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Farmers should prepare for continued tight fuel supply

Despite tight fuel supplies the Senior Director for CHS Refined Fuels says they’ve been able to keep Midwest and Northern Plains farmers in motion this planting season.

“We made it through. It was skinny, but I will say we made it through for the most part. Planting isn’t quite wrapped up but I think we are kind of on the downhill slide now.”

Jason Schwantz tells Brownfield refiners were forced to slow production following pandemic related travel restrictions and are now working extra hard to build up supply for increased driving demand as those restrictions subside.

He says dry weather in the Iowa/Nebraska area might lead to increased irrigation use and high grain prices could make for a very busy harvest season – meaning fuel will be in extra high demand. And with hiccups like the Colonial Pipeline shutdown, Schwants expects fuel supplies will remain tight.

“I think you can expect higher prices. I’m not saying they won’t go up and down some, but the low prices we saw in January and February- I don’t think those will be coming back for a while. So I would highly recommend you fill your tanks, be prepared and we will try to do the same.”

He says there have been a few instances where a shortage of truck drivers has delayed transportation of fuels, but for now, that is not a major problem in the Midwest.

CHS sells about 3 billion gallons of fuel each year from two refineries in Montana and Kansas.