NCGA Reacts to USDA Rule Impacting Biofuel Tax Credit (Wed, 15 Jan 2025)
The U.S. Department of Agriculture published an interim rule today that provides guidelines for climate smart agriculture practices for crops used for biofuels. The tax credit, part of the Inflation Reduction Act, is designed to help the agricultural industry make inroads into the aviation sector. Farmers have long awaited today’s release. The new rule removes the requirement to bundle climate smart practices and instead allows corn to qualify as an eligible feedstock if individual practices are used to grow it. But farmers have also asked for more clarity on how they will benefit from the law. “We are appreciative of Secretary Vilsack for ushering the process along and increasing the number of corn bushels that would qualify for the tax credit,” said Illinois farmer and National Corn Growers Association President Kenneth Hartman Jr. “It is still unclear whether that is enough to enable farmer participation.” Additional opportunities for improvement would include the use of a book and claim system and the expansion of practices that would qualify for the credit, both of which would allow for greater farmer participation. USDA will open a 60-day public comment period in which NCGA will continue to communicate the role farmers are playing in producing feedstocks for biofuels. “Corn growers are poised to meet this market demand if given the opportunity,” Hartman said. “We look forward to working with the Trump administration as this process evolves.”
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NCGA Releases Targets to Increase Agricultural Competitiveness (Wed, 15 Jan 2025)
The National Corn Growers Association (NCGA) today published its 2025 Corn Competitiveness Report, providing a roadmap for the incoming Trump administration and the new Congress to bolster the economic outlook for farmers and rural America. The report comes as corn growers are forecasted to face a third year of negative returns in 2025. “The U.S. is a corn-producing superpower, growing about one-third of the world’s corn and doing so more sustainably than anywhere else on earth,” the report noted. “But the future of this American-grown powerhouse is in jeopardy as costly and burdensome regulations and outdated, unfavorable policies hinder American corn farmers’ market access resulting in high costs and low market prices.” According to the report, the U.S. can turbocharge American competitiveness by focusing on six key targets: Increasing global market access for U.S. corn Expanding the use of U.S. corn in ethanol Strengthening farm risk management Preserving the American farm family legacy and farmland access Protecting access to agricultural innovations Strengthening use of U.S. corn in American products The report provides specific examples of the ways in which the U.S. can achieve these targets. These include developing new foreign markets, passing legislation that will expand consumer access to higher blends of ethanol, ensuring sensible regulations are in place and extending estate tax exemptions. “If the United States is going to build the greatest economy in history, supporting American corn farmers is foundational,” the report noted. “Corn growers need an environment where they can be innovative, productive and profitable. An environment with unobstructed access to necessary inputs, management tools and markets.” Corn grower leaders argue that a change in Washington offers an opportunity to address these challenges. They say by following the report’s recommendations, the Trump administration and Congress can boost the economy and ensure American corn growers are competitive on the world stage. READ THE REPORT
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