WASHINGTON – On Tuesday, the U.S. Department of the Treasury and Internal Revenue Service released guidance on the 40B GREET model for sustainable aviation fuel tax credits. The new guidance has been long awaited by the agriculture industry and was largely welcomed by members of the industry on Tuesday afternoon.

In a news release from the Treasury Department, U.S. Secretary of the Treasury Janet L. Yellen said “Incentives in the law are helping to scale production of low-carbon fuels and cut emissions from the aviation sector, one of the most difficult-to-transition sectors of our economy. Today’s guidance provides additional clarity and certainty to companies and producers.”

“Sustainable aviation fuel is a key part of the Biden-Harris Administration’s efforts to transition the American economy to a clean energy future and rebuild the middle class from the bottom up to the middle out in rural America,” said U.S. Secretary of Agriculture Tom Vilsack in Tuesday’s news release. “Today’s announcement is an important stepping stone as it acknowledges the important role farmers can play in lowering greenhouse gas emissions and begins to reward them through that contribution in the production of new fuels. This is a great beginning as we develop new markets for sustainable aviation fuel that use home grown agricultural crops produced using climate smart agricultural practices. USDA will continue to work with our federal agency partners to expand opportunities in the future for climate smart agriculture in producing sustainable aviation fuel.”

Many members of the agriculture and biofuels industry have weighed in on the new tax credit guidance as well. Geoff Cooper, President and CEO of the Renewable Fuels Association (RFA), said “Today’s guidance and modified GREET model help position ethanol-based SAF for takeoff, but more work is needed to fully clear the runway and get this opportunity off the ground. We are encouraged that, for the first time ever, this carbon scoring framework will recognize and credit certain climate-smart agricultural practices. We’re also pleased to see the integration of other carbon reduction strategies—like renewable process energy and carbon capture and sequestration—into the model. However, RFA believes less prescription on ag practices, more flexibility, and additional low-carbon technologies and practices should be added to the modeling framework to better reflect the innovation occurring throughout the supply chain.”      

Growth Energy CEO, Emily Skor said, “This guidance crosses an important threshold in carbon modeling, recognizing for the first time that farming techniques can reduce the carbon intensity of crops, and, by extension, bioethanol production. It’s also the first time Treasury has used the Argonne National Laboratory’s GREET model in federal tax policy. These are promising big-picture developments and signal that agriculture is a key part of our nation’s climate strategy. The new 40B GREET model is trending with scientific consensus when it comes to measuring indirect land use change (iLUC). Years’ worth of peer-reviewed research has shown that this number has been decreasing when it comes to bioethanol production. We hope future guidance for the 45Z tax incentive follows this trend and continues to reflect the falling iLUC values for American biofuels. Still, the administration’s restrictive all-or-nothing approach to recognizing the value of climate smart agriculture practices may ultimately limit innovation and make farmers, blenders, and producers less – not more – likely to invest in emissions-reducing technologies. America’s potential SAF producers and their farm partners need flexibility to find the path that works best for them, but these rigid guidelines will leave carbon reductions on the table.”

““Clean Fuels and its members appreciate the significant work of USDA and other federal agencies to account for the role that U.S. farmers will play in decarbonizing the nation’s aviation fuel,” said Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels. “U.S. farmers and SAF producers will continue to work with the agencies to rapidly expand SAF production over the next few years.”

Josh Gackle, American Soybean Association President, commented on the news saying “For growers like me here in North Dakota, short growing seasons and unpredictable fall weather make the cover crop requirement alone next to impossible. Growers in the Northern Plains do so when possible. However, employing both no till and cover cropping is contrary to what Mother Nature will allow, no matter what the guidance specifies.”

You can view more comments from industry here: https://americanagnetwork.com/2024/04/treasury-department-releases-new-40b-greet-model-for-saf-tax-credits/

Read more from the Treasury Department here: https://home.treasury.gov/news/press-releases/jy2307

WASHINGTON, DC — House Committee on Agriculture Chairman Glenn “GT” Thompson (PA-15) released the following statement after sharing a title-by-title overview of the bipartisan policies and priorities included in the 2024 farm bill.

“This bill is a product of an extensive and transparent process, which included soliciting feedback from Members of both political parties, stakeholder input from across the nation, and some tough conversations. Each title of this farm bill reflects a commitment to the American farmer and viable pathways to funding those commitments, and is equally responsive to the politics of the 118^th Congress. The Committee on Agriculture will markup this bill on May 23, and I hope for unanimous support in this endeavor to bring stability to producers, protect our nation’s food security, and revitalize rural America.”

The title-by-title document can be found here.

Regulatory overreach was at the top of concerns for lawmakers and farm leaders this week, as both EPA and Labor Department rules drew renewed attention.

Environmental Protection Agency Administrator Michael Regan told a House panel his agency and the Army Corps are implementing a revised Waters of the U.S. or WOTUS rule that complies with last year’s Supreme Court ruling. Regan said, “We’ve codified the clarifications, codified and clarified exclusions in support of farmers, like prior-converted cropland, and for ranchers, like the artificial ponds used for drinking water. A lot of good things that were preserved, as well.”

Regan says the Army Corps resumed WOTUS determinations after the EPA revised its much-criticized earlier rule. That, after the Supreme Court rejected 9-0 last May, EPA’s ‘significant nexus test’ in favor of an ‘observable surface connection’ to a navigable water to define a wetland. He says, “We are following the prescribed direction of the Supreme Court and want to ensure that we provide certainty to our states, as soon as possible.”

The American Farm Bureau charged EPA’s final rule was vague in defining ditches or other farm features that fill with water only sometimes, using a vestige of a much earlier Supreme Court ruling to preserve regulatory intent.

Separately, AFB says the Labor Department is “burying farmers and other H-2A employers” in 3,000 pages of rules in the last 18 months, including 600 pages just last week. AFB’s John Walt Boatright says H-2A rules and costs are already hard enough to meet.

Boatright says, “These new rules just exacerbate those regulatory burdens and those costs even further. So, it’s going to lead to a lot of farmers, particularly small family farms, to have to make some pretty significant decisions.”

Boatright says only Congress can reform Ag labor laws but has failed to do so for decades as the migrant Ag labor issue became entangled in the broader, politically charged debate over illegal immigration.

Story courtesy of NAFB News Service and Matt Kaye/Berns Bureau Washington

Washington, D.C. – U.S. Senator Roger Marshall, M.D. led a letter to the Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration urging leadership to include funding for a disaster program to address 2023 agricultural losses as they begin the stages of drafting the Fiscal Year 2025 funding bill.

Simultaneously, Senator Marshall introduced legislation with a specific aim to ensure proper guardrails on the funding. This legislation addresses concerns with USDA’s emergency relief payment program, which applied a “progressive payment factor” that ultimately paid more to absentee landlords than full-time farm families. The legislation would require USDA to provide these funds in a manner that mirrors a previous, widely praised, program.

The American Farm Bureau Federation estimated that agricultural losses in 2023 exceeded $21 billion, with roughly half of this amount not covered by crop insurance or the noninsurance crop disaster assistance program. These severe losses significantly harm farmers, ranchers, and producers nationwide.

“The National Sorghum Producers strongly supports Senator Marshall’s legislation and letter to create an Emergency Relief Program for 2023 losses,” National Sorghum Producers Chairman Craig Meeker said. “Farm and ranch families from across the country were hurt by natural disasters last year but perhaps none so much as those producers dealing with multiple years of losses due to severe and chronic drought.  Senator Marshall’s request would ensure that ERP is properly implemented so help gets to the farm and ranch families most impacted by production losses. We commend Senator Marshall for his hard work and urge his colleagues in Congress to pass this important legislation.”

You may click HERE to read Senator Marshall’s full bill text.

You may click HERE to read Senator Marshall’s full letter.

The National Agricultural Aviation Association is participating in Ag on the Mall at the National Mall in Washington, D.C., May 6-8. Themed the Future of Food and Farming, Ag on the Mall celebrates and showcases America’s equipment manufacturers, farmers, ranchers, and innovators all working together to drive the tradition of doing more with less environmental impact.

The NAAA booth will display an aerial application Bell Jet Ranger Helicopter equipped with a liquid spray system for applying crop protection materials. The helicopter, along with a spray boom simulation model and other informational displays, will give federal legislators, regulatory officials, and National Mall visitors an up-close opportunity to learn about the essential role ag aviation plays in modern food production.

American farmers use aerial application to treat 127 million acres or approximately 28 percent of cropland each year to help control insects and plant diseases and to apply fertilizer and seeds more efficiently.

Alexis Taylor, USDA Undersecretary for Trade and Foreign Agricultural Affairs, leads an agribusiness trade mission to Bogota, Colombia, August 13-15. USDA is still accepting applications from current and potential U.S. exporters interested in joining the delegation.

“Colombia represents a top-tier food and agricultural export destination for American farmers, ranchers, and processors,” she says. Colombia is the largest South American market for U.S. agricultural products and the seventh-largest market for U.S. food and beverage exports globally. Since the U.S.-Colombia Trade Promotion Agreement was implemented in 2012, America’s agricultural exports to Colombia have grown 237 percent, reaching a record $3.7 billion in 2023.

“As the second-most populated country in South America, Colombia enjoys highly favorable demographics coupled with 20 years of continuous economic growth that saw a 36 percent increase in median household income,” Taylor adds. U.S. agribusiness representatives will meet with potential importers from across Colombia, and FAS staff will provide market briefings.

USDA data says inspections of corn and beans for overseas delivery declined week to week while wheat assessments improved. Corn inspections during the seven days ending on April 25 fell to 1.23 million metric tons. The agency report says that was down from 1.66 million a week earlier and 1.52 million during the same week last year.

Soybean assessments totaled 250,332 tons, down from 443,508 tons during the previous week and 407,973 tons at the same point last year. Wheat inspections were up to 481,183 tons last week, up from 450,323 tons the week prior and more than 365,500 tons the same week in 2023. Since the start of the marketing year, USDA has inspected 31.6 million metric tons of corn for export. That’s up from 23.9 million tons assessed during the same time last year. Soybean inspections now total 39.7 million tons versus 47.5 million during the same time last year.

(WASHINGTON D.C.)– On Tuesday, the U.S. Treasury Department released a highly anticipated update to the Department of Energy’s Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) for guidance on how feedstocks like corn ethanol can qualify for sustainable aviation fuel (SAF) under the Inflation Reduction Act’s 40B tax credit. Read more from the Treasury Department here: https://home.treasury.gov/news/press-releases/jy2307

This is a developing story. Industry reaction can be found below:

National Oilseed Processors Association Statement on Release of SAF GREET Model 

WASHINGTON, April 30, 2024 – The National Oilseed Processors Association (NOPA) today welcomed the Biden Administration’s release of the Greenhouse Gases, Regulated Emissions and Energy Use in Technologies (GREET) model which will open new market opportunities and pave the way for increased production of Sustainable Aviation Fuel (SAF).

NOPA President and CEO Kailee Tkacz Buller made the following statement:

“Acknowledging, for the first time, the carbon benefits that climate-smart agriculture practices can deliver is a significant step to ramping up SAF production and NOPA is pleased to see the updated GREET model recognize the positive environmental impact of U.S.-produced biofuels.

“However, we are concerned the requirement to implement climate-smart ag practices simultaneously will limit this opportunity, particularly in parts of the country where it may not be possible to plant a cover crop or the cost to implement new practices is too steep. We look forward to further reviewing today’s announcement and having a continued dialogue with the administration to better understand what this and other provisions, including indirect land use change impact, mean for the industry and how we can competitively and efficiently meet the needs of the SAF market.

“Since 2021, NOPA members have made over $6 billion in investments supporting a 1-billion-gallon increase in capacity while reducing the soybean supply chain carbon footprint by 19%. This was made possible through improved soil health and water quality, decreased chemical application, implementation of no till practices, expansion of cover crops, and transitions from coal to natural gas fuel sources- all while improving yields.

“These direct examples reiterate that the oilseed industry stands ready to work alongside the Biden Administration and the airline industry on the expanded use and production of U.S. farmer grown biofuels to drive innovation, cut aviation emissions, and create U.S. jobs,” Buller said.

About National Oilseed Processors Association (NOPA):

Founded in 1930, NOPA is the national trade organization located in Washington, DC representing the U.S. soybean, canola, flaxseed, safflower seed, and sunflower seed crushing industries. Our 15 members operate a total of 62 soybean & 5 softseed solvent extraction plants across 21 states. NOPA members produce meal and oil used in human food, animal feed, fuel and for industrial applications. Collectively, NOPA members process 95 percent of all soybeans in the U.S. which accounts for approximately 2 billion bushels annually. For more information on NOPA, visit www.nopa.org.