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Diesel tax breaks make limited impact as prices remain high

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Source: North Dakota Monitor

Moves to provide help for farmers, truckers and others hit by high diesel fuel prices are having a limited effect in North Dakota. For some farmers, loosening up restrictions on the use of lower-taxed diesel came too late and was complicated by farming in two states following different sets of rules. North Dakota on Sept. 29 announced it would allow expanded use of a lower-taxed diesel. The cheaper diesel, which is dyed red, is normally only allowed in tractors, combines and other off-road field equipment. Gov. Kelly Armstrong’s order allows red diesel for hauling grain on highways and for other on-road agricultural jobs. But highway use only accounts for about 5% to 15% of a typical farm’s diesel use, said Matthew Gammans, assistant professor in NDSU’s Department of Agribusiness and Applied Economics. Far more diesel is used in field equipment that could already use the cheaper fuel.

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Montana Free Press · Dillon, MT

From bus routes to ball games, diesel prices are squeezing rural Montana school budgets

At Beaverhead County High School in the southwest corner of Montana, superintendent Josh Patterson had a dilemma last month when the school’s football team, the Beavers, qualified for a state playoff game in Whitefish. Patterson had to get students back and forth from Dillon to Whitefish, a roughly 12-hour round-trip bus ride. “ What used to be a celebration has now become a quick kind of scramble to calculate, ‘Ok, how are we going to afford this?’” Patterson said. And Patterson is not alone in trying to reconcile the high cost of fuel with already strapped school budgets, especially in smaller districts. Rural school districts across the state are coping with the elevated price of diesel, a result of tensions in the international market. Everyday bus routes are partially subsidized by state and county governments, but the majority of the bill is still paid by local school districts.

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