Nebraska Corn Growers Association’s Statement on Treasury’s 40B Guidance on SAF

 Lincoln, Neb. – Nebraska corn farmers are frustrated and unsatisfied by the announcement from the U.S. Department of Treasury (USDOT) limiting corn-based ethanol's contribution to the decarbonization of the aviation sector, sustainable aviation fuel (SAF), through the 40B tax credits. Today’s update to the Department of Energy’s (DOE) Argonne GREET model stated that corn-based ethanol must be grown with additional on-farm conservation practices to apply for tax credits available in the Inflation Reduction Act.

Among the updates made to GREET include measurements involving land use changes related to commodity production. The changes, which are not justified, negatively impact the carbon scores of ethanol making it more difficult for corn to qualify as a feedstock.

The updated model will also require farmers to use no-till practices, enhanced efficient fertilizers and cover crops, which is not practical for all acres of the large and varied geographic region in which corn is grown. 

“This announcement sets Nebraska farmers back as corn should continue to be a viable source of low-carbon feedstocks for ethanol and ultimately sustainable aviation fuels,” said Chris Grams, president of the Nebraska Corn Growers Association. “The guidance has very limited positive outcomes for Nebraska farmers and farm families as it forces voluntary practices to become mandatory for farmers across Nebraska’s variation of environments where the practices may not be feasible.”

The United States Department of Agriculture (USDA) Economic Research Service forecasts farm net income in 2024 at $116.1 billion, a 37 percent drop from 2022. When farmers all over the U.S. are forced to implement practices to qualify for market access, the one-size-fits-all approach is unworkable. The difference in climate, soil and season makes it difficult for Nebraska farmers to subscribe to the same conservation regimen in all areas of the state, much less in all areas of the country.

“Today’s announcement sets the foundation for the future for 45Z tax credits and the guidance that will further affect SAF production moving forward. NeCGA will continue to defend Nebraska farmers as the rule making process begins.”