Tim Brunner, a rancher near Great Falls who serves as president of the Montana Cattlemen’s Association, said he doesn’t expect recent efforts by President Donald Trump and Gov. Greg Gianforte to mitigate the high cost of diesel to result in much financial relief for his ranch.
Lt. Gov. Kristen Juras issued an executive order on Friday that allows commercial vehicles engaged “directly in agricultural or timber industry operations” to use red-dyed diesel on public roads until Nov. 23. The order comes about a week after President Donald Trump signed an executive order suspending a federal law that bans the use of red-dyed diesel in vehicles on public roads.
Red-dyed diesel is the same as diesel — a fuel commonly used in heavy machinery, semi trucks and many pickups — except for its color and substantially lower tax rate. The dyed fuel is reserved mostly for agricultural use in Montana. That’s why it’s exempt from taxes that pay for highways, and why it’s usually illegal to drive with red-dyed diesel on public roads.
On Friday, Trump announced on Truth Social a plan to import about 800,000 tons of diesel fuel — about a day and a half’s worth of U.S. demand — from Russia before the end of November. The post also indicated that another 4 million tons will arrive from Russia sometime later.
The price of diesel has spiked this year as a result of the U.S. conflict with Iran and Ukrainian strikes on Russian refineries, prompting federal and state government efforts to mitigate the price spikes ahead of November’s midterm elections.
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Jeffrey Michael, director of the University of Montana’s Bureau of Business and Economic Research, is also skeptical that the Trump-announced diesel imports will ease prices. Diesel fuel is priced similarly — currently at a historic high because of the foreign conflicts — worldwide. Newly available domestic supplies in the U.S. probably won’t bring down the global price.
Montana ranks No. 4 among American states for diesel vehicles per capita, according to Michael. And it’s No. 8 in the amount spent on diesel per dollar of gross domestic product, an economic measure that totals the state’s output of goods and services.
Walt Schweitzer, president of the Montana Farmers Union and a frequent critic of Trump’s trade policies, also expressed doubt that new diesel imports will help agricultural producers.
“If he really wanted to have a positive impact on our diesel price, he would quit exporting our diesel and keep it here,” Schweitzer said.
Schweitzer also highlighted logistical obstacles that might undermine Gianforte’s efforts to provide financial relief to truckers. For instance, gas station aisles with dyed-diesel pumps — there is often one per station — may not physically accommodate semi trucks. Plus, increased demand for dyed diesel may also increase the chances of exhausting rural supply chains. And because the legality of driving on public roads with dyed diesel varies by state, Schweitzer said, the new policy may be “confusing and difficult to manage” for interstate truckers.
And for Montana farmers, he said the policy comes “too late.”
“Most of the farmers that are hauling grain to the elevators have done that already,” Schweitzer said.
Brunner, the Great Falls rancher, is also skeptical that the state’s temporary allowance for dyed diesel will provide much relief. He pointed out that the dye stays in vehicle tanks even after the fuel is spent, so if a driver gets pulled over after the exemption expires in late November, a test could show a false positive and lead to fines.
“In another year, get your tank dipped. It shows red. There’s $1,000 right there,” Brunner said.
Brunner is trying to keep his ranch’s books balanced. Over the weekend, he hired a few semi trucks and drivers to bring his herd, which summers 125 miles to the north, back home. He got his bill on Monday. Unlike the one in spring, it included an 8.5% diesel surcharge.
“It’s ridiculous,” Brunner said.
And he has even more diesel-related costs on the horizon. When he ships cattle to feedlots in the Midwest in the coming months, he’ll pay for the fuel premium. It will also show up when he sells and ships his hay.
“What doesn’t diesel affect?” Brunner asked. “Every single thing we do, everything we eat and use, everything depends on diesel.”
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