Businesses adapt to high fuel costs - KSFY News - Sioux Falls, SD News, Weather, Sports

Businesses adapt to high fuel costs

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Spikes in propane prices are making it difficult for some families to keep their homes warm and it's keeping businesses from running as usual. 

Last year propane was around $1.46 a gallon. This year we're already seeing prices as high as $6.56 a gallon. Analysts expect these prices to rise.

This is forcing businesses like Verity Farms to find alternative resources.

Verity Farms works with farmers that are interested in converting their current production of GMO products to non GMO products. They have a conservation program called soil to plate.

The products they use are heat sensitive. Two propane heater systems run 24-hours a day in order to maintain a temperature of 80 degrees.

"Our concern with the propane is we need to go from a real wet-like grout mixture down to something like this as quickly as possible and when going through $100, $150 worth of propane a week, drives up those production costs," said Aaron Mach, aqua culture manager at Verity Farms.

The cost of propane is driving up Verity's production costs.

"We've never had to buy larger amounts until recently. This year we installed a tremendous tank outside and that's the first time we've ever had to do it because we want to get ahead of this curve as far as cost wise. Instead of running back and forth and refilling the midsize tanks that we have, we purchased a larger tank for on-site," said Richard Kamolvathin, President of Verity Farms.

Verity Farms is bringing in alternative resources, a corn burner. It has minimal impact on the environment and will lower production costs.

"The way this would work is that they would install a bin outside and just deliver corn to you for the year and this should be enough to heat your entire home for the rest of the year without any additional costs. It produces heat and heats your entire facility," said Kamolvathin.

Kamolvathin says they're not only is this pellet stove sustainable but just one stove will save them $150 a week. 

 

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