Oct 7, 2026 · 23 min · 18 segments
Rodney Knittel, Illinois Farm Bureau's assistant director of transportation and infrastructure, breaks down what recent announcements on diesel mean. Thomas Titus, former president of Illinois Pork…
Tasha BuntingGuest
Lisa EllisGuestThe governor issued a state disaster proclamation and signed an executive order to provide relief on diesel fuel costs for the agricultural industry during the fall harvest season.
The executive order directs the Illinois Department of Revenue and the Illinois State Police to allow on-road use of dyed diesel, typically used for agricultural purposes.
The executive order also directs state agencies to consider additional protections for farmers and gives the state greater flexibility to respond to continued disruptions in fuel markets and the agricultural economy.
Department of Revenue and Illinois State Police 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 the end of this year.
Illinois Department of Revenue will issue guidance outlining qualifying uses and documentation requirements.
In addition, the Illinois Department of Transportation 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.
That program allows heavier truck weights on specified routes, helping farmers transport goods more efficiently.
And the disaster proclamation directs state agencies, including Illinois Department of Revenue, Illinois State Police, and the Illinois Department of Transportation, to evaluate and implement additional measures to address diesel shortages and elevated costs and activates the governor's authority to coordinate state personnel and resources as necessary.
That all announced yesterday, and one important detail related to the president's announcement on Monday, when he announced it on stage, he said it was a waiver of the federal tax.
The executive order that was signed actually had a deferment of taxes instead in the language.
Rodney Knittel is Associate Director of Transportation and Infrastructure at Illinois Farm Bureau, was in studio yesterday
The executive order clearly states that that is a tax deferment, and so what that means is that, that there has to be a legislation action to occur for the tax to be forgiven, and so that would have to happen legislatively for the tax to be forgiven.
So you're still looking at, if you use red dye diesel, which we'll, we'll get, get into our recommendation, you would still be required to pay the tax after January 1st 'cause it's, the executive order is from October 5th to December 31st.
And so sometime after December 31st, you're gonna be l- still liable, uh, the way we read the executive order for that tax, because it would take, unless legislation action has been occurred, then that would be the only way that the tax could be waved or forgiven.
There's two d- there's, those, those two words are certainly have two different definitions.
One would mean that you don't have to pay it at all, and deferred means that at some time someone is liable for that tax, and the way it's currently read, it takes legislation action both at the state level or the federal level for a tax to be forgiven because they are in statute.
Rodney Knittel of Illinois Farm Bureau, who by the way, just in Farm Week last week, was promoting the benefits of the harvest permit program.
For example, on an 80 acre corn field yielding 210 bushels an acre, the 10% harvest permit can eliminate two round trips to the bin or elevator.
That kind of savings in fuel and driver's time, reduced truck wear, and fewer weights at the bin or elevator can certainly add up.
The governor issued a state disaster proclamation and signed an executive order to provide relief on diesel fuel costs for the agricultural industry during the fall harvest season.
The executive order directs the Illinois Department of Revenue and the Illinois State Police to allow on-road use of dyed diesel, typically used for agricultural purposes.
The executive order also directs state agencies to consider additional protections for farmers and gives the state greater flexibility to respond to continued disruptions in fuel markets and the agricultural economy.
Department of Revenue and Illinois State Police 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 the end of this year.
Illinois Department of Revenue will issue guidance outlining qualifying uses and documentation requirements.
In addition, the Illinois Department of Transportation 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.
That program allows heavier truck weights on specified routes, helping farmers transport goods more efficiently.
And the disaster proclamation directs state agencies, including Illinois Department of Revenue, Illinois State Police, and the Illinois Department of Transportation, to evaluate and implement additional measures to address diesel shortages and elevated costs and activates the governor's authority to coordinate state personnel and resources as necessary.
That all announced yesterday, and one important detail related to the president's announcement on Monday, when he announced it on stage, he said it was a waiver of the federal tax.
The executive order that was signed actually had a deferment of taxes instead in the language.
Rodney Knittel is Associate Director of Transportation and Infrastructure at Illinois Farm Bureau, was in studio yesterday
The executive order clearly states that that is a tax deferment, and so what that means is that, that there has to be a legislation action to occur for the tax to be forgiven, and so that would have to happen legislatively for the tax to be forgiven.
So you're still looking at, if you use red dye diesel, which we'll, we'll get, get into our recommendation, you would still be required to pay the tax after January 1st 'cause it's, the executive order is from October 5th to December 31st.
And so sometime after December 31st, you're gonna be l- still liable, uh, the way we read the executive order for that tax, because it would take, unless legislation action has been occurred, then that would be the only way that the tax could be waved or forgiven.
There's two d- there's, those, those two words are certainly have two different definitions.
One would mean that you don't have to pay it at all, and deferred means that at some time someone is liable for that tax, and the way it's currently read, it takes legislation action both at the state level or the federal level for a tax to be forgiven because they are in statute.
Rodney Knittel of Illinois Farm Bureau, who by the way, just in Farm Week last week, was promoting the benefits of the harvest permit program.
For example, on an 80 acre corn field yielding 210 bushels an acre, the 10% harvest permit can eliminate two round trips to the bin or elevator.
That kind of savings in fuel and driver's time, reduced truck wear, and fewer weights at the bin or elevator can certainly add up.
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