states take similar actions<\/a>; many have eased restrictions or waived taxes on dyed diesel, including South Dakota and Iowa. Perdue said North Dakota has waived the tax on regular diesel. But where the state decision is focused on farmers, he believes the federal decision would largely benefit those on other levels of the supply chain.<\/p>\nFarmers who will see the most benefit are those who haul their own product, like livestock or fresh produce, on public roads. Those who have already wrapped up harvesting won\u2019t see savings.<\/p>\n
\u201cMost of our diesel use is behind us,\u201d said Perdue, who grows spring wheat, durum and canola on his family farm.<\/p>\n
Both trucking companies and independent truckers may not see much relief either. The effect is likely to be negligible for big trucking companies because the order is on a federal level and states make their own rules, Patrick De Haan, head of petroleum analysis at GasBuddy, wrote in a social media post.<\/p>\n
\u201cThe largest diesel users are the least likely to use dyed diesel,\u201d he wrote. \u201cA national carrier crossing five or six states in a day faces enormous risk with a patchwork of rules, legal in one state, and subject to fines in the next.\u201d<\/p>\n
Many states exempt road diesel from sales tax but apply sales tax to dyed diesel instead, he said.<\/p>\n
Easing limits on red-dyed diesel will likely have a minimal effect for small truckers, who pay for fuel up front, said Todd Spencer, president and CEO of trade group the Owner-Operator Independent Drivers Association. He estimates every $1 increase per gallon in fuel costs independent truckers about $400 more per week.<\/p>\n
Increased demand for dyed diesel<\/p>\n
The savings will be small, but it could still increase competition for dyed diesel, said David Ortega, food economics and policy professor at Michigan State University.<\/p>\n
\u201cI think there\u2019s a real chance this could backfire and make the situation worse for farmers,\u201d he said. \u201cBasically anybody that\u2019s running a truck on the highway on regular diesel can now be using this off-highway diesel. Even someone that owns a diesel pickup truck potentially has access to this other type of diesel.\u201d<\/p>\n
Perdue in North Dakota said he expects a \u201crush for dyed diesel, and we\u2019ll see how the supply responds.\u201d<\/p>\n
But not all dyed diesel pump stations are set up for larger trucks like semis, said Paul Mitchell, a professor of agricultural and applied economics at the University of Wisconsin-Madison.<\/p>\n
\u201cIt\u2019s going to come down to infrastructure ability to get your vehicles to a place that you can use and fill them up with,\u201d he said.<\/p>\n
Supply shortages persist<\/p>\n
Henry Hanscom, American Trucking Associations chief advocacy and public affairs officer, pointed out that the executive order directs temporary penalty relief and potential tax deferral for using red-dyed diesel, not outright tax forgiveness. He said the ATA would review the Internal Revenue Service\u2019s implementing guidance of the policy when it is available.<\/p>\n
Last month, Trump had threatened a diesel export ban, though he later said it is off the table. On Friday, G7 countries agreed to release 100 million barrels<\/a> of oil and fuel products.<\/p>\n\u201cOne of the problems we have right now in the world is there\u2019s not enough diesel fuel,\u201d said Gregg Ibendahl, farm management specialist at Kansas State University.<\/p>\n
But underlying causes like geopolitical issues won\u2019t be solved overnight.<\/p>\n
\u201cThe problem we\u2019ve accumulated right now with the Strait of Hormuz and the Russia-Ukraine war, those are going to be longer term things to get fixed,\u201d he said. \u201cGetting that world supply back up again is going to be, I think, at least a year, even in the best cases.\u201d<\/p>\n
Anderson reported from New York.<\/p>\n","protected":false},"excerpt":{"rendered":"By SARAH RAZA and MAE ANDERSON SIOUX FALLS, S.D. (AP) \u2014 Farmers, truckers and economists say a move…\n","protected":false},"author":2,"featured_media":421954,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[97830,139,141,140,166548],"class_list":["post-421953","post","type-post","status-publish","format-standard","has-post-thumbnail","category-orlando","tag-diesel-prices","tag-orlando","tag-orlando-headlines","tag-orlando-news","tag-red-dyed-diesel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/421953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/comments?post=421953"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/421953\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media\/421954"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media?parent=421953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/categories?post=421953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/tags?post=421953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}