Growmark’s acquisition of an 11-tank propane terminal in New Hampton, Iowa, will add nearly 1 million gallons of total propane storage capacity and will have an indirect — but important — impact on Illinois farmers, officials say.

“The Midwest propane supply is all interconnected,” explains Kevin Carroll, Growmark vice president of energy and logistics, following the announcement this month. “Right now, there’s not enough infrastructure in the Midwest to keep up with demand for extended periods of time.”

“If you add infrastructure in one area, it helps the entire system in the Midwest,” Carroll says.

The Iowa terminal brings propane supplies closer to Midwest customers during high-demand times like winter and harvest. Growmark also leases propane storage facilities in Conway, Kan., and on the Gulf Coast.

“Every little bit helps, especially when it’s close to the market,” Carroll notes.

The terminal will be used in conjunction with the rail propane terminal in Mason City, Iowa, and will serve area FS (farm supply) companies as well as other local retailers. The terminal will be fully operational later this winter, after Growmark updates the load-out technology and adds a transport unload station.

“We’re always looking to make sure we can serve our customers in the Midwest — that’s what we’re all about,” Carroll says. “This acquisition reinforces our commitment to being an excellent supplier of propane to the Midwest.”

Carroll adds that Growmark was prepared to handle the subzero temperatures that hit in late December and early January. Propane supplies will remain steady as long as the cold snaps last for a few days, not weeks.

“Whenever you get heavy demand, there are always pockets that get stressed,” he adds. Growmark uses its extensive inventory of trucks and transport trailers to deliver propane to low-inventory areas as needed.

“Right now, the system is keeping up,” Carroll says.