President Donald Trump signed an executive order Oct. 5 allowing the purchase of off-road diesel "by anyone for any reason," deferring federal taxes on dyed diesel used on-road through the end of the year. The move targets a harvest-season fuel bill that an American Farm Bureau Federation analysis puts at roughly $2,220 higher per average corn farm than in 2025.

Trump announced the order at a campaign rally in Grand Island, Neb., for Gov. Jim Pillen and Sen. Pete Ricketts. He signed it on stage after asking aide Natalie Harp to bring the document forward.

"For many years, farm vehicles, construction equipment and other off-road vehicles have used what is known as red dye diesel. Do know what that is?" Trump asked the crowd. "I don't know what the hell it is, but whatever it is, it's supposed to be very good."

What does the executive order actually change?

The order directs the Treasury secretary, in consultation with the "secretary of War," to defer federal taxes for on-road use of dyed diesel through Dec. 31. It also assigns tasks to two cabinet departments:

• The Agriculture and Transportation secretaries must act to ensure dyed diesel remains available to farmers.
• The White House Office of Governmental Affairs will press states to adopt matching policies.

Before the order, the federal government imposed 24.4 cents per gallon in taxes and fees on highway diesel. State levies pushed the combined burden closer to 60 cents per gallon in many markets. As of Sept. 30, at least 11 states had already suspended restrictions on farm diesel, temporarily allowing its use in over-the-road transport.

Agriculture Secretary Brooke Rollins framed the order as short-term relief layered on top of longer-term energy policy. "Energy dominance is at the core of putting farmers and ranchers first. This administration has unleashed American energy dominance, and we are now the largest energy producer in the world as a result," Rollins said in a statement thanking Trump and Vice President JD Vance. "While the administration has structurally changed the energy sector to secure the long-term future of agriculture, we are now taking steps to deal with short-term pressures impacting our American farmers."

How much does diesel pressure farm margins?

The AFBF analysis quantifies the exposure. The average corn farm covers 279 acres and burns about 3.07 gallons of off-road diesel per acre across harvest activities — 857 gallons per operation each fall. With diesel running roughly $2.60 per gallon higher this year, that pencils out to about $2,220 in additional cost versus 2025.

AFBF President Zippy Duvall said the waiver lands at the moment growers feel it most. "Allowing dyed diesel fuel to be used over-the-road will bring welcome relief for farmers because every cent per gallon matters when you're running a fleet of grain trucks or hauling cattle hundreds of miles," Duvall said in an Oct. 5 statement.

Jed Bower, who chairs the National Corn Growers Association and farms in southwest Ohio, said this year's corn crop will likely be the most expensive to produce in history, with diesel the leading input driver. His family has farmed the same ground for five generations, and his college-age son has expressed interest in continuing — a decision that may hinge on the farm economy.

Bower has spent recent years chasing efficiency gains to cut diesel use, but he sees a floor under what one operation can trim. "Everything is fueled by diesel fuel. And as we're looking to move into harvest now, harvesttime uses more fuel than any other time as we move the product out of the field," Bower said.

Is a tax deferral enough?

Before Trump's announcement, NCGA had been studying relief options, including suspending taxes on red dye fuel and opening it to on-road vehicles. Some lawmakers floated suspending diesel exports, though that proposal appears to have lost momentum.

Bower cautioned that easing off-road fuel restrictions offers only partial cover. The price problem extends well past agriculture, he argued.

"America runs on diesel fuel with all the trucks and trains and construction equipment. This isn't solely an ag issue," Bower said. "This is going to be an issue for every American as this continues to go forward."

The order's deferral runs only through year-end, leaving farmers, fuel suppliers and state regulators to watch whether Congress or the administration extends the relief into 2027 planting season.