Lot No. LOT-9933 · offered October 9, 2026

Agricultural PolicyLot sheet

Indiana Lets Farmers Run Red-Dyed Diesel on State Roads for Harvest

Indiana Governor Mike Braun signed an executive order effective October 6 allowing red-dyed diesel on state highways during harvest to cut hauling costs; federal routes stay off-limits.

Market notes

  • Executive order signed by Indiana Governor Mike Braun takes effect October 6.
  • Order temporarily allows red-dyed diesel on state highways during harvest to reduce transportation costs.
  • Use of red-dyed diesel on interstates and U.S. highways remains prohibited by federal law.
  • Relief targets harvest hauling, when farm truck fleets log peak mileage.
Governor Braun signs executive order allowing farmers to use red-dyed diesel during harvest
PlateGovernor Braun signs executive order allowing farmers to use red-dyed diesel during harvest — AI-generated

Indiana Governor Mike Braun has signed an executive order that temporarily allows farmers to run red-dyed diesel in trucks on state highways, an attempt to cut harvest transportation costs for growers moving crops from field to elevator this fall.

The order takes effect October 6, timed to the heart of Indiana's corn and soybean harvest. The practical effect is cost relief: red-dyed diesel carries a lower tax burden than clear, on-road diesel because it is designated for off-highway use, and harvest hauling is one of the few times of year when row-crop operations run heavy trucks on public roads in volume.

The relief has a hard boundary. The order does not authorize red-dyed diesel on interstates or U.S. highways, where federal law prohibits its use. That leaves growers to plan haul routes carefully: state routes between farm and local elevators fall under the exemption, while any leg on a federal or interstate route requires clear, taxed diesel in the tank.

What does the order actually change?

The core change is narrow and temporary. Farmers operating on Indiana state highways during the harvest window specified in the order may fuel those trucks with red-dyed diesel, normally restricted to tractors, combines and other off-road equipment. The order does not touch the federal restriction on interstates and U.S. highways, which remains fully in force.

For farm margins, the mechanism is straightforward: every gallon of diesel burned hauling grain from field to market carries a road-tax premium when it must be clear diesel. Allowing the cheaper dyed fuel on state routes for the harvest period trims that per-gallon spread during the weeks when a farm's truck fleet logs its heaviest mileage of the year.

What should growers watch next?

The order is temporary, and its scope — duration, enforcement and any documentation requirements — will determine how much of the potential savings farms actually capture. Growers hauling across routes that mix state roads with federal or interstate segments will need to track where the exemption applies and where it does not, since a federal-highway violation carries penalties regardless of the state order.

Governor Braun's action signals state-level willingness to ease harvest-season input costs where federal law permits; whether other states follow with similar orders during their own harvest windows will be the test of whether this becomes a broader cost-relief trend.

via Brownfield Ag News (Source)

Filed under

  • red-dyed-diesel
  • indiana
  • harvest
  • diesel-tax-exemption
  • farm-policy
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Rebecca Stone

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Market editor covering people, launches and day-to-day practice in Agribusiness coverage for industry professionals at Agribusiness Wire.

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