Monday December 05 Ag News

 LENRD Provides Incentives for RO systems on private wells  

Clean drinking water is essential for the health and wellbeing or all Nebraskans, but especially for young children and the elderly who are more susceptible to the effects of nitrate and chemicals in the ground water.  Cancer, birth defects and other ailments are directly linked to these pollutants in test animals with a high correlation to humans and the level of contamination is only getting worse in sensitive areas of the district.

If you own a private well in Northeast Nebraska, chances are you may have nitrates and other chemicals in your drinking water.  The fact is you cannot smell or taste nitrate and you don’t know what’s in your water until you test it.  

If you do have elevated nitrates in your water, you can protect your family by installing a Reverse Osmosis (RO) system to remove contaminants.  These systems ensure that the quality of your drinking water meets health standards.

The good news is that over 1.2 million dollars is available through the state revolving fund to reimburse private well owners for installing a RO system.  Homeowners are eligible for up to a $4,000 reimbursement for under sink or whole house water treatment systems and It’s easy to apply.

Eligibility Requirements:
 1.    Private wells must be registered with the Nebraska Department of Resources for a onetime fee of $70.  
 2.    Wells must be tested through the State Lab to see if your water qualifies.  You can have you well tested independently or the LENRD offers Free testing.
 3.    Cost estimate from a licensed plumber must be submitted for the installation of an RO system certified by the American National Standards Institute.

RO systems must be certified by the American National Standards Institute (ANSI) and equipped with a performance indication device to monitor performance.  A sample will be collected and tested at the State Laboratory to insure it’s working properly.

Reasons to register your well:
Registering your well will cost around $70 which is the responsibility of the well owner.  What you get in return is over $300 in water testing for free!  Testing your water, especially if you have a family drinking, bathing, and cooking with it, will give you piece of mind that the water is safe.

Registering your well gives you rights and protections from spacing requirements.  This gives you protection from potential infringements on your quality and quantity of water from new wells drilled in the future

Registering your well is easy and it opens the door to this program and others that may be offered by the LENRD in the future.  The potential to save thousands of dollars and improve the quality of your drinking water make this program WELL worth looking into!

For more information go to www.lenrd.org/ROF or call  402-371-7313.  



Ricketts Concludes Successful Trade Mission to Japan

This week, Governor Ricketts concluded a fourth successful trade mission to Japan.  Delegates on the mission included representatives from Nebraska’s ag businesses, state commodity organizations, the Nebraska Farm Bureau, the Department of Agriculture (NDA), and the Department of Economic Development (DED).

On Tuesday, the trade delegation met with the United States Meat Export Federation (USMEF) to discuss opportunities for expanding Nebraska’s beef and pork exports to Japan.  Japan is Nebraska’s largest market for pork and 2nd largest for beef, the latter of which has seen annual sales rise by $215 million, an 88% increase, since 2015.

Throughout the week, the ag delegation met with various trade organizations, business partners, and government officials to discuss opportunities for increasing Nebraska’s ag exports to Japan.

Many of the representatives in the delegation are also farmers and ranchers, which allowed Japanese companies to hear directly from Nebraskans who supply their beef, pork, wheat, and corn to Japan through Nebraska’s exporters.  This included Ivan Rush, Director at the Nebraska Beef Council; Shana Beattie, Past President of the Nebraska Pork Producers Association; Mark Knobel, Chairman of the Nebraska Wheat Board; and Mark McHargue, President of the Nebraska Farm Bureau.

Conversations also highlighted Nebraska’s advancements in ethanol—like carbon sequestration and the adoption of higher ethanol blends—to leaders in Tokyo.

The Governor and industry experts, including Jan tenBensel, Chairman of the Nebraska Ethanol Board, also spoke with Japanese government officials about the solutions Nebraska ethanol offers as Japan seeks to provide cheaper, cleaner fuel for vehicle and air travel.  This included meetings with leaders at the U.S. Embassy in Japan, the Japanese Ministry of Foreign Affairs, and the Ministry of Economy, Trade, and Industry.

Additionally, Gov. Ricketts and the delegation met with members of the Japanese business and trade communities represented by Keidanren, also known as the Japan Business Federation, and the Japan External Trade Organization. Both groups are valued partners with Nebraska’s Department of Economic Development.

Throughout the week, the delegation spoke with several companies investing in Nebraska to thank them for their partnership and discuss opportunities for growth.  This included meeting with Mitsubishi Heavy Industries, who has invested in Monolith Materials, a Lincoln-based manufacturer on the cutting edge of emissions-free, commercial-scale hydrogen production.  It also included Nippon Steel, which launched Captain Beef, a successful premium beef brand sourced exclusively from Nebraska packers; Toho Cinemas, a large theatre chain whose popcorn comes from Preferred Popcorn in Chapman; and Prima Ham, a food manufacturer that purchases pork from Wholestone Farms in Fremont.



NDA REPORTS ADDITIONAL CASE OF HPAI IN NEBRASKA

The Nebraska Department of Agriculture (NDA) in conjunction with the United States Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) is announcing another confirmed case of highly pathogenic avian influenza (HPAI). This brings the total number of cases of HPAI in Nebraska this year to 14. The 14th farm is a backyard flock in Knox County.

According to NDA State Veterinarian Dr. Roger Dudley, the affected flock has been depopulated and disposed of in an approved manner. Poultry producers should know the signs and symptoms of HPAI and notify NDA immediately of sick or dying birds.

HPAI is a highly contagious virus that spreads easily among birds through nasal and eye secretions, as well as manure. The virus can be spread in various ways from flock to flock, including by wild birds, through contact with infected poultry, by equipment, and on the clothing and shoes of caretakers. Wild birds can carry the virus without becoming sick, while domesticated birds can become very sick.

Symptoms of HPAI in poultry include: a decrease in water consumption; lack of energy and appetite; decreased egg production or soft-shelled, misshapen eggs; nasal discharge, coughing, sneezing; incoordination; and diarrhea. HPAI can also cause sudden death in birds even if they aren’t showing any other symptoms. HPAI can survive for weeks in contaminated environments.

NDA is encouraging bird owners to prevent contact between their birds and wildlife and to practice strict biosecurity measures. If producers suspect signs of HPAI in their flock, they should report it to NDA immediately at 402-471-2351. More information for producers can be found at https://nda.nebraska.gov/animal/avian/index.html or http://healthybirds.aphis.usda.gov.



Nebraska Soybean Day and Machinery Expo Offers 2023 Growing Season Information

The 2022 Nebraska Soybean Day and Machinery Expo on Thursday, Dec. 15 will assist soybean producers in planning for next year's growing season.

The expo, which begins at 8:30 a.m. and concludes at 2:15 p.m., will be in the pavilion at the Saunders County Fairgrounds in Wahoo. The event opens with coffee, doughnuts and the opportunity to view equipment and exhibitor booths. Speakers start at 9:10 a.m.

This program is sponsored by Nebraska Extension in the university's Institute of Agriculture and Natural Resources, the Nebraska Soybean Board, Saunders County Soybean Growers Organization and private industry.

Presenters include university researchers and specialists, Nebraska Soybean Checkoff representatives, soybean growers and private industry representatives.

Alan Brugler, president of Brugler Marketing and Management LLC, will present “Tricks & Tools to Survive Drought, War, Inflation and Long Tails”. Brugler said these are the best of times and worst of times for corn and soybean producers. Old crop selling prices are hovering not far from 10-year highs, but bids are lower for 2023 production. Inflation is at 40-year highs, making input costs and availability a challenge. More than 80% of the U.S. is in some sort of drought going into winter, which could significantly impact 2023 yields if the weather doesn’t change. And the Russia/Ukraine war is disrupting export channels. In two one-hour sessions, Brugler will bring growers up to speed on these market drivers. He’ll also introduce the “short crop, long tail” price pattern and how it might play out. Learn how to recognize when a Black Swan exception to the rules is happening, and which of the more than 30 marketing tools available to the average corn or soybean producer are most appropriate.

Allan Vyhnalek, Nebraska Extension educator and farm/ranch transition and succession specialist, will present “Farm Transition or Succession, There is a Difference!” Vyhnalek will discuss planning for transitioning operations and succeeding operation. He will explain the difference and offer his current thoughts on how to plan for either outcome.

“Soybean Stem Borer: Does it Pay to Treat for This Insect?” will be covered by Bob Wright, Nebraska Extension entomologist. Soybean stem borers are becoming more widespread in Nebraska soybeans. Wright will discuss what past research tell us about whether insecticides are an effective management practice.

The expo also will include an update from the Nebraska Soybean Board and Nebraska Soybean Association.

Producers will be able to visit with representatives from seed, herbicide, fertilizer and equipment companies and view new farm equipment during a 30-minute break at 10:15 a.m.

The Saunders County Soybean Growers Organization requests that each participant bring one or more cans of nonperishable food that will be donated to the local food pantry.

Complimentary noon lunch will be served.

Registration is available the day of the expo at the door. For more information about the program or exhibitor information, call 402-624-8030 or email Aaron Nygren. Vendor spots are available. More information on the website https://enrec.unl.edu/nebraskasoyexpo. There is no registration fee.



Free Farm and Ag Law Clinics Set for December

Free legal and financial clinics are being offered for farmers and ranchers across the state in December. The clinics are one-on-one in-person meetings with an agricultural law attorney and an agricultural financial counselor. These are not group sessions, and they are confidential.

The attorney and financial advisor specialize in legal and financial issues related to farming and ranching, including financial and business planning, transition planning, farm loan programs, debtor/creditor law, debt structure and cash flow, agricultural disaster programs, and other relevant matters. Here is an opportunity to obtain an independent, outside perspective on issues that may be affecting your farm or ranch.

Clinic Dates
    Tuesday, Dec. 6 — Norfolk
    Thursday, Dec. 15 — Fairbury
    Tuesday, Dec. 20 — Norfolk

To sign up for a free clinic or to get more information, call the Nebraska Farm Hotline at 1-800-464-0258. Funding for this work is provided by the Nebraska Department of Agriculture and Legal Aid of Nebraska.




JBS USA Enters Agreement to Acquire Certain Assets from TriOak Foods

JBS USA, a leading global food company, announced it has reached an agreement to acquire certain assets from TriOak Foods, a Midwest-based pork producer, for an undisclosed amount. The two companies enjoy a long-standing business relationship, with JBS USA serving as the exclusive customer of TriOak market hogs since 2017.

A family operation established in 1951, TriOak Foods includes live pork production, grain merchandising and fertilizer marketing. Agricultural real estate assets in Iowa are not included in the transaction. A leader in on-farm sustainability, TriOak Foods hog farms include multiple open pen gestation facilities and farms compliant with California’s Proposition 12 rule.

“Today’s announcement is aligned with our company’s strategy to consistently provide the highest quality pork to our customers and consumers,” said Matthew Turner, DVM, JBS USA Head of Live Pork. “As a longtime, exclusive hog supplier to JBS USA, TriOak Foods has a proven track record of maintaining the highest standards for animal health, well-being and product quality. We look forward to continuing our strong partnership with the TriOak team.” JBS USA is currently the exclusive customer of TriOak Foods. This evolution in the long-standing partnership will allow JBS USA to ensure consistent supply and increased efficiencies, resulting in affordable, quality products for American consumers and new opportunities for both TriOak and JBS team members.

“I am very proud of all that TriOak has accomplished and am excited to strengthen our relationship with a trusted partner,” said Randy Pflum, TriOak Foods President and CEO. “In alignment with our core beliefs, JBS USA invests in its team members and the communities where they operate. I believe the future will be very promising for both of our organizations as a result of this partnership.”

JBS USA currently operates five pork production facilities in Beardstown, Ill.; Louisville, Ky.; Marshalltown, Iowa; Ottumwa, Iowa; and Worthington, Minn., a value-added meat processing facility in Pipestone, Minn., sow production facilities in Arkansas and Texas, and contract sow production facilities in Arkansas, Oklahoma and Missouri. “With a focus on meeting customer and consumer expectations, this announcement means that JBS USA will continue expanding our premium pork product mix, including open pen gestation and Proposition 12-compliant hogs,” said Marty Dooley, JBS USA Pork President. “We are grateful for the opportunity to ensure consistent supply to our Ottumwa, Iowa, and Beardstown, Illinois, pork production facilities, which will strengthen our ability to reliably provide high-quality protein to American families.”

The transaction is subject to customary closing conditions.



Farm Couple Getaways Return to Iowa

To help farm families build relationships and set family goals, Iowa State University Extension and Outreach is offering two “Farm Couple Getaways.” Both events are aimed at farmers wanting to take advantage of activities to improve farm family communication, work on farm or family goal setting, farm transitions or looking for a weekend away to discuss farm and family issues.

The first getaway will be held Friday, Feb. 10 through Saturday, Feb.11 at the Best Western Plus Hotel in Dubuque. The second getaway will be held Friday, March 3 through Saturday, March 4 at the Cobblestone Inn & Suites in Holstein.

Farm discussion.The getaways run from 12:30 p.m. on the first day to 3:15 p.m. on the second day. There is no cost to attend the program as food, lodging and other expenses are covered by sponsorships. However, there is a $50 per couple deposit to hold each reservation, refundable on the second day of the event.

Past getaways have proven to be beneficial for farm families. “They are a very productive and delightful time to discuss items of importance to help farms and families be successful,” said Larry Tranel, dairy specialist with Iowa State University Extension and Outreach. Each getaway will consist of 10 farm couples and the extension facilitators.

Registration will be on a first-come, first-served basis and will be limited to 10 couples per event. Registrations are due two weeks prior to each session. Registration brochures for the various sites can be obtained from Jennifer Bentley, dairy specialist with Iowa State University Extension and Outreach, at jbentley@iastate.edu, or at the Iowa State University Extension and Outreach Winneshiek County office, 563-382-2949. Dairy specialist Fred Hall can also take registrations at fredhall@iastate.edu or at the Iowa State University Extension and Outreach Sioux County office, 712-737-4230. Dairy specialist Larry Tranel is available at tranel@iastate.edu, or at the Iowa State University Extension and Outreach Dubuque County office, 563-583-6496.

The “Farm Couple Getaways” statewide Gold sponsor is the Iowa Farm Bureau Federation, with other local sponsors recognized at the local events. Brochures with registration forms are available.



Pinhook Farm Receives First Iowa Leopold Conservation Award

Pinhook Farm of Clarinda has been selected as the recipient of the inaugural Iowa Leopold Conservation Award®.

Pinhook Farm’s owners, Seth, Christy, Spencer and Tatum Watkins were presented with the $10,000 award at The Big Soil Health Event in Cedar Falls.

The Watkins family owns 320 acres and rent another 2,790 acres to grow the grass, hay and corn needed to feed their herd of 600 beef cow-calf pairs. Seth also manages about 900 acres of crops, prairie, and forests for other landowners across Page, Taylor and Adams counties.

Given in honor of renowned conservationist Aldo Leopold, the prestigious award recognizes farmers, ranchers, and forestland owners who inspire others with their dedication to land, water, and wildlife habitat management on private, working lands.

Sand County Foundation and national sponsor American Farmland Trust annually present the Leopold Conservation Award to farmers, ranchers and forestland owners in 24 states for extraordinary achievement in voluntary conservation. In Iowa, the award is presented with state partners: Conservation Districts of Iowa, Farmers National Company, and Practical Farmers of Iowa.

“Pinhook Farm is a worthy first recipient of this award in Iowa,” said Sally Worley, Practical Farmers of Iowa Executive Director. “All of Iowa’s inaugural class of applicants are inspiring examples of conservation in action on farms. We’re grateful to the Sand County Foundation for bringing the Leopold Conservation Award to Iowa. It’s important that we continue to recognize and lift up the Iowa farmers and ranchers who are prioritizing conservation on their working lands.”

“The landowner plays a critical role in the conservation of America’s farmland resources. Sustainable practices not only benefit the local environment and community, but also improves the quality and value of the land as an asset for the current owner and future generations,” said Clayton Becker, Famers National Company President. “This is why Farmers National Company is honored to sponsor this prestigious award recognizing hard work and commitment to conservation.”

“All of the nominees for the inaugural Leopold Conservation Award in Iowa truly exemplify family farming and caring for the land. One look at what the Watkins family has done provides an impressive goal for other farmers,” said John Whitaker, Conservation Districts of Iowa Executive Director.

“Recipients of this award are examples of how Aldo Leopold’s land ethic is alive and well today. Their dedication to conservation shows how individuals can improve the health of the land while producing food and fiber,” said Kevin McAleese, Sand County Foundation President and CEO.

“As the national sponsor for Sand County Foundation’s Leopold Conservation Award, American Farmland Trust celebrates the hard work and dedication of the Watkins family,” said John Piotti, AFT President and CEO. “At AFT we believe that conservation in agriculture requires a focus on the land, the practices and the people and this award recognizes the integral role of all three.”

Earlier this year, Iowa landowners were encouraged to apply (or be nominated) for the award. Applications were reviewed by an independent panel of agricultural and conservation leaders. Among the outstanding Iowa landowners nominated for the award were finalists: Vic and Cindy Madsen of Audubon in Audubon County, and Loran Steinlage of West Union in Fayette County.

The Leopold Conservation Award is given to farmers, ranchers and forestland owners across the U.S. in honor of renowned conservationist Aldo Leopold. In his influential 1949 book, A Sand County Almanac, Leopold called for an ethical relationship between people and the land they own and manage.

The Iowa Leopold Conservation Award is made possible through the generous support of American Farmland Trust, Conservation Districts of Iowa, Farmers National Company, Practical Farmers of Iowa, Sand County Foundation, Soil Regen, USDA Natural Resources Conservation Service, Nancy and Marc DeLong, Iowa Corn, Iowa Agriculture Water Alliance, and Iowa Farmers Union.

In his influential 1949 book, A Sand County Almanac, Leopold called for an ethical relationship between people and the land they own and manage, which he called “an evolutionary possibility and an ecological necessity.” Sand County Foundation presents the Leopold Conservation Award to private landowners in 24 states with a variety of conservation, agricultural and forestry organizations.

ABOUT PINHOOK FARM
Seth Watkins was 10 years old when he nursed a cold, muddy calf back to health in the warmth of the family farmhouse with a shot of Bourbon. It was a formative event for a young caretaker who now uses cattle to help heal his farm’s landscape.

The land Seth farms with his wife Christy, and children Spencer and Tatum, has been in his family since 1848. His ancestors inherited deep, rich soils on the Southern Iowa Drift Plain, but that changed over time. Prairie was plowed under to grow corn. Erosion from gullies and ditches increased while biodiversity diminished.

When Seth inherited and bought parts of what would become Pinhook Farm in the 1990s, he had a different vision. He would emulate how Native Americans once stewarded the land by not tilling it, and return much of it to grass to rotationally graze livestock rather than grow row crops.

Yet Seth knew he couldn’t attain sustainability without profitability. Early in his career he created a business plan that convinced Fontanelle Hybrids to buy enough land in Iowa to graze 450 beef cattle that he would manage. Today, Seth manages about 900 acres of crops, prairie, and forests for other landowners across Page, Taylor and Adams counties. The Watkins own 320 acres and rent 2,790 acres to grow the grass, hay and corn needed to feed their herd of 600 beef cow-calf pairs.

Early on, Seth seeded new pastures for rotational grazing, and used cover crops and a no-till cropping system to reduce erosion while increasing the soil’s capacity to infiltrate and hold water. He relied on geospatial technology to determine which conservation practices would benefit different parts of the farm.

Seth removed ditches, built 14 ponds and established a wetland to naturally drain hundreds of acres of his farmland. Another 42 ponds have been built on land under his management. To diversify his farm’s income and provide wildlife habitat, Seth regularly plants nut and fruit-bearing trees around ponds that are restricted from livestock.

Seth credits his conservation ethic to having artistic parents, and to his own love of learning. Although the 1980s farm crisis denied him a college education, he’s as an avid reader and regular participant in on-farm research projects related to growing cover crops and integrating prairie strips into crop fields.

Seth will be first to tell you his neighbors think he’s crazy. That doesn’t stop him from doing right by the land, and talking about it to anybody who will listen. That includes his advocacy for getting more marginal farmland enrolled into the federal Conservation Reserve Program for environmentally-sensitive areas.

The 100 acres enrolled in CRP at Pinhook Farm are restored prairies and windbreaks, shallow water habitats, and riparian buffers. All of these areas have seen in influx of songbirds, Monarch butterflies and beneficial pollinators.

In looking to the future, the Watkins entered into a permanent conservation easement that ensures Pinhook Farm will always be protected from the plow.

As for the calf that was nursed with Bourbon. Seth named her Scotch, and she lived to the ripe old age of 15.

Just as Pinhook Farm’s landscape has evolved, Seth says he always thought cattle were what he loved about agriculture, but he’s come to see it’s the land he truly loves.



March Through NCBA Trade Show in the Crescent City

New Orleans has a lot of nicknames, including The Big Easy, Crescent City, NOLA and Paris of the South, but no matter what you call it, the Birthplace of Jazz will host the NCBA Trade Show as part of the 2023 Cattle Industry Convention. More than eight acres of exhibitors, displays and educational experiences will welcome attendees, Feb. 1-3.

The NCBA Trade Show offers cattle producers opportunities to network, learn, shop, dine and connect with friends, both old and new. It is a solutions center featuring more than 350 exhibitors that can help producers with animal health products, equipment, irrigation technology, software, trailers and so much more. In addition to finding the right product or service to solve any problem, there are a variety of educational opportunities within the show.

New in 2023, Cattle Chats will feature 20-minute beef industry educational sessions, with special spotlight sessions focusing on sustainability. Attendees can also stop in the Learning Lounge to enjoy informal, face-to-face talks in an intimate setting right on the trade show floor. Industry leaders will tackle topics such as ranch succession, effective probiotics, deworming protocols, animal welfare and tax trends.

The popular Stockmanship & Stewardship Demonstration Arena returns with stockmanship experts Dr. Ron Gill and Curt Pate providing low-stress cattle handling demonstrations, Beef Quality Assurance educational sessions, industry updates and facility design sessions. Interactive discussions will show how producers can shape consumer perceptions of beef and how the principles presented have significant economic and “quality of life” benefits when applied in a cattle enterprise.

The Chutes and Scales Showdown offers a side-by-side comparison of equipment where producers can watch cattle run through chutes then get hands-on experience. This is an opportunity to get up close and personal with some of the top manufacturers in the industry, learn about new technology on both manual and hydraulic chutes and find the right piece of equipment to fit your ranch needs.

The trade show experience continues each afternoon with food and fun. Wednesday’s welcome reception will celebrate 125 years of NCBA, Thursday’s Sippin’ in the Big Easy reception will feature Louisiana-inspired whiskey and foods, and Friday’s Pups & Suds Yappy Hour will help attendees wind down with some furry friends.

Recognized by Trade Show Executive magazine as one of the top 100 trade shows in the United States, the NCBA Trade Show is the largest of its kind for the cattle industry. A variety of registration options are available including trade show only and single day tickets, which include show access, lunch, receptions and educational activities. For more information and to register and reserve housing, visit convention.ncba.org.



NFU Statement on Canola Pathway for Renewable Diesel

Today, the U.S. Environmental Protection Agency (EPA) issued a decision to allow canola to be used as a feedstock for renewable diesel, which National Farmers Union (NFU) has advocated for.  

“This administration gets it – biofuels are good for the environment, good for the farmer’s bottom line, and reduce costs at the pump for consumers,” said NFU President Rob Larew. “This announcement provides additional market opportunities and much-needed regulatory certainty for our farmers.”  

Background:
In the United States, canola is mostly grown in the northern Great Plains, but can be grown as a spring or winter crop throughout the United States, including in the Pacific Northwest, the southern Great Plains, and in the southeast. Canola improves farm economics and supports sustainable agricultural production. Canola production in the U.S. can be increased without land use impacts, as farmers continue to improve yields and can grow canola as a rotational crop, which increases crop diversity, improves soil health, and can serve as weed management. Canola oil is a commercially viable feedstock currently used for U.S. biodiesel production.

Renewable diesel production has grown significantly in recent years with substantial planned investments that can increase U.S. production to around five billion gallons by 2025. Renewable feedstock will be needed to meet this increasing demand. While some of the renewable diesel facilities are or will be in states that have canola production, canola oil has not been utilized by U.S. renewable diesel producers due to the lack of an approved RFS pathway.



Clean Fuels Files Comments on New SAF, Biodiesel and Renewable Diesel Tax Incentives

On Friday, Clean Fuels Alliance America submitted a written response to the U.S. Treasury’s request for comments (Notice 2022-58) on Credits for Clean Hydrogen and Clean Fuel Production (IRC §45Z). Clean Fuels urged Treasury to utilize Argonne National Laboratory’s GREET model to measure the lifecycle greenhouse gas emissions of sustainable aviation fuel (SAF). Clean Fuels also asked that Treasury allow producers to petition for provisional emissions reduction rates based on scores from California’s Low Carbon Fuel Standard.

“It is imperative that Treasury work with the U.S. Department of Energy and the U.S. Department of Agriculture to implement the carbon-based incentives using the best and most up-to-date agricultural and biofuel process information in its emissions rate methodology,” writes Clean Fuels Vice President of Federal Affairs Kurt Kovarik. “The International Civil Aviation Organization’s CORSIA model unfairly penalizes fuels produced from U.S. crop-based feedstocks and will prevent them from participating in the SAF market if that is the only model available to producers when the statute is implemented.”

Clean Fuels notes in its comments that the most recent update to the GREET model, published in October 2022, estimates that the average gallon of biodiesel and renewable diesel reduces emissions by approximately 72%, considering the U.S. biodiesel feedstock mix published by the U.S. Energy Information Administration (EIA).

Clean Fuels additionally asked Treasury to provide flexibility and incentivize continuous improvements that lead to lowered emissions by allowing SAF producers to petition for provisional emissions rates at any time.

Clean Fuels further urged Treasury and IRS to strictly adhere to the statutory prohibition on co-processed fuel, consistent with existing law under 40A for biomass-based diesel. “Congress recognized that providing a tax benefit for co-processed aviation fuels would be wasteful, inequitable, and pose a threat to existing biomass-based diesel production and a burgeoning stand-alone SAF industry,” Kovarik writes.

Lastly, Clean Fuels supports eligibility in the Clean Fuels Production Credit for use of biodiesel and renewable diesel in home heating oil, per the clarification offered by Sen. Ron Wyden (D-OR), chair of the Senate Finance Committee in colloquy with Sen. Margaret Hassan (D-NH).



Growth Energy to IRS: Maximize Benefits of Clean Fuel and Carbon Capture Credits

Today, Growth Energy submitted comments in response to notices issued by the Internal Revenue Service (IRS) on implementation of tax credits under the Inflation Reduction Act of 2022 (IRA) for clean fuel production (45Z) and carbon capture (45Q). In the comments, Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley called on regulators to ensure that both credits reflect the best available science, grow American jobs, and harness the unique contributions of U.S. biofuels to drive reductions in greenhouse gas (GHG) emissions.

On the clean fuel production tax credit, Bliley reiterated the importance of providing certainty and flexibility for eligible entities. He also emphasized the importance of applying the lifecycle analysis (LCA) model developed and maintained by the Department of Energy’s Argonne National Laboratory ― known as the Greenhouse gases, Regulated Emissions, and Energy use in Transportation, or “GREET” model.

“In order to be eligible for Section 45Z credits, a transportation fuel must have a lifecycle emissions rate below 50 kilograms of carbon dioxide equivalent per million BTU (CO2e/mmBtu),” wrote Bliley. “Biofuels producers may use many different technologies to produce ethanol below this threshold, including technologies and agricultural practices that result in a biofuel with negative lifecycle GHG emissions. Thus, for the Section 45Z credit to function as Congress intended, the Treasury Department and the IRS will need to implement the law to take into account and thereby incentivize the varied approaches that biofuel producers can employ to produce low-carbon renewable fuels.”

This approach, he noted, would allow for an accurate determination of climate benefits, including those from cover crops, bio-based fertilizers, and other farm inputs.

“For example, a typical dry-mill corn starch ethanol plant may capture and sequester carbon dioxide process emissions and source its corn from farms using no till agricultural practices in order to reduce the carbon intensity of the fuel,” added Bliley. “The GREET model includes inputs to address these and other scenarios that should be included in an emissions rate table.”

On Section 45Q, Bliley noted that ”approximately 25% of the ethanol industry already captures carbon dioxide and a growing number of facilities plan to install the technology in the near future. An average-sized ethanol plant currently can capture 99,000 to 153,000 tons of CO2 per year, and there is strong potential to expand on these carbon emission reductions.”

To fully realize the climate benefits of Carbon Capture, Utilization, and Sequestration (CCUS), Bliley urged IRS to expedite approvals of new lifecycle assessments, implement effective payment mechanisms, and clarify eligibility requirements to provide certainty and predictability for partnerships between ethanol producers and geologic sequestration companies.