New state tax break for high ethanol content fuel used in ag equipment

(Radio Iowa) – Iowa Governor Kim Reynolds has signed a bill intended to expand the use of ag equipment fueled by higher ethanol blends. It exempt fuel that contains more than 85 percent ethanol from the state excise tax. A John Deere prototype tractor that runs on E-98 was on display at the bill signing ceremony. Deanna Kovar, president of John Deere’s Ag and Turf Division, says the tractor was manufactured in Waterloo.

“We’re excited with the torque curves that we’re seeing,” Kovar said. “It is a diesel-like performance with E98. There’s no diesel exhaust fluid needed in this tractor.” Eastern Iowa farmer Lance Lillibridge has tested the E-98 tractor on his farm. “I clearly think the ethanol tractor outperformed the diesel tractor, not only in how it pulled the equipment,” Lillibridge said, “but just in the efficiency and the fact that we’re going to be spending less on a gallon of fuel to run this.”

Lillibridge says ending the state excise tax on the highest ethanol blends used in farm equipment will be an incentive for farmers buying equipment — and looking to save money on fuel costs. John Deere has not yet said when the tractor will be available for sale.

(Brent Barnett, Brownfield Ag News)