Iowa Expands Dyed-Diesel Relief to More Farm Hauls

Iowa expanded its on-road dyed-diesel relief on Oct. 7, adding livestock, livestock feed, soybean meal and other farm products to the covered hauls. The change came one day after Gov. Kim Reynolds issued the initial proclamation, which covered a list of crops and other agricultural products.

The governor’s Oct. 7 announcement says the expanded relief applies to covered motor vehicles hauling products on Iowa public roads. The state’s disaster-proclamation listing records the Oct. 6 initial action and the Oct. 7 expansion as separate proclamations.

Which agricultural hauls are covered

The initial proclamation listed soybeans, corn, hay, straw, silage, stover, fertilizer, manure and distillers grains. The Oct. 7 announcement added soybean meal, livestock, livestock feed and other farm products. It did not replace the initial categories; the expansion added to them.

The relief is limited to specified state rules for covered hauls. The proclamation suspends specified provisions of Iowa Code sections 452A.74A and 452A.74A(1), which concern restrictions on dyed-diesel use in highway hauls. It also suspends specified provisions of sections 423.2(1), 423.5(1) and 452A.3(3), relating to the sale and use of fuel for the same covered use.

For motor-vehicle operators hauling the listed products on Iowa highways and public roads, the suspensions remove the restrictions and tax provisions identified in the proclamation for that use. The proclamation says operators remain subject to other Iowa Code and Iowa Administrative Code requirements not specifically suspended. The measure does not establish federal tax treatment.

Expiration dates differ in state listings

The governor’s proclamation says the relief took effect immediately, lasts 120 days unless ended or extended earlier in writing, and expires Feb. 2, 2027. The governor’s Oct. 7 announcement also gives Feb. 2 as the end date. Iowa DOT, however, lists the dyed-diesel relief through Feb. 4, 2027. The difference has not been resolved in the state listings.

Reynolds’ proclamation cited high agricultural diesel demand during the start of the 2026 grain harvest. It also cited average retail diesel prices in the prior week above $6.23 per gallon in Iowa and above $6.50 nationally. Those figures are the governor’s stated context for the action.

A separate Iowa DOT proclamation concerns overweight agricultural loads, not dyed-diesel use. DOT lists that measure as allowing specified agricultural loads up to 90,000 pounds gross weight without a permit through Oct. 10, 2026. That earlier end date applies to the separate harvest measure, not the dyed-diesel relief.

The expansion applies statewide: the proclamation covers motor vehicles hauling eligible products on Iowa highways and public roads. Farmers and agricultural businesses arranging those trips, as well as the operators making the hauls, are among those affected by the specified state suspensions.