Ohio farmers welcome gas tax holiday but say more relief needed
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Ohio's new gas tax holiday is arriving when farmers could use the break, but agricultural leaders say cheaper fuel will go only so far as rising costs squeeze farm budgets.
Why it matters: Agriculture is Ohio's No. 1 industry, and the upcoming harvest season demands a lot of fuel.
- Farmers are already paying more for fertilizer, equipment and other necessities.
Driving the news: The state suspended its fuel tax of 38.5 cents per gallon on gasoline and 47 cents on diesel.
- Ohio Farm Bureau spokesperson Ryan Matthews calls it "a step toward short-term relief" as farmers head into harvest season.
State of play: Farmers need diesel to run tractors, combines and other equipment and to haul crops to processors, retailers and other buyers.
- Matthews says diesel alone can add about $30 per acre to the cost of producing corn.
Yes, but: Fuel is only one part of the squeeze. Overall farm input costs have climbed more than 38% since 2018, compared to a 24% increase in crop prices, according to the Farm Bureau.
- Farmers have little control over commodity prices, making it difficult to offset higher costs, Matthews says.
Zoom in: Farm groups are asking Ohio to give farmers more flexibility to use tax-exempt dyed diesel for agricultural transportation.
- Dyed diesel is regular diesel fuel with a red dye that signals to inspectors it's tax-exempt because it's intended for off-road uses.
- Farmers already use the cheaper fuel in tractors and other equipment, and groups say expanded access to road vehicles would help a lot.
The big picture: The Farm Bureau is also pushing for a new five-year farm bill.
- Congress hasn't passed a comprehensive farm bill since 2018.
- Matthews says a new one could strengthen the farm economy by helping farmers weather falling prices, crop losses and other risks while supporting research, conservation and access to credit.
- The House passed its version in April, while the Senate Agriculture Committee has advanced its own.
- A final bill has yet to reach the president.
What they're saying: U.S. Rep. Greg Landsman, D-Cincinnati, tells Axios that Congress needs to pass a bipartisan farm bill "as soon as possible."
- "Our farmers can't wait any longer."
The bottom line: Matthews says the gas tax holiday offers welcome relief, but farmers still need long-term solutions.