Fuel, Propane & Lubricant Suppliers Category Guide

Energy Needs on Dairy Farms

Dairy farms are significant energy users—diesel for tractors and equipment, electricity for milking and cooling, propane or natural gas for heating, and fuel for vehicles. Managing energy supply and costs impacts both operations and profitability.

Fuel Types and Uses

Diesel

• Tractors and farm equipment
• Trucks and heavy vehicles
• Backup generators
• On-farm bulk storage common

Gasoline

• Light-duty vehicles
• Small equipment and UTVs
• May use on-farm tanks or retail

Propane

• Water heating
• Space heating
• Calf warming
• Weed control (flame weeding)

Natural Gas

Where available, natural gas can provide economical heating. Many rural areas lack natural gas infrastructure.

Supplier Options

Fuel Co-ops

Agricultural cooperatives often offer competitive fuel pricing with farm-specific services and delivery.

Commercial Distributors

Independent distributors provide bulk delivery, equipment leasing, and service.

Direct Refiners

Large operations may contract directly with refiners for better pricing.

Fuel Management

• On-farm storage tank sizing and maintenance
• Fuel quality monitoring
• Delivery scheduling and minimum orders
• Price locking and hedging options
• Equipment maintenance for fuel efficiency

Energy Efficiency

• Regular equipment maintenance
• Efficient lighting and motors
• Variable frequency drives
• Heat recovery systems
• Renewable energy options (solar, biogas)

Cost Considerations

Fuel costs vary significantly by region and market conditions. Bulk delivery typically saves $0.05-0.15 per gallon over retail. Pre-buy and price protection programs can reduce volatility but may cost premiums. Tank rental vs. purchase has different economics depending on usage and length of stay on the property.