NASHVILLE, Tenn. (RFD NEWS) — Federal guidance on the 45Z Clean Fuel Production Tax Credit now more clearly steers biofuel incentives toward U.S.-grown crops, strengthening demand signals for domestic agriculture while narrowing eligibility for imported alternatives. Updated Treasury proposals implement changes enacted in the One Big Beautiful Bill Act (OBBBA) and clarify how the credit will function through 2029.
The revised guidance, to be published Wednesday in the Federal Register, prioritizes North American feedstocks, including U.S. soybeans and canola, while limiting eligibility for fuels made from imported waste oils such as used cooking oil and tallow. Industry groups say that change realigns biofuel policy with farm production rather than overseas sourcing.
A key shift is the removal of indirect land use change penalties from carbon scoring. That adjustment materially improves the economics for soy-based biofuels, effectively increasing the value of the credit and expanding eligibility across more oilseed pathways.
The update also underscores that 45Z works best alongside a strong Renewable Fuel Standard. Without complementary blending targets, the tax credit alone may not fully translate into sustained demand growth.
Farm-Level Takeaway: Clearer 45Z rules favor U.S. oilseeds, but final RFS volumes remain critical to locking in demand.
Tony St. James, RFD NEWS Markets Specialist
National Pork Board Chief Sustainability Officer Jamie Burr shares a closer look at the Pork Checkoff’s Pork Cares Farm Impact Report, a research program to increase trust in the pork supply chain.
November 17, 2025 02:03 PM
·
Brooks York with Agrisompo joined us on Monday’s Market Day Report with some guidance on how producers can navigate their crop insurance claims for unsold grain crops.
November 17, 2025 01:46 PM
·
For many farm businesses, property taxes on business assets have become a significant and highly visible expense, threatening liquidity, discouraging investment, and creating a disproportionate burden when compared to other industries.
November 17, 2025 01:34 PM
·
Ethanol markets remain mixed — weaker production and blend rates are being partially balanced by stronger exports as winter demand patterns take shape.
November 17, 2025 01:24 PM
·
Tariff relief may soften grocery prices, but it also intensifies competition for U.S. fruit, vegetable, and beef producers as cheaper imports regain market share.
November 17, 2025 01:20 PM
·
Strong U.S. yields and steady demand leave most major crops well supplied, keeping price pressure in place unless usage strengthens or weather shifts outlooks.
November 17, 2025 01:17 PM
·
