Agriculture Calls for Rethinking Indirect Land Use Rules

Experts say farmers and ethanol producers would benefit from a risk-based ILUC system that protects forests without relying on speculative modeling.

upper midwest_fall landscape_adobe stock.png

Adobe Stock

LUBBOCK, Texas (RFD-TV) — A long-running debate over indirect land-use change — often called ILUC — is resurfacing as biofuel policy again weighs carbon penalties tied to theoretical global land-use impacts. John Duff of Serō Ag Strategies says ILUC began as a reasonable idea meant to prevent deforestation overseas.

Still, the system that grew around it quickly crossed into modeling assumptions that cannot be seen or measured. The result is a policy structure in which U.S. farmers and biofuel producers are penalized for land clearing that may not actually be happening, while fuels from regions with real deforestation concerns sometimes receive more favorable treatment.

Duff explains that large economic forecasting models mainly drive today’s ILUC penalties. These models aim to predict how farmers worldwide might respond if more U.S. grain is used for ethanol. Because they rely on assumptions about human behavior and international markets, the models often disagree and can drift far from real-world conditions. Still, their projections were built into federal and state carbon rules more than a decade ago, giving hypothetical outcomes the weight of law.

This mismatch has created uneven carbon scores, competitive disadvantages for U.S. ethanol, and a system that can punish farm efficiency rather than rewarding it. Duff says a better approach already exists: a risk-based framework used in Canada and parts of Europe. Instead of assigning blanket penalties, regulators verify whether feedstocks come from established cropland and whether local practices pose any real risk of land conversion.

Duff argues that such an approach keeps the focus on preventing deforestation while grounding policy in observable, verifiable facts —not in global economic guesses.

Farm-Level Takeaway: Duff says farmers and ethanol producers would benefit from a risk-based ILUC system that protects forests without relying on speculative modeling.
Tony St. James, RFD-TV Markets Specialist
Related Stories
Texas livestock producers face a heightened biosecurity threat as New World screwworm detections in northern Mexico coincide with FDA approval of the first topical treatment.
“The Expanding Access to Risk Protection (EARP) Final Rule streamlines requirements across multiple crops, responds to producer feedback, and strengthens USDA’s commitment to putting America’s farmers first,” said the USDA.
Rep. Michelle Fischbach shares her appreciation for rural communities and outlines how the Working Families Tax Cut is aimed to support farm families on RFD-TV’s Champions of Rural America.
While the 2018 Farm Bill received an extension under the “One, Big, Beautiful Bill” Act, the National Pork Producers Council wants lawmakers to do more to support the sector.
Strong plant output and rising exports contrast with softer domestic blending demand, suggesting margins are poised for volatility.
WTO gauges point to agricultural raw materials trade growing more slowly than overall goods, reinforcing the need to manage export risk and monitor policy shifts closely.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Mold damage is tightening China’s corn supplies, supporting higher prices and creating potential demand for alternative feed grains in early 2026.
The new rule removes prevented-plant buy-up coverage, prompting strong objections from farm groups concerned about added risk exposure.
Tight Credit, Strong Yields Define Early December Agriculture
Lawmakers and experts react to the Administration’s long-awaited announcement of “bridge” aid to stabilize farms and offset 2025 losses until expanded safety-net programs begin in 2026.
Southern producers head into 2026 with thin margins, tighter credit, and rising agronomic risks despite scattered yield improvements.
Record yields and exceptionally low BCFM strengthen U.S. corn’s competitive position in global markets.