Wednesday, October 22, 2014

Fear of high winter heating costs raises demand for firewood in rural Minnesota; supplies are low

Rural residents in the Midwestern U.S. who rely on propane spent about 54 percent more last winter than in 2012-13. Because of anticipation of another brutal winter, the fear of propane shortages and the high costs of keeping warm, firewood is in high demand in rural Minnesota, and supplies are running low, John Enger reports for Minnesota Public Radio.

Minnesota officials say propane shortage won't be a problem this year, with residents having already stocked up on 1.35 million gallons of propane, a 30 percent increase in pre-season sales, said Roger Leider, Minnesota Propane Association executive director, Enger writes. "Firewood, on the other hand, is in critically high demand. Reserves were bled dry last year, and spring logging was stalled by muddy ground. Last month Twin Cities-area firewood suppliers made news when they were unable to keep up with orders." (Enger photo: Chris White cuts wood to sell to lumber mills)

Loggers Tim, Dean and Duane White typically cut 500 cords for area lumber mills in the northern part of the state but have already met that demand this year with another 500 on order that have already been sold, Enger writes. Because of the high demand and the difficulty of getting to greater supplies, the Whites have had to raise prices from $75 to $80 per cord for green, lower-grade firewood and bump up the cost for oak from $80 to $85.

It's estimated that in northern Minnesota heating a typical home with wood costs about $640, Enger writes. "Beltrami Electric Cooperative estimates it costs about $2,100 to heat with standard electricity, though that cost can drop to $1,340 if there is a secondary source of heat, like a wood stove, and off-peak pricing kicks in." (Read more)

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