EPA’s repeal of the endangerment finding could be the largest deregulation in history, and it will have a huge impact on agriculture and the biofuels industry.
If the agency no longer determines greenhouse gases a danger to human health and welfare, it will relax federal emissions standards for cars and trucks. However, it also changes emissions regulations on farm equipment and could get rid of the requirement to use diesel exhaust fluid.
So what will life be like after DEF?
Farmers Happy to See DEF Die
Dalton Kenning, a farmer in Shelton, Neb., says: “Taking DEF off the table, it would kind of just simplify things a little bit more.”
He explains it doesn’t help the engines in tractors, combines or semitrucks run any better.
“I think that’s why you’ve seen a lot of producers go away from it, whether that’s deleting something or, you know, because that machine’s built to run more efficient than without it,” Kenning says.
What Does it Mean for Equipment Manufacturers?
For equipment manufacturers, it will require a change in engineering and design on engines — but it’s easier than meeting the stricter Tier 5 requirements.
Brandon Montgomery, senior brand marketing manager at Fendt North America, says they will be ready.
“We had Tier 3 engines with DEF and without DEF for countries that don’t have that as a requirement,” Montgomery says. “So, we have the knowledge base how to do it.”
However, he says, they and all OEM manufacturers must comply with current and future EPA emissions standards. His company released this statement:
Fendt and AGCO are closely monitoring ongoing regulatory discussions related to emissions requirements. While Fendt has experience designing engines to meet a wide range of global regulations, the company has made no decisions regarding changes to North American products or retrofit offerings. AGCO and its brands, including Fendt, will continue to build machines that comply with all appropriate regulations in the markets they serve.
The company has produced engines in the past that were compliant without DEF, but doing it for the U.S. market again would require:
- Various engine and vehicle architecture changes
- Revalidation of hardware, software, and emissions systems
- Full regulatory approval
He says it’s not possible to simply remove DEF components and expect the machine to operate properly or remain compliant with whatever EPA sets as the latest standard.
Retrofit for Older Machines?
Some farmers avoided DEF by buying older, used equipment. There may be some now who try to convert newer machines back so they don’t have to use DEF. It takes more than just changing the software, as most modern emissions systems are considered integrated ecosystems built around software, hardware, sensors and aftertreatment components. Then there’s the added costs of reegineering, testing and getting new regulatory approvals.
Overall, Montgomery says it’s possible but there are a lot of factors to consider. Can the industry go back to equipment without DEF? Yes, but it’s not simple.
Will it Lower Fertilizer Prices?
The other possible upside is the impact it could have on nitrogen fertilizer prices, according to Josh Linville, vice president of fertilizer at StoneX.
“Obviously, a lot of nitrogen fertilizer is used to make this DEF product. The very, very long story short is, you do away with DEF, and that puts a lot of fertilizer back in the hands of the farmer who can go use that to grow our food,” he says.
He cautions that won’t happen overnight, but it could start to ease some of the supply and price pressure on nitrogen fertilizer products.
Linville says: “It’s not going to solve nitrogen. It’s very important to note that we will still ebb and flow with global pricing, but having more of that product not being put into this DEF marketplace means it’s more tons at home. It means we can disconnect longer. It means we don’t have to move to a premium quite as hard as what we normally would as we start moving in the spring.”
And more supply is a good thing.
