Flexible farming standards needed for SAF tax credits, says NCGA
The National Corn Growers Association (NCGA) has made a plea for more reasonable standards regarding the allocation of tax credits for sustainable aviation fuels (SAF), as dictated by the Inflation Reduction Act. This request targets the establishment of criteria that are adaptable to the varied agricultural practices found across the United States.
NCGA President Harold Wolle highlighted ethanol's role in mitigating greenhouse gas emissions and its potential within the aviation sector. He called for a regulatory framework that accommodates the environmental and operational realities of different farming regions, allowing corn growers to meet emission reduction requirements effectively.
The challenge lies in the stipulations set by the U.S. Department of Treasury, which mandate that biofuel producers lower their carbon intensity scores using specific climate-smart practices.
This directive has caused concern among corn growers, who fear that rigid standards may not fit all geographical and climatic conditions, potentially hindering their ability to contribute to national climate objectives.
Wolle advocated for a system that is inclusive of all corn growers, regardless of their regional conditions, to ensure that the agricultural sector can fully engage with the SAF market.
This approach would support the administration’s ambitious climate goals while maintaining the viability and competitiveness of U.S. agriculture on a global scale.