North Dakota gives farmers a break on diesel as harvest ramps up

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PROMO 64J1 Agriculture - Center Pivot Fields Irrigation Green Farm - flickrcc - USGS - public domain
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(North Dakota Monitor)

North Dakota farmers will get a break on surging diesel fuel prices as Governor Kelly Armstrong on Tuesday issued an order allowing a lower-taxed version of diesel to be used on highways and not just in the field.

Gov. Armstrong took office in December 2024 after winning the North Dakota governor's race and being inaugurated as the state's 34th governor.

North Dakota charges a tax of 23 cents per gallon on regular diesel fuel but only 4 cents per gallon on red-dyed diesel, which is normally only allowed for off-highway agricultural, industrial and railroad use.

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Map of the state of North Dakota, showing portions of surrounding states
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Armstrong’s executive order temporarily expands the use of dyed diesel fuel to vehicles used in ag operations, such as hauling crops to a grain elevator or processing plant. It also can be used when hauling livestock, feed, seed, fertilizer and equipment.

The order is effective immediately and remains in place through November 30, when fall harvest will be winding down. It does not affect the federal government’s 24.4-cent-per-gallon tax on diesel fuel.

The average price for diesel fuel in North Dakota was $6.17 on Tuesday, according to AAA.

“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,” Agriculture Commissioner Doug Goehring said in a news release.

About 22% of North Dakota’s soybeans had been harvested as of Sunday, according to the National Agricultural Statistics Service. Corn harvest was 8% complete.