Biofuels
The good news is a Trump presidency and Republican-controlled Senate might result in fewer regulations and lower taxes. The bad news is the U.S. could be headed for a possible trade war with China and other countries.
Washington insider Jim Wiesemeyer fills the guest’s chair on this episode of Unscripted to share what he’s hearing about the upcoming presidential election. Wiesemeyer offers plenty of insight into key topics such as the impact of early voting and how the next administration can help or hurt the production ag industry.
The latest efforts in Washington D.C. could change the size of opportunity for farmers who sell their grain with a carbon intensity score.
The shift to climate-smart farming emphasizes low-carbon crop yields for biofuels, with 45Z tax credits starting Jan. 1, 2025. Farmers should consider profitable changes while documenting their existing sustainable practices.
The Farmer First Fuel Incentives Act has been introduced in both the Senate and the House. A bipartisan group of lawmakers has proposed extending the 45Z tax credit through 2034.
U.S. corn prices hit a four-year low as the prospect for record corn and soybean crops takes shape in the field. The eroding outlook also appeared in the August Ag Economists’ Monthly Monitor.
Gradable has more than 20,000 farmers users totaling 12 million acres and has facilitated more than $30 million in financial incentives for sustainable/regenerative practices every year.
The new 45Z tax credit passed in the Inflation Reduction Act, slated to take effect Jan. 1, 2025, means a farmer’s carbon intensity score will soon be worth more, especially if your corn goes to an ethanol plant.
Tim Urban of Bracewell Technologies has advocated for clients on business tax issues, extension of temporary tax provisions, and federal tax policies within the energy sector.
45Z is set to take effect on Jan. 1, 2025. While the 45Z credit has the potential to significantly boost sustainable aviation fuel production, the current lack of detailed guidance is causing some uncertainty in the industry.
“No matter what your opinion is about climate smart farming or the government initiatives and industry incentives out there, they are potentially an avenue to square up some revenue income,” says Ken Ferrie.