Johnston County Farmers Can Now Use Dyed Diesel On Highways Without State Penalties

Temporary State Relief Remains In Effect Through Dec. 31, 2026

JOHNSTON COUNTY, N.C. — Johnston County farmers can now use dyed diesel fuel in highway vehicles without facing state penalties through the end of the year, providing immediate relief as farmers enter one of the most fuel-intensive times of the year.

On Wednesday, Gov. Josh Stein directed the N.C. Department of Revenue to suspend state penalties associated with highway use of dyed diesel through Dec. 31.

The action allows farmers who already have stores of dyed diesel for tractors and other off-road equipment to use that fuel in vehicles traveling on North Carolina highways without being penalized by the state.

The change comes during harvest season and amid sharply higher diesel prices.

Dyed diesel, sometimes called farm or off-road diesel, is commonly used in tractors and other agricultural equipment. It normally cannot be used in licensed highway vehicles because state and federal highway fuel taxes are not included in its price.

The temporary relief could have a significant impact in Johnston County, one of North Carolina’s major agricultural counties.

According to the latest U.S. Department of Agriculture Census of Agriculture, Johnston County had 964 farms covering 174,111 acres in 2022.

Those farms sold nearly $300 million in agricultural products that year.

Farmers typically use large amounts of diesel during harvest to operate combines, tractors and other equipment, as well as trucks used to move crops and supplies.

Gov. Stein said rising fuel prices are adding to an already difficult year for agriculture.

“North Carolina farmers have been feeling the squeeze of tariffs, drought conditions, crop loss, and skyrocketing diesel prices,” Stein said. “And our families are struggling with the cost of groceries.”

Stein said the temporary relief is intended to lower farmers’ costs during harvest and reduce pressure on food prices.

North Carolina Farm Bureau President Shawn Harding said diesel expenses have become the leading concern he is hearing from farmers.

“Diesel expenses have been the number-one concern I’ve heard from farmers in what has already been a challenging year,” Harding said.

The N.C. Farm Bureau and other agricultural groups had asked the governor for relief.

There is one important limitation to the state action.

Stein’s directive removes North Carolina penalties, but it does not by itself eliminate federal restrictions on highway use of dyed diesel.

The governor has asked the Internal Revenue Service to grant similar federal penalty relief.

The state relief remains in effect through Dec. 31.