Your Questions about AFD Answered
Feb 04, 2025
Rick Kucera, Key Cooperative Certified Energy Specialist
FAQ courtesy of CHS and Cenex.com
A new year, a new administration, the same time of year to lock in your fuel needs.. or is it? History tells us that this is typically the time of year to lock in our fuel, but the cash market has been king over the last 6 months. Recent cold weather has impacted the majority of the U.S. and put a strain on the energy supply across the country, but with spring-like temperatures in the forecast, the pipelines will recover. Current cash is running around $0.08 cheaper than spring and fall contracts. Patience will be the strategy for the next few months as the new administration implements their agenda.
The Cenex® Automated Fuel Delivery system (AFD) and monitor gives you a lot of flexibility in regard to how you purchase your fuel. If you are currently on AFD, a tank buyout is an option. Key Cooperative can also contract your fuel needs with the monitor in your tank. If you have any questions about how AFD fits in your program, please reach out to one of our Certified Energy Specialists listed below.
How does Automated Fuel Deliver work? How do you know when to deliver my fuel?
A fuel sensor and electronic tank monitoring system are installed in your fuel tank. When the fuel drops to a predetermined level, a refill signal goes to your fuel distribution center. A truck is automatically sent to fill your tank.
How would automatic delivery benefit me?
The short answer is: peace of mind. You will have fuel in your tank when your operations require it. With Automated Fuel Delivery, you’ll spend less time worrying, checking tanks and waiting for deliveries. We take care of that for you. You’ll also get added benefits like reduced price volatility and the ability to check tank levels and fuel use from an online portal.
What are the billing options?
There are three options: deferred (where you only pay for what you use during the month), upon delivery (where you pay for the load when delivered) and fixed-price contract (where you can lock in a price for the delivery or usage in advance of placing an order). All fuel is purchased and invoiced through Key Cooperative.
What is average monthly pricing?
If you select deferred billing as your billing option, you will get the benefit of having average monthly pricing. With the average monthly pricing option, the price you pay for fuel is equal to the 30-day average price of fuel for the billing cycle in which you actually use the fuel. You don’t need to worry about where the market will go next or have to wait for the price to drop. Plus, you always have the option to own the fuel in your tank at any time if you like the current market price range.
Is this program only for large operations?
No, the AFD program benefits all sizes of farms and commercial businesses. Regardless of size of the business or tanks, customers can take advantage of the benefits of AFD and always have a reliable supply of fuel without the hassle of checking tanks and ordering fuel.
What fuels can be delivered?
Commercial businesses, farms, ranches and private homes can receive a variety of fuels, including Cenex Ruby Fieldmaster®, Cenex Roadmaster XL®, Cenex Biodiesel Fuels, Cenex gasolines (unleaded), #1 and #2 seasonal diesel fuels and home heating fuels. Our fuels come direct from the terminal so you can know you are getting fresh fuel when delivered into your tanks.
How can I check on my usage and tank levels?
Once enrolled in the program, you can check your tank levels and monitor fuel use and deliveries online 24/7 through a secure portal or you can choose to receive an email when specific tank levels are passed.
What needs to happen before I start the program?
First, your tanks will be profiled by Key Cooperative, meaning tanks are measured for exact size and GPS location, and products to be delivered are recorded. After setup, the monitor will begin sending readings to the distribution center.
Is there a cost to be in the program?
There is no charge to convert to the Cenex Automated Fuel Delivery System.
To learn more about Cenex Automated Fuel Delivery, contact Key Cooperative's Certified Energy Specialists:
Bob Rabey | 641-521-6318
Chris Nady | 515-290-0009
Rick Kucera | 641-780-1624