Biofuels
The lack of guidance for a new clean-fuel tax credit is causing biofuels producers to put off some purchases of soyoil for early next year.
The shift to climate-smart farming emphasizes low-carbon crop yields for biofuels, with 45Z tax credits starting Jan. 1, 2025. Farmers should consider profitable changes while documenting their existing sustainable practices.
There is still uncertainty about whether the guidance for the 45Z credit will be available before the credit takes effect. This could potentially create challenges for producers planning to claim the credit in early 2025.
“No matter what your opinion is about climate smart farming or the government initiatives and industry incentives out there, they are potentially an avenue to square up some revenue income,” says Ken Ferrie.
The Farmer First Fuel Incentives Act has been introduced in both the Senate and the House. A bipartisan group of lawmakers has proposed extending the 45Z tax credit through 2034.
Jerry Gulke wonders if the unintended consequences from failed biofuels policies are really unintended at all.
On the heels of the recent debate, we’d like to know which presidential candidate, Democrat Kamala Harris or Republican Donald Trump, you believe will have a more positive impact on agriculture.
U.S. corn prices hit a four-year low as the prospect for record corn and soybean crops takes shape in the field. The eroding outlook also appeared in the August Ag Economists’ Monthly Monitor.
A Harris administration would likely continue the “climate-smart” initiatives in the Inflation Reduction Act, but a second Trump administration would put the future of sustainable aviation fuel in question and extend the use of liquid fuels.
Gradable has more than 20,000 farmers users totaling 12 million acres and has facilitated more than $30 million in financial incentives for sustainable/regenerative practices every year.