Sustainable aviation fuel and clean fuel production tax credits have the potential to benefit farmers while lowering carbon emissions. However, the shortcomings in the provisions could put the benefits out of reach for many U.S. farmers.
Four groups, including the American Farm Bureau, American Soybean Association, National Corn Growers Association, and National Farmers Union, sent a letter to Treasury Secretary Janet Yellen and Office of Management and Budget Director Shalanda Young urging them to ensure the Clean Fuel Production Credit (45Z) works for U.S. farmers.
“Without clear domestic feedstock requirements in the tax credit, the benefits of this policy are at risk of being diverted from American farmers,” the letter says. “There is no current requirement that feedstocks be grown domestically, which means foreign feedstock producers can take advantage of the credit.”
The groups also say this goes against the broader goal of supporting U.S. agriculture and rural communities.
