their customers. • Join forces on sales and marketing efforts like promotions. • Take part in trade shows together. • Participate in dealership open houses or demo events. • Provide leave-behind materials on your services for customers interested in propane-fueled equipment. • Be sure to tell them about the Propane Farm Incentive Program. For additional resources related to the agriculture market, feel free to get in touch with PERC. We would be happy to answer any of your questions or even help put you in touch with other marketers around the country who are connecting with farmers in their local markets. You can also visit the Propane Marketer Resource Catalog (Propane MaRC) at propanemarc.com to access an online collection of marketing materials related to agriculture. For more information about propane use on the farm, including programs and incentives, safety tips, and a library of free resources, visit agpropane.com.

Quick Overview 1. Do your homework. 2. Review your Current Customer List. 3. Identify Other Farmers. 4. Establish a Relationship.

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RESOURCES FO YOUR TEA RESOURCES FOR YOUR TEAM

These materials are designed to provide you and your sales staff with deeper insight into the agricultural market and the propane-fueled equipment used on the farm. Use the links in this section to access the materials listed. Materials are added and updated often, so be sure to visit propanemarc.com/agtoolkit regularly for the latest versions and to order printed copies or customize items (when available).

R E S O U R C E S FO R YO U R TE AM

PROGRAM

PROGRAM OVERVIEWS Propane FARM INCENTIVE PROGRAM

Sponsored by the Propane Education & Research Council (PERC), the Farm Incentive Program, formerly known as the Propane Farm Equipment Efficiency Demonstration (FEED) Program, is a research program that documents the performance of todayâ&#x20AC;&#x2122;s high-efficiency, propane-fueled technology in agriculture equipment like irrigation engines and grain dryers. Producers who enroll in the program are offered a financial incentive in exchange for recording performance data on the equipment being used.

propane mower incentive program Sponsored by the Propane Education & Research Council, this program gives farmers $1,000 per qualifying new propane mower purchase or $500 per qualifying mower conversion. In return, participants provide feedback and performance data for one mowing season.

Government & State Programs Encourage your customers to take advantage of the following government and state programs. They provide farmers the opportunity to experience the benefits of propane-fueled technology while helping offset the costs of propane equipment.

USDA RURAL ENERGY FOR AMERICA PROGRAM (REAP) agpropane.com/programs-and-incentives/government-programs

DATABASE OF STATE INCENTIVES FOR RENEWABLES & EFFICIENCY agpropane.com/programs-and-incentives/government-programs

ALTERNATIVE FUELS AND ADVANCE VEHICLES DATA CENTER agpropane.com/programs-and-incentives/government-programs

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INDUSTRY RE

INDUSTRY RESEARCH Propane Reduces Greenhouse Gas Emissions: A Comparative Analysis (2009) This research study, sponsored by PERC and conducted by Energetics Inc., shows that using propane in certain applications produces fewer greenhouse gas emissions (GHG) than many other fuels. The study compares the GHG emissions profiles of various energy sources in a range of commercial and residential, on-road, off-road, and agriculture applications. The 13 applications analyzed in the study come from well-established propane markets, such as forklifts and residential water heating, and emerging propane markets, such as desiccant dehumidification and light-duty trucks.

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TRAINING M

TRAINING MATERIALS TRAINING MANUAL: DISPENSING PROPANE SAFELY INTO AGRICULTURAL EQUIPMENT

Use this training manual to learn how to properly transfer propane into storage tanks that are permanently mounted on agricultural equipment. This manual includes: training requirements for individuals transferring propane; propane properties and safety; transfer equipment; transfer procedures; propane material safety data sheet, quizzes, answer keys, and a certificate of completion.

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TRAINING MAT TRAINING MATERIALS

TRAINING MANUAL: MAINTAINING AND REPAIRING PROPANE FUEL SYSTEMS ON STATIONARY ENGINEs Use this training manual to learn the proper procedures for servicing stationary propane engines used in agricultural applications. This manual provides an introduction to the propane engine fuel systems that power both air-cooled and liquid-cooled engines. Also included is a curriculum quiz and answer key, along with recommended lab activities for students.

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TRAINING MAT TRAINING MATERIALS

OFF-ROAD APPLICATIONS of PROPANE ENGINE FUEL Propane’s role on the American farm extends well beyond the field. In this course, you’ll learn how propane can fuel a variety of important off-road applications like forklifts, commercial mowers, and farm equipment.

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VIDEO

VIDEO PROPANE MARKETER TESTIMONIALS

This video explores real stories from real marketers who took advantage of the Propane FEED Program (now the Propane Farm Incentive Program) and used it to introduce new propane-fueled technology to farmers and producers.

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PHOTOS & LO

PHOTOS & LOGOS PHOTOGRAPHY

A library of hi-res photographs is available for use on your website or printed collateral. Subjects include agricultural equipment, farmers, producers, and landscape shots.

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PHOTOS & LOG PHOTOS & LOGOS

LOGOS The library also includes the logo for the Propane Farm Incentive Program and Propane Exceptional Energy. Available for use on your website or printed collateral.

RESOURCES FO DEALERS AN RESOURCES F0R DEALERS AND END-USERS

These materials are designed to help you develop relationships with agricultural equipment dealers and make more sales with farmers and producers. Use the links in this section to access the materials listed. Materials are added and updated often, so be sure to visit propanemarc.com/agtoolkit regularly for the latest versions and to order printed copies or customize items (when available).