National Corn Growers Association (NCGA) farmer leaders are expressing concern about the final guidance on eligibility for the Sustainable Aviation Fuel 40B tax credits released by the Biden administration this week.
Specifically, NCGA is concerned with updates made to the Department of Energy’s GREET model, which requires farmers to bundle the use of no-till practices, enhanced efficiency fertilizers and cover crops for their grain to meet the standards now required to qualify for the tax credit.
“We are deeply disappointed that this updated model requires farmers to implement environmental practices that are not practical for all acres of the large and varied geographic region in which corn is grown,” said Minnesota farmer and NCGA President Harold Wolle. “This requirement in GREET will significantly hinder the chances corn growers have in accessing the sustainable aviation fuel market, even as higher blends of corn ethanol offer great promise in the country’s fight against greenhouse gas emissions and climate change.”
Wolle said NCGA will increase their advocacy efforts on the next phase taking effect in 2025, the 45Z tax credit, to improve the changes Treasury made to the GREET model.