USDA rule addresses biofuel tax credit

On Jan. 15, the U.S. Department of Agriculture published an interim rule that provides guidelines for climate smart agriculture practices for crops used for biofuels.

The tax credit, part of the Inflation Reduction Act, is designed to help the agricultural industry make inroads into the aviation sector. Farmers have long awaited the release. 

The new rule removes the requirement to bundle climate smart practices and instead allows corn to qualify as an eligible feedstock if individual practices are used to grow it. But farmers have also asked for more clarity on how they will benefit from the law.

“We are appreciative of Secretary Vilsack for ushering the process along and increasing the number of corn bushels that would qualify for the tax credit,” said Kenneth Hartman Jr., Illinois farmer and National Corn Growers Association president “It is still unclear whether that is enough to enable farmer participation.”

Additional opportunities for improvement would include the use of a book and claim system and the expansion of practices that would qualify for the credit, both of which would allow for greater farmer participation.… Continue reading