Regenerative Rule Opens Biofuel Premium Door for Farmers

The new rule allows eligible growers to document conservation practices for potential access to lower-carbon biofuel markets.

Farmland producing ethanol for the oil and gas industry. Railroad tankers cars lined up near a ethanol plant at sunset_Photo by photogrfx via AdobeStock_496174713.png

Photo by photogrfx via Adobe Stock

WASHINGTON, D.C. (RFD News) — Farmers may soon have a clearer way to turn conservation practices into biofuel market premiums under a new USDA regenerative feedstock rule.

USDA says the final rule connects corn, soybeans, sorghum, and spring canola to biofuel markets through field-level carbon intensity scoring, traceability, recordkeeping, auditing, and verification standards.

The agency is also updating its Feedstock Carbon Intensity Calculator. Producers can use it to quantify practices such as cover crops, improved nutrient management, no-till, and reduced tillage when marketing eligible feedstocks.

The pitch is simple. Instead of only cutting costs through better soil and water management, growers could document those practices and sell crops into fuel markets that value lower-carbon feedstocks.

USDA says U.S. farmers already produce about 6 billion bushels of corn and 1.8 billion bushels of soybeans for biofuel use each year. The question now is how easily farms can turn paperwork into premiums.


Farm-Level Takeaway: Producers should track biofuel feedstock rules, as verified practices can affect premiums, records, and crop marketing options.
Tony St. James, RFD News Markets Specialist

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.

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