Lot No. LOT-2602 · offered October 9, 2026

Agricultural PolicyLot sheet

Dyed diesel waiver pairs with state measures to trim farm fuel costs

Trump's Monday executive order eases federal highway dyed-diesel restrictions and pairs with state waivers in place, Missouri Corn Growers Association CEO Bradley Schad said, expanding at-pump savings for farmers.

Market notes

  • President Trump's executive order, released Monday, temporarily eases federal restrictions on highway use of dyed diesel
  • Missouri Corn Growers Association CEO Bradley Schad said the federal action pairs with state-level dyed-diesel waivers already in place
  • Schad quote: 'Having both of them in effect gives the allowability for more savings at the pump'
  • Dyed diesel carries no federal excise tax and is normally reserved for off-road agricultural and other non-highway use
  • Several states had passed parallel dyed-diesel flexibility measures before the federal action

President Trump's executive order, released Monday, temporarily lifts federal restrictions on highway use of dyed diesel and pairs with state-level measures already on the books to expand allowable at-pump savings for growers, Missouri Corn Growers Association CEO Bradley Schad said Monday.

"Having both of them in effect gives the allowability for more savings at the pump," Schad said.

What the federal order does

Dyed diesel carries no federal excise tax and is reserved for off-road agricultural, construction and other non-highway work; operators who run it on public roads normally face penalties. The executive action aligns federal enforcement with state-level flexibility that several states had already adopted.

Why the layering matters

State highway codes and motor-fuel-tax enforcement sit outside federal jurisdiction, so state waivers operate independently. Operators in states with parallel waivers no longer have to choose between two compliance regimes; they can plan a refuel or a parts run knowing both state and federal enforcement parameters are aligned.

Missouri is the state Schad represents. His remarks did not enumerate the full list of other states with parallel waivers.

Why dyed diesel matters to row-crop margins

  • Diesel sits as a meaningful variable cost for row-crop operations, alongside seed, fertilizer and crop-protection chemistry.
  • Tillage and harvest passes both run through on-farm fuel tanks, so any expansion in dyed-diesel eligibility translates directly into per-acre savings tied to the number of road miles a farm's equipment runs.
  • Fields, grain elevators, input suppliers and equipment dealers are usually connected by a county or state road, even when the closest route is short.
  • Standard rules force operators to keep separate tanks — clear for road, dyed for field — or to risk penalties during short highway segments.
  • "Savings at the pump" points to the operational mechanics: a tractor or combine that legally runs dyed diesel between fields reduces the number of clear-diesel gallons it must purchase.

What the order does not change

The action suspends enforcement of dyed-diesel-on-highway rules at the federal level for the duration of its effective period. It does not modify the federal excise tax on highway diesel itself, and it does not waive state fuel taxes where states elect to keep them in place. Operators in states without parallel waivers remain governed by their states' motor-fuel tax codes.

What comes next

The text of the order and the length of its effective window will set the relief's footprint across the Corn Belt. State agriculture departments and associations — including Missouri Corn — are likely to push for clarity on coordination with state motor-fuel-tax administrators as implementation unfolds. Any extension or narrowing of the federal scope will shape whether the layered waiver becomes a recurring margin lever for grain farms or a one-season relief measure.

via whitehouse.gov (Original)

Filed under

  • dyed-diesel
  • farm-fuel-costs
  • excise-tax
  • missouri-corn
  • agricultural-policy
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Marcus Bennett

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Senior reporter covering regulation, policy and their impact on Agribusiness coverage for industry professionals at Agribusiness Wire.

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