Lot No. LOT-4511 · offered October 12, 2026
Agricultural PolicyLot sheet
Michigan Emergency Order Lets Farmers Run Red-Dyed Diesel On-Road
Michigan's governor declared an energy emergency allowing temporary on-road use of red-dyed diesel as record prices compound farm cost pressure, NCGA's Frostic says.
Market notes
- Michigan's governor declared a state of energy emergency enabling temporary on-road use of dyed diesel.
- NCGA President and Michigan farmer Matt Frostic cited record diesel prices compounding profitability challenges.
- Frostic linked high spring fertilizer costs to the current fuel price pressure.
- Michigan joins a growing list of states allowing red-dyed diesel over the road.
- The waiver is temporary and tied to the emergency declaration.

Michigan's governor has declared a state of energy emergency, clearing farmers to temporarily run red-dyed diesel in on-road vehicles — a fuel-tax workaround normally barred by federal and state rules.
The order adds Michigan to a growing list of states that have unlocked dyed diesel for highway use as pump prices hit record levels. Dyed diesel carries a lower tax burden because it is designated for off-road use in tractors, combines and other farm equipment. Running it in on-road trucks has historically triggered penalties, which is why the waivers require an emergency declaration.
What does the waiver change for growers?
For the duration of the emergency, Michigan farmers can move dyed diesel into trucks and other licensed vehicles without fear of enforcement action. The practical effect is a per-gallon cost break on fuel hauled to fields, grain delivered to elevators and livestock moved between sites.
The waiver is temporary. It expires with the emergency declaration, and growers who fill on-road tanks with red fuel after it lapses face the same exposure as before.
Why did Michigan act now?
Record diesel prices have been compounding profitability challenges that began earlier in the season, according to National Corn Growers Association President Matt Frostic, who farms in Michigan.
"With high fertilizer issues in the spring along with other things, and then come [record diesel prices]..." Frostic told Brownfield, describing how input costs stacked across the cropping year. Fertilizer expenses weighed on planting decisions months ago; fuel costs now bite at the point of harvest and hauling.
The sequence matters for margins. Growers who absorbed elevated fertilizer bills in spring face a second cost shock at harvest, when diesel demand peaks for combining, drying and trucking. A temporary dyed-diesel waiver trims part of that second shock.
How does Michigan fit the broader pattern?
Michigan is not alone. Other states have issued similar emergency waivers this year, responding to the same price environment — a pattern that signals how widely diesel costs have pressed on farm economics, not just regional stress.
Each state sets its own terms. Growers should confirm the waiver's effective window and any vehicle or usage limits before switching tanks, since conditions attached to one state's order do not automatically transfer across state lines.
The core takeaway: Michigan farmers gain a temporary fuel-cost reprieve, sized by the gap between taxed road diesel and untaxed dyed product. How long it lasts depends on how long record prices — and the emergency declaration — hold.
via michigan.gov (Original)
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Correspondent covering people, launches and day-to-day practice in Agribusiness coverage for industry professionals at Agribusiness Wire.
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