Can innovation fuel a comeback after agriculture propane demand plummets?

March 26, 2026 By Mark Leitman 0 Comments

The latest Annual Retail Propane Sales Report by Frost & Sullivan told us 789 million gallons of propane were consumed in the agriculture market – the lowest in 20 years.

It was noted that 2024 was both the warmest on record and required little grain drying demand. But we’ve seen declines over the past few years, with 942 million gallons in 2021, 842 million in 2022 and 826 million in 2023.

The 20-year high for agriculture consumption was 1.2 billion gallons in 2009, followed by 1.12 billion in 2014, 1.09 billion in 2019, 1.07 billion in 2008 and 1.06 billion in 2013. The 20-year average for 2005-24 was 944 million gallons. In the first 10 years of this period, from 2005-14, we averaged 988 million gallons. In the latter 10 years, we averaged just 901 million. Iowa is the largest consumer of propane for agriculture, followed by Minnesota, North Carolina, Illinois and California.

We know grain drying and cold weather are key drivers, and both have been lacking in recent years. But what else is challenging growth in this segment, and what can we do about it?

A host of technology improvements have produced remarkable efficiency gains across the entire agricultural market. Businesses will continue to adopt more efficient technologies and practices, so it’s incumbent upon us to promote new propane technologies that provide efficient on-farm solutions. Doing so can help us remain relevant and grow in the years ahead.

▶ Farm efficiency gains

U.S. agriculture has proven its ability to do more with less over the years.

The U.S. Department of Agriculture (USDA) reported U.S. farm output nearly tripled between 1948 and 2021. Meanwhile, total input use was down 2 percent over the same period. Over the past 20 years, the number of people fed by one farmer has grown from 144 to 169. Farm numbers have gone down as they have gotten larger and more efficient. Acreage is down as well.

So, we have fewer people, producing more, on less land, using less energy per unit of output. It’s not one thing but an entire system that has greatly improved.

Corn production is a great example. From 2005-24, U.S. corn yield per acre rose from 148 to 179 bushels per acre, and 2025 figures are even higher. Not only is more corn growing on one acre, but the varieties have stronger stalks and are better equipped to stand long enough to dry naturally when weather conditions are favorable. Corn seed has a predictable maturity date, so a farmer can accurately predict the timing of harvest, based on planting dates, to anticipate and manage drying needs and costs.

The federal government has also encouraged farm energy efficiency improvements over the years through grants and incentives.

The USDA Rural Energy for America Program has invested billions in such projects. These include agriculture projects. Many solar projects were listed in a 2023 report of approved grants. But there were also upgrades to more efficient grain dryers and heating systems that were approved. There is potential to put this program to use installing efficient propane applications in the future. Keep an eye out for this program or reach out to your state USDA Rural Development contact for more information.

▶ Price volatility

Having spent many years working with farmers, and growing up as a farmer, controlling costs is always top of mind. But the bigger concern is having reliable costs to anticipate for budgeting purposes.

An unforeseen spike in key input costs can strain a budget, given how farms typically operate on low margins. And once the farmer feels the sting of an unexpectedly high-cost year, they will tend to shop for a more predictable alternative. Helping them manage costs may be an opportunity for you to add value.

Mark Rachal, director of research and publications for Cost Management Solutions, noted that propane marketers have options that can help them control the cost for fuel.

“I encourage all propane marketers to consider contracting some fuel supply, in order to control against spikes in price,” he states. “Removing price volatility is an excellent customer-focused practice that will allow our industrial and commercial accounts to plan their way through the season.”

▶ New technology

To grow in the future and reverse the downward trend, the industry needs to offer new technology that utilizes propane. There are far too many examples to explore in this article, but I will share one example in the grain drying space.

“The Mathews Co.’s new ReClaimAir grain drying technology consumes 18 percent less fuel than comparative models,” according to Joe Shulfer, president of Mathews Co., an Illinois-based grain drying manufacturer.

A waste heat recovery system and state-of-the-art controls set this machine apart. This type of technology has given farmers the ability to efficiently condition grain using fewer Btus per bushel. Technologies like these help farmers remain competitive and prove that propane solutions can be an efficient part of the energy mix.

“A grain dryer is necessary insurance,” according to Shulfer. “Farmers need the ability to efficiently remove excess moisture to enable harvesting early, and when colder harvest conditions persist, they become ever more vital to success.”

I encourage readers to identify and promote the latest propane technologies, such as on-demand water heaters, combined heat and power and any other relevant application, in your area.

There is optimism within animal agriculture, as reported in January and confirmed when I spoke to Chris Smith, vice president of marketing for Wisconsin-based LB White.

“The livestock industry is demand-driven and sadly has been in a downward cycle for the past few years,” he states.

Construction costs have made the expansion of facilities a challenge for growers in recent years. But, with growing demand, this appears to be changing.

“We’re finally starting to see a bit more optimism among pork and poultry growers, which could help propane in the near future,” he adds.

▶ Summary

The first step in solving a problem is recognizing that it exists. We have lost demand in agriculture, and that’s been driven by the weather, along with numerous advancements in technology. We need to double down to deploy more efficient propane options to reclaim market share.

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.

Safe, prosperous fall and winter with agriculture customers

New agriculture technologies, more propane gallons