Cash Strategist 5-8-2024

The Biden administration last week gave guidance on its sustainable aviation fuel (SAF) tax credits that have been long awaited by both corn growers and environmentalists. We've been told since February that an announcement was expected, and it was delayed several times between then and now. Such is the world of politics. While the announcement is a step in the right direction, it may have brought about more questions than answers. Here's what we know so far.

The bottom line for corn growers is that corn-based ethanol will be allowed to qualify for the tax credit program. This is a win for an industry that has been losing global market share to South America for the past several years.

According to the policy, there are three stipulations to qualification. These...