BISMARCK (KFGO) – Gov. Kelly Armstrong declared a state of emergency Tuesday to address rising fuel costs and supply constraints, granting North Dakota farmers temporary tax relief by allowing them to use lower-taxed red-dyed diesel on public highways.
Under an executive order effective immediately, agricultural producers can use dyed diesel in licensed trucks and vehicles traveling on public roads for harvest-related transportation through Nov. 30. The expansion covers hauling grain, livestock, feed, seed, fertilizer, and farm equipment, as well as storing and processing farm products.
North Dakota imposes a 23-cent-per-gallon state excise tax on regular diesel fuel, compared to 4 cents per gallon on red-dyed diesel, which is typically restricted to tractors and off-highway equipment. The executive order provides producers a savings of 19 cents per gallon in state taxes during peak harvest season.
“Record high diesel prices are squeezing our ag producers, and this is a meaningful and timely step we can take to provide temporary relief and help our farmers and ranchers through the harvest season,” Armstrong said.
State Agriculture Commissioner Doug Goehring noted that farmers burn more fuel during harvest than at any other time of the year, making cost reductions critical when margins are thin and input costs remain high. Goehring added that lower transportation costs for suppliers and processors could also help lower costs for consumers.
The emergency order does not alter the federal government’s 24.4-cent-per-gallon diesel excise tax.
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