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
From tariff talks in Europe to SCOTUS uncertainty and rising farm losses, analysts say policy and global supply will shape grain markets in the year ahead.
Large Brazilian crops heighten downside price risk if the weather allows production to reach projected levels.
Ethanol and corn groups are not hiding their disappointment over new reports that the bill to allow year-round E15 sales failed as Congress forges ahead on government funding, with another shutdown looming.
While row crops are expected to see softer impacts, analysts say severe weather of this magnitude will not be as kind to cattle producers.
Dairy farmer and Discover Ag co-host Tara Vander Dussen joined us to discuss the Whole Milk for Healthy Kids Act, her experience at the signing, and what’s next for her family and farm.
The Farm Bureau is making an urgent call to Congress for more farm support. Colton Lacina with Farmers National Company joined us to discuss farmland values and how market dynamics for the year ahead reflect stabilization rather than collapse.

LATEST STORIES BY THIS AUTHOR:

Alan Bjerga with the National Milk Producers Federation joined us to review new policies and regulations supporting the dairy industry and what they mean for the year ahead.
Despite rising costs and growing food insecurity, meat demand remained strong in 2025 as higher-income consumers offset cutbacks elsewhere. Economists break down the K-shaped economy, upcoming USDA cattle reports, livestock production outlooks, and renewed debate over beef imports and country-of-origin labeling heading into 2026.
Corn growers are turning to ethanol, E15 expansion, and export markets to help absorb record supplies and stabilize prices. Farm leaders discuss low-carbon ethanol demand, flex-fuel vehicle challenges, input costs, and the role of USMCA as producers look for market relief in the year ahead.
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.