Farmers Grateful for Diesel Fuel Price Relief; Questions Remain

BLOOMINGTON, Ill. – In response to a recent emergency declaration by Governor Pritzker and an executive order by President Trump to address high diesel costs during corn harvest, Maroa, Illinois farmer and IL Corn Growers Association President, Mark Bunselmeyer, released the following statement:
 
“Illinois corn farmers are grateful for Governor Pritzker’s effort to lower diesel prices for farmers this fall. Many states are recognizing the difficulty for farmers with fuel prices extremely high during harvest and addressing it by allowing non-taxed, dyed diesel fuel to be used in registered highway vehicles. There are a lot of details that need to be worked out to implement this policy in Illinois regarding taxes and enforcement, and we will urge the relevant agencies to provide guidance as quickly as possible.
 
“Governor Pritzker has also requested the Illinois Department of Transportation to consider extending the Illinois Harvest Permit program. If the program is extended, farmers could haul up to 10 percent more on specific routes without getting fined. Such an extension would improve the efficiency of getting the harvest to market using less diesel per bushel. We hope that this request by Governor Pritzker is quickly implemented to help alleviate input costs for Illinois farmers.
 
“On a federal level, in an executive order also calling for the use of non-taxed, dyed diesel fuel for on-road use, President Trump has recognized the high cost of diesel fuel and razor-thin margins for farmers this fall. The attention to the needs of American farmers is appreciated. Many questions remain for federal implementation as well. While the answers to both state and federal implementation questions are worked out, Illinois farmers should continue using taxed, on-road diesel in registered highway vehicle to avoid potential penalties that remain unknown."
 
 Among the questions that remain for the implementation of the use of dyed diesel fuel in on-road vehicles:

• The Illinois Department of Revenue must issue guidance regarding qualifying uses and documentation requirements for farmers.
• Residual dye may remain in tanks on January 1, 2027 when enforcement begins anew; what happens then?
• The U.S. Department of Treasury must determine if his authority extends to diesel fuel tax payment obligations.
• The U.S. Internal Revenue Service must issue guidance on how it will implement the tax relief on diesel fuel.