Trump’s Issues New Diesel Order That Affects Truckers, Farmers Alike

President Donald Trump’s order opening tax-free dyed diesel to highway trucks could strain the fuel supply farmers rely on in the middle of harvest.

Trump signed the executive order Monday night at a campaign rally in Grand Island, Nebraska, temporarily allowing dyed diesel, which is normally limited to farm equipment and other off-road uses, to be used on highways, according to a Monday fact sheet from the White House. The order directs the Treasury Department to defer the federal excise tax on that fuel through Dec. 31 without interest or penalties and to explore ways to eliminate the deferred tax altogether.

“The typical trucker will save more than $100 every time they fill up,” Trump said as he signed the order onstage, Fox 9 reported.

Some have warned that a rush of highway trucks buying dyed diesel could drain inventories and drive up costs for farmers during harvest, Time reported.

The order leaves state fuel taxes and roadside inspections to governors. Ten states, including Texas, Oklahoma and Alabama, expanded highway use of dyed diesel between Sept. 23 and Oct. 2, according to a tally by ClearView Energy Partners cited by CNN.

The U.S. Department of Agriculture (USDA) is working with agricultural cooperatives, rural fuel distributors, farm suppliers and states to identify where harvest activity and fuel demand are highest and to monitor local supply and distribution problems, a USDA spokesperson told the Daily Caller News Foundation.

The department expects highway trucks hauling agricultural products to use dyed diesel and projects about $640 million in combined federal and state savings across roughly 224.6 million harvested acres for farmers driving 150 miles this harvest season, the spokesperson said.

American Farm Bureau Federation President Zippy Duvall applauded the order Monday night, National Hog Farmer reported. The federation had asked Trump in an Oct. 1 letter to also waive the federal tax on clear diesel, which many agricultural haulers still use, according to Time.

The Farm Bureau, the Owner-Operator Independent Drivers Association, the American Trucking Associations and the Treasury Department each did not immediately respond to the DCNF’s requests for comment. The Transportation Department did not immediately provide a comment on the record at the time of publication.