Trump’s Diesel Tax Relief Order Boosts Farmers During Harvest Season
President Donald Trump has signed an executive order to help farmers cope with record-high diesel prices during harvest season. The order expands access to dyed diesel fuel and provides temporary tax relief, measures that agricultural groups are applauding.
The American Farm Bureau Federation (AFBF) welcomed the move, with president Zippy Duvall noting that every cent per gallon matters for farmers operating fleets of grain trucks or hauling cattle. The federal highway diesel tax is currently more than 24¢ per gallon, so the ability to use tax-exempt diesel more broadly is significant.
The American Soybean Association (ASA) also expressed gratitude, stating that the policy aligns with actions already taken by many soybean-producing states. The Fueling American Jobs Coalition praised the decision not to restrict U.S. diesel exports, which would have forced refiners to reduce production.
Iowa’s Secretary of Agriculture Mike Naig thanked Trump and Governor Reynolds for providing temporary fuel tax relief, highlighting that diesel is a major expense for farmers facing tight margins and high input costs. The expanded use of off-road diesel could lead to significant savings this fall.