* Press release…

Illinois Soybean Growers Appreciates Action by State of Illinois on Diesel Issue

Bloomington, Ill. – October 7, 2026 – On Tuesday, October 6, Illinois Governor JB Pritzker issued a state disaster proclamation and signed Executive Order to provide relief on diesel fuel costs for the agriculture industry.

The Executive Order includes the following:

• Illinois Department of Revenue (IDOR) and Illinois State Police (ISP) have been directed not to impose state penalties when dyed diesel fuel from bulk storage is sold or used on highways and state roads for farming and agricultural purposes through December 31, 2026. IDOR will issue guidance outlining qualifying uses and documentation requirements.
• Illinois Department of Transportation (IDOT) is directed to consider extending the Illinois Harvest Permit program into the winter, spring or summer of 2027 if diesel shortages and elevated costs persist. The program allows heavier truck weights on specified routes.
• The disaster proclamation directs state agencies to evaluate and implement additional measures to address diesel shortages and elevated costs. It also activates the governor’s authority to coordinate state personnel and resources.

“Illinois Soybean Growers (ISG) thanks Governor Pritzker and his administration for taking the issue of high input prices seriously,” said Bryan Severs, ISG Chairman and Illinois farmer. “We look forward to receiving additional guidance on this issue.”

This action by the Pritzker Administration comes one day after the White House issued an Executive Order to temporarily allow off-road dyed diesel for highway use and defer the applicable federal excise tax. He also encouraged more states to adopt similar policies.

* So, what is dyed diesel?…

Dyed diesel fuel is any special fuel that has been dyed per Section 4d of the Motor Fuel Tax Law (35 ILCS 505/4d). Dyed diesel fuel is used for nontaxable, non-highway purposes. Dyed diesel fuel must contain the dye Solvent Red 164 at a concentration spectrally equivalent to at least 3.9 pounds of the solid dye standard Solvent Red 26 per thousand barrels of special fuel. The dye must be added prior to removal from a terminal rack. Since January 1, 2000, Illinois’ Motor Fuel Tax Law has required all special fuel sold or used for non-highway purposes to be dyed.

* Will these federal and state EOs actually accomplish anything?…

The nation’s largest trucking groups said Tuesday that President Donald Trump’s executive order aimed at easing diesel prices would do little to increase availability of the key transportation fuel.

The statements from groups representing both major trucking companies and independent truckers — typically close Trump allies — cast doubt on the president’s claims Monday that the move would save truckers hundreds of dollars and help bring down the cost of goods across the economy. The high cost of diesel — averaging $6.31 a gallon, or about $2.64 higher than last year — is dragging on Republicans going into next month’s elections. […]

The order drew some praise mostly from agriculture-state lawmakers and a few farm groups, even though farmers largely already had access to dyed diesel.

But expanding dyed diesel use “does not create additional fuel or address the underlying supply crunch that is driving prices higher,” Henry Hanscom, chief advocacy and public affairs officer at the American Trucking Associations, said in a statement Tuesday.

* Most importantly…

But key details remain missing from the order; namely, while the tax relief is good for dyed diesel sold between Oct. 5 and Dec. 31 of this year, it’s only a tax deferral – it must eventually be paid under current law. There’s not even a deadline for payment of the deferred tax; that part is up to Treasury Secretary Scott Bessent to figure out through separate guidance.

* And…

“You’re still going to owe the road-use tax on that off-road fuel. You’re just allowed to pay it on Jan. 1,” said Matt Wells, vice president of the Mid-West Truckers Association.

“The only way [these taxes] will be forgiven is if there is congressional action and the president signs it, and there is legislative action at the state and the governor signs it,” Wells said. […]

Wells provided direct advice: “Bottom line, unless you really need to, don’t do it. It’s not worth it.”

Mark Bunselmeyer, president of the Illinois Corn Growers Association and a farmer in Maroa, Ill., had similar advice: “While the answers to both state and federal implementation questions are worked out, Illinois farmers should continue using taxed, on-road diesel in registered highway vehicles to avoid potential penalties that remain unknown.”