ESG Post

Climate Change

US corn growers urge fair criteria for tax credits on SAF

The National Corn Growers Association (NCGA) has urged the Biden administration to establish fair and practical criteria for farming practices when awarding tax credits for sustainable aviation fuels (SAF), according to comments submitted by the association to the US Department of Agriculture.

“Ethanol has played a critical role in reducing greenhouse gas emissions in cars and trucks, and we can do the same for the airline industry,” NCGA President Harold Wolle noted after the comments were filed. “But we need a level playing field that allows farmers to meet emission requirements using environmentally smart practices that will work on their farms,” he said.

The issue arises from tax credits under the Inflation Reduction Act designed to support sustainable aviation fuels and allow farmers to enter this new market. To qualify under U.S. Department of Treasury standards, biofuel producers must demonstrate a reduction in their carbon intensity score, potentially by using climate-smart agriculture practices.

Corn growers have raised concerns about bundling specific practices that may not work in certain regions of the country. “Corn growers produce a commodity that will help the Biden administration meet its ambitious climate goals,” Wolle said, adding, “But imposing a one-size-fits-all standard for attaining the tax credit will make it hard for us to contribute to the president’s grand challenge.”