Government throws a temporary lifeline
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Publisher’s Note: The following is an analysis from Chief Reporter Jeff Snyder on what the government is doing to help alleviate diesel fuel prices.
By Jeff Snyder
MOUNT AYR, Iowa — The Federal government in Washington, D.C. recently threw a temporary lifeline to struggling farmers across the nation including those situated in Ringgold County.
Most farming equipment runs on diesel fuel, which is highly regulated and heavily taxed. Over-the-road truckers and farmers pay a premium for diesel fuel that goes into their tanks by virtue of the fuel’s color. Home heating oil, which is essentially the same as diesel pumped at the average gas station, is significantly less expensive than the fuel used by transportation companies. In order to manage this tax ploy the government requires non-trucking diesel fuel to be neutral in color. Home heating oil, or non-trucking diesel, contains a red dye so that highway authorities can check on truckers to make sure they are not using the cheaper “Home Version” of diesel and therefore bypassing the full tax burden implemented by the government.
While this may seem unfair to the trucking industry and subsequently farmers that routinely haul product to market, but there is a reason for the added costs. Large trucks, specifically those that run on diesel are heavy and damaging to the road systems they use. A large portion of the added taxes charged for using the roads commercially are earmarked for road repairs and maintenance. The federal government has decided to suspend the moratorium on the use of dyed diesel as a way to help offset the extraordinary increases in diesel fuel prices since the start of the war in Iran. While some farmers exclaim it is too little too late, it is perceived better than nothing. Fuel price increases have impacted every aspect of farming operations with only harvest remaining as the primary fuel use season. While relief comes at the height of harvest season there are specific restrictions the rule imposes. More succinctly, only the transportation of specific products are exempt from the fuel exception. Corn, soybeans, hay, straw, silage and stover are all on the exempt list. In addition, transportation of specified fertilizers are also exempt. Dry, liquid and gas fertilizers are all on the exempt list. All easing of restriction will last into February of 2027, at which time the executive order signed by the president will be reevaluated.
