National Sorghum Producers applauds U.S. Secretary of Agriculture Brooke Rollins and the U.S. Department of Agriculture for finalizing the Regenerative Feedstock Rule, an important step toward helping farmers capture additional value from biofuel feedstock crops, including sorghum, through voluntary conservation practices.
The final rule provides a framework for producers to document and verify eligible practices that may enhance the value of feedstocks used in biofuel production under the 45Z Clean Fuel Production Credit. Covered crops include sorghum, corn, soybeans and spring canola.
“National Sorghum Producers thanks Secretary Rollins and USDA for recognizing the role farmers play in building strong domestic energy markets and creating new opportunities for value-added agriculture,” said NSP Chair Amy France, a sorghum producer from Scott City, Kansas. “Sorghum is well positioned for this moment. Our producers have long understood the value of efficiency, resilience and practical conservation, and this rule is an important step toward ensuring those practices can create real market opportunities at the farm gate.”
The rule establishes a framework for field-level carbon intensity accounting, traceability, auditing and verification for eligible feedstocks. USDA also released an updated Feedstock Carbon Intensity Calculator to help producers estimate the value of approved practices, including cover crops, conservation tillage, no-till and improved nutrient management.
While USDA’s final rule is a critical step, additional federal guidance is still needed to fully implement the 45Z Clean Fuel Production Credit. NSP urges Treasury in coordination with USDA and the Department of Energy, to swiftly finalize practical tax guidance that reflects the improvements made by Congress and allows farmers, biofuel producers and supply chain partners to move forward with certainty.
Investments in the biofuel value chain are critical to expanding domestic demand for American-grown crops, strengthening rural economies and creating new opportunities for producers. NSP looks forward to working with Secretary Rollins, USDA, Treasury and the DOE to ensure sorghum producers can fully benefit from the next generation of biofuel markets.
