The Trump Administration recently released a series of actions designed to strengthen support for regenerative agriculture practices, including an Executive Order signed by the president and the announcement of a new regenerative biofuel feedstock rule by USDA. In response to these developments, Ohio farmer and National Corn Growers Association President Jed Bower released the following statement: “We appreciate the administration’s recognition of the value biofuels provide for our country’s energy supply and security. For decades, corn farmers have provided a renewable, domestically produced energy source for our nation’s drivers and we are ready to provide even more for many years to come. “We also appreciate the administration’s recognition that farmers have always cared for their land. This is true of every farmer I know. As noted by USDA, it’s also true we have embraced for years many practices that are considered regenerative, with nearly 70% already implementing at least one practice. “Thanks to wide-scale adoption of precision agriculture tools by corn farmers, we are more efficient and effective with our resources than ever before. We welcome further investment in this space that will continue our ability to efficiently produce food, fuel and fiber for our world. We additionally welcome expeditious EPA reviews of new pesticide products that will continue supporting our efforts. “Corn growers have been and continue to be open to ongoing dialogue and engagement on this important topic, and we look forward to closely reviewing the Regenerative Feedstock Rule.”
Today, ASA applauded Agriculture Secretary Brooke Rollins for publishing the Regenerative Feedstock Rule, which provides a framework for farmers to enhance the value of biofuel feedstock crops like soybeans by employing voluntary conservation practices. The final Regenerative Feedstock Rule will supplement forthcoming final tax guidance for the 45Z Clean Fuel Production Credit and increase the credit value for biofuels produced from feedstocks grown using covered conservation practices. “ASA applauds Secretary Rollins and USDA for finalizing the Regenerative Feedstock Rule, which will unlock a new premium soybean market by empowering farmers to produce value-added biofuel feedstocks using on-farm conservation practices,” said Scott Metzger, ASA President and farmer from Williamsport, OH. “Domestic markets, bolstered by biomass-based diesel industry expansion, improve basis and expand a reliable, local customer base for our soybeans. Soybean farmers fought hard to improve 45Z to support domestic market growth for U.S. soy, and for the first time ever, the USDA Regenerative Feedstock Rule will ensure that the 45Z biofuel tax credit will not only benefit biofuel producers, but the farmers who produce homegrown regenerative biofuel feedstocks.” ASA has strongly supported the work of USDA to develop the Feedstock Carbon Intensity Calculator as part of the final rule so that farmers may realize the value-added potential of their crop. ASA appreciates USDA for honoring the commitment to solicit farmer feedback on the new tool, which included individual farmer beta testing and demonstrations at our annual trade show. Regenerative agriculture practices covered by the rule include cover crops and conservation tillage. According to USDA, 70% of U.S. soybean farmers already employ at least one of these regenerative practices.
Last year, the Working Families Tax Cuts Act made two critical improvements to the 45Z Clean Fuel Production Credit that were championed by ASA:
- Removing a provision that arbitrarily penalized agricultural biofuel feedstocks based on farming practices overseas and
- Establishing a North American ringfence to ensure the tax credit benefits fuels produced and sourced from our region rather than incentivizing imports that displace U.S. soybean oil. ASA is urging Treasury and IRS to swiftly finalize 45Z tax guidance that incorporates the improvements.
The domestic biomass-based diesel industry is poised for significant growth this year, with expanded capacity to process an additional 140 million bushels of soybeans expected by the 2026 harvest. Investments in the biofuel value chain are largely the result of actions taken by the Trump Administration and Congress, including the statutory improvements to 45Z, strong renewable volume obligations released by EPA earlier this year, and today’s publication of the USDA Regenerative Feedstock Rule. While the final Regenerative Feedstock Rule will expand economic opportunities for farmers located near biofuel production, current traceability standards will prevent farmers in other regions from accessing the benefits. ASA encourages USDA to address this regional disparity as work continues to enhance and expand the rule in the future. ASA will continue working with the administration to complete the final tax guidance for the 45Z Clean Fuel Production Credit and increase the credit value for biofuels produced from feedstocks.
Today, Clean Fuels Alliance America thanked Agriculture Secretary Brooke Rollins for finalizing the Production of Regenerative Agricultural Biofuel Feedstocks rule and for providing an updated version of the USDA Feedstock Carbon Intensity Calculator (USDA FD-CIC). The rule provides U.S. farmers practical guidelines to implement regenerative agriculture practices and calculate additional value from providing feedstock to domestic biodiesel, renewable diesel, and SAF producers. “Clean Fuels and its members thank Secretary Rollins for finalizing rules that will help farmers get more value from the expanding domestic market for biomass-based diesel,” said Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs. “We appreciate USDA’s responsiveness to industry input and simplification of the calculator. We look forward to future updates that will provide farmers additional feedstock and regenerative agricultural management options.” In comments to the interim rule published in January, Clean Fuels recommended that the Feedstock Carbon Intensity Calculator include all feedstock pathways approved under the Renewable Fuel Standard. Clean Fuels specifically requested that the calculator include intermediate oilseeds – e.g., winter canola and pennycress – and conservation crop rotation as a regenerative agriculture practice. Clean Fuels will continue to contribute to research that will quantify the emissions reduction benefits of conservation crop rotation. The U.S. Treasury has stated that it intends to enable biofuel producers to utilize the Carbon Intensity Calculator in calculating 45Z Clean Fuel Production Credit values for 2025 and 2026. The Department of Energy and Argonne National Labs must first incorporate the calculator as a module in the 45ZCF-GREET model and Treasury must then issue guidance allowing taxpayers to claim enhanced 45Z credits.
