A recap of the order produced by AI is from information released by the State of Arkansas.
Sarah Huckabee Sanders has declared a state of emergency aimed at providing temporary relief to farmers and forestry operators facing sharply higher diesel fuel costs. The governor signed Executive Order 26-15 on September 29, with the order taking effect September 30.
The order temporarily suspends certain state penalties for qualifying agricultural and forestry businesses that use dyed diesel fuel in highway vehicles. Dyed diesel, sometimes referred to as farm or off-road diesel, is normally restricted to uses such as tractors, combines and logging equipment because it is sold at a lower tax rate. Under normal Arkansas law, unauthorized use in a highway vehicle can result in additional taxes and a $10-per-gallon penalty.
Sanders cited what the order calls an unforeseen hardship for Arkansas agriculture and forestry caused by increased diesel prices. The state’s 2026 crop enterprise budgets from the University of Arkansas Cooperative Extension Service were prepared using an assumed diesel price of $2.46 per gallon, which the executive order says is less than half the price prevailing in the state when the emergency was declared.
The order also points to tight fuel supplies. According to figures cited in the declaration from the U.S. Energy Information Administration, U.S. distillate inventories were 13 percent below the five-year seasonal average as of September 11.
Not every farm or logging vehicle automatically qualifies for the temporary relief. Eligible vehicles must fall into Arkansas vehicle Classes 2, 3, 4, 5, 6 or 8. They must be owned and operated by a person or business engaged in agriculture or forestry and be used primarily for that business. The vehicles must also be registered in Arkansas and cannot be licensed under the International Fuel Tax Agreement, or IFTA.
The executive order defines an agricultural operation as a commercial farming business producing food, fiber, grass sod, nursery products or livestock. Forestry operations covered by the order involve timber harvesting from the point a tree is cut through the time the timber is loaded for transportation.
The relief could be significant during the fall harvest. Arkansas has approximately 37,200 farms and ranches covering 13.6 million acres, while forestland covers roughly 18.8 million acres. The governor’s order says agriculture contributes more than $25.6 billion annually to the state’s economy and supports more than 248,000 jobs. Arkansas’ forest industries contribute another $7.3 billion to the economy.
Farmers and timber operators commonly maintain supplies of dyed diesel at farms and logging sites for their off-road equipment. The state says allowing that existing fuel supply to be used temporarily in qualifying road vehicles gives those businesses more immediate access to fuel at a time of elevated costs.
However, the state order addresses Arkansas penalties. Sanders also directed the secretary of the Arkansas Department of Finance and Administration to request dyed-diesel penalty relief from the Internal Revenue Service within three business days of the order taking effect.
Executive Order 26-15 remains in effect through October 30, unless Sanders extends or amends it.
