10/13/2026
President of the Nebraska Farmers Union John Hansen doubts that waiving the state and federal taxes will make a dent in how much farmers are spending to fuel up.
“That doesn't cover a two-dollar per gallon hole and increased costs,” he said.
The average price of diesel in Nebraska has climbed more than $2.50 per gallon from last year, according to AAA data, and hit an all-time record of $6.23 a gallon on Sept. 22.
Hansen said many farmers are already in the habit of filling up their equipment with the tax-exempt red-dyed diesel, so the impacts of the executive orders will be limited to farm trucks.
“It would be less if you can run off-road diesel in your truck to haul grain to the elevator or grain to your grain bins,” he said. “It's helpful, but it shouldn't be portrayed as a major fix for ag's diesel fuel problems.”
President Donald Trump and Gov. Jim Pillen both signed orders this month expanding the on-road use of red-dyed diesel to reduce the high cost of the fuel. But Nebraska farmers and truckers say a small change in fuel taxes won’t make a dent in input costs.