Agricultural trends point to opportunity for propane in 2026

Here’s the lay of the land when it comes to propane and agriculture.

The largest states in propane consumption are Iowa, Minnesota, Illinois, North Carolina and California. Some of the largest propane applications are heating livestock buildings and grain drying.

Iowa, Minnesota and Illinois are top producers in corn, soybeans and pork, with some poultry/egg production. North Carolina produces fewer traditional row crops but ranks high in pork, poultry and egg production, plus it cures tobacco. California is large and diverse. It ranks first in dairy, and also first in vegetables, fruit and nursery/greenhouse production and a host of propane applications that support these.

I wanted to speak with people across these industries to gather broad perspectives about this year’s crop, animal and specialty production. I also asked them about opportunities for propane in the coming year. Here is what I learned.

▶ A California perspective

Rob Scott is a safety and training consultant for the Western Propane Gas Association (WPGA). He was trained as an agricultural educator before finding his way into the propane industry many years ago. Scott has organized the display for WPGA each February at the World Ag Expo.

Scott tells me that they are seeing growing interest in flame and steam weed and pest control.

“Restrictions on chemicals have become more intense, which is opening the door for propane solutions,” Scott says.

Propane, heat, steam and flame are approved practices to control weeds and pests, per National Organic Program guidelines.

“The use of propane as an engine fuel can grow in the coming year,” Scott adds. “There’s great potential for expansion in stationary irrigation and power generation. In both cases, we have proven technology that’s ready to deploy.”

He hopes to see more prime-powered generator applications installed rather than just backup systems.

▶ Animal agriculture

We use a lot of propane to heat poultry and egg production buildings across the United States. Think of all the chicken, egg and turkey products that are ubiquitous throughout our economy and remember that propane likely played a role in bringing that to market. We also use propane to support pork, dairy and other animal agriculture.

I spoke with Philip Lobo, founder of Lobo Consulting. His practice specializes in animal agriculture and feed.

“I see a positive year ahead for broiler (chicken) production,” Lobo says. “Feed costs should be manageable, and domestic demand is strong.”

These industries rely mostly on domestic markets and are not as vulnerable to trade disruptions that have complicated other segments of agriculture.

“In addition, the turkey and egg industries should see modest growth this year, barring any unforeseen challenges,” he adds.

A growing category within poultry production is specialty broiler production. This broad category offers a guaranteed product raised under modified production practices. Examples include animals raised with no antibiotics or on a vegetarian diet.

“This consumer-driven trend now captures approximately 25 percent of broiler production,” Lobo says.

It shows that agricultural producers are willing to adapt to consumer demand.

Many of the top ag propane states are also the top states in pork production. To get a sense of what’s happening in pork production, I spoke to Lee Schulz, chief economist with Ever.Ag, where he works as a consulting economist for the National Pork Board. The pork industry is rebounding from a tough year in 2023, but 2024 and 2025 have shown improvement. This year is projected to be profitable for pork producers, without major changes in volume.

As with poultry, “A new market segment is emerging and growing, called specialty pork production,” Schulz says. “It includes crate-free, antibiotic-free and organic production, and it’s seen steady growth in recent years, up to 12.3 percent of production YTD in 2025.”

▶ Crop production

I took a quick look at corn and soybeans, which are by far the largest crops in annual planted acreage.

The industry is expecting another large corn crop. Within the crop rotation between the two, farmers have flexibility to plant more of one or the other based on economics. Developments in the first quarter of 2026 could influence the acreage split between corn and soybeans. I spoke with John Jansen, senior vice president of market development for the United Soybean Board (USB), to get his take.

“We’re waiting for the U.S. EPA to release Renewable Fuel Standard, Renewable Volume Obligations (RVOs) that will guarantee base levels of biofuel production,” Jansen says. “Favorable RVO levels will drive demand for soy, which should give the market a boost.”

Other developments from D.C. may provide preference to U.S. biofuels for blending, relative to imports. In general, Jansen and the USB are optimistic about soybean oil’s potential as a biofuel feedstock, as well as other industrial uses for soybeans that show promise to increase demand.

Keep an eye on the South. Brazil is now the largest producer of soybeans in the world, surpassing the United States several years ago. If a large Brazilian soybean crop is harvested (as expected) by March, that will put downward pressure on global prices and may encourage U.S. farmers to plant more corn. More U.S. corn generally means more potential for propane crop drying, so monitor the volume and timing of corn planting in your area. Later planting can lead to a late harvest, and when a late harvest encounters cool and damp conditions, we will see large demand for corn drying.

▶ Summary

Animal agriculture in general is expected to have a good year. The pork industry will be flat but profitable, while poultry and eggs should see some growth. The crop side of the equation will be big for corn, but low prices are projected.

Experts suggest looking for opportunities to support specialty production in your area. Specialty production should command a premium over the commodity. It could be local farm-to-table, greenhouse, organic or a specific variety/breed grown for a specific market purpose. Supporting these differentiated products can result in profit opportunities for your local propane business. Visit farmers markets to see what’s catching on in your area and learn how you can help.

All commodity groups encourage propane marketers to partner with farmers early with attractive pre-buy programs to encourage early fills. These can help both businesses get ahead of the busy season and manage cash flow. I encourage all marketers to get out there and try something new that will make 2026 the best year yet.

Mark Leitman is an 18-year veteran of the propane industry, having served many years leading agricultural and off-road programs for the Propane Education & Research Council. He most recently served as director of sales and power division director for Blue Star Gas. He works as a consultant and freelance writer for clients in the agricultural and energy sectors.

Featured homepage image: vovashevchuk/iStock/Getty Images Plus/Getty Images

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