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
A new proposal from the Federal Aviation Administration (FAA) could transform how farmers use drones, allowing commercial operators to fly beyond their visual line of sight.
October 14, 2025 01:51 PM
·
Expect choppier basis and wider bids — hedge earlier, keep logistics flexible, and watch Argentina and India headlines for near-term opportunities.
October 14, 2025 12:37 PM
·
Even in this strong market, some beef producers are leaving money on the table by not following proven marketing practices.
October 14, 2025 12:03 PM
·
President Trump is expected to press Argentina to take a tougher stance on China in exchange for political and economic support.
October 14, 2025 11:12 AM
·
Treat storage as risk management and logistics, and budget to break even since export growth is unlikely to absorb bigger U.S. corn and soybean crops.
October 13, 2025 04:34 PM
·
For rural borrowers, freeing up community-bank balance sheets could mean steadier home loans, operating lines, and ag real-estate financing as winter planning ramps up.
October 13, 2025 04:08 PM
·
The FAA’s proposed rule to allow drones to operate beyond visual line of sight (BVLOS) could soon revolutionize how farmers and ranchers manage their land.
October 13, 2025 03:39 PM
·
Nick Andersen, Nationwide’s VP of Agribusiness Claims, shares tips for managing weather-related risks in agriculture using their new Hail and Wind Alert Program.
October 13, 2025 01:57 PM
·
President Trump has long supported a direct line from Alberta’s oil fields to the Midwest.
October 13, 2025 01:21 PM
·
