By Jamie Martin
Corn growers are at a crossroads following recent updates to the GREET model by the U.S. Department of Treasury. These updates could significantly restrict corn-based ethanol’s eligibility for tax credits aimed at decarbonizing the aviation sector.
The Department of Energy’s Argonne GREET model now requires corn for ethanol to be cultivated using specific conservation practices to qualify for the Inflation Reduction Act's tax credits. These practices include no-till farming, the use of high-efficiency fertilizers, and the planting of cover crops. The changes also involve new assessments on land use impacts, which have adversely affected the carbon scores of ethanol.
Farmers argue that these requirements are impractical over the large and diverse geographic regions where corn is grown. Implementing such specific agricultural practices may not be feasible on all lands, potentially deterring farmers from participating in the sustainable aviation fuel (SAF) market.
The National Corn Growers Association (NCGA) expressed disappointment, stating that the new model challenges corn’s viability as a feedstock for SAF. They argue that corn ethanol can significantly reduce greenhouse gas emissions and are concerned about the administration’s commitment to ethanol as a climate solution.
With the Inflation Reduction Act incentivizing biofuels that demonstrate over 50% reduction in greenhouse gas emissions, the precise measurement of these emissions becomes crucial. The recent model update has sparked a debate among stakeholders about the best path forward for agriculture in environmental initiatives, with corn growers keen on ensuring their crops play a significant role in the nation's environmental strategies.
Photo Credit: national-corn-growers-association
Categories: National