09/01/06 Potato group seeks fed diesel tax break

Farm and Ranch September 1, 2006 The Washington State Potato Commission wrote President George Bush this week asking him to issue an executive order to temporarily allow the use of off road diesel fuel to be used for on road farm vehicles during the harvest season. Off road diesel fuel, otherwise known as "farm diesel" or "red dyed" diesel, is exempt from the federal highway tax. In its letter the Potato Commission says temporarily allowing the use of this farm diesel in on road farm vehicles is critically needed tax relief for American farmers. The Potato Commission says diesel fuel prices have increased by over 46 cents a gallon since this time last year and the tax relief that would be provided by the requested executive order would result in the savings of 24 cents a gallon. A similar order was issued last year after supply disruptions caused by hurricane Katrina. The Potato Commission letter signed by Executive Director Chris Voigt points out that potato harvest requires high fuel use as a continuous supply of trucks is needed to get the potatoes out of the field to process facilities or storage. Voigt writes that a typical 150 acre field of potatoes requires 106 on road trucks to complete harvest. Allowing the use of farm diesel in those 106 on road trucks would help farmers offset the added cost of fuel due to supply disruptions. He states the exemption should be in place for harvest only during the months of September and October or until the U.S. fuel supply is restored. That's the Northwest Farm and Ranch Report. Brought to you in part by the Washington State Potato Commission. Nutrition today! Good health tomorrow! I'm Bob Hoff on the Northwest Ag Information Network.