News

Indiana lawmaker seeks dyed diesel relief for farmers as harvest fuel costs surge

An Indiana state representative says more needs to be done to provide meaningful relief for farmers as diesel prices remain at historic highs.

Beau Baird says expanded access to red dyed diesel during harvest could help lower input costs.

“In total, there’s at least a dollar in tax that we’re paying for on-road diesel that we’re not paying for off-road diesel,” he says. “The sharp rise in diesel prices at a time that’s so critical to crop production is something that is bringing this conversation to a natural head.”

Representative Baird recently sent a letter to Governor Mike Braun and President Trump asking for 45 days of relief for farmers hauling harvested crops. According to his proposal, farmers transporting harvested crops could be eligible for a reduction in fuel taxes and expanded access to off-road diesel. Under current federal guidelines, farmers cannot put red dyed diesel in a truck driven on a public road. 

He tells Brownfield a nationwide approach is also critical to provide clarity for farmers that haul grain across state lines.

“I want it to be clear and specific about what they can do and how they can do it,” he says. “We have a lot of farmers that live on the state border. If we provide relief here in Indiana and they haul to Illinois and they haven’t implemented something, we could risk putting our farmers in a worse situation.”

Nebraska, Alabama, and Texas have all temporarily waived or suspended the enforcement of red dyed diesel restrictions.

According to AAA, the national average for diesel was $6.45 per gallon as of Monday, up from $3.68 this time last year.

AUDIO: Beau Baird