COLUMBUS, OHIO (RFD NEWS) — Ohio farmers are getting temporary relief from state fuel taxes as the fall harvest progresses and high diesel prices strain farm operating costs.
Ohio Farm Bureau President Brad Bales joined us on Monday’s Market Day Report to discuss the new 90-day suspension of Ohio’s motor fuel tax, which took effect Sunday and suspends the state’s 38.5-cent-per-gallon gasoline tax and 47-cent-per-gallon diesel tax.
In his interview with RFD News, Bales said that the temporary relief comes as farmers continue to face tight margins and rising input costs.
“When input costs are so tight, especially when it comes to margins are so tight, anything helps,” Bales said.
Fuel and Fertilizer Costs Squeeze Profitability
Bales said higher fuel costs are only one part of the financial pressure Ohio farm families face.
He also noted that fertilizer prices are another concern, particularly for farms that had not prepaid for fertilizer ahead of recent increases.
“And so those are going to be the smaller farms that really got hit over the head,” Bales said.
He said on-road diesel is also creating additional costs as farmers move harvested crops to market.
“Diesel prices went up significantly,” Bales said. “So this is just one area where we have some relief.”
Farm Bureau Calls for Long-Term Solutions
Bales said the temporary fuel-tax suspension provides short-term relief, but he wants lawmakers to address production costs over the longer term. He explained that biofuels are one opportunity to support domestic markets for agricultural commodities.
“We have E15 that is out there contained within the Farm Bill,” Bales said. “If we can get that passed, get rid of this regulatory glitch that basically says we cannot sell during certain months, if we can lift that up and get rid of that regulatory glitch, we can definitely do more.”
Bales said expanding biofuel markets could create additional demand for corn while also supporting other domestic fuel markets.
“We can get corn, everything, lift it up,” he said. “And then also, when it comes to sustainable aviation fuel, when it comes to maritime fuel, there’s a lot of things that we can do here when it comes to biofuels.”
Ohio Farm Bureau has also supported expanded access to E15 in the state, saying greater availability would create additional demand for Ohio-grown corn.
E15 and the Farm Bill
Bales said the federal Farm Bill remains an important part of the effort to expand year-round E15.
He said the industry now needs lawmakers to move past the current political environment and advance the legislation.
“Right now, we’re just dealing with the political climate that is in D.C.,” Bales said. “We really just need to get through the election and then at that point, we will work with our members.”
Ohio Farm Bureau has previously backed federal legislation allowing year-round E15 sales, citing increased domestic energy demand and additional markets for farmers.
Harvest Progress in Ohio
Bales said harvest conditions have improved after a stretch of wet weather slowed fieldwork.
“A couple of weeks ago, we had a little bit of a scare because we had a very soggy couple of weeks there,” Bales said. “Now, we’re looking like it’s going to be dry.”
He said farmers need the dry weather to get equipment back into the fields and continue harvest.
“We just need to be able to have some relief there, but Mother Nature is going to be Mother Nature,” Bales said.
