By Jamie Martin
The American Farm Bureau Federation, American Soybean Association, National Corn Growers Association, and National Farmers Union have collectively reached out to U.S. Treasury and Budget officials. They are requesting modifications to the Clean Fuel Production Credit (45Z) to make it more farmer-friendly.
These groups argue that the current lack of domestic feedstock requirements allows foreign competitors to benefit from the credits, undermining U.S. farmers and rural economies. They suggest implementing a mandate that only domestically grown feedstocks, like corn and soybeans, qualify for these credits, aligning with national agricultural support objectives.
The sustainable aviation fuel (SAF) credit's stringent requirements and complex paperwork hinder many farmers from participating. The required adoption of climate-smart agriculture practices such as no-till farming, cover cropping, and using enhanced efficiency fertilizers involves significant investments that many farmers find prohibitive.
The farm groups are calling for simplified compliance options for these practices, making it easier for U.S. farmers to meet the criteria without excessive bureaucratic burdens.
By adjusting these policies, the administration could make these environmentally beneficial credits more accessible and economically viable for American farmers.
Photo Credit: american-farm-bureau-federation
Categories: National