INDIANAPOLIS – Farmers in Indiana are being allowed to burn tax-free off road diesel fuel in semi-trucks hauling grain during the fall harvest to help offset the record cost of filling up their tanks.

Gov. Mike Braun on Sept. 30 announced the decision to provide financial relief to farmers already squeezed by fertilizer and heavy machinery costs.

Braun said farmers can expect to save 64 cents per gallon until they’re finished harvesting. Braun’s order will apply to farmers and timber harvesters for the next 30 days. 

Off-road diesel fuel, also known as red-dyed diesel is not taxed by the state or federal government but its use was limited to machinery that stayed on a farm and farmers using it improperly can face hefty fines. 

 According to AAA, the average price for regular diesel fuel in Indiana in late September was close to $7 per gallon.

“It doesn’t make everything all better, but it helps,” said farmer Matt Schafer, a corn and soybean grower in LaCrosse.

“It’s not huge, but every little bit counts,” said Jeff Mitzner, who raises corn, soybeans and beef cattle in Wanatah.

Farmers, depending on the size of their operation, can easily burn thousands of gallons of diesel fuel during harvest in semi-trucks hauling grain from their fields to silos on their property and to market.

Normally, farmers in the state must use the higher cost diesel in semi-trucks because the fuel is taxed to maintain the roads.

They can use off-road diesel fuel only to power tractors, combines and other heavy machinery used in the fields.

The off-road diesel fuel is dyed while the taxed diesel fuel remains clear so any state government inspectors that show up can tell if farmers are complying with the restrictions.

The move came at the request of Indiana Rep. Jim Pressel (R-20th district), whose petition signed by over 50 other state lawmakers was presented to the governor just one day before he acted.

Pressel is also chairman of the House Committee on Roads and Transportation.

“I didn’t expect him to do it so quickly, but I’m very appreciative,” Pressel said.

Pressel said the idea stemmed from a conversation he had with a farmer about high diesel fuel prices during the annual meeting of the La Porte County branch of Indiana Farm Bureau last month.

“It made perfectly good sense,” he said.

Farmer Mark Parkman, of Westville, said the savings on fuel will also help farmers with yields negatively impacted by a very wet, cool spring and other weather extremes during what was a challenging growing season.

Some of his corn will be difficult for combines to pick up after the stalks were knocked to the ground from an August storm packing hurricane force winds.

“We got storm damage. We got high fuel prices. We got high input costs. It’s not the easiest on everybody right now,” he said.

Parkman said one silver lining is corn and soybean prices are up between $1 and $2 per bushel over last year at this time.

However, Parkman said farmers like him will likely experience somewhat lower yields this year and any extra money collected from higher prices will go toward higher operating costs.

“I think every little bit helps and this is a way we can kind of lessen their burden just a little bit,” he said.

Braun also extended the suspension of the state taxes on gasoline until early November after it first went into effect in April to offset rising prices nationwide on that fuel.

“If Indiana can provide temporary relief to motorists during a period of high fuel prices, we should ensure farmers, who play a vital role to our state, are not left behind,” Pressel said.