Friday, September 25, 2026  
 
 
 
- DTN Headline News
States Allowing Dyed Diesel on Road
By Russ Quinn
Friday, September 25, 2026 12:58PM CDT

OMAHA (DTN) -- Nebraska Gov. Jim Pillen on Thursday issued two executive orders designed to help farmers, ranchers and agricultural transporters cope with soaring diesel costs and fuel-supply concerns during the peak harvest season. The orders temporarily suspend state penalties for using dyed farm diesel in highway-registered vehicles while also providing tax and transportation relief for agricultural producers.

Under the first order, highway-registered vehicles may hold, sell and use untaxed dyed diesel without incurring state fines or penalties. The order also allows refunds of diesel taxes paid while transporting Nebraska-produced seasonal commodities and livestock on state roads through the Nebraska Department of Revenue's Form 84AG process.

This order takes effect immediately and will remain active for 90 days.

The second executive order provides weight limit relief for seasonal crop transport. Vehicles transporting seasonally produced products and livestock can now operate up to 25% over legal gross and axle group weight limits without purchasing additional permits or paying associated fees.

Pillen also sent a letter to President Donald Trump requesting federal intervention through a temporary 90-day pause on U.S. diesel exports to foreign countries. Pillen said that halting exports would allow domestic diesel reserves to rebuild, lowering costs for consumers and helping producers navigate harvest season without severe financial strain.

"Our farmers and ranchers are the backbone of our state," Pillen said. "It's critical that I do everything in my power to make sure they are supported, especially during this season where they are working day in and day out to get the crops out of the ground."

OTHER STATES TAKE ACTION ON DIESEL

Other states are also halting enforcement of dyed diesel on highway-registered vehicles.

On the same day as Nebraska's announcement, Alabama made a similar announcement. Gov. Kay Ivey said on Thursday that she directed the Alabama Law Enforcement Agency (ALEA) to halt enforcement on dyed diesel fuel for the next 120 days to relieve the state's agricultural and timber communities.

ALEA's enforcement changes are effective immediately.

"As we are in the beginning of peak harvest season in Alabama, I am committed to doing what we can to support our state's farmers and their families," Ivey said. "When we can responsibly provide relief, I am all for it, and this is a measured, doable and commonsense action to help Alabama's agricultural and timber communities."

On Sept. 23, Louisiana Gov. Jeff Landry also issued an executive order declaring a state of emergency, allowing Louisiana farmers and timber harvesters to use dyed diesel in on-road vehicles. The order will suspend the penalty through Oct. 22 for vehicles registered as Class 2 (Forest Products) or Class 5 (Farm Use) during peak harvesting operations, according to a press release.

"We're not going to sit on the sidelines while Louisiana farmers are paying record-high prices to harvest the crops that feed our families and support our economy," Landry stated. "We have an opportunity to provide immediate relief, and that's exactly what we're doing."

SOME FARMERS LOCKED IN FUEL COSTS

Rising fuel prices likely will increase costs for agricultural producers this harvest and beyond if diesel markets remain elevated.

Some farmers sought to protect themselves from higher prices by buying fuel earlier in the year. One of those was Bradley Choquette, who farms near Upland, Nebraska. His central Nebraska operation includes corn, soybeans and hay, along with a cow-calf herd that he retains through finishing.

Concerned about rising fuel prices amid instability in the Middle East, Choquette purchased farm diesel through his local cooperative in June 2026. He paid $3.50 per gallon and bought enough fuel to carry his operation through this fall's harvest and into next spring's planting season.

Now, he said, dyed diesel in his area is selling for about $5 per gallon.

"I did have some knowledge of lower fuel inventories and was concerned getting supply, so I bought fuel," Choquette told DTN.

Prepaying for that much fuel was unusual for his operation. Choquette said he had never locked in such a large diesel purchase so far in advance, but concerns about both price and availability prompted him to act.

He expects diesel prices to remain elevated for the foreseeable future. Choquette pointed to ongoing conflict in the Middle East, damage to oil-producing infrastructure and refinery closures in the U.S. and elsewhere as factors likely to keep supplies tight.

"I saw that for every 2% loss in production for diesel, this results in a 20% price increase on the world markets," Choquette said. "This is not good news for diesel prices."

DTN Environmental Editor Todd Neeley contributed to this article.

See the press release on Nebraska Gov. Pillen's executive orders here: https://governor.nebraska.gov/….

See the Alabama announcement here: https://governor.alabama.gov/….

And see Louisiana's announcement here: https://governor.alabama.gov/….

Russ Quinn can be reached at Russ.Quinn@dtn.com

Follow him on social platform X @RussQuinnDTN


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