Wednesday May 1 Ag News

NDA EXTENDS RESTRICTIONS AND PROVIDES UPDATE ON HPAI FOUND IN LIVESTOCK

The Nebraska Department of Agriculture (NDA) continues to monitor for the highly pathogenic avian influenza (HPAI) virus in dairy cattle. Recently, the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service issued a federal order, that took effect on April 29, mandating testing for interstate movement of lactating dairy cattle as well as mandatory reporting of positive cases. HPAI has been detected in lactating dairy cattle in several states. There have been no reported detections of HPAI in Nebraska dairy cattle or other livestock.

To help protect the dairy herd in Nebraska, NDA has an importation order in place that requires all breeding female dairy cattle entering the state of Nebraska to obtain a permit issued by NDA prior to entry. The importation order has been extended until May 31, 2024, and will be re-evaluated at that time. To obtain a permit, producers must contact NDA at 402-471-2351. More information is available on NDA’s website at nda.nebraska.gov/animal/imports.

“This is an evolving situation that continues to be a priority,” said State Veterinarian Roger Dudley, DMV.  “We are in contact with Nebraska dairy producers, veterinarians, industry partners, and officials at the state and federal level. We are closely monitoring the situation and are here to put plans in place to protect Nebraska producers and their livestock, and to minimize the impact HPAI could have on dairy producers in the state.”

NDA recommends adhering to strict biosecurity practices in operations. If dairy producers notice symptoms - acute sudden drop in milk production, changes in milk color/consistency, decreased feed intake, and other clinical signs, they should contact their herd veterinarian and the Nebraska Department of Agriculture immediately at 402-471-2351.

While NDA’s importation order prohibits breeding female dairy cattle from entering the state without a permit, individuals from Nebraska interested in transporting animals and animal products to other states/countries should contact the destination state/country to learn about their import requirements before transporting animals. To learn more about biosecurity measures to implement on your operation, please visit: https://nda.nebraska.gov/animal/diseases/hpai_livestock/index.html. The USDA has guidance documents and more information at: dairy-federal-order.pdf.



NEBRASKA GROUNDWATER LEVELS CONTINUE TO DECLINE AFTER SEVERAL YEARS OF DROUGHT

Groundwater levels in much of Nebraska continue to decline after several years of prolonged drought, according to the most recent statewide groundwater level report from the Conservation and Survey Division in the University of Nebraska–Lincoln's School of Natural Resources.

Of the 4,822 wells measured statewide, 85% exhibited declines from spring 2022 to spring 2023.

Groundwater level changes in Nebraska are impacted by withdrawals, primarily for irrigation, and the amount of recharge from precipitation. The hotter and drier a growing season is, the less water is available for aquifer recharge and the more water is required for supplemental irrigation, thus, groundwater levels decline. Conversely, in years of above-average precipitation, more rainfall leads to greater recharge, less pumping is required for irrigation, and groundwater levels rise.

From January 2022 to January 2023, precipitation recorded at all 189 reporting stations in Nebraska was less than the 30-year normal. Below-average precipitation and an increased need for irrigation led to groundwater level declines of more than 20 feet at some locations. Moreover, because drought conditions have persisted across much of the state since mid-2020, groundwater levels have declined significantly in the last three years. On average, water depth in Nebraska wells has declined by 3.15 feet since spring 2020. Early reports for 2024 suggest this trend will continue in at least the eastern third of the state.

Despite recent groundwater level declines, Nebraska has significantly more groundwater resources than other states that sit atop the critical High Plains aquifer system. It also has a nation-leading system of groundwater management by virtue of its 23 natural resources districts, and groundwater use is regulated through regional management plans. In certain areas of the state, however, recent and long-term groundwater level declines are concerning. Some wells may eventually go dry or need to be drilled deeper to maintain groundwater availability.

Long-term change maps in the report still depict the abundance of groundwater in the state. Local changes in groundwater levels from predevelopment times (before the widespread use of groundwater for irrigation) range from increases of more than 120 feet to declines of about 130 feet. Groundwater levels in most of Nebraska have experienced a net change of less than 20 feet since predevelopment times. Parts of Chase, Perkins, Dundy and Box Butte counties, in contrast, have experienced major, sustained declines in groundwater levels due to a combination of factors. Irrigation wells are notably dense in these counties, annual precipitation is comparatively low, and there is little or no surface-water recharge to groundwater there.

The Conservation and Survey Division report was authored by Aaron Young, Mark Burbach, Susan Lackey, R. M. Joeckel, Jeffrey Westrop and Nawaraj Shrestha.

A free PDF of the report can be downloaded here https://snr.unl.edu/data/water/groundwater/index.aspx.



Nebraska Cattlemen Foundation Awards Over $59,000 in Scholarships

Today, the Nebraska Cattlemen Foundation (NCF) announced they awarded over $59,000 in scholarships to help the next generation of the agriculture industry in their academic pursuits. The scholarships were awarded to fifty-five distinguished students.

President of the Nebraska Cattlemen Foundation, Loren Berger stated, "Each year, generous donors from across the state donate to the Nebraska Cattlemen Foundation's Retail Value Steer Challenge fundraising project. Because of our donor's support this year we will be awarding fifty-five exceptional students with academic scholarships. The investment in these students helps prepare the future leaders of the beef cattle industry."

All scholarship recipients will be recognized at the Nebraska Cattlemen Midyear Meeting in Ogallala on Thursday, June 13, during the Nebraska Cattlemen Foundation Lunch.

To donate or for more information concerning the Nebraska Cattlemen Foundation, contact Lee Weide, Nebraska Cattlemen Foundation Secretary at (402) 475-2333 or Jana Jensen, Nebraska Cattlemen Foundation Fundraising Coordinator at (308) 588-6299.

2024 Nebraska Cattlemen Foundation Scholars include:

Albion
Cassidy Maricle - $1,000 Retail Value Steer Challenge Scholarship

Columbus
Kurt Schneider - $1,000 Retail Value Steer Challenge Scholarship

Fremont
Dawson Glause - $1,200 Bill Pullen Scholarship

Scribner
Grace Schlueter - $1,200 Ron & Shirley Huss Scholarship

Wakefield
Ashlyn Boeckenhauer - $1,000 Retail Value Steer Challenge Scholarship

West Point
Sydney Hutchinson - $1,200 Ron & Shirley Huss Scholarship

Established in 1968, the Nebraska Cattlemen Foundation’s mission is to advance the future of Nebraska’s Beef industry by investing in research and education programs. The Foundation’s success and its ability to endow scholarships, sponsor leadership and education programs, and assist with research and infrastructure projects has been possible only because of the support from the Nebraska cattle producers and allied industries. As the Foundation grows, expands, and moves forward in its mission to raise funds for educational and scientific activities that benefit the state’s beef producers – the board asks you to consider investing in your industry through the Foundation.



PSC AWARDS PRECISION AGRICULTURE INFRASTRUCTURE GRANTS

The Nebraska Public Service Commission has awarded 11 grants totaling nearly $680,000 as a part of the inaugural Precision Agriculture Infrastructure Grant (PRO- AG) program (C-5529).

“These initial grants will help fund innovative projects designed to advance precision agriculture across the state,” said Commission Chair Dan Watermeier. “We look forward to seeing the benefits that these projects have for ag producers and the industry.”

Created by the Precision Agriculture Grant Act, Neb Rev. Stat.§86-1401, the PRO-AG program makes available nearly one million dollars in grants annually to boost rural economic development through connectivity, sustainability, traceability, and autonomy for farm sites in unserved areas of Nebraska.

The PRO-AG program is divided into two distinct subprograms, Connectivity, and Devices and Technology. During the 2023-2024 grant cycle the Commission received 20 applications for funding. Upon review of the applications received, the Commission determined 11 submissions would be funded. Three grants were awarded in the Connectivity subprogram for a total of $391,280 and eight grants were awarded in the Devices and Technology subprogram for a total of $287,336.29. Grant dollars not awarded during the initial cycle will carry over to the next grant cycle.

Commissioner Watermeier said, “We appreciate the insights and experience gained through this first round of grants and are optimistic of the potential for future awards to support innovative PRO-Ag projects.”

Projects funded through today’s awards must be completed by April 30, 2025. A list of the projects approved through the PRO-AG program can be found on the PSC website  https://psc.nebraska.gov/precision-agriculture.  



Nebraska Celebrates Renewable Fuels Month This May

Renewable Fuels Month highlights the importance of renewable biofuels, such as ethanol and biodiesel, especially for Nebraskans. The month of May marks the beginning of the summer driving season, making it an ideal time to fuel up on clean and cost-saving biofuels. Ethanol, renewable diesel and biodiesel help to decrease America’s dependence on foreign oil, boost our nation’s economy, and support thousands of jobs in rural communities.

Ethanol is the third largest Nebraska agriculture commodity, and the use of a 10% blend saves Nebraskans millions per year. In 2023, thanks to ethanol blends of E10 and above, Nebraska drivers saved at least $325 million. The benefits extend from there, as according to the U.S. Department of Agriculture, ethanol blends reduce greenhouse gas emissions by 43% compared to regular gasoline. Owners of vehicles 2001 and newer can safely use blends of ethanol up to E15 (15% ethanol) and will often enjoy significant additional savings per gallon. Owners of flex-fuel vehicles (FFVs) can use blends up to E85 and experience even greater savings.

Nebraska is the second-largest producer of ethanol in the country, and the fuel will soon take to the skies in the coming years. Legislation passed by the 2024 Nebraska Legislature provides a tax credit for sustainable aviation fuel (SAF) produced in Nebraska. Ethanol and oils from corn and soybean processing serve as low-carbon, low-cost feedstocks for the production of SAF, which can reduce emissions by more than 50% compared to conventional jet fuel.

Biodiesel adds 70 cents per bushel to the value of soybeans. Bigger demand for soybean oil to make biodiesel also increases the supply of soybean meal, leading to lower animal feed prices paid by poultry and livestock farmers. Biodiesel can reduce greenhouse gas emissions by more than 70% on average compared to petroleum-based diesel fuel. Heavy-duty diesel vehicles can lower emissions by filling up with biodiesel blends of 20% (B20) or higher. Find locations near you at biodieselne.com.

The renewable diesel industry also continues to grow. According to Clean Fuels Alliance America, “renewable diesel is a biomass-based diesel fuel made from the same renewable feedstocks as biodiesel using a process that resembles traditional diesel fuel production. Renewable diesel is a drop-in diesel replacement that meets ASTM D975 – the same standard for petroleum diesel. It can be used in ground, rail and marine transportation, as well as agricultural equipment.”

Fueled by Nebraska, a partnership of Nebraska biofuels organizations, and the Nebraska Soybean Board, invite you to join them to celebrate renewable fuels in your classrooms, at work, and in your community this May. Learn more and find ethanol retail locations at fueledbynebraska.com.

Important Renewable Fuels Month Dates
    May 1: Gov. Jim Pillen will declare May as Renewable Fuels Month
    May 6, 13, and 20: Tune into upcoming Renewable Fuels Month segments on Pure Nebraska, which airs on Lincoln’s Channel 10/11 live weekdays from 9-10 a.m.



No More Empty Pots Launches Pitch Contest Supported by Midwest Dairy

No More Empty Pots and Midwest Dairy have partnered to offer a Pitch Competition to advance local entrepreneurship, foster innovation in product development, and contribute to the growth of the local dairy industry. Food entrepreneurs in Omaha whose menu includes dairy products are encouraged to participate for a chance to earn funding that enhances and grows their business ventures.

“Midwest Dairy is proud to embark on a new partnership with No More Empty Pots to offer this Pitch Competition. The Pitch Competition is not a new concept to Midwest Dairy as we have seen success in this idea before,” said Mitch Schulte, Vice President of Ag Affairs. “We are eager to experience the outstanding food and beverage entrepreneurs in the Omaha area who truly value dairy products in their ingredients and want to continue to grow their business while supporting the hard-working dairy farmers of the Midwest."

Applications are due Monday, May 13th, 2024. Contestants will advance through three rounds of pitching and participate in mentorship sessions to help refine their business pitch. The final round of pitches will be held on Thursday, June 6th, 2024. Interested entrepreneurs should visit www.nmepomaha.org/pitch-contest for application instructions, eligibility criteria, and the contest schedule. Prize earnings include a $10,000 check prize, six months of kitchen rental at No More Empty Pots, and other business development opportunities.

Since its founding in 2010, No More Empty Pots has served the needs of local entrepreneurs in Omaha. Over 94 businesses have rented commercial kitchen space at its Food Hub facility in North Omaha. In addition, the Entrepreneur Journey program provides technical assistance and mentorship to entrepreneurs. Recently No More Empty Pots opened a second program location, the Greenhouse, also located in North Omaha. Opportunities at the Food Hub and Greenhouse further participants’ strengths and talents, while developing the skills needed to succeed in the workplace, grow small businesses and become self-sufficient.

"We deeply appreciate our partnership with Midwest Dairy for this shared venture. I am an entrepreneur myself and know that sharpening the skill of pitching can open so many doors for business owners. If you can dream big enough and put the work in, an opportunity like this can be the catalyst for many more successes to come," said Talia McGill, President and CEO of No More Empty Pots.



Nebraska Corn Growers Association’s Statement on Treasury’s 40B Guidance on SAF

Nebraska corn farmers are frustrated and unsatisfied by the announcement from the U.S. Department of Treasury (USDOT) limiting corn-based ethanol's contribution to the decarbonization of the aviation sector, sustainable aviation fuel (SAF), through the 40B tax credits. Today’s update to the Department of Energy’s (DOE) Argonne GREET model stated that corn-based ethanol must be grown with additional on-farm conservation practices to apply for tax credits available in the Inflation Reduction Act.

Among the updates made to GREET include measurements involving land use changes related to commodity production. The changes, which are not justified, negatively impact the carbon scores of ethanol making it more difficult for corn to qualify as a feedstock.
 
The updated model will also require farmers to use no-till practices, enhanced efficient fertilizers and cover crops, which is not practical for all acres of the large and varied geographic region in which corn is grown.

“This announcement sets Nebraska farmers back as corn should continue to be a viable source of low-carbon feedstocks for ethanol and ultimately sustainable aviation fuels,” said Chris Grams, president of the Nebraska Corn Growers Association. “The guidance has very limited positive outcomes for Nebraska farmers and farm families as it forces voluntary practices to become mandatory for farmers across Nebraska’s variation of environments where the practices may not be feasible.”

The United States Department of Agriculture (USDA) Economic Research Service forecasts farm net income in 2024 at $116.1 billion, a 37 percent drop from 2022. When farmers all over the U.S. are forced to implement practices to qualify for market access, the one-size-fits-all approach is unworkable. The difference in climate, soil and season makes it difficult for Nebraska farmers to subscribe to the same conservation regimen in all areas of the state, much less in all areas of the country.

“Today’s announcement sets the foundation for the future for 45Z tax credits and the guidance that will further affect SAF production moving forward. NeCGA will continue to defend Nebraska farmers as the rule making process begins."



New 40B Tax Credit Guidelines Ready the Runway for SAF

Today, the United States Treasury Department announced a modified version of the Argonne National Laboratory’s Greenhouse Gasses, Regulated Emissions and Energy Use in Technologies (GREET) model to verify eligibility for 40B sustainable aviation fuel (SAF) tax credits. While the Biden Administration previously announced that GREET could be used to determine the carbon intensity of SAF, today unveiled the modifications made to the standard model.

“We appreciate the Treasury Department for approving the use of the GREET model, and for USDA pushing to get farm practices included for the first time,” said Iowa Renewable Fuels Association Executive Director Monte Shaw. “Those are landmark achievements that crack the door open for farmers to be rewarded for climate smart agriculture practices. Having said that, today’s announcement also makes clear that a great deal of work remains to transition 40B to the new 45Z tax credit in 2025.”

The Treasury Department also outlined that some on-farm practices would be recognized to reduce the carbon intensity of crop production for the first time. However, the new qualifications require “bundling” climate smart agriculture practices to become eligible for SAF credits. Three practices (cover crops, no-till farming, and enhanced efficiency fertilizer) would be required for corn and two (cover crops and no-till farming) would be required for soybeans.

“The approved bundle of farm practices won’t work for many Iowa farmers, let alone farmers throughout the Midwest,” stated Shaw. “Given the range of climates and soil types, farmers do not want one-size-fits-all bundles mandated from D.C. Moving forward, it is paramount that many additional farming practices be recognized on an individual basis. Further, the carbon reduction given for the bundled practices appears to be much smaller than we’ve seen in other voluntary carbon programs. We urge Treasury to continue to work to ensure farmers get full credit for carbon reduction practices. That is the only way to maximize farmer participation and, thereby, carbon benefits.”

The Treasury Department also decreased the controversial indirect land use change (iLUC) penalty in the 40B GREET model by over 20 percent.

“While the so-called iLUC penalty was never justified in the first place, increasing yields per acre trends should be reducing the penalty each year,” said Shaw. “We appreciate Treasury updating this number and hope that further reductions will be incorporated as we move forward. Every point of iLUC penalty just offsets any credit given for climate smart agriculture practices.”

IRFA will continue to work with Secretary Vilsack and the interagency working group as they turn their focus to creating rules for the 45Z clean fuel production tax credit that is scheduled to go into effect on January 1, 2025.

“Once again, we thank Secretary Vilsack for his continued support in opening opportunities for farmers to become involved in the 35-billion-gallon SAF market,” said Shaw. “Moving forward, we hope the transition to the 45Z tax credit in 2025 will remove the limitations of 40B and unleash the full potential of American farmers to be part of the carbon solution and the future of sustainable aviation fuel.”



ASA Appreciates SAF Feedstock Eligibility Inclusion—but Concerned Strict New Pathway Prohibitive for Northern Soy States

The Department of Treasury first recognized soy as an eligible sustainable aviation fuel (SAF) feedstock in initial guidance last December through a Renewable Fuel Standard pathway. Now, additional guidance from Treasury goes a step further to sweeten the value for soy. It provides a second pathway for soybean oil-based SAF to qualify for the SAF tax credit (40B) and assigns the feedstock a better carbon intensity (CI) reduction score. Since the Dec. 15 news, ASA has implored USDA and other agencies to ensure a higher value can be achieved by using soybean oil than the baseline $1.25/gallon credit for SAF that meets a 50% greenhouse gas (GHG) reduction compared to traditional petroleum jet fuel.

Where the guidance from Treasury goes sideways for soy, however, is that for soybean oil to qualify through this new pathway, the soybeans must be grown using both no till and cover cropping. ASA is very supportive of using climate smart agriculture practices to improve CI reductions, but specifying only two practices out of a variety of sustainability measures will further restrict soybean oil use as a SAF feedstock. Adding to concerns, no till and cover cropping are feasible only for soybean farmers in certain parts of the soy growing region, which means regional disparity is likely.

Josh Gackle is the American Soybean Association’s president and grows beans in Kulm, North Dakota: “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.”

ASA appreciates USDA’s work to ensure improved CI reduction scores for soybeans but asks that more be done to create an inclusive program—and one that considers sustainability practices that are feasible across all soy states. The Treasury Department and the ad hoc working group of agencies assigned to SAF and other transportation fuel tax credits will now begin work on the Clean Fuel Production Credit (45Z), which offers soybean growers additional opportunities to support the biofuels industry.

ASA looks forward to working with USDA, EPA, and other agencies involved to ensure that 45Z offers flexibility in sustainability practices so that soybean farmers can support the administration in lower carbon emissions in the transportation sector.



Clean Fuels Welcomes §40B SAF GREET Model

Today, Clean Fuels Alliance America expressed appreciation to USDA, the U.S. Treasury, Argonne National Labs, the Department of Energy, and other federal agencies for finalizing updates to the GREET model that will allow taxpayers to use it in calculating 2023-2024 sustainable aviation fuel (SAF) blender tax incentives (§40B). The updates for the first time recognize the carbon benefits of some of the climate smart agriculture practices that U.S. farmers are already utilizing.

Clean Fuels urges USDA and Treasury to further update the GREET model to include additional climate smart agriculture practices specific to oilseed crops and quickly finalize rules for the 2025-2027 tax incentives (§45Z Clean Fuel Production Credit), which will support U.S. biodiesel, renewable diesel, and SAF producers.

““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.”

Clean Fuels continues to assess the changes to the GREET model unveiled today, including updated indirect emission penalties for U.S. oilseed crops like soy and canola. Clean Fuels believes there is more work to be done to enable credit for climate smart agriculture practices that U.S. farmers are deploying.

“Biodiesel, renewable diesel, and SAF producers are already negotiating feedstock and fuel offtake contracts for 2025, so we look forward to working with Treasury and USDA to quickly turn attention to guidance for the Clean Fuel Production Credit that begins on January 1 next year.” Kovarik added. “We believe there are additional climate smart agriculture practices and industry data that can be incorporated in the GREET model to support the continued sustainable growth of the entire clean fuel industry.”



ACE Reaction to New 40B GREET Model for SAF Tax Credit

Today, 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) model, providing guidance on how feedstocks like corn ethanol could qualify for sustainable aviation fuel (SAF) under the 40B tax credit of the Inflation Reduction Act (IRA). Under 40B, SAF with lifecycle greenhouse gas (GHG) emissions at least 50% cleaner than conventional jet fuel qualifies for the tax credit if sold prior to January 1, 2025. The value of this credit is determined on a sliding scale, equal to $1.25 plus an additional $0.01 for each percentage point by which the lifecycle GHG emissions reduction exceeds 50%.
 
The new 40B GREET model announced today will recognize GHG reductions from carbon capture and sequestration (CCS), renewable natural gas, and renewable power used to produce ethanol for qualifying SAF and include a “safe harbor” pilot program for corn ethanol produced with bundled climate-smart agriculture (CSA) practices. Treasury also announced it will develop pathways for ethanol from CSA practices under the 45Z clean fuel production tax credit set to go into effect on January 1, 2025.
 
American Coalition for Ethanol (ACE) CEO Brian Jennings issued the following reaction upon initial review:
 
“The Biden Administration is providing an important tailwind for corn ethanol produced with no-till, cover crops and enhanced efficiency fertilizers to qualify as a feedstock for SAF under 40B so long as all three of these climate-smart agriculture practices (CSA) are adopted. This marks the first time a regulatory body has formally acknowledged the role CSA practices play in reducing corn ethanol’s GHG emissions, in this case enabling some ethanol-to-jet to qualify for the 40B credit.
 
“The United States Departments of Agriculture (USDA) and Energy (DoE) deserve praise for diligently ensuring this first step is being taken with respect to CSA practices. ACE is particularly grateful to U.S. Secretary of Agriculture Vilsack for successfully advocating that corn ethanol is part of the solution to fulfill the Biden Administration SAF goals and for his leadership on CSA pathways for corn ethanol under the new 45Z credit.
 
“While today’s announcement is a step in the right direction, ethanol-to-jet continues to face headwinds such as artificially inflated land use change (LUC) penalties in 40B GREET and the initial all or none requirement to bundle three CSA practices in order to produce qualifying corn ethanol feedstock for SAF.
 
“With the 2024 planting season underway and the expiration of the 40B credit on December 31, 2024, Treasury’s SAF guidance speaks more to the Administration codifying the important role CSA practices play in decarbonizing liquid fuels than the amount of ethanol-to-jet that will qualify for the 40B credit. Today’s announcement provides ACE a roadmap for how to prevent the conditions placed on CSA practices in 40B from being applied as 45Z is implemented. Ultimately, we need to enable farmers and ethanol companies to recoup value from these tax credits for their investments to reduce GHG emissions.
 
“We look forward to continued engagement with Treasury, USDA and DoE with respect to how the GREET model will apply to 45Z, which will not require bundling of CSA practices. We also appreciate the need to provide these agencies with irrefutable justification of the GHG benefits of CSA practices. That is why the ACE-led and USDA-funded Regional Conservation Partnership Program (RCPP) projects are critically important; they will generate scientifically significant datasets of the GHG reduction benefits of CSA practices used to produce ethanol in various regions across the country so the full GHG value of these CSA practices can be reflected in future iterations of the GREET model and be used by ethanol producers to obtain 45Z tax credits. ACE will proactively leverage our RCPP projects to fine-tune how CSA practices are scored and rewarded, and capitalize on our work with farmers to ensure commonsense monitoring, measuring, verification and reporting requirements (MMVR) for biofuel producers and farmers.”
 
45Z is a technology-neutral tax credit for transportation fuel used in a highway vehicle or aircraft produced and sold between 2025 and 2027. Credit values are based on the GHG emissions of the fuel compared to a baseline of 50 kilograms CO2 equivalent/mmBTU. The statute specifies use of the GREET model to determine the GHG emissions for nonaviation fuel. The value of 45Z is $0.02 cents per gallon for each carbon intensity point under 50 kg CO2e/mmBTU.
 
In February, ACE sent a letter to members of the SAF Interagency Working Group (IWG) stressing the importance of GHG credits for climate-smart agriculture practices when updating the GREET Model for SAF lifecycle GHG emissions under Section 40B of the IRA. Accompanying ACE’s letter was an analysis prepared by Ron Alverson of the ACE board of directors comparing modeled estimates of land use change (LUC) to what has occurred in the real world.



Growth Energy: New 40B Guidance an Important First Step

Growth Energy, the nation's leading biofuel trade association, reacted to new tax and carbon modeling guidelines released today by the Biden administration. The guidelines, which will be used to calculate the section 40B Sustainable Aviation Fuel (SAF) blender tax credits under the Inflation Reduction Act, are an important step forward for the bioeconomy, according to Growth Energy CEO Emily Skor, who made the following statement in response:

“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.  

“The SAF market is just getting off the ground, and today’s guidelines are only the beginning of an important journey for the bioeconomy. As the administration builds on the 40B GREET model, its guidance for the 45Z tax credit must be less prescriptive and more expansive—fully embracing the totality of innovations that, by its own admission, can demonstrably reduce carbon intensity. Only then will the incentive structure give a strong market signal to producers that they’ve been given the green light on SAF, and that all of their innovations on the farm and at the plant will be properly rewarded.”  



RFA Welcomes 40B Sustainable Aviation Fuel Guidance, But Says Additional Work Needed

The 40B tax credit guidance and modified GREET model released today by U.S. Treasury begin to unlock the door for U.S. ethanol producers and farmers to participate in the emerging market for sustainable aviation fuels (SAF). However, more work must be done to fully open the SAF market to ethanol and properly recognize the climate benefits of modern agriculture and biofuels, according to the Renewable Fuels Association.

“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,” said RFA President and CEO Geoff Cooper. “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.”

Cooper noted that today’s 40B package sets the stage for a more expansive and flexible modeling approach under the 45Z clean fuel production tax credit. RFA expects the Biden administration will soon request public comment on considerations and options for implementing the 45Z credit.

“We view today’s 40B announcement as the starting point—not the ending point—for additional modeling improvements, further integration of individual climate-smart agriculture practices, and emerging biorefinery technologies,” Cooper said. “45Z is where the rubber really meets the road. We look forward to working with USDA and other agencies across the administration to ensure 45Z is implemented in a way that truly swings the door wide open for farmers and ethanol producers to participate in the enormous decarbonization opportunity.”

The conversion of ethanol to jet fuel is one of the most promising forms of SAF, Cooper said. Low-carbon ethanol has key advantages as a feedstock for SAF, as it is cost-competitive with petroleum-based fuels, has established production and transportation infrastructure, and is by far the largest-volume biofuel produced in the United States, with output of nearly 16 billion gallons per year.

“We are especially grateful for the role that U.S. Agriculture Sec. Tom Vilsack and his team played in the effort,” Cooper concluded. “Sec. Vilsack has time and again demonstrated his commitment to serving rural communities, and understands the importance of lower-carbon, American-made renewable fuels.”



Thompson Releases 2024 Farm Bill Overview

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 118th 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... https://agriculture.house.gov/uploadedfiles/high_level_title_by_title_doc.pdf.



University of Arkansas Releases Lifecycle Assessment Showing Pesticides Advance
Sustainable Agriculture

In a first of its kind effort to assess the environmental footprint of pesticide use, CropLife America (CLA) commissioned the University of Arkansas, led by researchers Dr. Marty Matlock and Dr. Greg Thoma, to conduct an independent three-year cradle-to-farmgate Life Cycle Assessment that comprehensively evaluates the environmental benefits and impacts of pesticide application in the cultivation of corn, cotton, and soybeans in the U.S.. The study examined crop productivity with and without pesticides (herbicides, insecticides, and fungicides) for three crops. The completed assessment successfully underwent an independent third-party ISO review.  

The assessment’s key results include:
    Without pesticides, the yields of corn, cotton, and soybeans declined up to 70 percent, underscoring the indispensable role of pesticides in agriculture.
    Cultivating corn, cotton, and soybeans without pesticides resulted in upwards of three times more land, water, energy use, and greenhouse gas emissions.
    Pesticides not only enhance productivity but significantly reduce pressure on our water, land, and energy resources per bushel of corn and soybeans and per pound of cotton produced.

“This three-year, independent assessment demonstrates that pesticides play a critical role in increasing crop yields while decreasing consumption of natural resources. We are pleased to have the data to support the work we do as we advance our commitment to sustainability,” said Alexandra Dunn, CropLife America, president and CEO. “In a world grappling with food security and climate change, the researchers’ findings affirm the significant role pesticides play in helping to feed, fuel, and clothe our world’s growing population in a sustainable manner. This is good news for today and the future.”

CropLife America will be hosting the lead author for a public webinar to further explain the LCA and findings on May 16, 2024.



March Prices Received Index Up 1.5 Percent

The March Prices Received Index 2011 Base (Agricultural Production), at 122.3, increased 1.5 percent from February but decreased 4.8 percent from March 2023. At 100.1, the Crop Production Index was down 1.2 percent from last month and 16 percent from the previous year. The Livestock Production Index, at 144.6, increased 2.3 percent from February, and 4.7 percent from March last year. Producers received higher prices during March for cattle, hogs, broilers, and lettuce but lower prices for market eggs, strawberries, oranges, and wheat. In addition to prices, the volume change of commodities marketed also influences the indexes. In March, there was increased monthly movement for cattle, strawberries, milk, and calves and decreased marketing of cotton, soybeans, onions, and apples.

March Prices Received by Farmers
Crop production: The March index, at 100.1, is 1.2 percent lower than February and 16 percent lower than March 2023. Fruit & tree nut and grain & oilseed index decreases more than offset the other crop and vegetable & melon index increases.

Grain and oilseed: The March index, at 83.5, is down 0.9 percent from February and 27 percent from March 2023.

Feed grain: The March index, at 73.6, was unchanged from last month but decreased 34 percent from a year ago. The corn price, at $4.36 per bushel, is unchanged from last month but down $2.31 from March 2023.

Food grain: At 97.9, the index for March decreased 3.0 percent from the previous month and 19 percent from a year ago. The March price for all wheat, at $6.01 per bushel, is 35 cents lower than February and $2.34 lower than March 2023. The March price for rice, at $17.50 per cwt, is 30 cents lower than February and $1.80 lower than March 2023.

Oilseed: At 94.6, the index for March decreased 0.7 percent from February and 20 percent from March 2023. The soybean price, at $11.80 per bushel, is 10 cents lower than February and $3.10 lower than March a year earlier.

March 2023. The all hay price, at $183.00 per ton, is $6.00 lower than February and $48.00 lower than March 2023. At 81.8 cents per pound, the price for upland cotton is 4.2 cents higher than February but 1.2 cents lower than March 2023.

Livestock production: The index for March, at 144.6, increased 2.3 percent from the previous month and 4.7 percent from March a year earlier. Meat animal and dairy index increases offset the lower poultry & egg index.

Meat animal: At 144.5, the March index increased 5.2 percent from the previous month and 12 percent from a year earlier. At $62.80 per cwt, the March hog price is $4.60 higher than February and $1.10 higher than a year earlier. The March beef cattle price of $185.00 per cwt is $7.00 higher than the previous month and $21.00 higher than March 2023.

Dairy: The index for March, at 103.0, is up 0.5 percent from the previous month but down 1.4 percent from March a year ago. The March all milk price of $20.70 per cwt is 10 cents higher than February but 30 cents lower than March 2023.

March Prices Paid Index Up 0.6 Percent
The March Prices Paid Index for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW), at 140.2, is up 0.6 percent from February 2024 but down 1.1 percent from March 2023. Higher prices in March for feeder cattle, feeder pigs, nitrogen, and gasoline more than offset lower prices for complete feeds, hay & forages, LP gas, and concentrates.