Monday December 16 Ag News

 NEBRASKA MESONET LAUNCHES REAL-TIME WEATHER DATA FEATURES, EXPANDS COVERAGE

The Nebraska Mesonet, a critical tool for weather monitoring and data collection across the state, has launched a redesigned, user-friendly website offering real-time weather data. The upgrade comes as the mesonet is growing its network of weather monitoring stations across Nebraska to offer more accurate data.

Through the new website, the mesonet delivers “data on demand,” updating every minute to provide current conditions. Previously, data could lag by an hour or more.

“Especially for severe weather or agriculture, knowing what’s happening right now is vital,” said Ruben Behnke, Nebraska Mesonet manager. “Whether it’s monitoring storms or gauging heat stress for cattle, conditions from 20 minutes ago simply aren’t as useful.”

The Nebraska Mesonet is a statewide network of 74 automated weather monitoring stations designed to provide high-quality environmental and meteorological data in real time. Operated by the University of Nebraska–Lincoln’s Institute of Agriculture and Natural Resources, the mesonet collects information on temperature, humidity, wind speed and direction, solar radiation, precipitation, and soil moisture and temperature, among other data points.

These data are vital for agricultural management, weather forecasting, emergency planning, and research on climate and environmental changes and are used by a wide array of agencies, including the U.S. Department of Agriculture, National Weather Service, Nebraska Emergency Management Agency and Nebraska natural resources districts.

The mesonet began in 1981 with five stations. As demand for weather data grew, the number of stations across the state expanded, peaking at 81. Lack of maintenance funds led to the closure of some stations, and for a few years, the number of stations dipped to 55. But a new partnership with the U.S. Army Corps of Engineers has brought the number back up to 74. Additional funding from the Corps of Engineers, along with NEMA, USDA and NRDs across the state, will add about 50 stations over the next three years to meet growing demand for accurate, high-quality weather data.  

The National Drought Mitigation Center uses mesonet data in evaluating drought conditions. The USDA relies on it to evaluate the severity and extent of severe weather events that trigger relief programs such as the Emergency Conservation Program or Livestock Forage Disaster Program. The National Weather Service’s Nebraska offices use it to forecast local weather and monitor severe weather threats. Local emergency management agencies use the data to help forecast, monitor and prevent the impacts of wildfires, flooding and other severe weather conditions. Farmers use the data to determine when to irrigate, apply fertilizer and other inputs, and to make other management decisions. Even NASA is planning to use the mesonet data to validate satellite measurements of soil moisture and temperature.

“Increasingly, agriculture is driven by data and by the weather,” said Derek McLean, dean and director of the university’s Agricultural Research Division. “Interest in and potential uses for these data is growing all the time. This is a critical network for the state to maintain, support and grow.”

The mesonet has also enhanced its technical offerings, including tools like Delta T, an indicator for safe herbicide and pesticide application, and wet bulb globe temperature readings for better heat stress analysis. One of the most popular data products currently available is the Cattle Comfort Index, which lets producers know when their cattle are subject to dangerously high or low temperature conditions. These precise metrics cater to agricultural needs, allowing farmers and cooperatives to optimize practices such as irrigation and fertigation while conserving resources.

Behnke and the rest of the mesonet team plan to introduce additional features, including crop water use and evapotranspiration, growing degree days, a robust data access tool and live imagery from on-site cameras. Other updates will allow users to build custom applications integrating mesonet data into other systems.

“This is truly the people’s weather network,” Behnke said. “Our goal is to provide the highest-quality data and make it accessible to everyone — whether you’re monitoring local weather for your family, farm or a federal agency.”

For more information on the Nebraska Mesonet or to access up-to-the-minute weather data, visit https://nemesonet.unl.edu.



CVA reports strong financial performance and reinvestment at Annual Meeting

Central Valley Ag (CVA) cooperative hosted its Annual Meeting at the Holthus Convention Center in York, Neb. CVA achieved $45.0 million in net savings, including $27.7 million in local operating savings, from $1.67 billion in total sales for the 2024 fiscal year, ending on August 31, 2024. The cooperative also returned over $24.0 million in cash to its members through equity redemptions and patronage dividends.

"I'm proud that CVA continues to deliver on its promise to members. We've provided excellent products, services and technology, and CVA's strong performance means another historic return of cash to you through equity redemptions and patronage dividends," said Carl Dickinson, President and CEO of CVA.

In addition to its financial success, CVA continued its focus on enhancing services to its patrons. The cooperative invested $92.8 million in capital expenditures during fiscal year 2024, funding significant improvements and expansion projects to better serve member-owners.

"To effectively provide our member-owners, we need to ensure we have top-tier facilities, equipment and people. Reinvesting capital is an important part of running a prosperous business and delivering value to our members," said Dickinson.

As part of the Annual Meeting, CVA announced the results of its Board of Directors election, conducted through a mail-in ballot process. Voting stockholders elected the following producers to serve on the board:
    Region 1: Alex Brookhouser (Brunswick, NE) and Ben Meis (Elgin, NE)
    Region 2: Duane Schumacher (Bloomfield, NE)
    Region 4: Jay Uehling (Oakland, NE)
    Region 6: Emily Luebbe (Utica, NE)
    Region 7: Michael Welch (Haddam, KS)
    Region 8: Derek Appley (Akron, IA)

The Board also elected the following officers:
    Chairman: Luke Carlson (York, NE, Region 5)
    Vice Chairman: Mark Philips (Akron, IA, Region 8)
    Secretary: Jacob Porter (Mankato, KS, Region 9)

"The CVA Board of Directors is made up of local agricultural producers who bring expertise in agriculture, economic development, and community leadership," said Chairman Luke Carlson. "Serving on the board is about representing your neighbors. We make sure their needs are met, and continually work to improve how CVA serves its members."

CVA remains committed to delivering value to its member-owners while reinvesting in assets and initiatives that ensure long-term success. The cooperative's strong financial performance and continued focus on innovation demonstrate the strength of the cooperative model and its ability to support producers in an evolving agricultural landscape.



Central Valley Ag Returns Profits to its Members

Central Valley Ag (CVA) Cooperative continues to exemplify the cooperative spirit by giving back to its member-owners. Recently, the CVA Board of Directors approved a total payout of $20.8 million in patronage refunds for Fiscal Year 2024, demonstrating the cooperative's dedication to its members' success and the strength of its business model.

Of the approved amount, 60% ($12.4 million) will be distributed in cash, while the remaining $8.4 million will be allocated as non-qualified deferred patronage. This structure allows member-owners to pay taxes only on the cash portion received now, deferring taxes on the non-qualified equity until it is redeemed in future years.

"We could do not provide this payout to our patrons without the incredible support of our member-owners and the outstanding efforts of our employees," said Carl Dickinson, President and CEO of CVA. "I am incredibly proud of CVA's performance over the past year. This success reflects the loyalty of our members and their commitment to the cooperative model. We are excited to share these achievements with those who make it possible."

Patronage refunds are calculated based on member volume during CVA's fiscal year, which ran from September 1, 2023 to August 31, 2024. Refund checks were mailed to member-owners on November 26, 2024.

"The cooperative model has never been more relevant," said Dickinson. "We will continue working to ensure long-term sustainability and success for our member-owners while delivering on the CVA promise."



CHS owners elect five board members

Owners of CHS, the nation’s largest farmer-owned cooperative and global agribusiness, elected five board members to three-year terms during the cooperative’s 2024 annual meeting held Dec. 5-6 in Minneapolis, Minnesota.

Trent Sherven was elected to the CHS Board of Directors to represent owners in Region 3 (North Dakota). Sherven raises barley, canola, durum, soybeans, spring and winter wheat and sunflowers with his family near Ryder, North Dakota.

Chris Edgington was also elected to the CHS Board of Directors to represent Region 7 (Iowa, Missouri, Arkansas, Louisiana, Mississippi, Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee). Edgington raises corn, soybeans and cattle with his family near St. Ansgar, Iowa.

David Johnsrud (Region 1) and Steve Fritel (Region 3) retired from the Board at the conclusion of the annual meeting. Amendments to the CHS Bylaws approved by members in December 2023 added a director seat to Region 7 (filled by Edgington) and removed a seat from Region 1.

In addition to the new members joining the board, the following were reelected to the CHS Board of Directors:
    David Kayser, who raises corn, soybeans, hay and cattle with his family near Alexandria, South Dakota, and represents Region 4 (South Dakota)
    Russ Kehl, who raises potatoes and dry edible beans with his family near Quincy, Washington, and represents Region 6 (Washington, Oregon, Idaho, Utah, Arizona, California, Hawaii, Nevada and Alaska)
    David Beckman, who raises corn, soybeans and hogs with his family near Elgin, Nebraska, and represents Region 8 (Nebraska, Kansas, Colorado, New Mexico, Oklahoma and Texas)

The following CHS Board members were elected to one-year officer terms:
    Dan Schurr, LeClaire, Iowa, reelected chair
    C.J. Blew, Castleton, Kansas, reelected first vice chair
    Scott Cordes, Wanamingo, Minnesota, reelected second vice chair
    Russell Kehl, Quincy, Washington, reelected secretary-treasurer
    Al Holm, Sleepy Eye, Minnesota, reelected assistant secretary-treasurer



HPAI Detected in a Commercial Layer Flock in O’Brien County

The Iowa Department of Agriculture and Land Stewardship and the United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) have detected a case of Highly Pathogenic Avian Influenza (H5N1 HPAI) in a commercial layer flock in O’Brien County, Iowa. This is Iowa’s eighth detection of H5N1 HPAI within poultry in 2024.



Iowa Farm Bureau members gather for 106th Annual Meeting and County Leadership Conference

Members of Iowa’s largest general farm organization gathered at the Community Choice Credit Union Convention Center in Des Moines last week to celebrate the achievements of 100 county Farm Bureaus, young farmer award winners and receive expert insight on key topics and issues shaping agriculture today.

Zippy Duvall, American Farm Bureau Federation (AFBF) president, addressed members of Iowa Farm Bureau’s Young Farm Program, delivering a keynote address during their award banquet.  Duvall provided updates on key issues facing agriculture today and shared a message of strength through unity, reinforcing the important role young farmers play in the future of American agriculture.  

Farm Bureau members engaged in several educational breakout sessions during the two-day meeting, receiving valuable insight into economic factors shaping agricultural markets and updates on national policy. During challenging economic times like these, informed decision making is crucial to sustainability in agriculture.

Iowa Governor Kim Reynolds addressed members virtually during the closing session and shared her strong support of Iowa farm families and agriculture, proclaiming Dec. 9-13, ‘Iowa Farm Bureau Week.’  Governor Reynolds recognized Iowa Farm Bureau as a valuable partner in moving Iowa forward. The Governor highlighted recent achievements and opportunities to add value to Iowa ag products.  

IFBF Elections
Brian Feldpausch of Grundy County was re-elected IFBF vice president.  He was first elected vice president in 2022 and previously represented District 5 on the IFBF board of directors.  Brian and his wife, Jen, have three children, and grow corn, soybeans and alfalfa and raise hogs and cattle.

Randy Brincks of Winneshiek County was re-elected to the IFBF board of directors, representing District 1, comprised of 11 counties in northeast Iowa.  Randy and his wife, Mary, have five children and grow corn, soybeans and alfalfa.  As an independent pork producer, Brincks has farrow to finish hogs, sells feeder pigs and finishes cattle.  

Matt Schuiteman of Sioux County was re-elected to the IFBF board of directors, representing District 3, comprised of 12 counties in northwest Iowa.  Matt and his wife, Minde, have seven children and farm with his parents and grow corn and alfalfa. The Schuitemans farrow and finish a small sow herd and custom feed isowean pigs.

Allen Burt of Marshall County was re-elected to the IFBF board of directors, representing District 5, comprised of 11 counties in central Iowa.  Allen and his wife, Dee, have four children, and grow corn and soybeans and raise pigs and cattle on their farm.

Nine delegates were elected to represent Iowa at the 2025 AFBF Annual Convention in San Antonio, Texas, January 24-29.  They include: IFBF President Brent Johnson of Calhoun County; IFBF Vice President Brian Feldpausch of Grundy County; District 6 director Joe Dierickx of Clinton County; Brent Lorimor of Fremont County; Randy Dreher of Audubon County; Brad Black of Calhoun County; Darrick Hall of Jones County; Bret Hays of Mills County and Beth Rachut of Mitchell County.  

Joel Wahling of Shelby County was elected to a three-year term on the IFBF internal study committee.  The internal study committee serves as a liaison between the county Farm Bureau voting delegates and the state board of directors.  

Distinguished Service to Ag Award
Bill Northey, Larry Sailer and Sam Cogdill were recognized as Iowa Farm Bureau’s Distinguished Service to Agriculture (DSA) Award recipients. IFBF’s prestigious DSA Award has been presented to leaders in Iowa agriculture since 1978, recognizing leaders for a lifetime of dedication and positive impacts made in Iowa agriculture.  

Northey, recognized posthumously, was a larger-than-life leader in Iowa agriculture, who touched the lives of many farmers through his life of work and dedication to agriculture.  Northey was a life-long Iowa Farm Bureau member and was recognized as an instrumental leader in agriculture, working for farmers to shape policy impacting renewable energy, conservation, trade, foreign animal disease and more.

From 2007-2018, Northey served as Iowa’s Secretary of Agriculture and Land Stewardship and played an instrumental role leading conservation progress with his work on Iowa’s Nutrient Reduction Strategy.  From 2018-2021, Northey served in Washington, D.C. as U.S. Department of Agriculture Under Secretary for Farm Production and Conservation. The Iowa State University alum also served as CEO of Agribusiness Association of Iowa until his passing in early 2024.  

Sam Cogdill of Dunlap is a farmer and the president and CEO of Cogdill Farm Supply. With six western Iowa locations, his facilities offer grain and fertilizer merchandising, agronomy services, feed, seed and farm supplies. Cogdill was nominated by the Harrison County Farm Bureau for his lifetime of service to agriculture, role spearheading local economic development and commitment to supporting youth in agriculture.  

Under his 40-year leadership as president of the Dunlap Community Development Corporation, the town has built the Dunlap Industrial Park, which houses five thriving businesses. He is also credited with playing a pivotal role in bringing one of the community’s largest employers, Quality Liquid Feed manufacturing plant, to Dunlap, spearheading the establishment of two much-needed medical facilities in town and helping to establish ethanol plants in Denison and Nevada.

Larry Sailer, a farmer from Iowa Falls, is a long-time Franklin County Farm Bureau leader and agricultural advocate. He is the Franklin County Republican Central Committee chair, Global Farmer Network farmer leader, farmer ambassador for Farm Journal Foundation and a board member with Park Place of Hampton, a nonprofit supporting individuals with mental illnesses.



Registration open for Iowa Farm Bureau's 2025 Young Farmer Conference

The Iowa Farm Bureau’s Young Farmer Conference will take place Jan. 17-18 at the Community Choice Convention Center in Des Moines, offering opportunities to network and gain the latest insights into the farming industry geared specifically toward young farmers.

The popular conference, attracting hundreds of farmers each year, begins with six different industry tours followed by a keynote from Jack Uldrich, a global futurist, speaker and author. Uldrich argues creativity and action are more powerful than knowledge alone, and “unlearning” can allow people to be more flexible during this era of unparalleled change. Following will be a comedy hour, yard games and door prizes.

On Jan. 18, more than 20 educational sessions will provide attendees the chance to learn from other farmers involved in direct-to-consumer markets and value-added agriculture; gain understanding of current ag markets and policy impacts on the farm; and learn new skills in creating graphics or canning.

“It’s critical we encourage and nurture young farmers in Iowa to ensure the next generation has the tools to navigate challenges in farming and grow successfully,” said Iowa Farm Bureau President Brent Johnson. “The Iowa Farm Bureau Young Farmer conference is a great place to network, learn the latest ways to grow and enhance your farm and have fun while doing it. I started in our Young Farmer program and still maintain those friendships today.”

The three Grow Your Future Award finalists will pitch their ag-related businesses to a 500-person audience for a chance to win $10,000. Attendees can also compete in the Farm Bureau Discussion Meet, a cooperative-style dialogue on topics related to challenges impacting family farms. The top 10 semi-finalists will advance to the 2025 Iowa Farm Bureau annual meeting where one person will be selected to represent Iowa at the American Farm Bureau Convention Discussion Meet.

The conference will culminate with motivational speaker Dr. Rick Rigsby, who wants his audiences to rediscover what is truly important and meaningful in life. Evening entertainment will be provided by Montezuma, Iowa-based country singer Cody Hicks.  

Register by Jan. 3 for this members-only event by contacting your local county Farm Bureau. To view the conference agenda or become an Iowa Farm Bureau member, visit IowaFarmBureau.com/YFC.



NCGA Calls on Congress to Resume Negotiations on Economic Assistance for Growers

Congress has yet to release or vote on a year-end legislation package. While recent negotiations have included funding for the federal government, a farm bill extension, economic assistance for agriculture producers and natural disaster recovery aid, Congressional leadership has signaled that the package does not currently include economic assistance.  

In response to this development, Kenneth Hartman Jr, president of the National Corn Growers Association, released the following statement:

“We are deeply disappointed that congressional leadership appears to be at an impasse over crucial economic assistance for farmers in an end-of-the-year legislative package. Corn growers are faced with low prices and high input costs and economic aid would provide them with critical relief during challenging economic times.

“While these developments are disheartening, we call on Congress to resume negotiations and pass legislation that includes economic assistance while there is still time.”



ASA Opposes Any Funding Package Without Economic Assistance, Urges Congressional Leadership to Recognize Farm Economy Realities

As the 2024 timeclock quickly dissolves, negotiations to include economic assistance for agriculture producers in Congress’ year-end spending package also appear to be on meltdown. Without the immediate relief sought in that package, farmers across the country who have faced severe economic hardships this year are the ones who would be burned the worst amid unrelenting inflation, historically high input prices, and falling commodity prices.

Caleb Ragland, president of the American Soybean Association and soy farmer from Kentucky, said, “We urge congressional leadership to return to the negotiating table and find a path forward. A package that does not include both economic and disaster assistance for our farmers who have suffered significantly from unforgiving market conditions, disastrous weather phenomena and for many, a combination of both, simply does not meet the mark for what agriculture and specifically, our soy growers, need. We will oppose any supplemental spending package that does not provide meaningful assistance to farmers who need help now to stay afloat in 2025 and beyond.”

While talks continue on an extension of the farm bill and a package to fund the government, soy farmers and other agricultural groups have expressed they do not support a package that fails to acknowledge the economic realities farmers are facing.

Soybean prices have dropped 40% over the past two years. Compounded by an already insufficient farm safety net, this has made it increasingly difficult for farming operations to remain viable. Without consideration for U.S. farmers, who provide feed, fuel, food and fiber for our country, rural communities and consumers nationwide will likely feel the residual effects of a mounting agriculture recession.



AFBF Calls for a No Vote If Congress Ignores Ag Recession

American Farm Bureau Federation President Zippy Duvall Saturday expressed disappointment that Congress appears to turn a blind eye to the agricultural recession in its year-end supplemental legislation. Duvall calls on farm state members to oppose the bill if economic aid for farmers is missing.

“At a time when farm income is in a downward spiral and costs are rising, it’s unacceptable for Congress to turn its back on farmers. Farmers don’t get to set the prices for their goods and right now those prices don’t even come close to covering their costs. We lost 141,000 farms in five years and if Congress fails to include economic aid for farmers, the sad reality is that we’ll lose more.

“Our whole country will suffer the consequences if Congress takes farmers and our food supply for granted. For this reason, I call on members of Congress who represent agriculture to stand with farmers by insisting the supplemental spending bill include economic aid for farmers and voting it down if it doesn’t. In truth, every elected leader who enjoys our affordable and abundant food supply represents agriculture, so I urge them to band together and ensure farmers are supported.

“Nearly 80% of Americans believe lawmakers should prioritize legislation that supports farmers and ranchers so it’s just plain unacceptable that our elected leaders are considering putting politics first. I hope reasonable members of Congress take a stand for the good folks who stock their pantries.”



NFU Calls on Congress to Deliver Critical Support for Farmers Before Year-End

National Farmers Union (NFU) President Rob Larew issued the following statement over the weekend, expressing frustration and urging Congress to address the urgent needs of family farmers and ranchers before adjourning for the year:

“Family farmers and ranchers across the country are battling relentless challenges. Despite these mounting pressures, Congress has failed to act and appears ready to leave town without securing critical support for farmers. NFU has been fighting tirelessly to ensure Congress passes a farm bill extension with economic and disaster aid family farmers and ranchers need.

“Time is running out to secure a deal before the end of the year. Lawmakers must not walk away from their responsibility to rural America. Congress has already failed to finalize a five-year farm bill. I urge Farmers Union members to tell their elected representatives to not come home until they have delivered immediate support for family farmers and ranchers."



ACE Responds to Ways and Means Committee on 45Z Tax Credit Questions

The American Coalition for Ethanol (ACE) has submitted its responses to the Supply Chains and Rural America tax teams of the House Ways and Means Committee regarding the 45Z Clean Fuel Production Tax Credit. This feedback on the biofuel tax provision comes as the U.S. Department of Agriculture readies to issue technical guidelines for climate-smart agriculture crops used for biofuel feedstocks, and the Biden U.S. Treasury department anticipates issuing preliminary 45Z guidance before the transition to the new administration.
 
"The 45Z Clean Fuel Production Tax Credit has the potential to be transformative, incentivizing investments in cleaner technologies and sustainable practices that directly benefit America’s farmers, biofuel producers and the environment,” said Brian Jennings ACE CEO. “ACE is committed to ensuring this policy delivers maximum value for our ethanol producer members and looks forward to remaining actively engaged in its implementation under the current administration and the next."
 
Below are key points from ACE CEO Brian Jennings’ responses to the tax committee’s questions.
 
Extension of 45Z Tax Credit
ACE strongly supports extending the 45Z tax credit beyond its current sunset in 2027. The three-year lifespan is insufficient for biofuel producers and farmers to fully realize the benefits of adopting new technologies and climate-smart agricultural practices. ACE recommends a total lifespan of 7 to 10 years to provide the certainty necessary for long-term investment and innovation.
 
Addressing Guidance Delays and Modifications
While the current statutory language provides sufficient latitude for Treasury to develop guidance, ACE highlights potential risks from delays or misaligned guidance, as seen in the 40B SAF Tax Credit. For example, the “all-or-none” bundling requirement for agricultural practices was impractical and undervalued individual ag practice contributions to carbon intensity (CI) reductions. ACE advocates for regular updates to 45Z guidance based on the best available science and empirical data from the ACE-led Regional Conservation Partnership Program (RCPP) projects.
 
Enhancing Climate-Smart Agricultural Practices
Treasury and USDA must allow individual and stacked agricultural practices to qualify toward emission rates for 45Z credits, avoiding restrictive bundling approaches. Leveraging the GREET model — the global gold standard for GHG quantification — and incorporating data from ACE’s real-world RCPP initiatives will ensure accurate CI scoring and greater farmer participation. ACE’s RCPP projects, spanning 10 states and involving nearly 100,000 acres of farmland, provide critical data to validate the GHG benefits of practices such as reduced tillage, nutrient management and cover crops. Guidance should reward individual climate-smart practices, maintain flexible verification methods and be updated regularly based on the best-available science and modeling.
 
Inclusion of Emerging Practices and Feedstocks
ACE urges Treasury and USDA to routinely update eligibility criteria to reflect advancements in agricultural technologies and practices. Empowering farmers with open-source tools for verification and compliance will enable broader participation and equitable access to tax credit benefits.
 
Fair Land Use Change Policies
Reliance on outdated economic modeling could undermine the integrity of CI scoring and disadvantage U.S. biofuels in global markets.



RFA Shares Input with House Ways and Means on Biofuel Tax Credits

With certain modifications and proper implementation, the Clean Fuel Production Credit (“45Z”) could create important new market opportunities for farmers, lower fuel prices for consumers, enhance energy security, and reduce emissions, the Renewable Fuels Association wrote Friday in response to a request for information from members of the House Committee on Ways and Means.

“A successful tax credit program would result in greatly expanded production and use of U.S.-produced low-carbon biofuels; creation of new value-added markets for U.S. farm commodities; lower fuel prices for consumers; and reduced dependence on foreign energy sources,” wrote RFA President and CEO Geoff Cooper. “Success can only be achieved if the tax credit program is durable, broadly scalable, and implemented in an efficient and straightforward manner for taxpayers.”

RFA called on the committee to consider extending the existing suite of biofuel tax credits—including the second-generation biofuel producer credit—while guidance is developed for 45Z and as potential modifications are debated in 2025. In addition, a more streamlined approach for registering for 45Z and securing IRS approval would help ensure biofuel producers are immediately ready when final rules are promulgated.

RFA also called on the committee to ensure that any modifications to 45Z take a broad approach to climate-smart agriculture practices.

“A wide array of CSA practices should be included to encourage the broadest participation possible by American farmers,” Cooper wrote. “It is also essential that there are no ‘bundling’ provisions that require farmers to adopt multiple CSA practices simultaneously.”

Finally, RFA suggested changes in the 45Z program’s treatment of sustainable aviation fuel “in order to truly stimulate investment in, and expansion of, SAF production.” To sustain and promote new investment in SAF, the base value of the 45Z credit for aviation fuels must be enhanced to improve the economics of SAF production and send the right market signal to SAF financers.



Growth Energy Responds to Ways and Means Committee RFI on 45Z Tax Credit

Growth Energy, the nation's largest biofuel trade association, responded today to a request for information (RFI) from the House Ways and Means Committee about the 45Z clean fuel production credit.

In a letter to the Committee Members who issued the RFI—Reps. Adrian Smith (R-Neb.), Randy Feenstra (R-Iowa), Michelle Fischbach (R-Minn.), Darin LaHood (R-Ill.), Carol Miller (R-W. Va.), and Claudia Tenney (R-N.Y.)—Growth Energy outlined why the organization and its members support 45Z and believe it to be critical to their continued success in a low-carbon economy.  

"Our industry is supportive of 45Z because it provides our members the ability to make costly capital investments to meet carbon constraints established by U.S. subnational policy and foreign trading partners," said Growth Energy CEO in the letter. "While we do not actively promote and seek these low-carbon regimes, we have to work within these programs...energy products in general will be required to meet a lower carbon intensity (CI) over the next several decades, and most of these investments needed to reduce CI are difficult—if not impossible—to do without something like the 45Z tax incentive."  

Growth Energy also detailed the best-case scenario for implementing 45Z and what happens to the credit once it has served its purpose.  

"Success for ethanol producers under 45Z is that we utilize this credit to deploy billions of dollars of capital to make robust energy investments in rural areas to increase American energy dominance and provide farmers with a growing market for more valuable commodities," Skor added. "Once we have seen this deployment of capital and an increase in farm markets, we would see this credit come to an orderly, well-planned phaseout as we would not require this credit in perpetuity."