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From Michigan Governor Whitmer expands use of tax-free diesel for farmers and loggers

How could the expanded use of red-dyed diesel affect the Michigan Farm Bureau?

Likely What happens if… A possibility worth considering, not a forecast.

Members of the Michigan Farm Bureau may see reduced operational costs from tax-free diesel. Governor Whitmer's executive order allows farmers and loggers in Michigan to use red-dyed diesel for certain highway uses, such as hauling grain or livestock to market, through the end of the year. Red-dyed diesel costs less than clear diesel because state and federal motor vehicle taxes are not collected on it. Jonathan LaPorte estimates this change could save farmers and loggers approximately 52 cents per gallon, which directly benefits the economic interests of the Michigan Farm Bureau's members.

Reported by 1 independent outlet Written Oct 14
Effect
Mild positive
How direct
2 steps, all reported
When
Right away
The story
Gone quiet

How it reaches Michigan Farm Bureau

Reported by news outlets

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The facts so far

As reported. Each one links to where it comes from.

  • The order allows red-dyed diesel for certain highway uses, including hauling grain or livestock to market.wnem.com
  • Red-dyed diesel costs less because state and federal motor vehicle taxes are not collected on it.wnem.com
  • Jonathan LaPorte estimates the change could save farmers and loggers about 52 cents per gallon.wnem.com
  • The federal order is set to expire at the end of the year.wnem.com

Why it matters

Fuel costs are a critical operational expense for agricultural businesses. For the Michigan Farm Bureau, which represents the economic interests of its members, any reduction in input costs like diesel fuel translates directly into enhanced business viability and financial stability for the farming community.

This order is part of a broader trend of state-level regulatory adjustments to manage agricultural logistics. While the savings are estimated at 52 cents per gallon, the cumulative effect across the harvest and grain-hauling season could provide significant financial relief to Michigan's agricultural sector.

What we don't know yet

  • Will the availability of red-dyed diesel for highway use be extended beyond the end of the year?
  • How will the anticipated drop in clear versus dyed diesel prices over the next several months affect the overall savings?

What would change this answer

The state legislature passes legislation extending the order's durationThe cost savings for Michigan Farm Bureau members would become a long-term operational benefit rather than a temporary seasonal advantage.
The price of clear diesel drops significantly before the order expiresThe financial benefit of using tax-free red-dyed diesel would be reduced, diminishing the impact on members' operational costs.

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The full eventMichigan Governor Whitmer expands use of tax-free diesel for farmers and loggers Everything aboutMichigan Farm Bureau

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.