US farmers get diesel price relief via executive order

President Trump signed an executive order that will temporarily allow farmers to use tax-exempt dyed diesel fuel for on-road transportation, providing a measure of price relief as they navigate the harvest season. The move was applauded by agricultural groups, including the American Farm Bureau Federation and the IL Corn Growers Association.

Zippy Duvall, President of the American Farm Bureau Federation, stated that the executive order recognizes the direct impact of fuel prices on farming operations and the broader food supply. He highlighted that allowing dyed diesel fuel for on-road use will offer significant relief, especially for farmers operating large fleets or transporting goods over long distances. The federal highway diesel tax is currently over 24 cents per gallon, making the ability to use tax-exempt diesel a substantial benefit.

Prior to the executive order, Illinois agricultural organizations, such as the IL Corn Growers Association, Illinois Farm Bureau, and Illinois Soybean Association, had been urging state and federal policymakers to explore mechanisms for reducing diesel costs for farmers. These groups had specifically asked Governor Pritzker and Illinois' congressional delegation to investigate legislative or administrative solutions to allow for broader use of dyed fuel for agricultural transport.