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Jeff Beach from the North Dakota Monitor reports that emergency diesel tax breaks for North Dakota farmers set by the state and federal government are providing only modest relief.
Governor Kelly Armstrong alongside the federal government temporarily allowed the use of lower-taxed red-dyed diesel for hauling on highways. Despite this, NDSU agricultural economists say that on-road hauling only accounts for 5-15% of a farm’s total diesel use.
Diesel in North Dakota currently averages over $6 a gallon, which is up more than $2.50 as compared to last fall. Beach reports that growers say the tax cuts barely dent the surging production costs.
The USDA has yet to announce how newly available funds will be distributed to farmers. Officials say the formula for how the $8 billion will be split may be announced this month.
Read Beach’s full reporting here.
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