ICGA, ISA appreciate waiver of diesel fuel restrictions during harvest

INDIANAPOLIS, Ind. (Oct. 1, 2026) — In an effort to ease the effect of rising diesel costs on Hoosier farmers during this harvest season, Indiana Gov. Mike Braun signed an executive order on Sept. 30 to allow farmers to use red-dyed diesel on state highways.

Diesel fuel with a red dye additive is untaxed but designated for on-farm use only. Farmers typically keep this fuel in on-farm storage to fuel equipment used in their fields. Bought in bulk, this fuel can cost between 60-70 cents less per gallon than clear diesel fuel sold at a station.

Usually, the trucks used to haul corn or soybeans to markets or grain elevators require farmers to buy a taxed diesel fuel from a retail fuel station. This exemption by the governor allows farmers to use the red-dyed, untaxed fuel in their grain trucks from Tuesday, Oct. 6 through Wednesday, Nov. 4. The waiver is limited to state roads. Federal law still prohibits use of red-dyed fuel on interstates or U.S. highways. Also, out-of-state travel risks federal penalties.

The Indiana Soybean Alliance’s Membership and Policy Committee (M&P) and the Indiana Corn Growers Association appreciate Gov. Braun’s efforts to ease costs during this harvest season. Yet, concerns remain as harvest in Indiana will likely last beyond Nov. 4.

“I appreciate Gov. Braun’s efforts to ease the burden of high diesel prices,” said M&P Chair David Hardin, a farmer from Avon, Ind. “We welcome the relief during a time when we are already experiencing high input costs. However, we need certainty through the entire harvest season and guidance on transitioning back to regular diesel when the exemption concludes.”

Some farmers are concerned about what might happen if residual red dye is found in the tanks of grain trucks after the Nov. 4 exemption ends.

“This is good news, and it is timely news as many of us are in the middle of harvest right now,” said ICGA President Alan Dunn, a farmer from Michigantown, Ind. “Harvest and the fall tillage season will last through most of November, so I hope that an extension for this relief will be considered. I’m also hoping for some clarification from the state on what to do if red-dye residue is found in our tanks after this temporary waiver is lifted.”

Courtney Kingery, CEO of the Indiana Soybean Alliance and the Indiana Corn Growers Association, added that this is a recognition of agriculture’s value to the state’s economy.

“The value of the corn and soybeans grown in Indiana is about $13 billion annually,” Kingery explained. “This crop is produced by the 20,000 corn and soybean farmers across the state, and 95 percent of those farms are family owned. This announcement came at a great time to give a little relief to Hoosier farmers as they move their grain from the fields to market. There has been a increase of more than $2 per gallon in diesel fuel costs since this spring. While the 64-cent-per-gallon savings from on-road diesel may not completely make up for the $2 per gallon increase, it will help. Farmers could see up to $2,000 in savings per family farm during this exemption.”