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MO Corn CEO: state, federal dyed diesel waivers provide some relief for farmers

Missouri Corn Growers Association CEO Bradley Schad says President Trump’s recent effort to provide relief from high diesel costs complements steps already taken by several states.

“Having both of them in effect gives the allowability for more savings at the pump,” says Schad.

The president’s executive order, released Monday, temporarily eases federal restrictions on highway use of dyed diesel and could defer the federal diesel tax through the end of the year. Last week, Missouri suspended state restrictions and penalties on dyed diesel for highway-registered agricultural vehicles.

Schad says the state’s action isn’t a silver bullet, but “it’s a help right now in a timely manner that farmers can use.”

He says there’s some caution, too. “We need money for roads and things, too. We have to be careful how much we use that, and sometimes, then, they jack up the price of the red dye part of things that’s meant for non-road use.”

Alabama, Iowa, Missouri, Nebraska, Oklahoma, Texas and other states have recently waived penalties for using dyed diesel. Some states, like Ohio, have suspended fuel taxes instead of specifically waiving dyed diesel restrictions.

Schad says other states are figuring out how to take advantage of the relief.

“Will they still enforce the state level mandate and penalize farmers if they use it? But we don’t have to worry about that in Misssouri.”

Schad says high diesel costs also highlight the need for more choices at the pump, including expanded access to ethanol and other alternative fuels.

Hear Brownfield’s interview with Bradley Schad – Part 2.

Hear Brownfield’s interview with Bradley Schad – Part 1.