Trump's executive order on dyed diesel will offer little relief, farmers and truckers say

(AP) — Farmers, truckers and economists say a move to cut taxes on diesel will provide little relief from record-high fuel prices that have soared since the U.S. attacked Iran months ago.Industry groups said they appreciate President Donald Trump’s executive order expanding the use of a diesel now reserved for off-road work, but farmers already have access to the fuel and many have already wrapped up harvest. Truckers will struggle to navigate differing state rules.“In the context of diesel prices that are over two dollars more than they were last year, it just doesn’t come close to closing that wound,” said Matt Perdue, president of the North Dakota Farmers Union.With less than a month to go before the November election, diesel prices continue to hit record highs as some farmers transport their crops for processing and others rush to complete their fall harvest.

Many have been feeling the squeeze as costs for inputs like diesel, fertilizer and seed have soared thanks to refinery constraints and supply disruptions amid the Iran war.Diesel averaged $6.30 per gallon across the country on Wednesday, more than 70% higher than one year ago, according to motor club AAA. The executive order defers the $0.24 federal tax per gallon of regular diesel, used for road projects, until the end of the year. Most states also levy their own tax on diesel.“Dyed” diesel is the same as regular diesel, except for its red dye to help law enforcement enforce penalties for on-road use.

It's already allowed for off-road purposes like farming equipment, such as tractors and combines, as well as construction and heating uses.Who will see benefitsSavings can compound if states take similar actions; many have eased restrictions or waived taxes on dyed diesel, including South Dakota and Iowa. Perdue said North Dakota has waived the tax on regular diesel. But where the state decision is focused on farmers, he believes the federal decision would largely benefit those on other levels of the supply chain.Farmers who will see the most benefit are those who haul their own product, like livestock or fresh produce, on public roads.

Those who have already wrapped up harvesting won't see savings.“Most of our diesel use is behind us,” said Perdue, who grows spring wheat, durum and canola on his family farm.Both trucking companies and independent truckers may not see much relief ei… Industry groups said they appreciate President Donald Trump’s executive order expanding the use of a diesel now reserved for off-road work, but farmers already have access to the fuel and many have already wrapped up harvest. Truckers will struggle to navigate differing state rules.

“In the context of diesel prices that are over two dollars more than they were last year, it just doesn’t come close to closing that wound,” said Matt Perdue, president of the North Dakota Farmers Union. With less than a month to go before the November election, diesel prices continue to hit record highs as farmers begin their fall harvest. Diesel averaged $6.30 per gallon across the country on Wednesday, more than 70% higher than one year ago, according to motor club AAA.

Most states also levy their own tax on diesel. “Dyed” diesel is the same as regular diesel, except for its red dye to help law enforcement enforce penalties for on-road use. Who will see benefits Savings can compound if states take similar actions; many have eased restrictions or waived taxes on dyed diesel, including South Dakota and Iowa.