Two key factors determine the fate of biofuel tax credits

Senate Majority Leader John Thune says the future of biofuel tax credits, including those for sustainable aviation fuel and biodiesel, will come down to two key factors: getting enough votes and finding the right energy strategy.

“As we work through reconciliation, there’ll be some give and take, and obviously, conversations around some of the energy policies and provisions that are in place today. I think most of us up here agree that an ‘all of the above’ energy strategy when it comes to American energy’s the right one, but, at the end of the day, it’s about making America energy, not only energy independent, but energy dominant.”

Four Senate Republicans recently urged Thune to take a careful approach when reviewing tax incentives from the Inflation Reduction Act. Many in the party want to scale back clean energy credits to help pay for extending the 2017 tax cuts, which were passed under President trump’s first term.

Related Stories
Brooks York with AgriSompo joined us with his outlook on crop insurance and risk management following the recent winter storm that tore through most of the United States, including the Midwest.
Payment totals alone do not show financial stress — production costs and net losses complete the picture.
Year-round E15 remains on the table, but procedural caution and competing regional interests pushed action into a slower, negotiated path.
A mid-January winter storm delivered snow, ice, and extreme cold to a broad swath of the U.S., disrupting transportation, stressing livestock systems, and adding cost and complexity to winter farm operations as producers look toward spring.
Heavier weights and strong late-year slaughter supported December production, but lower annual totals highlight ongoing supply tightness heading into 2026.

LATEST STORIES BY THIS AUTHOR:

From rising trade tensions in Europe to a pending Supreme Court decision on tariffs and shifting demand from China, global trade policy spearheaded by President Donald Trump continues to shape the outlook for U.S. agriculture—adding uncertainty as farmers navigate another volatile year.
The Surface Transportation Board rejects the proposed Norfolk Southern–Union Pacific merger, prompting concerns from agricultural shippers about rail consolidation, service reliability, and higher transportation costs.
Midland County Livestock Association President Brandon Mitchell reflects on another strong year for the event, including a premium sale that once again topped the million-dollar mark.
The Midland County Junior Livestock Show in West Texas features a competitive steer showcase highlighting top-quality cattle and the accomplishments of driven youth exhibitors.
CoBank Knowledge Exchange’s Jeff Johnston shares the group’s positive perspective on expanding data centers into rural areas and weighs the risks and rewards for those communities.
Farm CPA Paul Neiffer discusses how January’s WASDE report could impact ARC and PLC payments and updates on disaster relief programs as farmers navigate a challenging market environment.