Manage Risk by Contracting Fuel this Winter

Diesel and propane contracts are more than just fuel agreements—they are strategic tools that help businesses control costs, ensure reliable supply, and manage risk in a volatile market. For fleets, agricultural operations, and commercial businesses, the right fuel contract can mean the difference between predictable operations and costly disruptions.

Fuel price volatility is a constant challenge. Global markets, seasonal demand, weather events, and geopolitical factors can all cause sudden price swings. A well-structured diesel or propane contract protects your business from these uncertainties by establishing clear pricing, delivery schedules, and service expectations. Instead of reacting to the market, you gain confidence and control.

Fixed-price contracts are a popular choice for organizations that value budget certainty. By locking in a set price per gallon for a defined term, you eliminate the risk of unexpected price spikes. Our most common timeframe is April through November to cover your spring planting, irrigation, and harvest needs.  But if your operation or commercial business needs an alternate, specific, timeframe, we can put together a contract that best suits your fuel needs.  This makes forecasting easier, stabilizes cash flow, and allows your bookkeepers to plan with confidence. Fixed pricing is especially attractive during periods of market instability or when supply is tight.

Volume commitments are another powerful advantage of diesel and propane contracts. By committing to a projected fuel volume, customers often qualify for more competitive pricing and priority delivery. This is especially critical during peak demand periods, such as winter heating season for propane or high-usage periods for diesel-powered fleets. Priority service helps ensure your operations stay running when fuel is hardest to obtain.  Our Energy Advisors are here to help provide you with previous years usage reports and help predict volumes needed for the upcoming year based on any changes your operation could have gained or moved around.

For propane customers, dependable delivery is not just a convenience—it is essential for safety, productivity, and peace of mind.  That is why we offer summer propane contracting options for home heat customers that lock in a price and a volume based on their average annual usage. This ensures their price of propane will not fluctuate with the typically higher prices seen during the cold winter months.

Similarly, producers that have propane irrigation pivots can also lock in their propane needs months in advance to get ahead of any market or supply swings that could take place in the high demand season of hot and dry summer months. 

Historically, diesel and propane futures contracts are at their lows in the winter months of November through February.  During this time frame we recommend contracting a portion of your fuel needs to take some risk off the table, either 25-50% to start, and as we continue to watch the markets, we may recommend locking in some more gallons to cover your remaining annual usage.  This layering process helps lock in prices as they change in the volatile fuel market and as a result, helps manage risk over time.  This is a popular strategy for many producers and commercial operations. Call your Energy Advisor at CVA to see which contracting and layering option best fits your operation today!

Choosing the right diesel or propane contract is an investment in operational stability and long-term savings. By partnering with your trusted Energy Advisor at Central Valley Ag who understands your business, you can customize a contract that aligns with your usage, budget goals, and growth plans. The result is simple: fewer surprises, stronger cost control, and fuel confidence that lets you focus on running your business.

Contact your local CVA Energy Advisor at: 

• Iowa: Mark Hentges 712-541-4335
• Nebraska: Chatrice Dahl 402-954-0603
• Kansas: Mike Argo 785-447-1725