WASHINGTON – Senator Chuck Grassley today expressed concern about apparent shortages of propane just as the weather is turning cold and farmers are in high gear working to get crops out of the fields.
Grassley sent a letter to the chairman of the Federal Trade Commission asking that the commission remain vigilant in overseeing the propane market to prevent anti-competitive behavior. Grassley recently heard from Iowa farmers about a shortage of propane in some areas of the state. Farmers are using a considerable amount of propane right now because they are harvesting a higher amount of high-moisture corn due to the unseasonably wet weather. Most corn must be sold below a certain moisture content for farmers to receive an optimal price.
Here is a copy of the text of the letter to Federal Trade Commission Chairman Jon Leibowitz.
November 13, 2009
The Honorable Jon Leibowitz
Chairman, Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580
Dear Chairman Leibowitz:
I am writing to inquire about the Federal Trade Commission’s oversight of the propane market in the Midwest.
During the past few weeks, Iowa has received a significant amount of rainfall, which has delayed the fall corn and soybean harvest by weeks. Additionally, the harvest of grain with a high percentage of moisture content requires the grain to be dried prior to storage. As a result, many farmers in Iowa are harvesting a wet crop in a very compressed period of time, putting significant pressure on the demand for fuel, primarily propane, to dry the grain. This has apparently led to propane shortages in some areas.
While I recognize that there is a high demand because of the aforementioned factors, I’m also aware that propane inventories nationally remain at or above the five-year average for this time of year.
I request that your Commission remain vigilant in overseeing the propane market to prevent anti-competitive behavior or any manipulation, and ensure that any shortages are not created artificially. I look forward to hearing the results of your review of the propane market in the Midwest.
Sincerely,
Charles E. Grassley
United States Senator
Cc: The Honorable Eric Holder
Attorney General of the United States
The Honorable Steven Chu
Secretary of Energy
The Honorable Gary Gensler
Chairman, Commodity Futures Trading Commission