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US ag groups back executive order easing diesel costs for farmers
The order temporarily permits on-road use of dyed diesel, with the federal fuel tax deferred during the period, and groups also urged the administration to ultimately waive deferred taxes.
US agriculture commodity groups including the Iowa Corn Growers Association and the American Soybean Association voiced support for an executive order that provides emergency tax relief on diesel fuel for farmers during harvest, World Grain reported.
The executive order allows the temporary on-road use of dyed diesel, a fuel that is functionally the same as clear diesel, while deferring the federal fuel tax at this time, the outlet said.
World Grain noted that dyed diesel is typically used off-road and is generally cheaper because highway fuel taxes are not collected on it.
Iowa Corn Growers Association President Steve Kuiper said diesel is a major input cost for farmers, particularly amid tight margins, and he added that expanded use of off-road diesel should offer relief during harvest, while the American Soybean Association urged a longer-term waiver of deferred taxes, according to World Grain.
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