Trump and Reynolds Provide Diesel Tax Relief for Iowa Farmers

President Donald Trump and Iowa Governor Kim Reynolds implemented temporary fuel tax relief for Iowa farmers to offset high input costs during the 2026 harvest season. Through a federal executive order, Trump suspended the 24.4-cent-per-gallon federal diesel excise tax on qualifying dyed diesel through the end of 2026.

Governor Reynolds supported the federal action by signing a proclamation on October 6, 2026, suspending state penalties and regulations that typically restrict non-taxed, dyed off-road diesel to off-road use. On October 7, Reynolds expanded the Disaster Emergency Proclamation to include the transport of livestock, livestock feed, and soybean meal. The original order already covered corn, soybeans, hay, straw, silage, fertilizer, manure, and distillers grains. This state-level relief remains in effect through February 2, 2027.

Iowa Secretary of Agriculture Mike Naig stated the measures provide essential financial relief as farmers face tight margins. The timing of the relief coincides with severe weather delays; as of early October, only 7% of mature corn and 5% of soybeans had been harvested due to wet conditions.