Federated Farmers sees the exemption from road user charges for utes and other light diesel powered trucks as a great gain for farmers.
The organisastion says the move will save farmers money and spare them a lot of paperwork.
The arrangement applies to light diesel vehicles weighing less than three and a half tonnes. It replaces an existing exemption for light diesel vehicles and comes into force on 6 June.
Federated Farmers transport spokesperson Ian Mackenzie says before it negotiated the replacement deal, farmers were faced with the prospect of having to pay road user charges at the full rate and then go through a complex and cumbersome process to get a refund.
Mr Mackenzie says as well as farmers it will benefit others who operate light diesel vehicles almost exclusively off-road.
That includes the Defence Force, foresters, universities and research centres, Search and Rescue and tourist operators.