Governors work to help farmers and ranchers with record diesel prices
The record price for diesel fuel nationally was set in September when prices reached $6.50 a gallon average. Off-highway use fuel, also known as farm diesel, wasn’t much lower with the average price around $6.29.
Several states across the High Plains have been working to provide some relief from the increased prices to farmers and ranchers who are in fall harvest and shipping calves and weaning before the end of the year.
Typically, dyed diesel is marked as off-road fuel and is red in color. It is used in agricultural operations and sold without a motor-fuels tax. Because it is untaxed, state law ordinarily bars its use on public roadways.
Texas
On Sept. 28, Texas Gov. Greg Abbott issued a statewide disaster proclamation to allow expanded use of dyed diesel on state roads. The proclamation also raises the allowable weight for fuel, agricultural, and timber loads, and suspends Texas Low Emission Diesel (TxLED) rules to the extent the Environmental Protection Agency authorizes. The governor also requested that the EPA waive federal ultra-low sulfur diesel requirements.
“Texas agriculture and freight run on diesel,” Gov. Abbott said in a news release. “Record prices put both industries at risk and raise costs for every Texas family. Farmers and truckers can now use dyed diesel on Texas roads, and fuel, crop, and timber loads can move at a higher weight. These steps cut costs on the farm, on the road, and at the store.”
According to a news release, the governor’s proclamation suspends state restrictions and associated penalties so operators can use such fuel on Texas roads. It does not waive the underlying fuel tax.
The proclamation suspends state oversize and overweight permitting requirements for vehicles loaded with fuel, agricultural, or timber products, and allows those loads at a gross weight of up to 95,000 pounds.
Gov. Abbott also asked EPA Administrator Lee Zeldin for a temporary Clean Air Act waiver of federal ultra-low sulfur diesel rules and the TxLED rules that apply in 110 Texas counties. Those standards limit which diesel can be sold and a waiver would allow more fuel to reach Texas pumps.
The Texas Farm Bureau appreciated the governor’s effort to help relieve the high fuel costs. TFB President Russell Boening issued his own statement.
“Texas farmers and ranchers appreciate any effort to help relieve the high cost of fuel being used to produce food, fiber and fuel,” Boening said. “Texas farmers and ranchers are struggling with very high costs of production, and Gov. Abbott’s efforts will help reduce those costs.”
Missouri
Missouri Gov. Mike Kehoe issued an executive order Sept. 30 to provide relief to farm and ranch families dealing with unusually high fuel costs. The order provides temporary relief for Missouri farmers, ranchers, and agricultural haulers.
Farmers will be able to use red-dyed diesel on public state highways during the temporary relief period, helping offset rising fuel costs. Additionally, livestock producers and agricultural haulers will see the livestock weight limit increase from 85,500 pounds to 90,000 pounds, allowing more livestock to be moved per load.
“This is going to make a real difference for our farmers,” Anita Vanderwert, president of the Missouri Cattlemen’s Association said in a news release. “Fuel and transportation costs are a real concern as we are seeing diesel rise to almost $7 a gallon. This gives producers some much-needed relief and flexibility. Missouri farmers and ranchers are thankful to Gov. Kehoe for recognizing the challenges facing agriculture and taking action when producers need it most.”
According to MCA, under the governor’s order, Missouri will temporarily suspend state enforcement of restrictions on the use of red-dyed diesel in highway vehicles from Sept. 30 through Oct. 30.
It is also important to note the order applies only to state enforcement and does not waive federal dyed-diesel restrictions or authorize use on interstates or U.S. highways where prohibited by federal law.
Oklahoma
Gov. Kevin Stitt issued an order Sept. 28 to help bring relief to the agricultural community across the state. The letter to the Oklahoma Tax Commission, the Oklahoma Department of Public Safety, and the Oklahoma Corporation Commission, ordered a pause on enforcement of all taxes, regulations and fines levied on the use of red dyed diesel in farm vehicles.
“Oklahoma feeds the world; however, our farmers and ranchers are facing unprecedented challenges as we head into harvest season,” Gov. Stitt said in a news release. “As their costs increase, so do our prices at the grocery store. The state should ease burdens where it can in order to provide relief for the industry, and for Americans trying to feed their families.”
Gov. Stitt instructed the Oklahoma Tax Commission to seek Dyed Diesel Fuel Penalty Relief from the Internal Revenue Service. He also instructed the Department of Public Safety and the Oklahoma Corporation Commission to suspend enforcement actions regarding the use of dyed diesel fuels in highway vehicles during the next 120 days.
Kylene Scott can be reached at 620-227-1804 or [email protected].