Smith: President Donald Trump's recent executive order eased the limits on usage of tax-exempt dyed diesel fuel to give farmers a break during the busy harvest season, when demand is at its highest. Faith Parum, deputy chief economist for the American Farm Bureau Federation, talked about the potential impact of the decision.

Parum: We like that it urges states to have flexibility for dyed diesel usage and defers the federal tax. We do need state regulations to change to allow it to be used in all 50 states, so we're encouraging farmers to talk to their governors and make sure that they can use dyed diesel in their state.

Smith: The announcement happened as fuel demand peaks for U.S. farmers.

Parum: Fall is a very intensive fuel time. Along with harvesting, there is winter wheat planting, and all of those activities need diesel. And that increased cost of diesel is really hurting farmers' budget. We already know that commodity prices are low, production expenses continue to increase, so this just further compounds that pressure that they've been feeling these last four years.

Smith: She said there are other steps that can be taken to help farmers during harvest.

Parum: Well, first, we need all states to allow red-dyed diesel usage. So, we want to make sure that state government look and work with their farmers to make sure it makes sense for them. On the federal side, we'd like a complete removal of the tax on diesel. Um, so we look to Congress to see what they can do before the end of the year to help make sure that this relief is felt by farmers.

Smith: Chad Smith, Washington.