Will SAF windfall for farmers be lost in the gobbledegook?

By Matt Reese

There are big dollars behind the idea of Sustainable Aviation Fuel (SAF) being driven by demand from airlines seeking to lower their carbon footprint. Many questions remain, though, regarding the ability for corn and soybean growers in Ohio to get a share of those dollars. There has been plenty of talk about the massive potential market of SAF for crops, but federal policy gobbledegook is making a bureaucratic mess of the matter.

A federal tax credit to incentivize the production of SAF requires lifecycle greenhouse gas emissions of the fuel to be reduced by at least 50% compared to standard petroleum-based aviation fuel. There is no particular recipe or feedstock requirement, just the required reduction in greenhouse gas. Note, this is not a tax credit for the farmer, but a tax credit for the fuel producer.

The feds say the use of soybeans as a feedstock for the production of SAF meets the greenhouse gas reduction requirements, which qualifies the fuel producer for a minimum level Clean Fuels Production Tax Credit.… Continue reading