As Illinois farmers work through harvest, recent announcements from the federal and state governments address some of the cost challenges facing farm operations. The actions taken include temporary relief on diesel fuel and a new low-interest loan program for on-farm grain storage.
Illinois Provides State Diesel Relief
On October 6, Governor JB Pritzker issued a disaster proclamation covering all 102 Illinois counties for 30 days and signed
Executive Order 2026-08 addressing rising diesel costs during harvest.
- The executive order directs the Illinois Department of Revenue and Illinois State Police not to impose state penalties when dyed diesel from bulk storage is sold or used on highways and state roads for farming and agricultural purposes through December 31, 2026.
- The Department of Revenue is expected to issue guidance outlining qualifying uses and documentation requirements.
- Illinois farmers should continue using taxed, on-road diesel in registered highway vehicles to avoid potential penalties that remain unknown.
- The order also directs the Illinois Department of Transportation to consider extending the
Illinois Harvest Permit program into winter, spring, or summer 2027 if diesel shortages and elevated costs continue.
- The program allows heavier truck weights on specified routes, which can help agricultural producers move commodities more efficiently.
“Illinois corn farmers are grateful for Governor Pritzker’s effort to lower diesel prices for farmers this fall,” stated Mark Bunselmeyer, ICGA President and Maroa, IL farmer. “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.”
New Illinois Loan Program for Grain Storage
On October 7, Governor Pritzker and the Illinois Finance Authority
announced a pilot loan program designed to help farmers finance on-site grain storage facilities and the equipment needed to operate them.
- The program is intended to reduce the long-term costs associated with remote grain storage while giving farmers more flexibility in when and where they market their grain.
- Under the program, the Illinois Finance Authority will participate in portions of loans made by private lenders, sharing lending risk and reducing the lender’s capital commitment.
- The program anticipates an interest rate of approximately 2%.
Federal Action Provides Temporary Diesel Relief
On October 5, President Donald Trump signed
an executive order providing temporary relief on diesel fuel.
- The order directs the U.S. Treasury Department to defer certain federal diesel fuel excise tax payments between October 5 and December 31, 2026, without penalties or interest, if authorized under existing law.
- The order also directs the Internal Revenue Service not to impose certain penalties when dyed diesel is sold for or used on highways during that period.
- U.S. Secretary of Agriculture Brooke Rollins said the action is expected to represent approximately $640 million in combined federal and state savings across about 224.6 million harvested acres.
- The U.S. Department of Agriculture will work with agricultural cooperatives, rural fuel distributors, and other agricultural stakeholders to help ensure adequate access to dyed diesel in high-demand areas. USDA will also encourage states to take corresponding action.
- The order directs the Department of Transportation to coordinate with states, industry leaders, and labor organizations on access to dyed diesel.
“Farmers are under significant stress right now with harvest going on and fuel prices extremely high,” stated Mark Bunselmeyer, IL Corn Growers Association President and Maroa, IL farmer. “We appreciate President Trump’s efforts to relieve fuel price concerns for farmers. Because many questions on enforcement remain, ICGA requests that the relevant agencies act quickly to guide farmers and make them more comfortable using off-road fuel on the highways and realizing the savings.”
IL Corn thanks Governor Pritzker and President Trump for their action to relieve high input costs during harvest. IL Corn will continue to monitor and send updates on the pending guidance on potential penalties for using dyed diesel for on-road use. We will also give updates if the Illinois Harvest Program is extended.
