By Scout Nelson
North Dakota is taking temporary action to help agricultural producers manage high diesel costs during the harvest season. The state has declared a diesel emergency and expanded the permitted use of red-dyed diesel fuel for certain agricultural activities.
Gov. Kelly Armstrong declared the state of emergency on September 29, 2026, citing conditions affecting the supply and availability of diesel fuel. The executive action temporarily allows red-dyed diesel to be used in licensed motor vehicles connected with agricultural operations.
Red-dyed diesel, also known as dyed diesel, normally has a lower state fuel tax than regular diesel. Under North Dakota law, regular diesel carries a state excise tax of 23-cent-per-gallon, while red-dyed diesel carries a state tax of 4-cent-per-gallon. The dyed fuel is generally limited to certain off-highway uses, including agricultural, industrial, and railroad activities.
The new order changes how the fuel can be used during the temporary emergency period. Farmers can use the lower-taxed fuel not only for field work but also for certain on-highway activities connected with their agricultural operations.
This includes hauling grain, livestock, feed, seed, fertilizer, equipment, and other agricultural inputs and products. The expanded use also covers activities related to storing and processing agricultural products.
The change is important during harvest because farm operations often require large amounts of diesel. Tractors, combines, trucks, and other equipment may use significant amounts of fuel while crops are harvested and moved from fields to storage or processing facilities.
Armstrong said, “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, noting he’s been working closely with state Agriculture Commissioner Doug Goehring on the action.
Agriculture Commissioner Doug Goehring said, “Farmers burn more diesel during harvest than at any other time of year and saving 19 cents per gallon can make a meaningful difference when margins are razor thin. This translates into lower transportation costs to suppliers and processors, which hopefully will be passed on to the consumer,” Goehring said. “I remain committed to working with the governor and the ag community to identify ways to provide additional relief for producers during this time of high input costs and low commodity prices.”
The state tax difference between regular and red-dyed diesel is 19-cent-per-gallon. The temporary change therefore gives eligible agricultural users access to fuel with a lower North Dakota state excise tax for the activities covered by the order.
The measure applies to licensed motor vehicles used in connection with agricultural operations. This gives producers more flexibility when moving farm products and supplies during a busy part of the year.
Transportation is an important part of farm operations. After crops are harvested, producers may need to move grain to storage or processing facilities. They may also transport livestock, feed, seed, fertilizer, equipment, and other supplies. The temporary fuel change applies to these types of agricultural activities when they fall within the order.
The action also covers storing and processing agricultural products. This recognizes that farm fuel use does not stop when equipment leaves the field. Agricultural products often need to be moved, stored, or processed after harvest.
The executive order takes effect immediately and remains in effect through November 30, 2026.
The order does not change the federal diesel fuel excise tax. The federal government continues to charge 24.4-cent-per-gallon on diesel fuel. The temporary change affects the permitted use of dyed diesel under the North Dakota action and does not remove the federal tax.
For farmers and ranchers, fuel costs are one part of the larger cost of operating an agricultural business. Diesel is needed for planting, tillage, spraying, harvesting, transportation, and other farm work. Higher fuel prices can increase the cost of completing these tasks.
The temporary measure comes during harvest, when fuel use can increase because producers are operating harvesting equipment and moving crops. The expanded use of red-dyed diesel provides an additional fuel option for eligible agricultural activities during the emergency period.
The North Dakota Governor’s Office lists Executive Order 2026-08 as the order declaring the emergency for conditions affecting diesel supply and availability.
The temporary policy is designed to provide relief through the end of November. Farmers using the expanded fuel allowance still need to follow the requirements that apply to their vehicles and agricultural operations.
Photo Credit: gettyimages-kn
Categories: North Dakota, Energy, Government & Policy, Harvesting