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
Dr. Peter Beetham with Cibus joins us to discuss the Supreme Court review of a case about glyphosate use, its potential impact on Bayer and Roundup, farmers who use the products, and the ag industry as a whole.
April 27, 2026 03:18 PM
·
Shaun Haney joined us to discuss rising concerns over farmland ownership in Canada, actions being considered by provinces and farm groups, and the potential impacts of tighter regulations.
April 27, 2026 01:21 PM
·
U.S. Soybean Export Council CEO Jim Sutter joins us to discuss the impact of new trade development funding for U.S. soy.
April 27, 2026 01:08 PM
·
Diversified risk tools help protect farm income.
April 26, 2026 03:00 PM
·
The Supreme Court’s ruling could affect pesticide warning claims well beyond Roundup. Richard Gupton with the Ag Retailers Association joins us to explain the importance of federal pesticide labeling standards and discuss the potential impact on the ag industry and supply chain.
April 25, 2026 07:00 PM
·
Farm Credit’s Christy Seyfert joined us to discuss the ag industry’s push for swift Farm Bill action as it heads toward a House vote.
April 24, 2026 03:28 PM
·
