Iowa Corn Growers Disappointed in GREET Model Update

An announcement this week by the U.S. Department of Treasury regarding the final guidance on eligibility for the 40B Sustainable Aviation Fuel production tax credit enacted in the Inflation Reduction Act was met with concern from Iowa Corn Growers Association leaders. This announcement not only limits corn-based ethanol's contribution to the decarbonization of the aviation sector, but also requires farmers to bundle cover crops, no till, and enhanced efficiency nitrogen practices, which may not be practical for all landscapes and acres.

"While it is positive to see for the first time ever climate smart farming practices included in this guidance, the fact that these practices are not inclusive of what most farmers are doing combined with the requirement the practices that are included must be bundled will exclude most corn from eligibility for this credit," said Jolene Riessen, Iowa Corn Growers Association President, and a farmer from Ida Grove. "It will be imperative under the 45Z ethanol production credit that takes effect January 1, 2025, to be more expansive across all types of farming practices and allow a grower to not have to bundle to truly allow corn to have access to the Sustainable Aviation Fuel market."

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 cycle of biofuels.

The National Corn Growers Association has 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 corn growers question the Biden administration's commitment to using ethanol as a climate solution.

The Iowa Corn Growers Association will continue to work closely with National Corn Growers Association to increase their advocacy efforts to improve the changes Treasury makes to the 45Z model as the Biden administration focuses on the next phase of the Inflation Reduction Act related to biofuel production.

For More Information:

Rachel Zumbach, Public Relations Manager, [email protected], 515-225-9242