News

As customers locked in fall 2008 LP and RF needs we saw an unprecedented downward move in energy prices. This downward move was one that we have not seen in 25 years. For those who contracted, myself included as I use LP to heat my home, it’s frustrating that the risk management tool of contracting that we have all come to rely on from year to year has worked against us. The best thing to do is look back to the previous years when the contract saved us some significant money.

No doubt some will express more caution when contracting in the future, but as one person told me years ago ,"it’s better to take a position than to sit back and speculate".

Looking forward, I see crude oil averaging in the $50.00 mark for 2009. My gut tells me that when the Obama Administration occupies the White House, work to stimulate the economy will slowly have an impact on energy prices as the economy gradually recovers and demand picks back up. As many have said "it will probably get worse before it improves", it appears filling your barrels for spring like I have mentioned in the past, seems to be your best option. Spring contracts are available and locking in a % of your needs would allow you to buy around a dollar cheaper than a year ago.

Moving forward with the merger February 1, Lynn Sheets will reside as the Energy Manager. I will work alongside Lynn to see to it the transition is as smooth as possible in the Energy Department. The talent the company will have in the Energy Department post merger should allow the company to continue the core value in being a customer service oriented company which is here to give you sound, intelligent information so you can make the best marketing decisions which will result in you, the customer, being successful.

While we have had a good spell of cold weather, some have rekindled the importance of good maintenance of your on-the-farm storage for refined fuels. Technical Services personnel continue to remind me each year that 90% of fuel related winter issues are due to lack of maintenance on fuel storage. Please remember you should drain the water, which has formed from condensation, out of your storage tanks in the spring and fall. Also, replace fuel filters twice a year and make sure you are putting a filter on which is the correct micron. My understanding is some new tractors have a 2 micron fuel filter on them. Be sure you are filtering out of your tank enough so that your equipment does not have a problem. It is important in the winter that you fill your equipment at night when you are done using them so condensation in the tank is not an issue. Another good idea is to keep your barrels full to eliminate the threat there as well.

I wish everyone a successful 2009.