Lee Bruce on Combine

ISA President Lee Brooke standing on his combine. (Photo: Iowa Soybean Association / Joclyn Kuboushek)

Iowa Soybean Farmers Welcome Emergency Diesel Fuel Tax Relief

October 8, 2026 | Brock Johnston

Ankeny, Iowa – The Iowa Soybean Association welcomes federal and state actions providing temporary tax deferment on diesel fuel as farmers across the state work through the 2026 harvest season.

These dual orders temporarily waive enforcement of penalties for using dyed diesel in on-road transportation and defer fuel tax at this time.

We anticipate Internal Revenue Service, Iowa Department of Revenue and other agencies to issue additional guidance in coming days on tax deferment and enforcement. We understand for any deferred federal and state fuel tax to be eliminated, legislative action would likely be required in the future.

For farmers who decide to run dyed diesel on-road, we encourage you to consider the following:

  • Keep fuel receipts and/or documentation to estimate your tax deferral over the period.
  • Farmers who cross state lines with dyed diesel in their tanks may be subject to an out-of-state penalty if their tank is tested. This federal action does not compel governors to waive enforcement of their state law.
  • Observe the deadlines associated with this deferral period and consider changing the fuel filters and turning over their fuel tanks before the deferral period ends.

“Harvest is one of the busiest and most fuel-intensive times of the year for farmers, making efforts to provide relief from high diesel costs especially timely,” said Lee Brooke, ISA president and soybean farmer from Clarinda. “We appreciate the administration recognizing the financial pressures facing farm families through this Order.”

ISA also supports ensuring farmers are held harmless from any residual dyed diesel remaining in fuel tanks after the order expires on Feb. 2, 2027. ISA supports the present road tax use formula which we believe ensures a strong ag and rural economy.

Iowa Soybean Association will continue to monitor the situation closely and will provide you with information as we receive it.

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The Iowa Soybean Association is Driven To Deliver market demand, production research, information and insights and regulatory action benefiting Iowa's 37,000 soybean farmers and the industry. For more information, visit iasoybeans.com.

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