Earlier this week, President Trump made an executive order to temporarily allow tax-free dyed diesel to be used on highways and defer the federal diesel tax through the end of the year. While farm groups are welcoming any relief this move could provide, many say the remaining challenge is the skyrocketing cost of fuel itself. Mike Steenhoek, executive director of the Soy Transportation Coalition, said policymakers have limited options when diesel prices climb to such high levels.
The Trump administration says the tax deferral could save producers roughly $60 on a 250-gallon tank fill, with even greater savings possible in states that adopt similar measures. Steenhoek said it would be great if the deferral became an actual waiver.
Even with these tax savings, Steenhoek said fuel costs make things difficult because harvest itself can’t be deferred.
Steenhoek added that harvest proclamations that allow overweight semi loads can also provide significant savings.
For more information, visit soytransportation.org.
