Watertown, Wis. [May 1, 2024] – Wisconsin corn farmers are disappointed by the announcement from the U.S. Department of Treasury this week limiting corn-based ethanol’s contribution to the decarbonization of the aviation sector, sustainable aviation fuel (SAF), through the 40B tax credits.
The update to the Department of Energy’s Argonne GREET model stated that corn- based ethanol must be grown with additional on-farm conservation practices to apply for tax credits available in the Inflation Reduction Act (IRA).
Among the updates made to GREET include measurements involving land use changes related to commodity production. The changes, which are not justified, negatively impact the carbon scores of ethanol making it more difficult for corn to qualify as a feedstock. The updated model will also require farmers to use no-till practices, enhanced efficient fertilizers and cover crops, which is not practical for all acres of the large and varied geographic region in which corn is grown.
“Wisconsin farmers have been implementing farming practices on their own farms to suit the needs of their land and crops, ” said James Giese, Wisconsin Corn Grower Association President, and Alma Center farmer. “Wisconsin farmland changes with the landscape of our state and to enact rules that can impede on practicality and needs may deter potential opportunities.”
The National Corn Growers Association (NCGA) shares the same frustration on the announcement.
“We are deeply disappointed that this updated model requires farmers to implement environmental practices that are not practical for all acres of the large and varied geographic region in which corn is grown,” said Minnesota farmer and NCGA President Harold Wolle. “This requirement in GREET will significantly hinder the chances corn growers have in accessing the sustainable aviation fuel market, even as higher blends of corn ethanol offer great promise in the country’s fight against greenhouse gas emissions and climate change.”
The Inflation Reduction Act, passed in 2022, allocates tax credits for biofuels that can demonstrate that they cut greenhouse gas emissions by 50% or more. After the law was passed, Treasury and EPA were charged with choosing a model that would measure emissions throughout the life of biofuels.
Corn Growers have been at the forefront of this issue, making a case about how ethanol can help the aviation sector meet the nation’s environmental goals. But recent developments have made growers question the Biden administration’s commitment to using ethanol as a climate solution.
Wisconsin Corn serves the state’s corn growers through the Wisconsin Corn Promotion Board (WCPB) and Wisconsin Corn Growers Association (WCGA). The WCPB utilizes checkoff funds to develop and defend markets, fund research and provide education about corn and corn products. WCGA is a united, grassroots-driven member organization representing growers from across Wisconsin on important state and national agricultural issues to increase member profitability and opportunity. For more information, visit wicorn.org.
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