Wayne County Farm Bureau

10/12/2026

UPDATE: New State Guidance on Dyed Diesel Relief

The Illinois Department of Revenue has issued new guidance on temporary dyed diesel penalty relief for farming and agricultural purposes in Illinois. If you're planning to use dyed diesel in on-road vehicles, it's important to understand the requirements, especially what records you need to keep to qualify for penalty relief.

Read the latest guidance in the FarmWeekNow article linked in the comments. We'll continue to share updates as more information becomes available.

10/10/2026

** Update on the use of dyed diesel **

The Illinois Department of Revenue (IDOR) has published guidance implementing Governor Pritzker’s Executive Order on dyed diesel fuel.

Per IDOR’s guidance, failure to provide required documentation during an audit may result in penalties. Documentation of eligibility for penalty relief must be maintained for a period of FOUR YEARS following expiration of the Executive Order.

To prove eligibility for penalty relief, users must keep the following documentation of dyed diesel used during the relief period of October 6 to December 31, 2026:
• license plate number associated with the dyed diesel used;
• gallons used;
• fill up dates;
• date dyed diesel was last added to the vehicle; and
• proof the fuel was used for farming and agricultural purposes, including, but not limited to, the following, as applicable:
o documentation showing source of origin of agricultural goods;
o invoices of agricultural goods either received or delivered;
o waybills or bills of lading;
o trip sheets;
o transportation contracts; and
o storage receipts (e.g. grain tickets).

As we have explained over the last few days, residual dye can remain in a fuel tank for an extended period of time, even after switching back to clear diesel. To avoid penalties once enforcement resumes, users must keep all of the following:
• documentation showing the vehicle’s odometer reading on the final day of the relief period;
• receipts for all fuel purchased after dyed diesel use ends; and
• proof the fuel was used for farming and agricultural purposes during the relief period as set out above.

The guidance also states that normal enforcement will begin January 1, 2027.

Illinois Farm Bureau reminds members that this temporary relief does not permanently eliminate fuel tax obligations, and Illinois' penalty relief does not extend to other states.

IFB’s recommendation continues to be: If you choose to use red dyed diesel in on-road trucks for farming and agricultural purposes, document everything and have a plan to transition back to clear diesel.

IFB will continue to monitor developments at both the federal and state levels and provide additional information as we have it.

10/08/2026

Update on use of dyed diesel for highway use…

On Oct. 5, 2026, President Trump’s signed an Executive Order deferring federal diesel fuel tax payment obligations to provide penalty relief to the extent permitted by law. No penalty will be imposed on dyed diesel fuel that is sold for use or used on the highway during the period of October 5, 2026, through December 31, 2026. The order also directs federal agencies to coordinate with states regarding potential waivers of taxes on road diesel.

On Oct. 6, 2026, Governor Pritzker directed the Illinois Department of Revenue and Illinois State Police not to impose penalties when dyed diesel from bulk storage is sold or used on Illinois highways and state roads for farming and agricultural purposes through Dec. 31, 2026. He also directed IDOR to issue guidance on implementation and recordkeeping.

As of Oct. 7, 2026, both federal and state taxes are DEFERRED, NOT WAIVED, and users could be subject to the tax at a later date. It would require an act of Congress (for federal taxes) and/or the Illinois General Assembly (for Illinois taxes) to waive or forgive the deferred taxes. Farmers should not assume the deferred tax will never become due.

** KEEP RECORDS **
Governor Pritzker explicitly directed IDOR to explain what records farmers should maintain. Until then, farmers should retain detailed fuel purchase invoices/receipts and records showing the amount, date, vehicle/equipment and agricultural purpose of the fuel used. Illinois already requires records documenting fuel purchases and use.

AFTER JANUARY 1ST
IFB maintains concerns about how enforcement will be handled beginning January 1, 2027. It is unclear how enforcement will address the practical challenges associated with the physical characteristics of dyed diesel and any residual fuel that may remain in vehicle fuel systems when the temporary authorization expires. Growmark fuel experts estimate it can take running 7 to 8 tanks of clear highway diesel to remove all residual red-dye, and members should plan accordingly.

Please post your questions in the comments below. We will keep our members updated as more details become available.

10/07/2026

"Deferred is not waived". Find out what Governor Pritzker's announcement on dyed diesel means for farmers.

Executive order directs state agencies to suspend penalties on ag use of dyed diesel on roads.

10/02/2026

The Illinois Farm Bureau is offering $125,000 in Rural Development Grants for 2027. They are looking for projects that will meet an economic development or quality of life need in a community, county, or rural area, and get residents excited about what is happening in their community.

Examples could include projects that:
- Focus on attracting businesses
- Foster entrepreneurship
- Improve infrastructure
- Provide access to fresh foods
- Increase healthcare access
- Expand recreational opportunities
- Increase available housing
- Develop tourism
- Enhance emergency services support (fire, emergency medical services, police)
- Otherwise positively impact farmers and rural Illinoisans

Full details on the grant program can be found at on.ilfb.org/rdgrants6

The deadline to apply for a grant is December 1st. If you are interested in submitting an application, please contact the Wayne County Farm Bureau at 618-842-3342 so we can discuss your project.

09/30/2026

The Wayne County Farm Bureau is excited to announce the Wayne City High School recipients for our 2026 FFA SAE Entrepreneurship Grants! Wayne City FFA students Harper Buchanan and Karter Seidel are the recipients of a $1,000 grant to further develop their individual SAE project.

Harper is a sophomore, and she plans to use her grant award to help fund the purchase of a registered Simmental heifer to expand her beef herd.

Karter is a freshman, and he plans to use his grant award to contribute toward the seed and fertilizer expenses for his first 10 acres of corn that he is planting with his grandfather.

The Wayne County Farm Bureau is awarding six $1,000 SAE Grants, selecting two students from each of the three high schools in Wayne County. Seventeen students applied for the grant. We look forward to seeing the results of the students’ expansion plans for their SAE project.

09/30/2026

The Wayne County Farm Bureau is excited to announce the Fairfield High School recipients for our 2026 FFA SAE Entrepreneurship Grants! Fairfield FFA students Destiny Cox and Jaxon Basnett are the recipients of a $1,000 grant to further develop their individual SAE project.

Destiny is a senior, and she plans to use her grant to purchase scientific instruments and equipment to compete in science fairs as she prepares to study agri-science in college.

Jaxon is also a senior, and he plans to use his grant to expand the inventory and marketing of his custom hat company, Twisted Barb Hat Co.

The Wayne County Farm Bureau is awarding six $1,000 SAE Grants, selecting two students from each of the three high schools in Wayne County. Seventeen students applied for the grant. We look forward to seeing the results of the students’ expansion plans for their SAE project.

09/30/2026

The Wayne County Farm Bureau is excited to announce the Cisne High School recipients for our 2026 FFA SAE Entrepreneurship Grants! Cisne FFA students Mikenzie Alvis and Allison Shannon are the recipients of a $1,000 grant to further develop their individual SAE project.

Mikenzie is a senior, and she plans to use her grant award to support the raising of her show pigs, including breeding, farrowing, feeding, show supplies, and more.

Allison is also a senior, and she plans to use her grant award to support the purchase of additional cows for her breeding herd to raise more feeder calves.

The Wayne County Farm Bureau is awarding six $1,000 SAE Grants, selecting two students from each of the three high schools in Wayne County. Seventeen students applied for the grant. We look forward to seeing the results of the students’ expansion plans for their SAE project.

Illinois Farm Bureau