Last year we got burned with a pre-pay for the first time in around 10 years and paid 2.34 per gallon. This year the prepay was much better in July at 1.449.(we use around 15M gallons). Propane dealers usually get their prices for pre-pay around the end of June and then send out contracts. You can negotiate a price with your dealer at a certain rate above the Selkirk, NY wholesale price if you use a fair amount. Suburban has always been high in our area and this link shows that some customers were trying to get together for a class action suit in NY and upstate Vermont last year: Don't forget also that as a farmer you shouldn't be paying tax on the propane used at the farm.

Walker Farm

From: [log in to unmask] 
Sent: Saturday, March 27, 2010 9:40 AM
To: [log in to unmask] 
Subject: Re: What's your propane price?

      We are paying $1.82 on a contract price for 10,000 gallons.  This is an average price for the 2008-09 and 2009-2010 heating seasons.   I renegotiated my contract in February 2009 after contracting for $2.12 in the Fall of 2008.  The price in February of 2009 had fallen to around $1.45 and I wanted to take advantage of that price.  So I negotiated a 2 year average price.  We buy from Dead River, formerly Pratts Propane.  

      I hope this is not too confusing.  11 degrees this morning.

      Crossroad Farm

      --- On Sat, 3/27/10, Sally Colman and Richard Wiswall <[log in to unmask]> wrote:

        From: Sally Colman and Richard Wiswall <[log in to unmask]>
        Subject: What's your propane price?
        To: [log in to unmask]
        Date: Saturday, March 27, 2010, 6:15 AM

        Hi All- I'm paying $3.52/gallon (for residential use, from Blue Flame). Is that high? What are other people paying? 
        Richard, CateFarm.
        12 degrees F this morning (F is for Fahrenheit...)
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