Lot No. LOT-5918 · offered October 2, 2026

Crop EconomicsLot sheet

Farm Bureaus Push States for Red-Dyed Diesel Relief at Harvest

Michigan Farm Bureau President Ben LaCross wants states to allow off-farm use of red-dyed diesel during harvest, citing waivers already granted in Indiana, Nebraska and Louisiana.

Market notes

  • Michigan Farm Bureau President Ben LaCross is calling for red-dyed diesel to be allowed off the farm during harvest
  • Indiana, Nebraska and Louisiana have already authorized off-farm use of red-dyed diesel
  • A growing number of states are considering fuel-cost relief measures as harvest begins amid record-high diesel prices
Farmers call for diesel relief to offset record-high costs
PlateFarmers call for diesel relief to offset record-high costs — AI-generated

State Farm Bureau leaders are pressing governors and legislatures to let farmers run red-dyed diesel in on-road vehicles during harvest, a move they say would deliver immediate relief from record-high fuel costs.

Michigan Farm Bureau President Ben LaCross is leading the call in his state. Allowing producers to use red-dyed diesel off the farm — that is, in trucks and equipment operating beyond farm property — can provide relief right away, he argues.

"Indiana has done it," LaCross says. "Nebraska has done it. Louisiana has done it."

The precedent matters. Those three states have already authorized limited off-farm use of red-dyed diesel, fuel that carries a lower tax rate because it is designated for off-road equipment such as tractors, combines and irrigation engines. Where waivers exist, farmers can move the same fuel into grain trucks and other road vehicles during the narrow harvest window without facing penalties tied to the dye enforcement system.

The economics driving the request are straightforward. Diesel prices sit at record highs as harvest gets underway, and fuel ranks among the largest variable input costs for row-crop operations at exactly the moment when tractors, combines and grain trucks log their heaviest annual hours. Every gallon burned during harvest flows directly into the cost side of the margin equation at a time when commodity prices do not necessarily rise to cover it.

The red-dyed diesel route appeals to state policymakers because it requires no new appropriation. Instead of spending money on rebates or subsidies, a state can suspend the road-tax distinction for a defined period, effectively cutting the per-gallon price farmers pay at the pump. That structure explains why a growing number of states are weighing the option rather than waiting for federal action.

Enforcement is the practical constraint. Red dye exists so inspectors can distinguish lower-taxed off-road fuel from fully taxed on-road diesel at roadside checks. Any waiver therefore needs a clear expiration date and clear rules on which vehicles and timeframes qualify — the detail that separates a workable harvest waiver from a lasting gap in fuel-tax collections.

For growers, the stakes come down to timing. Harvest cannot wait for prices to fall, and fuel must be bought when the crop is ready. A waiver that takes effect mid-season can still trim costs for late-harvested acreage, but farmers in states that act after the combines have finished will see no benefit this year.

LaCross and other state Farm Bureau leaders are expected to keep the pressure on through the harvest season, pointing to the Indiana, Nebraska and Louisiana precedents as evidence that the mechanism works and can be adopted quickly.

via michiganfarmnews.com (Original)

Filed under

  • diesel-prices
  • fuel-costs
  • michigan-farm-bureau
  • state-policy
  • harvest
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Farm Bureaus Push States for Red-Dyed Diesel Relief at Harvest — Agribusiness Wire