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Clean fuel credits for climate-smart farms

USDA seeks farmer input on sustainable practices

By Farms.com

The U.S. Department of Agriculture (USDA) is seeking feedback from farmers and biofuel producers on how to improve the assessment of climate-friendly farm practices. This input will help finalize a clean fuels tax credit program launching in 2025.

The administration aims to lower transportation emissions by encouraging farmers growing biofuel crops to adopt sustainable practices that store carbon in the soil.

Earlier guidance for a sustainable aviation fuel tax credit from the Treasury Department received criticism for requiring farmers to implement a strict combination of three practices. Many farmers found this unrealistic.

"We acknowledge the limitations of the initial guidance," said Agriculture Secretary Tom Vilsack.

The USDA is now inviting comments for 30 days on how to improve their approach to evaluating climate-friendly practices for the clean fuel tax credit. This credit will replace existing low-emission fuel credits, including the one for sustainable aviation fuel.

Vilsack highlighted the possibility of adjusting the bundling requirements based on the feedback received. He emphasized the goal of finalizing the rules by fall to allow farmers to make informed planting decisions for the following year. The final ruling will ultimately be issued by the Treasury Department.


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