Senator Putnam Requested Diesel Tax Relief
The Senate Agriculture chair has called for state tax relief to assist farmers facing high fuel costs.
Updated on Oct. 1, 2026 in Agriculture
Live Poll
Should states reduce fuel taxes to provide financial relief to local farmers?
Senator Aric Putnam has requested tax relief for Minnesota farmers struggling with the rising cost of diesel fuel. He proposed that the governor consider an executive order to reduce the state tax on diesel fuel.
Why it matters
Farmers across Minnesota are facing significant financial strain due to the combined pressures of drought, trade tariffs, and surging diesel prices. This request aims to provide immediate economic support to the agricultural sector.
Minnesota's current state tax on diesel fuel is 32 cents per gallon. Diesel prices have risen to over $6.00 per gallon compared to approximately $3.50 per gallon during the same time last year.
The players
Aric Putnam
Aric Putnam serves as the chair of the Minnesota Senate Agriculture committee.
Tim Walz
Tim Walz is the Governor of Minnesota who holds the authority to issue an executive order.
The details
Senator Aric Putnam, who chairs the Senate Agriculture committee, has suggested that Governor Walz address the burden on farmers through an executive order or a special legislative session. The proposal draws on a model from North Dakota, where the state governor previously enacted a similar diesel tax reduction measure.
Timeline
Senator Aric Putnam called for the diesel tax relief in September 2026.
Diesel fuel cost approximately three dollars and fifty cents per gallon in September 2025.
Market Landscape
This proposal follows the precedent set by the North Dakota diesel tax reduction measure, which provided immediate relief to regional agricultural sectors. It signals a move toward state-level fiscal intervention to combat volatility in the energy costs impacting local farmers.
The proposed tax reduction could lower operational costs for farmers, potentially influencing local food production prices. If enacted, the relief would directly reduce the per-gallon cost of fuel currently straining agricultural budgets.
The takeaway
Legislators are looking at state-level tax policy as a tool to mitigate the impact of volatile fuel markets on local agriculture. This approach highlights how regional policy can be used to provide targeted financial relief when operating costs spike suddenly.
Further reading
Learn more about the challenges facing the region in our Minnesota Agriculture section.
Source note: This article includes information reported by KNSI.
Live Poll
Should states reduce fuel taxes to provide financial relief to local farmers?
